Hedge Funds Leveraging Colocation to Take on Larger Firms

Filed under: Automated Trading, Colocation

In today’s market, hedge funds are aggressively taking advantage of colocation services to take on larger investment firms and other high-frequency players. And as anyone in real estate knows, location matters.

Looking back on his 40-year career in crime, famed bank robber Willie Sutton reportedly gave this answer to the reporter who asked why he robbed banks: “That’s where the money is.”

While there is some dispute about the authenticity of this clear-eyed quote, it made sense in the 1950s, when Sutton was arrested. But if he were alive today, Sutton might be waving his Thompson machine gun in a new location: the Wall Street data center.

Automated Trading Systems and the Forex Market

Filed under: Automated Trading

A trading system is simply a set of specific rules, or parameters, governing entry and exit points. The technological advances of recent years have opened up a world of opportunity for the individual trader through the use of trading systems. For example, thanks to the internet and the PC, backtesting analysis of a trading system that would previously have taken months or years can be now done within minutes. Further, trading systems can now be fully automated – having the ability to both generate signals and execute trades automatically. Online communities of traders from all over the world, discussing and sharing strategies, are springing up and thriving.

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