Just because you CAN do it doesn't mean you SHOULD. Even if you don't think of it as "gambling", you're still taking in tons of money without providing any tangible benefit to society. If you want to make money from investing, why not do so in a socially responsible way? Invest in companies that are changing the world for the better. You might not bring home as much money, but at least you'll be able to sleep well at…
You mean, something like Instagram?
How I made $500k with machine learning and high frequency trading
261–270 of 320 posts
Re: How I made $500k with machine learning and high frequency trading
#262Re: How I made $500k with machine learning and high frequency trading
#263I've been considering trying HFT myself for a while. I'm competent with Machine Learning and am a Software Developer by day, so I can program and can sysadmin well enough to get something up and running without any trouble at all. But, every time I've tried to actually get started, I've always found the amount of research required before being able to begin is just staggering. It seems like the logical course of sing…
Symbols change, stocks split, dividends are announced etc.
Re: How I made $500k with machine learning and high frequency trading
#264Re: How I made $500k with machine learning and high frequency trading
#265Earlier quoted context omitted.
> "The market can stay irrational longer than you can stay solvent." As long as we're quoting Keynes, let's also remember this gem from a letter he wrote to the regents of King's College about the performance of their endowment's portfolio (which Keynes managed). "The management of stock exchange investments of any kind is a low pursuit, having very little social value and partaking (at its best) of the nature of a g…
Wow that is a gem. Keynes was a giant. Wish the political parties wouldn't run from him.
Re: How I made $500k with machine learning and high frequency trading
#266Re: How I made $500k with machine learning and high frequency trading
#267Re: How I made $500k with machine learning and high frequency trading
#268Earlier quoted context omitted.
Why are you ignoring HFT's positive contribution?
Could you please elaborate what that contribution is?
Re: How I made $500k with machine learning and high frequency trading
#269Earlier quoted context omitted.
Exactly. I've played millions (!) of real-money online poker hands and won some money in the process (not anywhere near what most people who've played that many hands did). Most people don't understand that, when you're able to recognize patterns, playing millions of hands while never exposing more than 1% of your bankroll on any deal is not "gambling" but "printing money" (a tiny amount of money in my case compared…
I think the real problem (as with so many problems) is definitional. What does "gambling" actually mean? If I tried to kludge together a definition, I might come up with something like: >Risking the loss of something of value in exchange for the possibility of gaining something of greater value in a situation where the determining factor of losing value or gaining value is random chance The problem with a definition…
I believe we call that gambling.
Re: How I made $500k with machine learning and high frequency trading
#270While this was quite fascinating, I couldn't see this form of trading as anything but a zero-sum game. Some players win, the other lose, like in any other game. Except finance is supposed to be "serious". In most serious, legitimate activities, extracting money means you provided value somehow. So, what value high frequency trading could possibly provide?
Now I do have an idea where trading could be useful. For instance, a good old merchant doing arbitrage and making a profit is pretty useful: that's how different regions can specialize, do better than they otherwise would, and ultimately lift us from hunter-gatherer tribes where 60% males die a violent death, to our civilization now. And money, as evil as it may be perceived, is to date the best organizing medium humanity ever had.
Investors also have their use: by better allocating money among companies, we could hope to give more money to those who are better at converting it to actual wealth.
But.
The OP didn't make a ton of money because his model of the the companies had an edge, but because his model of the behaviour of other traders had an edge. So I fail to see what useful information his trading put into the system. How his actions resulted in better (or worse) allocation of money between companies. How the (very serious) game he was playing was anything but zero sum.
Maybe there's an error in my reasoning. In this case, I'd happily accept downvotes, but please tell me where I have gone wrong. Not understanding why one's post is being scolded is just frustrating. Like failing an exam and being told to have a hard look at oneself. "Yeah, I get that, but what should I look for?"