Discussion in 'Automated Trading' started by aonelite, May 8, 2008.
Let's Support the beauty of difference.
People with low latency and fast computers will make money.
- - Yeh, it's true. But I mean assumming that all are equal.
I think the whole market will not exit anymore. -.-
the hypothetical race to zero latency always has people thinking of what the end game is. Truth is, there are faster ways (lower latencies added) for direct feeds to get them into your models; there is a faster way to process that info/signal in and out of your model, and ultimately, there is not only a lower latency but also a higher throughput (read...less back up) for some of the monsters out there to keep sending orders and making money, model willing.
The better things get the more the volume, because better pipes and better data represent more opportunities. It's far from equal at this point....
The result would depend on what the ATS system is!
If we don't get too greedy, there should be enough there for us all to make a little.
I've tested 6 ATS' running at the same time. The systems were running the exact same strategy, with the same amount of money, and running 100% on their own.
Within a week, you could not tell they were running the same strategy.
Each trader was seeing different opportunities and buying/selling different stocks at times and when a few of them actually bought the same stock, the fills were almost always a few cents different, which resulted in the adding to and removing of positions at different times.
The day people agree on anything (including which ATS to use), there will be World peace.
No market is needed from that day on.
There will be no bid/ask spread.
There will be no overbought/oversold.
There will be no volatility.
There will be no market !
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