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Learn Algorithmic Trading
book

Learn Algorithmic Trading

by Sebastien Donadio, Sourav Ghosh
November 2019
Beginner
394 pages
10h 31m
English
Packt Publishing
Content preview from Learn Algorithmic Trading

Signal discovery by other participants

In the same way that we are continuously in the process of optimizing existing trading signal parameters as well as searching for new trading signals, all market participants are also searching for new trading signals. Often other market participants also discover the same trading signals that our trading strategies are using to be profitable. This can cause the market participants to react in a couple of different ways, one way would be to change their trading strategy's order flow to disguise their intent and make the trading signal no longer profitable for us.

Another reaction can be that these participants start using the same trading signal to run trading strategies very similar to our own, thus ...

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Publisher Resources

ISBN: 9781789348347