Unlocking the Power of Models and Algorithms in the Era of Seamless Stock Trading

In a world where markets operate at the speed of milliseconds, human decision-making alone can no longer keep pace with the sheer volume of information. As a result, data, models, and algorithms are becoming the cornerstone of consistent and effective decision-making.

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Vietnam’s stock market currently boasts 11.3 million trading accounts. Average liquidity hovers around VND 30-40 trillion per day, leading Southeast Asia.

Alongside the primary market, the derivatives market currently averages 300,000 contracts traded daily, with an average value of VND 62 trillion – double that of the primary market.

Implementing T+0 settlement, conditional short selling, and derivative-like mechanisms in the primary market would significantly boost liquidity. This would increase trading frequency and turnover, enabling more short-term strategies and opportunities for investors. It would also allow for a combination of both primary and derivative trading, along with more sophisticated trading tactics.

At the recent DNSE Future Tech Summit, Mr. Nguyen Hoang Giang, Chairman of DNSE Securities, emphasized the future’s need for speed, seamlessness, and synchronization. High-speed, continuous trading demands larger transaction volumes and capital, making these factors crucial.

Under T+0, derivative trading typically allows both long (buy) and short (sell) positions. However, DNSE believes that initially, the primary market should only permit buying and immediate selling, known as “sell pending delivery.”

Currently, investors must wait until T+2 to receive their purchased shares.

Mr. Nguyen Hoang Giang – Chairman of DNSE Securities

According to Mr. Giang, intraday trading (T+0) opens new possibilities. Firstly, it allows for more flexible selling; secondly, it enables financial providers to offer more flexible lending packages with higher ratios or capital turnover. With VND 100 million, an investor could execute intraday trades worth up to VND 1 billion, benefiting high-frequency traders (HFTs).

However, increased trading opportunities can lead to overtrading. This necessitates software systems that help investors control their trading behavior.

In this new era, investors seek better capital turnover, ultra-smooth software, the ability to test strategies using historical data, and APIs for developing custom tools.

If Vietnam adopts continuous and intraday trading, a supportive ecosystem is essential for robots and software to thrive. Globally, approximately 70% of trades are executed by automated robots.

Leveraging Algorithmic and Quantitative Trading

DNSE Future Tech Summit held on November 22, 2025

Continuous trading will be supported by powerful, suitable tools. Discussing the power of data and quantitative trading trends, Mr. Vo Duy Anh, Founder & CEO of AlgoTrade, noted that at millisecond speeds, humans struggle to process information consistently. Data, models, and algorithms will become central. He predicts 2026-2030 as the ideal period for quantitative trading to flourish in Vietnam, with co-location services and expanded APIs.

Experts at the summit offered recommendations for effective algorithmic trading models.

Firstly, high-quality, early-access data is a core competitive advantage. Early data allows investors to make faster, more informed decisions, though profitability isn’t guaranteed.

Models require accurate data for backtesting. Mr. Vu Duy Thach, TradingView Development Director in Vietnam, stressed the importance of using reliable data for backtesting. Inaccurate data leads to real-world discrepancies due to slippage and volume issues.

Secondly, successful models must be validated and integrated with robust risk management strategies. Mr. Thach advised pairing model development with a “perfect risk management strategy.”

Mr. Vo Duy Anh suggested starting with manual trading based on profitable formulas or behaviors, then automating them. He clarified that quantitative trading doesn’t increase win rates but enhances automation and accuracy.

Mr. Duy Anh warned against relying solely on backtested models, predicting a 95% chance of failure within two months due to fees, slippage, and market randomness.

Mr. Nguyen Duc Binh – CTO of DNSE Securities

High-speed APIs and robust infrastructure are essential for handling orders in high-speed trading environments, minimizing latency.

Mr. Nguyen Duc Binh, CTO of DNSE Securities, introduced a new Open API solution. It enables investors to create strategies using real-time market data with just 5-10 lines of code and integrates AI for optimized trading performance. DNSE has invested in infrastructure over five years to achieve speed, seamlessness, and synchronization. Mr. Binh announced plans to offer direct system connections for high-frequency traders, reducing transaction times.

Chi Kien

– 16:40 25/11/2025

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