Algorithmic Trading

Cont & Kukanov SOR Backtest

A quantitative finance research project implementing advanced algorithmic trading strategies. Focuses on order execution optimization across multiple trading venues using mathematical modeling.

Cont & Kukanov SOR Backtest
Python NumPy Pandas Matplotlib Jupyter SciPy Plotly

Overview

Implementation of the Cont-Kukanov Smart Order Router (SOR) model for optimal order execution in fragmented equity markets. This research project applies academic finance theory to practical algorithmic trading scenarios.

Key Features

  • Smart Order Routing: Algorithm to split orders across multiple trading venues
  • Cost Minimization: Optimizes execution to minimize market impact and transaction costs
  • Backtesting Framework: Historical data analysis to validate strategy performance
  • Visualization Suite: Interactive Plotly charts for execution analysis

Technical Implementation

Built with Python’s scientific computing stack: NumPy for numerical operations, Pandas for time-series data handling, SciPy for optimization, and Matplotlib/Plotly for visualization. Jupyter notebooks provide interactive analysis environment.

Research Applications

  • Optimal execution in fragmented markets
  • Transaction cost analysis (TCA)
  • Market microstructure research
  • Algorithmic trading strategy development

Interested in This Work?

Let's discuss how we can collaborate or apply similar techniques to your problems.