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An Examination of the Optimal Timing Strategy for a Slow Trader Investing in a High Frequency Trading Technology

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Figure

Figure 2: Parameter values: Iσ = 10, ϕ = 0.5, λ = 0.5, κ(α) := 1 − 0.75α, = 0.2, r = 0.05, µ = 0.02.
Figure 4: Parameter values: x = −0.5, ϕ = 0.5, λ = 0.5, σ = 0.2, r = 0.05,µ = 0.02.
Figure 6: Parameter values: Iσ = 10, ϕ = 0.5, α = 0.5, κ(α) := 1 − 0.75α, = 0.2, r = 0.05, µ = 0.02.

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