Model Inference Latency

Model inference latency is the time it takes for a predictive model to produce an output based on input data. This is particularly relevant for machine learning-based trading strategies.

As these models become more complex, the time required for inference increases, which can be a significant drawback. Traders must ensure that their models are optimized for real-time performance, often using model compression or hardware acceleration.

If the inference is too slow, the trading signal may be obsolete by the time it is generated. This is a critical factor in the development of modern, AI-driven trading systems.

It requires a deep understanding of both data science and systems architecture.