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A Modern Paradigm for Algorithmic Trading

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  • James B. Glattfelder
  • Thomas Houweling
  • Richard B. Olsen

Abstract

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.

Suggested Citation

  • James B. Glattfelder & Thomas Houweling & Richard B. Olsen, 2025. "A Modern Paradigm for Algorithmic Trading," Papers 2501.06032, arXiv.org.
    • Handle: RePEc:arx:papers:2501.06032
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    References listed on IDEAS

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