3 ms·
Given that HFT exists, I can't imagine technical analysis can be useful. Many of the rules it proposes would be easy to feed into a trading bot and you would ex
by AlexandrB 3y ago
Given that HFT exists, I can't imagine technical analysis can be useful. Many of the rules it proposes would be easy to feed into a trading bot and you would expect firms to be making profits using these strategies already while being able to execute trades far faster than you can.
So either:
a. HFT firms are already doing this and what the retail trader sees is the left-overs with little profit left to capture.
b. HFT firms are not doing this because it doesn't work.
Neither option bodes well for doing retail trades based on TA.
- jacquesm 3y agoOversimplified: HFT is essentially front running in disguise. It has a technical component but it's better to think of it as someone running ahead of you to be first in line at the counter of the bakery to buy the thing you want to be buying so there is a bigger chance you'll be buying it from them or so that the increase in price when you are buying it will allow them to sell it to someone else at a profit. The main focus is on being able to outrun not just you, but also everybody else, hence the focus on latency. The next problem: which bakery to target first is where there is some analysis involved.