Financial Trading Technological Advancements: Systematic Review
DOI:
https://doi.org/10.15407/scine21.03.016Keywords:
Finance, Financial Market, FinTech, Artificial Intelligence, Algorithmic Trading, Machine Learning, Deep LearningAbstract
Introduction. Transformations have drastically reshaped the landscape of financial markets, making it necessary
to reassess current knowledge and future trends of financial trading technologies (FTT).
Problem Statement. The use of a variety of FTT requires to structure them depending on the level of machine
technology and the level of trading strategy.
Purpose. To investigate the technological advancements in financial trading to assess the quality of scientific
research and outline promising areas for further development.
Materials and Methods. By following the PRISMA 2020 standard, this systematic review covers 130 research
articles (for 2013—2023) on FTT, focusing on technologies used. An innovative Four-Quadrant Theory was used
to analyze the synergy between machine technology and trading strategy, which is based on 2 dimensions’ total of
8 factors.
Results. Key financial technologies include algorithmic trading, machine learning, and deep learning, each
with unique traits: speed, automation, adaptability, and complex pattern recognition. These technologies have
improved market efficiency, risk management, and personalized trading strategies. The Four-Quadrant Theory
offers a structured approach to understanding the interaction between machine technology and trading strategies and divides interactions into four quadrants.
Conclusions. The transformative impact of technological advancements in financial trading is evident. The main
technologies have substantially improved market liquidity, trading efficiency, and risk management practices. The
Four-Quadrant Theory lets to suggests that further exploration could lead to more intelligent, diversifi ed trading systems, with data-driven decision-making and artificial intelligence playing pivotal roles. The importance of hybrid technology, scientific assessment of performance and the cutting-edge development of autonomous intelligent trading systems for the further study of financial trading technology were underscored.
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