High Frequency Trading is dead.

Discussion in 'Trading' started by Publicus, Apr 12, 2012.

  1. Publicus

    Publicus

  2. The business of renting up space in datacenters for co-location may get wiped out by Quantum computing and networking . But not HFT itself, if anything this will help HFT's go even faster... by allowing them to Arb the price of the nikkei in chicago and tokyo at the same exact time...
     
  3. Usul

    Usul

    Don't you worry, faster than light information transfer isn't possible; high frequency trading will remain alive and well for the foreseeable future.
     
  4. You probably didn't read the whole article. The states of atoms can be entangled but that (the state) is used only for replicating encryption keys which are used for decrypting data sent by conventional means. On the other hand, entaglment can be used for faster than light communication by different means, but that's not the focus of the article nor is it practically even remotely within reach of current science.

    More interestingly (for trading anyway), and closely related to information breaking the speed of light is information flowing back in time (space/time being one and the same for those of you not into physics). There have also been some experiments that have proven this is possible (1 in 10000 chance of false positive). Here is a readable article on that subject: http://discovermagazine.com/2010/apr/01-back-from-the-future/article_view?b_start:int=1&-C

    However, as with the first article, we are talking about one bit of information (a 0 or a 1) being transmitted at a huge cost and at very long periods of weak measurements to establish the states. Once again, nowhere near practical.
     
  5. mgrund

    mgrund

    yes- its all about science and maths- Newtionian laws of physics- fastest finger first-Sir Issiac Newton
     
  6. What people call HFT today will be the normal of tomorrow.

    Pretty soon small GPU supercomputers on co-located servers next to exchanges will be used by mum and dad investors to make rapid buy and sell decisions. Complain all you like, it aint going away.
     
  7. Legalize insider trading.
    With the proliferation of internet/cellphones/print/electronic media it's impossible to prevent insider trading.
     
  8. Definitely faster than the speed of light:)