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seems to be a pattern: [Company that's getting disrupted by AI: Fiverr, Duolingo]: rush to adopt internal AI to cut costs before they get undercut by competiti

by ej88 8mo ago

seems to be a pattern: [Company that's getting disrupted by AI: Fiverr, Duolingo]: rush to adopt internal AI to cut costs before they get undercut by competition [Company that's orthogonal: Box, Ramp, HFT]: build internal tools to boost productivity, maintain 'ai-first' image to keep talent [Company whose business model is AI]: time to go all in

gowld 8mo ago
Why wouldn't HFT be disrupted by AI? AI-enhanced trading algo designs are likely to be competitive? AI disrupts everything on the computer from the low-end on up. The higher end requires more expensive or custom models that aren't as easy to obtain yet.
- lossolo 8mo ago
  Because HFT is about adversarial play with a lot of hidden information. Relevant article from two days ago https://www.latent.space/p/adversarial-reasoning https://www.latent.space/p/adversarial-reasoning
- _se 8mo ago
  HFT is about the last technical domain that could possibly be touched by LLMs. There is next to no good training data and there is zero margin for error.
  - deleted 8mo ago
    [deleted]
  - yencabulator 8mo ago
    I could see analyzing news getting easier with LLMs. They have a history of using NLP there for sentiment analysis.
- ej88 8mo ago
  i mean llms happy to be corrected but im not aware of any direct improvements llms bring to ultra low latency market making, time to first token is just too high (not including coding agents) from talking to some friends in the space theres some meaningful improvements in tooling especially in discretionary trading that operate on longer time horizons where agents can actually help w research and sentiment analysis
entropyneur 8mo ago
Reading this thread suggests being "AI-first" is hardly a talent magnet.
- ej88 8mo ago
  ai-first via mandate: throes of a company trying to appear cutting edge ai-first via the actual technology being built: talent magnet despite the HN bubble appearing otherwise

by ej88 8mo ago

gowld 8mo ago

Why wouldn't HFT be disrupted by AI? AI-enhanced trading algo designs are likely to be competitive? AI disrupts everything on the computer from the low-end on up. The higher end requires more expensive or custom models that aren't as easy to obtain yet.

lossolo 8mo ago
Because HFT is about adversarial play with a lot of hidden information. Relevant article from two days ago https://www.latent.space/p/adversarial-reasoning https://www.latent.space/p/adversarial-reasoning
_se 8mo ago
HFT is about the last technical domain that could possibly be touched by LLMs. There is next to no good training data and there is zero margin for error.
- deleted 8mo ago
  [deleted]
- yencabulator 8mo ago
  I could see analyzing news getting easier with LLMs. They have a history of using NLP there for sentiment analysis.
ej88 8mo ago
i mean llms happy to be corrected but im not aware of any direct improvements llms bring to ultra low latency market making, time to first token is just too high (not including coding agents) from talking to some friends in the space theres some meaningful improvements in tooling especially in discretionary trading that operate on longer time horizons where agents can actually help w research and sentiment analysis

entropyneur 8mo ago

Reading this thread suggests being "AI-first" is hardly a talent magnet.

ej88 8mo ago
ai-first via mandate: throes of a company trying to appear cutting edge ai-first via the actual technology being built: talent magnet despite the HN bubble appearing otherwise