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Your understanding here is factually incorrect. Automated traders react to all kinds of different information not just prices. And even if it was just prices t
by harryh 11y ago
Your 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