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Most if not all the highly successful and most secretive quant funds execute hundreds of thousands trades per day...while not considered to be "HFT"...the idea
by nojito 6y ago
Most if not all the highly successful and most secretive quant funds execute hundreds of thousands trades per day...while not considered to be "HFT"...the idea of trading hundreds or thousands positions per second is quite a high frequency.
- hchz 6y agoThis is algo trading, or execution optimization. They aren't measuring the market / order book and then reacting at high frequency. They are reacting at low frequency and then the execution is optimized to minimize losses caused by market feedback. This is a very important distinction if you hold the view that HFT risks destabilizing markets.
- smabie 6y agoMost quant shops are not turning over thousands of positions everyday, the trading costs alone would be ridiculous. But regardless, HFT usually means latency arb, not just trading a lot. There's a misperception that quant funds are making money on slight mispricings, but while I can't speak for all funds of course, this isn't generally true. Quant funds are much closer to buy and hold long term investors than they are to HFT firms.