71–80 of 103 posts
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If that was the case, why use Python in the first place?
Even at the speediest trading firms, the large majority of code is not latency sensitive. Systems and algos are structured such that the fast acting stuff is simple and contained.
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> "We have a fancy trading algorithm that statistically is never going to outperform just buying VOO and holding it, but the thing is if you get lucky, it could". How they make $8B/y underperforming VOO? Reference: https://www.businessinsider.com/hudson-river-trading-hrt-8-b...
Man from all these responses, so many people are unaware of the finance world, lol. Or just bots posting for HRT In case you are unaware - very single trading firm makes money on fees, not by outperforming the market. This goes for firms like Vanguard too. Just think about it for a little bit - if you could reliably outperform the market by any % with an algorithm why even start a company? Just take out loans, invest…
All your posts here are low-information anti-finance rants.
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Being a market maker vs "We have a fancy trading algorithm that statistically is never going to outperform just buying VOO and holding it, but the thing is if you get lucky, it could" are two very different things lol Moreover, I would be very surprised if the majority of their $8 billion annual profit came from client market making.
Right, exactly what I said. They don't make money by market making. They make money by charging transaction fees, and on an access basis to their "algorithms" which are designed against analyzing the complex futures that they are the market maker for. The incentive for users to sign up with them is to get access to "better" pricing for whatever commodity they pair the buy/sell orders for - but remember these are futu…
They pay fees to exchanges.
As a market maker, some rebates are given back conditional on their activity.
They have no users.
You’re just constantly obliviously asserting falsehoods that betray an almost comical lack of understanding of the reality of these businesses.
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> "We have a fancy trading algorithm that statistically is never going to outperform just buying VOO and holding it, but the thing is if you get lucky, it could". How they make $8B/y underperforming VOO? Reference: https://www.businessinsider.com/hudson-river-trading-hrt-8-b...
Man from all these responses, so many people are unaware of the finance world, lol. Or just bots posting for HRT In case you are unaware - very single trading firm makes money on fees, not by outperforming the market. This goes for firms like Vanguard too. Just think about it for a little bit - if you could reliably outperform the market by any % with an algorithm why even start a company? Just take out loans, invest…
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Those days are all over btw. Most trading firms are past the whole "beat the other guys to buy". Established large investment firms already have all that on lockdown in terms of infrastructure and influence to the extent where they basically just run the stock market at this point (i.e Tesla posts horrible quarter numbers, but stock goes up). Most of the smaller firms basically try to figure out the patterns of the l…
No, there are absolutely electronic trading markets where a difference of milliseconds of latency to certain events is worth more than a M PnL. That’s a long time.
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For crypto you pay the miners to put your transaction first. You don't need millisecond precission reaction time.
Crypto trading takes place on exchanges, not the blockchain though?
This article from a16z explains the mechanics of reordering transactions for profit (MEV): https://a16zcrypto.com/posts/article/mev-explained/
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Two business models: Good returns - take other peoples money, trade it, take 20% of profits Excellent returns - trade your own money, make a bit less overall but keep 100% of profits
If the first case, whats the incentive for users to trade with you In the second case, why start a company?
Prop shops usually come about as the partners buy out other investors in a fund
Interviewed with HRT awhile back. While I didn't get past the final round, their Python internals interview (which I did pass) was an absolute blast to prepare for, and required a really deep dive into implementation specific details of CPython around things like exactly how collisions are handled in dict, details about memory management, etc. Pretty much had to spend a few weeks in the CPython source to prep, and wa…
>Python devs at HRT really know their stuff. Its a finance firm - i.e scam firm. "We have a fancy trading algorithm that statistically is never going to outperform just buying VOO and holding it, but the thing is if you get lucky, it could". Scammers are not tech people. And its pretty from their post. > In Python, imports occur at runtime. For each imported name, the interpreter must find, load, and evaluate the con…
You're confusing prop shops and hedge funds.
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Those days are all over btw. Most trading firms are past the whole "beat the other guys to buy". Established large investment firms already have all that on lockdown in terms of infrastructure and influence to the extent where they basically just run the stock market at this point (i.e Tesla posts horrible quarter numbers, but stock goes up). Most of the smaller firms basically try to figure out the patterns of the l…
No, there are absolutely electronic trading markets where a difference of milliseconds of latency to certain events is worth more than a M PnL. That’s a long time.
In some cases the order leaving the card starts to emerge before the packet containing the market data event that they're responding to has even finished arriving.
Waiting for a full microsecond for the packet to arrive before responding means you're already too slow
The speed game is essentially over
> python > monorepo > vast proliferation of imports > large modules > distributed file system > side-effects > many transitive imports This sounds like a very optional problem to have.