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Would you say that, as a HFT shop, you are only competing with other HFT shops? I've heard that HFTs use nearly identical algorithms, so now its basically a com
by PublicEnemy111 12y ago
Would you say that, as a HFT shop, you are only competing with other HFT shops? I've heard that HFTs use nearly identical algorithms, so now its basically a competition for real estate near the exchanges.
- busterarm 12y agoHFT shops compete for real estate and hiring (especially this and fiercely - non-complete clauses and lawsuits are standard) with each other but in terms of their trading competition it varies widely based on what algos they use. An algo is basically just a trading strategy (sure, there's a basic set of these) but speed of data collection/processing and execution gives you more options. You can design an algo to hunt other HFTs or not. You can also trade against HFTs if you're not.
- kasey_junk 12y agoReal estate near exchanges has essentially been standardized and is no longer a significant strategic advantage.