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This alludes that all quantitative trading is high frequency trading. I would think all high frequency trading is quantitative trading but converse is not alway
by whoisninja 9y ago
This alludes that all quantitative trading is high frequency trading. I would think all high frequency trading is quantitative trading but converse is not always true.
- whoisninja 9y agoBecause then one of the most successful quant funds like twosigma and rentec are not doing quant trading since hft is only small portion of their business. You cannot manage 50B in an hft strategy single handedly. The author lives in a different dimension, but my dimension could be wrong!
- georgeek 9y agoHFT is best defined as predicting movements under a tick; everything above a tick is out of HFT territory. Latency requirements could still be pretty serious though, as many models at many firms can act simultaneously for longer frequencies as well.
- mathattack 9y agoExactly. Quant funds like AQR do very little high frequency trading.
- axlprose 9y agoIndeed. One of my favorite finance talks is "A Breif and Biased Survey of Quantitative Investing" by AQR's Cliff Asness, which talks about what quant funds actually are. Link for those curious: https://youtu.be/FqaP3VTKccE https://youtu.be/FqaP3VTKccE
- 0b01 9y agoLow latency is to trading is what database is to e-commerce site. The word you are looking for is quantamental.
- DrBazza 9y agoAlso low latency trading is not always high frequency trading. Low latency trading can just be about getting queue priority.