RT Journal Article SR Electronic T1 Analysis of Binary Trading Patterns in Xetra JF The Journal of Trading FD Institutional Investor Journals SP 46 OP 60 DO 10.3905/jot.2011.6.1.046 VO 6 IS 1 A1 Kai-Oliver Maurer A1 Carsten Schäfer YR 2010 UL https://pm-research.com/content/6/1/46.abstract AB 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