Re:Goldman Sachs is spending $100M to shave milliseconds off...
by bumby on Friday August 02, 2019 @09:28AM
(#20592742)
Is there any evidence defining where the speed of information reaches a diminishing return?
To dilate on your feedback loop comment, physical systems may benefit from a higher sampling rate but usually only to a point. This point is often related to the physical dynamics of the system (e.g., natural frequencies). For example, a small thruster may benefit much more from increasing sampling rates from 1000Hz to 10kHz than a large rocket engine. I assume/wonder if there's a similar analogy to diminished returns in stock information systems, like more volatile markets benefiting more from higher frequency of data. It would be interesting to see where the diminishing returns are.
To dilate on your feedback loop comment, physical systems may benefit from a higher sampling rate but usually only to a point. This point is often related to the physical dynamics of the system (e.g., natural frequencies). For example, a small thruster may benefit much more from increasing sampling rates from 1000Hz to 10kHz than a large rocket engine. I assume/wonder if there's a similar analogy to diminished returns in stock information systems, like more volatile markets benefiting more from higher frequency of data. It would be interesting to see where the diminishing returns are.