4 ms·
A few players using them effectively is different than 30-60% of the market being run by algorithms. Granted I can't read much of the article because it is behi
by nightski 7y ago
A few players using them effectively is different than 30-60% of the market being run by algorithms. Granted I can't read much of the article because it is behind a paywall which seems to be very common on HN.
- pmart123 7y agoYou have to account for the fact that a lot of the algorithmic volume is due to ETF arbitrage. We now have more ETFs than stocks in the US by a wide margin, and each new ETF likely creates another trading opportunity. There are also a lot of factor and smart beta strategies now, which I would classify as more systematic, but these could distort the market more than arb strategies.
- cmroanirgo 7y agoNot disagreeing with you, but the arbitrage generally lasts only for a few ms, which makes the article's comment incorrect: "Visit a trading floor today and you will hear the hum of servers" In my experience, the machines doing the actual trades are as close as possible to the exchange, generally inside. What's in the trading floor are the client and ML programs that issue the strategies. That said, I've been away from the industry for a few years and it might have changed.
- bduerst 7y ago>Granted I can't read much of the article because it is behind a paywall which seems to be very common on HN. https://outline.com/nGrnKy https://outline.com/nGrnKy
- thedudeabides5 7y agorelevant weak human + machine > machine > strong human https://curatedintelligence.com/2017/10/20/kasparovs-law/ https://curatedintelligence.com/2017/10/20/kasparovs-law/
- jeffshek 7y agoBut strong machine > all? IE. Chess / Go / Dota 2
- thedudeabides5 7y agolol, no, that's the point. A better machine is just a tool. One that someone who's smarter than you is going to use to win at the game of poker. Hence Kasparov's law. You know, the chess guy.
- reedwolf 7y ago>A better machine is just a tool For now.