Barrier of entry to HFT is not that high and is getting lower due to competition. You can collocate or be near exchange at reasonable price and compete as well if you know how to make money using it. This field is getting crowded and HFT shops are closing down because they cannot make money doing it. That is why free markets are great. Market niche has been found but is closing due to natural market forces.
Market Makers are HFT. The reason for HFT is quite fundamental: first market capitalization was in thousands then millions recently billions and now trillions. Try to use phones to move this mountain of paper. There is no single MM or specialist who can absorb this market activity and that is why it is fragmented and HFT based to provide continuous liquidity. HFT is function of exponential growth of market capitalization and number of active market participants.
Exactly, it's too crowded, that's why it's not even realistic for an independent to HFT stocks. Only the monopolized 'equities HFT' can continue.
Say you make a market in 100 different instruments which compose your portfolio. You put your quotes out based on what you consider to be value/necessary actions (in all these different instruments) to increase your portfolio while mitigating risk. Your model for determining value has changed, so your quotes have to change or you risk a large loss. Who the fuck are you to tell me I can't manage my portfolio?Whether I am lifting/hitting offers/ bids non-stop or readjusting all my quotes and/or that I am readjusting my quotes too fast? Who are you to tell me I am managing my risk too fast? You might say something like: "Not everyone has fair access to information, your colocated, your stealing from me, if it went slower I know i can make money, I mean it will be more fair... I just know it!!!! etc, etc, just about every excuse besides I don't know how to trade, etc, etc," Not everyone can construct and/or actively manage a portfolio :eek: I apologize if your mind is blown
At some point, you'd think folks would realize that that entities making the most noise about HFT are the exchanges and old-line brokerages who are getting whooped by the new world order. And when was the last time the exchanges and old-line brokerages argued for something - anything - good for anybody but themselves?
Go check out Mark Cuban's net worth. Then compare it to your own. Then decide who out of the pair of you is a fucking loser.
that does not mean mark knows how to trade the market. you think bill gates is a better trader than me?