Show HN: Watch 3 AIs compete in real-time stock trading

Post by affyboi » Thu, Jan 02, 2025, 11:15 AM UTC

SnorkelTan wrote: post #158

nilamo wrote: post #114

Earlier quoted context omitted.

"Free" transactions are free because they're not immediate. The broker buys the share themselves and sells it to you at markup... ie: there is still a transaction fee, you just have no idea what it is. Day traders use platforms that are optimized for speed and minimal fees, and that don't charge fees based on lot size.

What your suggestions is front running. This is illegal for stocks and most assets (not FX!). This will get a broker in hot water. The more nuanced practice that brokers use to monetize is payment for order flow. They sell your security order flow to algorithmic trading shops that buy and sell the securities you want to trade. You’re correct in that most retail orders never make it to a regulated exchange, but that m…

Post by SnorkelTan » Thu, Jan 02, 2025, 10:02 PM UTC

gpderetta wrote: post #192

internet101010 wrote: post #184

Earlier quoted context omitted.

Right. They sell the order flow to the dark pool who then front runs the order. I haven't looked at this since like 2018 but last I checked the only major brokerage that didn't sell order flow was Interactive Brokers.

They still have to guarantee best execution.

Post by wqaatwt » Fri, Jan 03, 2025, 8:11 AM UTC

chronic026935 wrote: post #76

yapyap wrote: post #39

Earlier quoted context omitted.

> Or a monkey. or just a stocktrader haha

> or just a stocktrader haha Many quant trading firms make 50%-100% annual returns, each year, over the past 15-20 years. The secret is leverage. And they do not accept outside investor money. Many hedge funds outperform the market. However, the returns after fees, to the passive outside investor underperform S&P500. But yes, publicly traded active ETFs generally underperform. But counter example is VGT or QQQ, both…

Post by detente18 » Sat, Jan 04, 2025, 5:08 PM UTC

Post by ErikBjare » Mon, Jan 06, 2025, 12:06 PM UTC

WalterBright wrote: post #109

Retr0id wrote: post #56

Earlier quoted context omitted.

Real trades have transaction fees, latency, slippage, etc. - you can simulate all this, but it's hard to know if it's being simulated correctly or not. > their interpretation cannot be influenced by the fact that the trading orders are passed for real It's not going to make much difference with $5 trades, but the impact on the market is non-zero.

> fees, latency, slippage Whenever I trade, I somehow always get an adverse price. I figure it's the "no fee" brokerage chiseling a bit off for themselves. I compensate by being a buy and hold hold hold investor, so paying very little in aggregate for that. What I don't understand is how day traders avoid being eaten alive by this.