(1) Independent Traders - Some traders wants to test there strategies using HFT structure, after testing with basic tools.
They need a flexible HFT system with a mechanism for easily integration of various strategies within the system, with a full ability to add features that they need, with a "personal developer" that give them the right support they need.
(2) Setup A business - If you ever run an HFT System , you know that first you have to set up the legal and administrative structure and then set up the physical trading infrastructure ( hardware , server hosting, collocation servers - Especially in HFT you want to locate your servers near an Internet backbone as close as possible to the exchange on which your trades will be executed) , and you already spent around 100,000$ in the good case , without even start developing any system yet.Recruiting a development team will cost you extra million $ and you still have no profit yet.
I recommend to my clients:
(1) Establish your business - First Establish your business :Get a freelance talent translates into cutting-edge skills and fresh perspectives to help get jobs done faster and better.Freelancers can help complete projects quickly, without the cost of additional overhead that full-time employees require.
By finding the right professional programmer that already build an HFT infrastructure before ,you start a project right away and Give your business a competitive edge , instead of wasting big amount of money and weeks or months to hire people, train them, and provide the support they need. And if talking about HFT system that requires major capital investments , the start-up process can be even more difficult.
(2) Building one step at a time - I believe in Building one step at a time ,and go on to the next step after the previous one have been tested successfully.To start small, with limited investment and gradually scale up the business as you gain know-how and become profitable.It will be much easier to get more capital invested in your system after you have A simple HFT system with basic strategy that is working well and making some money. After you get more capital , you can invest in finding good physicists, mathematicians to get you a better strategies and if needed find some developers to add/optimize more features in your system.
(3) Focus in the core business - As mentioned before , In the 'Algo trading' business there is much more then development .I believe that my clients should Focus in there core business and let me do the development and to find the technical solution for them .As you know Every business has limited resources, and every manager has limited time and attention. A Good freelancer can help managers set their priorities more clearly.
(4) Risk management - Every business investment carries a certain amount of risk. Outsourcing providers assume and manage this risk for you, and they generally are much better at deciding how to avoid risk in their areas of expertise
Moris oz
Algorithmic trading Consulting and development
www.caapitech.com