Second that. I have been building boxes (gray, black and any other color) for over 10 years now. We have the whole terrarium of them. The newest are using AI the old once were just state machines but all of them still work OK. I can't even imagine sharing my boxes with anybody not because I am afraid to get ripped but because it makes "0" economical sense. Selling (sharing) anything that works is only economically effective when it does not. Selling bullshit is lucrative, selling a good thing is foolish.
automated trading is now mainstream, or so it would appear. however, there is a paradox there imo. with more retail traders doing automated trading, pros are using more and more sophisticated solutions. I know, I both use automated trading and build software for others. The best is when you can create your own ATS. sure. But not everyone can do that. Granted, new off the shelf software makes it much easier. But consider this, those using similar solutions a couple of years ago are now using very advanced software and specialty brokers and that's an extra edge right there. So there is still the need for custom, ultra fast and robust software (emphasis on robust, speed is not the only issue in this business, although in several of the bots I programmed it is key). if you can't do the programming yourself OR, more likely, off the shelf solutions don't allow the kind of trades you want to make, it's always possible to contract someone. be careful about it, you can, for instance, split the project in pieces hiding the complete logic of your ATS. and then, anyway, there are those who believe automated trading does not work anyway it always cracks me up when I read the contradictions in this forum. and often by people not actually doing automated trading. anyway..
well, actually, higher frequency implies less exposure which equals less market risk. it may increase opportunity cost. the increase in transaction costs will consume more of the profits, naturally which, as you say, is a good thing for the prop shop.
LOL. What did you expect? Although there have been attempts at some serious replies, as you can see ET is full of smart-ass one-liner wannabees, who have done it all and know it all and who add no value whatsoever. By the number of posts attributed to some(and more importantly the value of the content in their postings), they must be real trading legends - at least in their own minds (DSM-IV PD) considering how freely they "dispense" advice. In a few years they might even open a trading account... Having said that, I agree with Avalanche's comments. Sorry, just cannot see how the black/grey/glass-box developer will not be "exploited" (the real word I was looking for was "shagged"), if they were to enter into such an agreement.
when you say "high frequency" are you speaking literally ? high frequency finance........ in its original meaning ? hank
most of the posts to this thread show a serious ignorance whenit comes to true high frequency trading. its not what you think it is, hence my previous question. hank
To clear up others confusion, trading in lower timeframes at higher frequency can produce higher profits and lower per-trade risk because one can take advantage of intraday swings. If one was to sell all tops and buy all bottoms in a choppy market, the profit would be greater than simply holding for the day. Also, the stops tend to be much smaller. But, alas, its much easier said than done.