Completely understand why HFT must exist

Discussion in 'Automated Trading' started by nitro, Dec 22, 2011.

  1. payment for providing equity is a part of it as well
     
    #71     Jun 12, 2012
  2. nitro

    nitro

    SICP

    http://sicpebook.files.wordpress.com/2011/11/sicp.pdf
     
    #72     Sep 29, 2012
  3. ddude

    ddude

    Ah yes, SICP, a classic...

    Lisp, a dynamic language... FPGAs, dynamic hardware...
    Turtles all the way down 8^)

    Cordially,
    -DD-

    "Simplicity is the ultimate sophistication." -Leonardo da Vinci-
     
    #73     Sep 29, 2012
  4. nitro

    nitro

    I found this a bit strange when I read it .But in time it has sunk in and now I understand the idea behind it.

    The question is now, are there countably infinite agents, or uncontable number of them. Almost certainly countable...


     
    #74     Oct 16, 2012
  5. While an admirable attempt, what they're trying to do here (which is a bit mis-described in the article, but whatever, close enough) is only achievable in isolation, not in live systems.
     
    #75     Oct 16, 2012
  6. Kind of cool, but probably a losing bet in terms of salary paid vs. results. Chalk it up to the speculative R&D budget?

    Everytime I saw one of these ambitious projects tried in a firm, it always ended up in a layoff a few months later.

    But, I'm wililng to believe that there's probably some fly by night shop out there with 3 PhDs (probably all former Soviet defectors who got tired of building nuclear weapons) using this, on an FPGA, with a homebrew microwave network link. They all dress in Walmart clothes and trade out of an RV in New Jersey, and the most we'll ever know about this A-Team of trading is the random obscure blog post talking about their unpublished landmark research.

    Oh, and even though they're all super billionaires, their supermodel wives don't tip cab drivers well.
     
    #76     Oct 16, 2012
  7. Thanks for this quote.

    Always known that very smart people make things very complicated...
    But geniuses simplify, simplify, simplify.

    Very smart people cross the street via the North Pole...
    Geniuses find a shortcut... always a shortcut.
     
    #77     Oct 16, 2012
  8. jem

    jem

    but why does hft have to exist... those profits could have been spread out over a wider collection of people.

    As 30 second to 2 minute time frames once allowed me to make a nice living.

    It would seem HFT can destablize the market as they are doing battle with each other and blowing each other up. Do they not claim to be providing liquidity?
     
    #78     Oct 16, 2012
  9. CT10Gov

    CT10Gov

    Why must you and your few friends exist rather than HFT?

    HFT merely found a way to more efficiently harvest a niche source of alpha.

    One would think on elite 'trader', one doesn't need to be subject to this sort of nonsense about 'distributive justice'.

     
    #79     Oct 16, 2012
  10. jem

    jem

    its a question of whether we should all be on an even playing field or the field should be tilted to a few with co located servers or faster quotes (which was in the news recently)

    I think the playing field should be fair. I do not think crony capitalism is a good model.


     
    #80     Oct 16, 2012