Re:Banning Some HFT Strategies Helped This Market Grow: Chart
by cynix on Tuesday March 08, 2016 @07:36PM
(#11249998)
The main advantage HFTs have over humans is that they can react quickly to new information. The frequency of new information becoming available is only an added bonus, not a requirement.
[ Parent
| on HN ]
Re:Banning Some HFT Strategies Helped This Market Grow: Chart
by ThomPete on Wednesday March 09, 2016 @08:45AM
(#11252879)
HFT don't react to the same kind of information that Humans do. HFT reacts to price at the millisecond level not to anything outside of that as far as I understand.
Re:Banning Some HFT Strategies Helped This Market Grow: Chart
by harryh on Wednesday March 09, 2016 @08:54AM
(#11252934)
Your understanding here is factually incorrect.
Automated traders react to all kinds of different information not just prices. And even if it was just prices that would be enough because there are lots of different markets and you can't coordinate them all.
Re:Banning Some HFT Strategies Helped This Market Grow: Chart
by ThomPete on Thursday March 10, 2016 @08:36AM
(#11259065)
What else are HFT algorithms reacting to?
From Wikipedia:
"...Algorithmic trading, also called algo trading and blackbox trading, encompasses trading systems that are heavily reliant on complex mathematical formulas and high-speed, computer programs to determine trading strategies.[1][2] These strategies use electronic platforms to enter trading orders with an algorithm which executes pre-programmed trading instructions accounting for a variety of variables such as timing, price, and volume..."