101–110 of 111 posts
Earlier quoted context omitted.
It isn't beating the market, it is literally "making the market": https://en.wikipedia.org/wiki/Market_maker
Arguable whether or not HFT increases liquidity in the market.
The clickbait headline is amusing, but "Wall Street" has been doing this > 10 years. I'm genuinely not sure if they're trying to "beat wall street" or simply be yet another quantitative hedge fund that happens to use machine learning and neural networks to power their strategies. Most real electronic trading firms are putting those algorithms in hardware. Source: Have worked in HFT the past 10 years.
> Source: Have worked in HFT the past 10 years. OT question: how would I get into acquiring market data to try my own backtesting strategies ? Is there anyway to "get in" without putting up $5k + for the data ? I'm not green to this, I worked at a prop shop for a year writing market feed handlers. I know the dangers of overfitting data and how hard it is to make money (so I'm not deluded by a fantasy). I want to star…
This is the most interesting bit for me: >Sentient's system is inspired by evolution. According to patents, Sentient has thousands of machines running simultaneously around the world, algorithmically creating what are essentially trillions of virtual traders that it calls "genes." These genes are tested by giving them hypothetical sums of money to trade in simulated situations created from historical data. The genes…
Earlier quoted context omitted.
Well, originally the purpose was to 'hedge' your other investments. Typically, hedge funds invested in ways that would do well when the rest of the market struggled. Even if they don't best the market over the long run, they could be worthwhile investments to protect your wealth during ,Arlen downturns.
Right, they don't hedge at all now do they? Its mostly just high speed trading?
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Which is really odd, since if they had any idea of what they were doing, they wouldn't need to sell. Trading is among one of the few industries out there where you don't need to have anything like a customer. What you do is make money, and if you're making money, well, you don't need to ask anybody else for money. This tells me that its a bunch of executives who either don't know anything about trading and/or don't h…
Peter Muller has the most succinct summary of this that I've seen in his (very worthwhile) opinion piece on proprietary trading [1]: Sharpe Ratio, Marketing department ≤ 0: Runs the firm 0.25: Very important; involved in all investment decisions; major focus on asset gathering 0.5–1.0: Secondary 1.0–2.0: Almost superfluous ≥ 2.0: What marketing department? [1] https://faculty.fuqua.duke.edu/~charvey/Teaching/BA453_20…
The clickbait headline is amusing, but "Wall Street" has been doing this > 10 years. I'm genuinely not sure if they're trying to "beat wall street" or simply be yet another quantitative hedge fund that happens to use machine learning and neural networks to power their strategies. Most real electronic trading firms are putting those algorithms in hardware. Source: Have worked in HFT the past 10 years.
> Source: Have worked in HFT the past 10 years. OT question: how would I get into acquiring market data to try my own backtesting strategies ? Is there anyway to "get in" without putting up $5k + for the data ? I'm not green to this, I worked at a prop shop for a year writing market feed handlers. I know the dangers of overfitting data and how hard it is to make money (so I'm not deluded by a fantasy). I want to star…
Earlier quoted context omitted.
Can you do HFT without a privileged connection to the trading system that beats most of the market players in access time? No. TL;DNR: You keep ignoring both the point of the comments and the point of the TFA. This is about market prediction, not technical exploitation of a privileged access to market.
> a privileged connection t anyone can buy co-located rack space.
If you buy a co-located rack space you are using a PRIVILEGED CONNECTION to the market that and taking advantage of that using some algorithm: That's High Frequency Trading.
The all point of TFA and the comments was the OPPOSITE: To be in a NON PRIVILEGED position (as in, the same access time to market transactions as the median of the access time to market of EVERYONE ELSE) and to use machine learning to predict market moves in a long enough term so that the market access time was irrelevant.
Do you understand the complete difference between the two scenarios now?
Earlier quoted context omitted.
> a privileged connection t anyone can buy co-located rack space.
I'm not sure if you have some kind of cognitive impairment, that you still didn't get the point after I explained it 5 times already, so I'll explain it yet again as simply as possible: If you buy a co-located rack space you are using a PRIVILEGED CONNECTION to the market that and taking advantage of that using some algorithm: That's High Frequency Trading. The all point of TFA and the comments was the OPPOSITE: To b…
This is the most interesting bit for me: >Sentient's system is inspired by evolution. According to patents, Sentient has thousands of machines running simultaneously around the world, algorithmically creating what are essentially trillions of virtual traders that it calls "genes." These genes are tested by giving them hypothetical sums of money to trade in simulated situations created from historical data. The genes…
I believe anyone who has considered applying machine learning tools for identifying trading signals came across the idea of using some kind of optimization algorithm to find the best parameters. Evolutionary algorithms seem like a fair approach because the parameter space is (for lack of a better word) very sparse and anything but continuous (lots of parameter combinations don't make sense / don't work). Using a gene…