Re:Show HN: Watch 3 AIs compete in real-time stock trading (...
by chronic73940581 on Tuesday December 31, 2024 @09:54PM
(#42563596)
> A typical _top tier_ sharpe is in the >=2 range, we're more talking about a 10%/25% averaged annual returns.
High-frequency low latency trading: Sharpe 10 or higher
Mid-frequency low latency trading: sharpe 4 to 5
Hedge fund statistical arbitrage: sharpe 1 to 2
Hedge fund long/short, event driven, global macro, etc: sharpe 0 to 1
And yes, HFT and MFT scales to billions in annual PnL for single firms.
There’s a reason quant HFT firms pay the most, and are ranked above OpenAI in pay and prestige. Hedge funds are tier 2 in comparison but not bad either.
High-frequency low latency trading: Sharpe 10 or higher
Mid-frequency low latency trading: sharpe 4 to 5
Hedge fund statistical arbitrage: sharpe 1 to 2
Hedge fund long/short, event driven, global macro, etc: sharpe 0 to 1
And yes, HFT and MFT scales to billions in annual PnL for single firms.
There’s a reason quant HFT firms pay the most, and are ranked above OpenAI in pay and prestige. Hedge funds are tier 2 in comparison but not bad either.