High-Frequency Trading (HFT) Strategy Simulator
Simulate basic HFT strategies to understand their mechanics and potential outcomes.
Understanding HFT and This Simulator
High-Frequency Trading (HFT) involves using powerful computer programs to execute a large number of orders in fractions of a second. HFT strategies are typically very complex, relying on speed, sophisticated algorithms, and direct market access.
This simulator provides a **simplified** environment to understand basic HFT concepts like market making. It does NOT replicate real-world market dynamics, latency issues, or order book complexities. It's designed for educational purposes only.
Key Characteristics of HFT:
- Speed: Orders are placed and canceled in microseconds.
- Volume: Many small trades, rather than a few large ones.
- Algorithms: Sophisticated computer programs identify trading opportunities.
- Short Holding Periods: Positions are often held for very brief durations.
- Low Latency: Minimizing the time it takes for data to travel and orders to execute.
Select Strategy & Input Parameters
Choose a simplified HFT strategy and configure its parameters for the simulation.
Market Making Parameters
In this simplified Market Making strategy, the simulator will try to profit from the bid-ask spread. It places a buy order (bid) slightly below the current price and a sell order (ask) slightly above. If both execute, it profits from the difference.
10 basis points = 0.1% of the price
e.g., 0.5 means price can change by up to +/- 0.5% each tick.
Simulation in Progress
Click "Start Simulation" on the previous tab to begin.
0% Complete
Live Simulation Data (Last 5 Ticks)
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Simulation Results Summary
Initial Capital:
$0.00
Final Capital:
$0.00
Total Profit/Loss:
$0.00
Total Trades Executed:
0
Simulation Details:
| Parameter | Value |
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