"Gold in them hills!"..

[SimpleTrades]

Quote from Spectre2007:

x 2 + y 2 = r 2

(x-h) 2 + (y-k) 2 = r 2


Knowing r,h,k, .... x and y can be plotted in advance. The 2 dimensional structure can be simplified into a formula, that is repetitive and predictable.

No, you're missing my point. Yes, you can use those formulas to dscribe the circle. However, you can only draw a finite number of points, because your computer screen has a finite number of pixels. In this way, the circle that is drawn is not continuous. The circle is drawn imperfectly. To draw it perfectly would require you draw all, infinite points, described by that equation x^2 + y^2 = r^2.

The circle drawn on your screen is "discrete" in nature ( a finite number of points. ) This is its inefficiency. Its imperfect.

 

[Occam]

Quote from Spectre2007:

There is a modern day Gold Rush thats been happening as computers have become more sophisticated in the trading arena. All the price data that is generated from a few exchanges globally, and the individual issues traded.

Man cant compete with machine logic implementation and pattern recognition of machines that occurs in milliseconds. If you look at all the price data, there is literally 'gold in them hills'. Lots of inefficiencies that can be exploited. The 'edge' can be temporal or it can be everlasting.

You seem very late to the party. While no one has complete stats on this, evidence strongly indicates that algorithmic trading, especially the very short-term variety, peaked in the 2008-9 period and has been shrinking, both in profitability and headcount, since. A steady flow of HFT shops are now selling out at a discount or outright closing shop.

http://www.advancedtrading.com/as-hft-profits-slump-the-hot-trend-loses/240009067

 

[zdreg]

 

[Spectre2007]

Quote from Occam:

You seem very late to the party. While no one has complete stats on this, evidence strongly indicates that algorithmic trading, especially the very short-term variety, peaked in the 2008-9 period and has been shrinking, both in profitability and headcount, since. A steady flow of HFT shops are now selling out at a discount or outright closing shop.

http://www.advancedtrading.com/as-hft-profits-slump-the-hot-trend-loses/240009067

There are inefficiencies at the macro price structure level.. Doesn't require HFT.