Machine Learning and High Frequency Trading (HFT) getting popular these days for many reasons:
A. No human intervention where emotions are kept aside. Which eliminates human errors.
B. Precision based decision making.
C. Capable to react within milli-seconds.
D. Saves huge man power costs.
E. Minimum observation required.
Lot of research and IT development efforts are needed to get to perfection. Constant optimization are needed to keep up with market constant changes.
A lot of synchronization required between various software service providers through API which talks to each other. The combination of various software could be different and the choice the management makes which depends on skill set, development efforts, maintenance and individual investor’s customization capabilities.
So there are no physical software which gets installed on an investors computer. The software sits on top of investors account and executes it from a cloud based server with pre-set parameters the investors decide. And with the options to change the parameters based on investors appetite of “gain to risk” tolerance.
On the front end execution we have chosen “Interactive Broker” for few reasons :
A. Low commission. Resulting into higher ROI as compared to other brokers.
B. Connectivity with other software are easy and user friendly with API’s.