5 ms·
I've found that most of the HFT strategies are pretty simple. Its exercising a proven mathematical stat/arb condition in the market. The tricky part is finding
by SkipperCat 3y ago
I've found that most of the HFT strategies are pretty simple. Its exercising a proven mathematical stat/arb condition in the market. The tricky part is finding it first and getting to execute on it first.
However, there are plenty of firms that operate in the low frequency space. Long/short shops are typical for this type of trading. They don't care about order speed. They spend all their time trying to find inefficiencies or hidden correlations between financial instruments and profit from them.
Low frequency tends to be highly research compute focused, while HFT is highly trade compute focused.
- aldanor 3y agoHere comes the tricky part: "finding it first" may imply you're have more and more false positives as you speed things up beyond crazy. And so, even if you have a "deterministic" model (and no, it's neither "pretty simple" nor "proven mathematical" most of time), it will get fuzzier and fuzzier. Also, HFT is execution-centric, indeed, but it doesn't mean you can't use complicated math models and all that, it's just much harder to do and is more of a computational challenge (which is part of what makes it fun). Source: hft quant