HOW DO HEDGE FUNDS KEEP THEIR CODE SECURE AND EXECUTE FASTEST POSSIBLE?

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HOW DO HEDGE FUNDS KEEP THEIR CODE SECURE AND EXECUTE FASTEST POSSIBLE?

posted Feb 13, 2016

Getting Started Hedge Fund

Hi There,

How do the Top Hedge Funds and Banks protect their Algo code when on Exchange or with Broker/Bank?

What is the best coding language for building Algo's?

What is the best and most secure and fastest way to execute the Algo?

I know some hedge funds use C++ or Python?

Not sure how they execute the orders with Exchange with protected Algo.

Kind regards

Alex

P.S. I have been looking at the ADL on TT platform for nbuilding algos easily so any feedback on that be great
https://www.tradingtechnologies.com/customize/adl/

4 responses

Any thoughts guys ?

Although Quantopian has kept details of their infrastructure confidential (understandably), it is my impression that they are running algos as virtual servers on a cloud service (Amazon?). Data is fed in, and info. goes back and forth between the server and the brokers (Interactive Brokers and Robinhood). So, your algo stays under their control (although I suppose the cloud service needs to be trusted); it isn't sent to a third party in readable form for execution, as far as I know.

As far as the best coding language, it probably doesn't matter all that much for low-frequency retail trading. Python can do vectorized computations (like MATLAB), so that's a plus. There are lots of free libraries. And plenty of help and examples out there.

thats not the question, asking what the Hedge Funds do for algo

I can speak of that they use the top tier platforms, which are very expensive and furnished by the clearing firms usually. Then top coders known in the industry are employed to pull data and hook into the platform. Some firms eventually move to developing their own platforms, using universal servers for data feed prior to developing their own if they go that far. As far as security, top pay, excellent working conditions and a bevy of lawyers in house keep algo's secure. Mark

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian.

In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.