High-Frequency Trading (HFT) Engine

Key Components of an HFT Engine

1. Market Data Handler: This component receives and processes real-time market data.
2. Strategy Engine: This component contains the trading logic and generates buy/sell signals.
3. Order Manager: This component sends orders to the exchange and manages order states.
4. Risk Manager: This component ensures that trading activities are within predefined risk limits.

Simplified Structure

Here’s a basic outline of the HFT engine structure:

    HFT Engine
    ├── Market Data Handler
    │   └── Connect to data feed
    │   └── Process incoming data
    │   └── Update market state
    ├── Strategy Engine
    │   └── Generate trading signals
    │   └── Send signals to order manager
    ├── Order Manager
    │   └── Place orders
    │   └── Track order status
    │   └── Handle order events
    ├── Risk Manager
        └── Monitor trading limits
        └── Validate orders before execution