PT  - JOURNAL ARTICLE
AU  - Joseph A. Cerniglia
AU  - Frank J. Fabozzi
TI  - A Practitioner Perspective on Trading and the Implementation of Investment Strategies
AID  - 10.3905/jpm.2022.1.371
DP  - 2022 Jun 09
TA  - The Journal of Portfolio Management
PG  - jpm.2022.1.371
4099  - https://pm-research.com/content/early/2022/06/09/jpm.2022.1.371.short
4100  - https://pm-research.com/content/early/2022/06/09/jpm.2022.1.371.full
AB  - In this article, we discuss the fundamentals of the market structure and trading, along with how these impact the execution of investment strategies. From a practitioner perspective, we bring together this information to explore different models and processes to assist in achieving optimal execution of trading strategies. After providing a taxonomy of trading costs, we discuss how these costs, particularly market impact costs, are estimated and forecasted. Proposed models for optimal execution designed to get the best execution of a single trade, or sometimes a sequence of trades, are reviewed.