Introducing the HFTE Model: A Multi-Species Predator Prey Ecosystem for High Frequency Quantitative Financial Strategies
18 Pages Posted: 6 Apr 2017
Date Written: April 4, 2017
In this paper we take a new approach to studying electronic trading & systemic risk by introducing the HFTE model. We specify an approach in which agents interact through a topological structure designed to address the complexity demands of most common high frequency strategies but designed randomly at inception. The primitive strategy ecosystem is then studied through a simplified genetic algorithm. The results open up intriguing social and regulatory implications with the helping doors of Mathematical Biology & Game Theory which specific mirror points have been summarized for the sake of illustrating the puzzling findings.
Keywords: HFTE Model, High Frequency Financial Funnel, HFFF, Multi-Target Tracking, Stability of Financial Systems, Data Analysis and Patterns in Data, Electronic Trading, Systemic Risk, High Frequency Trading, Game Theory, Machine Learning, Predator Prey Models
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