HFT Strategies and the Respective Holding Periods of the Strategies

This chapter tests the feasibility of HFT strategies using different comparative ratios in Finnish stock market. This chapter considers strategies of the highest frequency, with one minute or less. “Holding period is for Investm of time during which an investment is attributable to a particular investor”. This chapter describes on different HFT strategies and their respective holding positions. This chapter looks into a class frequency strategies known as the market microstructure models, exceeding 10 minutes. Strategies capturing abnormal returns around ad hoc events such announcements of economic figures, best with positions held from 30 minutes to Other strategies collectively known day. Fig. 8.1 are details of the FINalternatives July 2009 Technology and Trading Survey responses to the question “What position-holding time qualifies as high frequency trading?” An overwhelming 86 percent of respondents in the FINalternatives frequency trading” referred strictly to holding periods of one day or less. positions in market microstructure trading in duration from seconds to hours. According to Lyons, the field of market microstructure encompasses two general types of is also known as Inventory trading or liquidity provision. Market making/Inventory themselves with the order flow resulting from dealer book microstructure trading is to extract information from the observable quote data and trade upon that extracted information in order to obtain gains.