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algorithmic trading doesn't equal high frequency trading. people conflate these a lot even though they know better. high frequency trading requires algorithmic

algorithmic trading doesn't equal high frequency trading. people conflate these a lot even though they know better. high frequency trading requires algorithmic trading. but algorithmic trading can implement warren buffet or suzi orman's style if thats what you wanted.

sjbase 10y ago
Agreed, HFT has become a catch-all term for anyone trying to make a marketing/political statement about trading. Like the term "big data" - it's been used to describe so many things that it no longer describes anything. Another thing that gets ignored is the the difference between a trading strategy and an execution algorithm.
- cloudjacker 10y ago
  I wish I could get some rest API and websockets into the debt and credit default swaps market, really inefficient markets that reveal a lot about sentiment don't need high frequency at all, just pretty average latency actually (for now anyway) IB probably has this, not sure though. But those data costs are a huge deterrent for me!
  - whatok 10y ago
    I think DTCC has some freely available live CDS data but I forget where and don't know how the APIs are.
  - sseveran 10y ago
    CDS and debt are not really inefficient markets. Some bonds are less liquid than others but there is currently a rapid conversion to electronic trading going on. CDS is also a very mature market. Not saying that those markets don't contain signal but they are not very inefficient.
    - cloudjacker 10y ago
      You're right, I would primarily like to see them more liquid so that there were more data points to extrapolate moves across different asset classes
      - sseveran 10y ago
        What you really want is more transparent data. There are plenty of data points but they are not easily accessible.
        cloudjacker 10y ago
        and I think the lack of this perpetuates market inefficiencies. I think insights into CDS can be a leading indicator into equities and equity futures, yet CDS are restricted to OTC markets in the US anyway, I'm sure this is its own discussion
        sseveran 10y ago
        CDS isn't an OTC instruments. Swaps are now traded on SEFs like MarketAxess or TradeWeb. Just because you don't have access to the data don't think that professionals don't. But this isn't OHLC data for listed equities. Expect to pay. Actually high quality realtime equity data (ITCH,PITCH,OpenBook Ultra,etc...) costs real money as well. Checkout CDS and FI market data offerings: https://www.marketaxess.com/data/marketdata.php https://www.marketaxess.com/data/marketdata.php But your idea is correct. CDS Spreads can be predictive of dramatic shocks in an equities price.
        cloudjacker 10y ago
        That is awesome Yeah i get the promise: professionals do this, pay a premium for that Until they don't because someone provides the data for free or next to nothing In this town we call it disruption
        10y ago

sjbase 10y ago

Agreed, HFT has become a catch-all term for anyone trying to make a marketing/political statement about trading. Like the term "big data" - it's been used to describe so many things that it no longer describes anything. Another thing that gets ignored is the the difference between a trading strategy and an execution algorithm.

cloudjacker 10y ago
I wish I could get some rest API and websockets into the debt and credit default swaps market, really inefficient markets that reveal a lot about sentiment don't need high frequency at all, just pretty average latency actually (for now anyway) IB probably has this, not sure though. But those data costs are a huge deterrent for me!
- whatok 10y ago
  I think DTCC has some freely available live CDS data but I forget where and don't know how the APIs are.
- sseveran 10y ago
  CDS and debt are not really inefficient markets. Some bonds are less liquid than others but there is currently a rapid conversion to electronic trading going on. CDS is also a very mature market. Not saying that those markets don't contain signal but they are not very inefficient.
  - cloudjacker 10y ago
    You're right, I would primarily like to see them more liquid so that there were more data points to extrapolate moves across different asset classes
    - sseveran 10y ago
      What you really want is more transparent data. There are plenty of data points but they are not easily accessible.
      - cloudjacker 10y ago
        and I think the lack of this perpetuates market inefficiencies. I think insights into CDS can be a leading indicator into equities and equity futures, yet CDS are restricted to OTC markets in the US anyway, I'm sure this is its own discussion
        sseveran 10y ago
        CDS isn't an OTC instruments. Swaps are now traded on SEFs like MarketAxess or TradeWeb. Just because you don't have access to the data don't think that professionals don't. But this isn't OHLC data for listed equities. Expect to pay. Actually high quality realtime equity data (ITCH,PITCH,OpenBook Ultra,etc...) costs real money as well. Checkout CDS and FI market data offerings: https://www.marketaxess.com/data/marketdata.php https://www.marketaxess.com/data/marketdata.php But your idea is correct. CDS Spreads can be predictive of dramatic shocks in an equities price.
        cloudjacker 10y ago
        That is awesome Yeah i get the promise: professionals do this, pay a premium for that Until they don't because someone provides the data for free or next to nothing In this town we call it disruption
        10y ago