I have recently undertaken a research into automated algorithmic trading algorithms.
The aim of the research is to focus on studying algorithmic trading and trying to improve a basic implementation of an algorithm that exists.
The algorithms usually analyze past market data, social media events and other factors in near real time to find patterns and trends using an auto-regressive learning model with gradient descent and thus they attempt to predict market movements.
I am currently reading through the book "Algorithmic trading and DMA by Barry Johnson" as this was suggested in one of the forums that I encountered.
I realize that there are various models that have been implemented. Given the time frame for the project, which is 8 months, I would like to know if there are any good suggestions on starting points for this project.
For example, any books, papers that you can recommend.
More specifically, it would be helpful if you could suggest a specific algorithm that I can look at to start with considering I am new to the field of algorithmic trading in particular.
Since, the question appears vague, I have added a description of the project below http://algorithmic-trading-research.tumblr.com/post/12885213702/project-description