2007 Mar 19 - Mon
Be a Price Maker, Not a Price Taker
Benson Shapiro wrote an article at the Harvard Business School called commodity Busters: Be a Price Maker, Not a Price
Taker. In the article, he very elegantly writes about the importance of differentiating oneself from the
competition. Rather than competing head to head, it is wise to pick a niche and become a monopolist in ones own
right.
He provides a series of steps for doing it right:
- Create customer value
- Choose your customers
- Be different
- keep it simple
- Determine customer value
- Deliver on your promise
- Be courageous
[/Personal/Business]
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Low Latency Data and Trades
SmartQuant was recently purchased
by QuantHouse. Quanthouse
provides low latency data and is using the SmartQuant framework in their product line.
That is all well and good, but if one has low latency data, one should have good
executions as well, particularily if one is performing automated, high frequency trading.
So what does one do: find a low latency data source and a separate excellent execution
broker, or does one find a provider who can do both? I suppose there are organizations who
only need the data side of things, but I'm looking for both data and execution.
I'm currently using IQFeed for data and Interactive Brokers for execution. I think I can
do better than that. I'm currently looking at:
- Genesis Securities: appear strong on
equities but weak on futures coverage, and have a QuantDeveloper API
- RedSky Financial: appear
to be be strong on both futures and equities, but I don't think it has a QuantDeveloper
API link (I'd have to write one)
- Photon Trader: strong on
futures, and may have a QuantDeveloper API link
[/Trading/AutomatedTrading]
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