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On a related note, is cryptocurrency HFT a thing? As much as I delight in seeing a traditional firms add legitimacy to cryptocurrency, I can't help but be slig
by rl3 9y ago
On a related note, is cryptocurrency HFT a thing?
As much as I delight in seeing a traditional firms add legitimacy to cryptocurrency, I can't help but be slightly suspicious when a known HFT player buys an exchange in a market that's largely unregulated.
Granted, to the best of my knowledge true HFT isn't really possible in the FX market, and major players there still find a way to make everything a veritable cesspool.
- dsacco 9y agoYes, it is. DRW’s Cumberland Trading branch engages in cryptocurrency HFT, as far as I’m aware.
- ascendantlogic 9y agoThere is a lot of bot-driven trading going on. To the degree it starts approaching HFT-levels of speed I'm not sure. I don't know what sort of algorithmic trading arms race is going on in that space since the order books are still thin enough for a small number of well-moneyed people to impact the price in a non-trivial manner.
- philipodonnell 9y agoTo my knowledge the only way to do true HFT is with co-location, and GDAX offers co-location via hosting EC2 instances in a certain region. I can get an offer posted and cancelled in ~150ms (with some fancy race-condition logic across the websocket and API) which is good, but still nowhere near "HFT". Competing against someone who bought an exchange and is running an HFT bot on the same servers, yeah I would stay far away from anyone doing that.
- sitepodmatt 9y ago150ms is huge given latency within a EC2 region should be a millisecond or less, although I suspect this could be working similar to BetFair where they internally queue and process the orders in a batch every 200/250ms rather than real time whilst giving the appearance of real time ('taker' being matched within the first batch since queued).