3 ms·
High frequency trading != algorithmic trading, common misconception. HFT is a subset of algorithmic trading but does not encompass all of it.
by satvikpendem 6mo ago
High frequency trading != algorithmic trading, common misconception. HFT is a subset of algorithmic trading but does not encompass all of it.
- HolyLampshade 6mo agoWhile true (I 100% agree with you in the distinction), the statement is “Your agent acts before the market does”, which is simply not going to be the case (assuming this is helping run some sort of trend following strategy). Professional traders who are sensitive to alternative public data sources are already taking that data in quickly and their execution is colocated with the venues. You’re still going to be significantly behind the curve (to a financially dangerous extent in my opinion).
- satvikpendem 6mo agoThat's true, however there might still be money to be made from retail investors like in 2021, rather than strictly institutional investors.
- janderson215 6mo agoWould be interesting to see if widespread (or at least high volume) adoption that is trading based on these signals leads to a more efficient market on net. Of course there will be plenty more attempts at manipulation, but maybe orders of magnitude good players over bad players once the dust settles.
- lichenwarp 6mo agoO R D E R s o F m a g N I T U D E!!!!!