| In continuous innovation development financial markets, financial innovation has always been with the industry’s progress, especially the new financial technology innovation which is driven by the development of computer technology. In the financial fields, the application of computer, telecommunications industrial technology and equipment that prove the financial technology whose progress are more apparent. This content is to make full use of computer technology; Program Trading is a procedural revolutionary innovation in the field of finance.Programming Trading (Program Trading), or Algorithmic Trading (Algorithmic Trading), It refers to automation trading can come true in the use of computer technology one-time deal also can focus on. Programming trading can help investors sell different stocks at the same time, Through the contrast of this article we find that the programming trading has had the fundamental transformation under computer technology’s help in the trading mode of the investment market, In Europe and the United States since the1970s, after nearly four decades’development, program trading has been recognized by most investors, Investors can deal with program trading in Chicago Mercantile Exchange in the United States New York and Chicago Board Options, Granada Alex market. Program trading accounted for about70percent of the all volume share in the U.S. But now, the majority of China investors still use traditional transactions, online, counter, telephone and other agencies. Compared to the U.S., the Chinese investors are still relatively unfamiliar with program trading; the subject has been studied on the promotion of China’s stock market program tradingThe research work done in this paper is to give a detailed description about trading ideas, modeling and empirical applications of program trading, And after reading this article, it enables the readers to understand the program trading fully, model independently, and to apply the model to the actual transaction. This article regard the invest market as a complex system, selects the card composite index, the stock index and the date line data of each trading day of NingboYunSheng stock, and carries on the statistical analysis to it. Using the wavelet noise reduction technology, obtains the information entropy technical specification. Then we select the information entropy threshold value suitably and carry on it. we can get the price trend as well as the market characteristic in corresponding information entropy target, Combining interdisciplinary knowledge, physical process modeling, investment, management of knowledge. Finally, with the help of computer science, we manifest the modeling thought by the procedure form, and use trading platform to carry on the entire computerization procedure transactionThe innovation of this paper is to use physic knowledge to solve the problem of investment transactions, and when we analysis the data, use computer technology to remove noise and spurious signals in the trading signals. This article draws the main conclusion through the modeling analysis:(1)It is necessary to extract the essence of modeling of price movements by analyzing the complex systems;(2)Program trading has a great advantage compared to traditional transactions;(3)Combination of physics, Investment ideas are very important in the investment transactions;(4)The use of Passalong effect played a significant role to increase investors’ earnings;(5)When investors programmed trading, discipline and flexibility are important factor to success. |
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