4 ms·
The main advantage HFTs have over humans is that they can react quickly to new information. The frequency of new information becoming available is only an added
by cynix 11y ago
The main advantage HFTs have over humans is that they can react quickly to new information. The frequency of new information becoming available is only an added bonus, not a requirement.
- ThomPete 11y agoHFT don't react to the same kind of information that Humans do. HFT reacts to price at the millisecond level not to anything outside of that as far as I understand.
- harryh 11y agoYour understanding here is factually incorrect. Automated traders react to all kinds of different information not just prices. And even if it was just prices that would be enough because there are lots of different markets and you can't coordinate them all.
- ThomPete 11y agoWhat else are HFT algorithms reacting to? From Wikipedia: "...Algorithmic trading, also called algo trading and blackbox trading, encompasses trading systems that are heavily reliant on complex mathematical formulas and high-speed, computer programs to determine trading strategies.[1][2] These strategies use electronic platforms to enter trading orders with an algorithm which executes pre-programmed trading instructions accounting for a variety of variables such as timing, price, and volume..." https://en.wikipedia.org/wiki/Algorithmic_trading https://en.wikipedia.org/wiki/Algorithmic_trading