LET'S TALK ABOUT ALGO TRADING | Traders Hideout


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LET'S TALK ABOUT ALGO TRADING

  #19 (permalink)

Legendary Elite_Member
Wiltshire, United Kingdom
 
Trading Experience: Beginner
Platform: Jigsaw daytradr
Favorite Futures: US Equity Index Futures
 
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tpredictor View Post
  • To encourage competition against your adversary. Think if you're not an HFT trader then what's the best thing to do? Share everything you know about HFT. Encourage others to trade HFT. Drive profits to zero.

Amateur adversaries that aren't going to make any difference anyway. Professional trading firms aren't going to be giving stuff away to encourage competition.
If you're not an HFT trader then what useful information are you going to have to share and how would not doing something encourage others to do it?
Profits are never going to go to zero because somebody starts marketing a Metatrader4 Expert adviser for $199, "Trade at Home like an HFT" or some other amateur program becomes available (point1). There will always be profit especially with market maker rebates and absolute minimal costs from capped commissions and exchange membership, or rebates when trading stocks. I am probably a little wrong with the terms but the point is clear. The only differentiator between which professional firm gets the most profit is the one that has spent the hugest amount of money in software design, computers and paying for their servers to be that fraction of a metre closer to the exchange than their competitors.

Trading, ideally structured, is a vehicle for expanding consciousness, not damaging it. - Brett Steenbarger
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