Hello there:
I just red on the internet that they don't use python for HFT, I was wondering… what language do hedge funds use when they do HFT?? do they use special brokers??
Is there any courses related to HFT on quantra??
Thanks
Hi Ghery,
Since speed is the top priority for HFT firms, the most preferred choice is C++.
However, for prototyping and strategy research, python, R, MATLAB are commonly used.
Most of the HFTs are either self-clearing or associated with prime brokers of the exchange with co-location servers.
Quantra doesn't have any courses on HFT.
You can read this well-written blog -Basics of High Frequency Trading, by QuantInsti to gain basic knowledge on high frequency trading.
Thank you
Hello,
So does that mean that C++ is generally faster than python?? I am asking this because, I like to trade supervolatile stocks like PIXY or CPOP, and speed is also my top priority…how fast is Ibridgepy in python compared to C++?? do they have some special APIs ??
I imagine , that they have huge position sizes… since most of the securities are not that volatile…and the get in and out in miliseconds… what are the typical returns of these trades that last miliseconds?? (I think it should be a fraction of 1 percent… but i might be wrong you tell me)
thanks to you
Fortunately, Ibridgepy with interactive brokers seems to be fast enough at least for now…
Hi Ghery,
Yes, C++ is faster than python. However, the volatility has nothing to do with the choice of programming language. It's about the frequency of trade. Since high-frequency algorithms send large amounts of orders in a fraction of seconds, speed would be the critical factor in choosing the programming language.
Regarding the typical returns per trade of HFT, as you mentioned it is a fraction of a percentage. I have found an interesting paper - The Trading Profits of High Frequency Traders. Please have a look.
Thank you