Program Trading Algorithm Model Research

With the securities market and sequencing of the trading platform development and improvement, programming trading plays a more and more important role in securities trading market in recent years. Programming trading is a progress through the computer to execute the set of programs. And this computer program is the traders thought and model of computer programming. Therefore, programming trading is dependent on computer trading platform and trading model. As the country programming trading platform development has been more perfect, so the analysis of the trading model became the key factors in programming trading.The biggest advantage of programming trading is that it is not influenced by the subjective feelings by traders completely. The computers will execution trading strategy code strictly, without any hesitation, greed, and panic and other emotional. And traders in trade are inevitable to be influenced by their own subjective feelings, thus they will miss optimal opportunity of stop losses or gains. In the process of trading, the speed of the requirements of the terror hand also is very strict. The market is rapidly changing, if order speed slow than others, so the traders may lost the best trading opportunities.While speed of the programming trading transaction is very fast, it works24hours. Programming trading is very attractive to the short term trading or high frequency trading investor. Algorithmic Trading completes the trading instructions through the computer, including the volume, the interval of the trading time and trading price.Algorithmic trading can be a branch of the programming trading in the continuous development. Therefore, putting the algorithm thought into programming trading, not only can optimize the allocation of resources, also can reduce transaction costs and gain higher returns.This paper begins with the origin of the programming trading, starting in1975, in the first of the securities market. Then gives the definition of the programming trading NYSE, programming trading has experience because of30years of development, based on the current market environment redefined the programming trading, more press close to the use of traders habits, and more suitable for the development of the market.And it introduces the developing situation of the programming trading at home and abroad, then the investors can understand the development trend of the program trading at home and abroad. Through the introduction and analysis of the advantages and application of programming trading investors can learn the reason of the favorite programming trading.At the same time, the paper introduces the trade model of the program trading, with each model principle, application rules and the shortage. And then, this paper introduces the algorithm and the common thought model algorithm model of the trade. Through the introduction of the definition of algorithmic trading and application field, investors can further understand the algorithmic trading. This is the part of the innovation parts. Based on the common algorithmic trading we improved the model, and added it to the programming trading model, then got a programmed algorithm model. The model and the end of the characteristics and programming trading model algorithm trading model characteristic, is the model of programming trading an improvement to the programming trading better capture the market information and price, obtain higher profits.