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4.6. Summary
While the number-one success factor for trading systems is the presence of unique trade
selection and position management algorithms, trading/investment system innovation is
still a process. For firms that convert to product teams and process management, the first
visible sign will be that the time taken to turn concepts into launched systems falls dra-
matically. The top drivers of the process are● Top management commitment to quality.
● The use of high quality, cross-functional trading/investment system development
teams consisting of traders, financial engineers, IT professionals, and a marketing
professional. Additionally, a facilitator may be used to keep the team on track.
● A high quality new trading/investment system development process, one that
demands systematic approach to innovation—early product definition, tough go/kill
decisions points, quality of execution, and thoroughness.
● Portfolio management processes to oversee new and existing systems that compete
for scarce resources.4.6. SUMMARY