An Introduction to Algorithmic Trading: Opportunities & Challenges within the Systematic Trading Industry

Abstract

In what follows we present systematic trading and discuss the benefits. We evaluate contemporary trends, the opportunities arising from machine learning and the operational cost challenges faced, leveraging on the history of the industry to demonstrate why maintaining a competitive edge is paramount to its continued success.

Keywords: Algorithmic Trading, Systematic Trading, Efficient Market Hypothesis, Trading Systems, Fundamental Analysis, Technical Analysis, Machine Learning, Social Media, Alternative Reference Data, Operational Costs, Hedge Funds, Assets Under Management, High Frequency Trading, Trade Execution, Market Predic

JEL Classification: G02, G10, G11, G14, G15, G20