Bootstrapping an Ultra Low Latency Trading Firm, Part 1
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Bootstrapping an Ultra Low Latency Trading Firm, Part 1
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Re: Bootstrapping an Ultra Low Latency Trading Firm, Part 1
#2This is very interesting. Would love to see more posts about it as you go.
Re: Bootstrapping an Ultra Low Latency Trading Firm, Part 1
#3Would be very interested to see the rest of the story. I've always had a lingering interest to bootstrap a trading algorithm. It doesn't even have to be HFT.
Re: Bootstrapping an Ultra Low Latency Trading Firm, Part 1
#4I'd like to go on the record as the pessimist in the room. If you go down this path, I strongly believe that you're going to lose your shirt building a bankruptcy machine. In many ways, the markets are a mechanism for transferring your money to the pockets of people who started out with more money than you.
Re: Bootstrapping an Ultra Low Latency Trading Firm, Part 1
#5From the article: "And if you are careful enough to save money (for example living at home saves about 3K a month when all is said and done) and not increase your expenses too much (no need to get a Porsche when a BMW or VW suffices), it’s not hard to save 200K by the time you turn 24."
Uhh, sure? 200K at 24, in savings?
So that's about 250K pre-tax. Say you graduate high school at 18, find a magical job that gives a high school grad $42,000 a year, and spend /not one cent/ for six years, maybe... (or extrapolate outwards).
Or maybe you go to college. Graduate, let's say, age 21... In this economy, how many college graduates walk out of school into an $85,000/year job and no living expenses...
Never underestimate the value of a silver spoon in your mouth... and never underestimate the power of denial about just how silver your spoon is.
Re: Bootstrapping an Ultra Low Latency Trading Firm, Part 1
#6Favourite quote: "It's not hard to save 200k by the time you turn 24."
I'll continue reading for the technical insights, but honestly, this reflects a certain lack of perspective.
Re: Bootstrapping an Ultra Low Latency Trading Firm, Part 1
#7I'd like to go on the record as the pessimist in the room. If you go down this path, I strongly believe that you're going to lose your shirt building a bankruptcy machine. In many ways, the markets are a mechanism for transferring your money to the pockets of people who started out with more money than you.
I'd strongly suspect that this guy is definitely in the upper middle, to begin with. "Why buy a Porsche when a BMW will do?", complaining about the duldrums of a six digit income... talking about being easily able to have quarter of a million in savings at age 24... etc, etc.
Re: Bootstrapping an Ultra Low Latency Trading Firm, Part 1
#8From the article: "And if you are careful enough to save money (for example living at home saves about 3K a month when all is said and done) and not increase your expenses too much (no need to get a Porsche when a BMW or VW suffices), it’s not hard to save 200K by the time you turn 24." Uhh, sure? 200K at 24, in savings? So that's about 250K pre-tax. Say you graduate high school at 18, find a magical job that gives a…
Presumably, the kind of person who would start their own HFT company is earning more than 85K/year out of college. Close to double that if they're a trader at a bank, potentially more if they're at a smaller firm and do well.
Still, 200K after two years of work is a tall order after taxes and living expenses. But given four or five years, it's not that surprising.
Re: Bootstrapping an Ultra Low Latency Trading Firm, Part 1
#9From the article: "And if you are careful enough to save money (for example living at home saves about 3K a month when all is said and done) and not increase your expenses too much (no need to get a Porsche when a BMW or VW suffices), it’s not hard to save 200K by the time you turn 24." Uhh, sure? 200K at 24, in savings? So that's about 250K pre-tax. Say you graduate high school at 18, find a magical job that gives a…
> In this economy, how many college graduates walk out of school into an $85,000/year job and no living expenses...
Probably the same people actually able to set up a HFT shop. Let's face it, this isn't for everyone. I don't think we should be crucifying the author on this particular point, it seems like there is a lot of interesting information to be had here.
Re: Bootstrapping an Ultra Low Latency Trading Firm, Part 1
#10From the article: "And if you are careful enough to save money (for example living at home saves about 3K a month when all is said and done) and not increase your expenses too much (no need to get a Porsche when a BMW or VW suffices), it’s not hard to save 200K by the time you turn 24." Uhh, sure? 200K at 24, in savings? So that's about 250K pre-tax. Say you graduate high school at 18, find a magical job that gives a…
FTA: "Many successful people are persuaded not to try. For most people, a steady $500K/yr is enough to keep them happy, especially if they are protected from the risks of the business."
I'm pretty sure he's starting out making $500k (as a quant, I guess), not $42k. Other sections of the article imply that he was working at in finance and then decided to go out on his own.