What has programmatic trading changed?

For a relatively mature trader, the entry point of programmatic is often to choose the path of objectifying and programming their existing system first.For a novice or a trader whose existing system is difficult to quantify, a programmatic entry point is to start by imitating some simple but classic models.

The number of programmatic traders has exploded in the past two years, and the scale of assets under management has grown exponentially, and has become an important part of the market that cannot be ignored.

The editor noticed that in the past one or two years, the intraday fluctuations of the index tended to be violent, and small-scale cliff-like reversals often occurred, especially at integer time points around 5 minutes and 10 minutes, which is different from 5 minutes and 15 minutes.The level K-line has become an inseparable analysis indicator used by the market.

From this point of view, the impact of the prevalence of program trading on stock index futures should be taken seriously, which directly reflects the changes in the structure of market participants.

On the other hand, programmatic trading has not changed the way investors participate in the market. Programmatic trading is only a tool to realize the investment logic behind trading behavior, which can improve our trading efficiency and trading capabilities.But it does not guide market behavior.

Even if the programmatic trading adopts the system operation, it still learns and improves under the "rules" designed by the system developer, and the final performance still depends on the statistical probability.Therefore, there are still investors behind programmatic trading. If the characteristics of market transactions have really changed, it is more important to consider whether investors' understanding and expectations of the market have changed significantly.

Many people have mentioned the arbitrage procedure. Intuitively, arbitrage trading has completely changed the spread of stock index futures. Is this an impact?

The editor also disagrees with this point of view. The emergence of programmatic trading has rapidly lowered the threshold for participating in arbitrage, accelerating the market's maturation, rather than changing the market.

The most fundamental value of the trading system is to use a clear and consistent principle to allow us to better seize those probabilistic opportunities in an uncertain world, and to make money more stably and continuously. It should be a dynamicThe open system is constantly changing with different periods, different varieties and different economic environments.