Designing the architecture of an automated trading system (ATS) is a critical step in the development process. In this article, we'll discuss the key components of an ATS architecture and how to design a system that meets your trading needs.

Components of an ATS Architecture

  1. Data Feed - The data feed is the source of market data for the system. It provides real-time pricing information for the assets you're trading.

  2. Trading Engine - The trading engineis the core of the system, responsible for executing trades based on the pre-programmed trading rules.

  3. Management Module - The management module is responsible for monitoring the system's performance and managing by closing losing trades at predefined loss levels.

  4. Order Management System - The order management system is responsible for managing orders, including order placement, modification, and cancellation.

  5. Execution Platform - The execution platform is the interface between the ATS and the brokerage API, responsible for sending orders to the broker for execution.

Designing Your ATS Architecture

When designing your ATS architecture, there are several factors to consider:

  1. Trading Strategy - Your trading strategy will dictate the data feed, trading engine, and management module you'll need.

  2. Asset Class - The asset class you're trading will determine the data feed you'll need, as well as the execution platform and brokerage API you'll use.

  3. Scalability - Consider the scalability of your system, as you may need to add new assets or trading strategies in the future.

  4. Redundancy - Ensure that your system has redundancy built-in to minimize downtime and ensure continuity of service.

  5. Security - Security is critical when designing an ATS architecture, as you'll be dealing with sensitive financial information. Ensure that your system is secure and compliant with relevant regulations.

Conclusion

Designing the architecture of an automated trading system is a critical step in the development process. By understanding the key components of an ATS architecture and considering the factors outlined above, you can design a system that meets your trading needs and helps you achieve your financial goals.