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A Modern Paradigm for Algorithmic Trading

2025-01-10 · James B. Glattfelder, Thomas Houweling, Richard B. Olsen

We introduce a novel framework for developing fully-automated trading model algorithms. Unlike the traditional approach, which is grounded in analytical complexity favored by most quantitative analysts, we propose a paradigm shift that embraces real-world complexity. This approach leverages key concepts relating to self-organization, emergence, complex systems theory, scaling laws, and utilizes an event-based reframing of time. In closing, we describe an example algorithm that incorporates the outlined elements, called the Delta Engine.

📄 PDF Abstract BibTeX arXiv:2501.06032

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