Turning the Key

Abstract

All the pieces are ready to put together a hybrid trading system, but some final items must be processed before it can be turned. Implementation issues to address include: 1. development platform, 2. implementation products, and 3. data vendor. The hybrid trading system presented is composed of 4 subsystems: long entry, short entry, exit long, exit short. The long and short entry subsystems are made up of rules that predict the direction of the S&P 500 for the following week. Hybrid systems are a state-of-the art technology that allows inventors to exploit the inefficiencies that still exist in the market while still trading to one's own style.