newsweek.com— Trading billions of shares in the blink of an eye has made stock markets more responsive?and volatile?than ever.
Jun 1, 2010View in Crawl 4
If High Frequency Trading really did create unjustified volatility that's not justified by fundamentals, it seems it'd be a pretty obvious inefficiency in the market that a smarter program could benefit by exploiting.I wonder if one could make a hedge fund specifically designed to exploit those poorly programmed systems (if they really exist) --- have your program make little waves in the market that these stupid systems would overreact to, and then bet against your competitor's overreactions.
you're not a real HFT unless you're front running the market using a server collocated on the trading exchange floor and are buying and selling millions of shares per day.Otherwise your just a day trader with a discount brokerage, playing russian roulette.
namslamJun 1, 2010
I feel bad for people who are just worried about money.
rmxzJun 2, 2010
If High Frequency Trading really did create unjustified volatility that's not justified by fundamentals, it seems it'd be a pretty obvious inefficiency in the market that a smarter program could benefit by exploiting.I wonder if one could make a hedge fund specifically designed to exploit those poorly programmed systems (if they really exist) --- have your program make little waves in the market that these stupid systems would overreact to, and then bet against your competitor's overreactions.
lukesimpsonJun 3, 2010
Even 24 hours would be a good start.
forexavatarJun 4, 2010
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joe8packJun 4, 2010
you're not a real HFT unless you're front running the market using a server collocated on the trading exchange floor and are buying and selling millions of shares per day.Otherwise your just a day trader with a discount brokerage, playing russian roulette.