4 ms·
Word of caution here: You lose money every time you buy and sell stocks even when there is no explicit fees. In addition, you're playing against very sophistica
by hartator 7y ago
Word of caution here: You lose money every time you buy and sell stocks even when there is no explicit fees. In addition, you're playing against very sophisticated systems that have access to both faster and denser data. Playing with algorithms with real money at this level is not different than gambling.
- smitty1e 7y agoWhat's interesting to consider is whether the results would differ: - if one bought the book and built the trading algorithms against historical data as programming exercise, - then tried them in a real-world context. Restated: is the math really that magical, or is it a question of scale/volume, or is the fairness of the market a mirage?
- rootusrootus 7y agoAn alternative perspective: there are other markets besides the big obvious ones, and they don't necessarily have the same level of very sophisticated players already entrenched. But still reasonable advice. Start small, without real money for a while.
- aj7 7y agoZero (“without”) money - zero learning.
- vmception 7y agoAlgorithmic trading does not equal high frequency trading, most of your post implies the opposite to justify your conclusion of folly. An algorithm can swing trade at the same time frames a human is interested in, it can create complex order types faster than humans can, it can adjust chains or orders triggered by one order being filled or canceled, it can adjust which exchanges an order can go to.... Order and position management is a more important piece of algorithms than actually getting filled faster and analyzing data faster.
- hartator 7y agoThat’s not true. High frequency trading is the reason why the spread between buying and selling is so low. They compete to get your order. But you do loose money to these traders each trade you do. Even if that’s actually play in your favor.
- benmanns 7y agoThat's _if_ HFT will allow you to lift their offers: http://www.nanex.net/aqck2/4661.html http://www.nanex.net/aqck2/4661.html
- vmception 7y agoAlgorithmic trading does not equal high frequency trading. What isn't true about that. High frequency trading is a subset of algorithmic trading, not the other way around. why do you want to die on this hill?