Controlling Complexity in Trading Systems.

The development of trading systems can achieve high degrees of complexity. The process of simulating a particular strategy, termed backtesting can be triggered in several stages of optimization, and monitored at various levels of automation.

Developers always seek out new strategies or logical combinations. A system composed of a set of modules, which are interconnected, could trigger many situations.

The algorithmic complexity that can arise from this process is very high and if not taken care of organizing the evolution of codes, it is possible that errors can be observed as recorded in Knight Capital.

Modules that, being in great quantity and interconnected, go through changes at different times, and, may generate imbalances in the flow of information.