Algorithmic Adventures: Futures Discovery EP 11

Algorithmic Adventures: Navigating the World of Order Book Strategies in Futures Trading

Hi, and welcome to Futures Discovery at John Lothian News. I am your host, Corties Draper. On this program, we’ll embark on the fascinating world of futures and learn from top professionals in the field.

Today, we’re immersing ourselves in a pivotal episode focused on Algorithmic Adventures: Navigating the World of Order Book Strategies in Futures Trading. It’s not merely about numbers and charts; it’s about deciphering the dynamic landscape of financial trading. Join us as we delve into the intricacies of reading your statement as a professional in the futures market and unravel the secrets behind successful algorithmic strategies.

Navigating the World of Order Book Strategies in Futures Trading

In this episode, we’re peeling back the layers of order book algorithms, the powerhouse driving modern futures trading. These algorithms are not just tools; they’re the intricate engines shaping the landscape of financial markets. From the fundamental “Limit Orders,” allowing traders to specify their desired trade price, to the swift execution of “Market Orders” at the prevailing market price—these are the building blocks of sophisticated trading strategies.

But it doesn’t stop there. We’ll delve into the strategic realm of “VWAP,” or Volume-Weighted Average Price. This algorithm seeks to achieve an average price by considering trading volume at different price levels. It’s a sophisticated approach employed by many institutional traders to minimize market impact.

And then there’s the thrilling world of “Sniping Algorithms.” Imagine rapid-fire, precision trading in the final moments before a market closes—a high-stakes game designed to capitalize on last-second price movements. It’s a strategy that demands not only speed but strategic finesse.

Challenges of algorithmic trading

However, as with any powerful tool, challenges abound. We’ll be addressing concerns about market manipulation, transparency issues, and the ever-present risk of rapid market crashes. It’s essential to understand the potential pitfalls that come with the use of these powerful algorithms.

So, buckle up as we traverse the fast-paced algorithmic landscape of futures markets. By the end of this episode, you’ll not only understand the basics but be armed with insights into the strategic and sometimes treacherous world of algorithmic adventures.

This is just a brief overview of algorithmic adventures and navigating the world of order book strategies in futures trading. To obtain a more insightful perspective on this mathematical aspect of the futures market, let’s engage in a conversation with Brian Peterson, the owner of windy financial and Managing Member at Braverock Investments, who possesses a wealth of experience in the futures industry.

00:00:00 – Introduction
00:00:34 – Understanding Order Book Matching Strategies
00:01:18 – Exploring FIFO and Pro Rata
00:01:59 – Diving into VWAP and Sniping Algorithms
00:02:38 – Addressing Challenges and Risks
00:03:13 – Conversation with Brian Peterson
00:03:51 – Understanding Order Book Matching Algorithms
00:04:46 – Understanding Limit and Market Orders
00:07:07 – Insights into VWAP and Sniping Algorithms
00:14:24 – Understanding FIFO and Pro Rata Algorithms
00:16:32 – Implications of Different Matching Algorithms
00:19:45 – Introduction
00:19:53 – Market Manipulation and Market Makers
00:20:19 – Understanding Market Terms
00:21:08 – Market Manipulation Tactics
00:22:36 – Risk Management in Algorithmic Trading
00:24:47 – Emerging Trends in Algorithmic Trading
00:27:38 – Advice for Newcomers in Algorithmic Trading
00:29:36 – Key Takeaways from Career in Algorithmic Trading


A black and white image of a plane flying in the sky.


A young man in a white polo shirt standing in front of a purple background.

Corties Draper

Roosevelt University student, CBOT Clearing Corporation Foundation Honors Fellow and captain of the Roosevelt football team

Full Episodes

The role of the FCM: Futures Discovery EP 10

The role of the FCM: Futures Discovery EP 10

In episode 10 of Futures Discovery, we’re immersing ourselves in a detailed exploration of the pivotal role of Futures Commission Merchants, commonly known as FCMs. These financial intermediaries play a crucial role in facilitating futures and options trading, serving as a linchpin in the complex web of derivative markets. Understanding the intricate responsibilities and functions of FCMs is essential for navigating the dynamic landscape of modern financial systems.


Physical Delivery VS Cash Settlement: Futures Discovery EP 7

Physical Delivery VS Cash Settlement: Futures Discovery EP 7

In episode 7 of Futures Discovery, we’re delving into the fundamental aspect of futures trading—the Settlement Showdown: Physical Delivery versus Cash Settlement. In the dynamic world of futures trading, how contracts are settled is a game-changer, influencing strategies and risks alike. Join me as we explore the two primary methods that define this landscape: Physical Delivery and Cash Settlement.

Regulation & Do You Need to be Registered: Futures Discovery EP 6

Regulation & Do You Need to be Registered: Futures Discovery EP 6

In episode 6 of Futures Discovery, we’re diving head first into a crucial topic that affects every trader’s journey in the world of futures trading – “Regulation & Do You Need to be Registered.” Buckle up as we unravel the intricate web of rules and regulations that shape the landscape of the futures market.

Pin It on Pinterest

Share This Story