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Re:Algorithmic Trading with Go by shric on Saturday July 01, 2023 @12:09AM (#36546472)
My understanding was that HFTs make the most profits during periods of highest volatility. Why do they pull out?
Re:Algorithmic Trading with Go by fnordpiglet on Saturday July 01, 2023 @01:03AM (#36546762)
Depends on their strategy but a lot of strategies depend on some sort of price discovery which requires having a probable estimate of what the current price should be and some form of market making around the level. In a very dislocated market the price is unknowable and it becomes gambling, and generally market making strategies are explicitly not about gambling but about facilitating trades around the “true” price.