TY - JOUR T1 - Analysis of Binary Trading Patterns in Xetra JF - The Journal of Trading SP - 46 LP - 60 DO - 10.3905/jot.2011.6.1.046 VL - 6 IS - 1 AU - Kai-Oliver Maurer AU - Carsten Schäfer Y1 - 2010/12/31 UR - https://pm-research.com/content/6/1/46.abstract N2 - Maurer and Schäfer propose the Shannon entropy as an appropriate one-dimensional measure of behavioral trading patterns in financial markets. The concept is applied to the illustrative example of algorithmic versus non-algorithmic trading and empirical data from the Deutsche Börse electronic cash equity trading system, Xetra. The results reveal pronounced differences between algorithmic and non-algorithmic traders. In particular, trading patterns of algorithmic traders exhibit a medium degree of regularity, while nonalgorithmic trading tends towards either very regular or very irregular trading patterns.TOPICS: Statistical methods, in markets ER -