Algorithmic Trading Technology and Strategy Research on Financial Markets

Abstract

Due to the financial digitalization, the human intervention in many operations both functional and those aimed to make profit in the market are likely to be substituted by algorithms and automated processes. This thesis lays the foundations of algorithmic trading developing a framework to automate the whole process of trading financial assets. Also, it researches trading strategies and the real potential to make profit. The framework consists of separated functional modules to acquire market data, to provide performance ratios and plot visualizations in the research and develop of trading strategies and to integrate these strategies with the stock exchange, allowing the automated communication in between. The framework developed, proves the power of the present and future relationship between finance and digital technology. However, exploiting market inefficiencies through trading liquid assets, is a daunting challenge that requires an arms race of ideas and strategies but, for sure, it will continue pushing the boundaries of the technology.