Summary

In this chapter, we learned that trading system communication is key to trading. The trading system is in charge of collecting the required prices to make an informed decision. If this component is slow, it will make the trading decision slower. Gateways are technically more challenging than any of the other components because they need to deal with the communication. The communication implies that layers are handled perfectly on the computer level; that is, the computer architecture (network layer), operating system (system calls, the driver that talks to the network card, and so on), and the software itself. All of these layers must be optimized so that they have a fast trading system. Because of their level of technical complexity, it is unlikely that you will implement this communication if you have strategies for high-frequency trading. Instead, you will use a system that's been provided by experts in this domain. However, if your trading strategy is not time-sensitive, you will be able to use the information you gained from this chapter to implement communication with the exchange. 

We also talked about the communication between your trading system and exchanges. We learned how to use the Python quickfix library to simplify the time of the communication system's implementation. We used some software alongside quickfix to simulate exchanges between the initiator and the acceptor. By doing this, we learned about the workflows of trading communication systems. We are now aware of how to create a trading system and how to make this system communicate with the outside world. The last thing we need is to have confidence that the strategy will perform well on this trading system. 

In the next chapter, we will talk about another critical step when it comes to testing a trading strategy: backtesting.

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