4 ms·

Thanks for the explanation! But the article says that Sarao did this from his parent's house. Would a residential internet connection be sufficient to perform

by LeonM 7y ago

Thanks for the explanation! But the article says that Sarao did this from his parent's house. Would a residential internet connection be sufficient to perform such spoofing? The way you describe it, spoofing sounds like an easy way to make money, as long as you have enough capital and a fast internet connection, like with arbitrage. But there must be some limitation to this, right? Could anyone (like me) do spoofing and cause a flash crash?

RobRivera 7y ago
It's possible to buy a colo at an exchange for $$$ and push to prod from the house. Algorithmic trading is...algorithmic. trade decisions are encoded into the algorithm, decisions based on market feed info such as last executed orders, volume, etc. The idea is you take a previous trading intraday execution data set, profile out volume per second, execution prices, etc. Then encode a proprietary datascience backed decision tree for dispatching buy sell messages. No human in theol loop.
_underfl0w_ 7y ago
In this case "from his parents' house" could mean that's where _he_ was acting from. The code in question could have been executed on an AWS instance or some other cloud hosting provider with insane connection speeds and computing resources (just speculation).