HFT vs Small Traders

http://www.olsen.ch/fileadmin/Publications/Archive//hedgefuture.pdf

Quote from al trader:

In future, there will be a growing number of high frequency finance hedge fund managers, albeit
at a slow pace. Due to the high startup costs and the secretiveness of the high frequency hedge
fund managers progress will be slow. Their trading technology is so successful that they do not
have to do any active marketing and thus do not have to reveal any information to the outside
world. This has the effect that only a small group of insiders know about the technology. The
high frequency hedge fund managers enjoy their anonymity. They can take advantage of the calm
before the storm to enhance their competitive edge.

The unique risk adjusted returns of high frequency finance managers has the effect that the
managers are overwhelmed with demand. They are not able to absorb even a fraction of the
potential demand for their products. The existing players of high frequency hedge funds have no
interest in changing this. Will this ever change? Have the high frequency finance managers
merely discovered a few esoteric trading rules that are powerful but are limited in scope or does it
have the potential to become main stream? To answer this question, we have to make a step back
and try to understand our way of viewing the world. We have all been steeped in the history of
classical economics. This has shaped our view of what can be achieved with finance technology.
More...
 
90% of small traders fail.
So fucking what?
I could have told you that twenty years ago.
Congrats to the Op for working that one out.

& here's some news for you. HFTs are the new small traders. Less than 10% of them, like small traders, make significantly positive returns. 90% of them blow out.
Feel free to blow your account by paying a second rate IT consultant to set up a HFT, or paying a "3rd party educational vendor".
Either, or...

I'm so bored with HFTs.
Can we please move on to the next fad?
 
I would think HFT firms would mostly be bust within a few years. Take a flash crash. Is anyone actually saying that an HFT firm didn't go long in huge size 1 microsecond before the flash crash last year? That firm would have been blown away.
 
Quote from Visaria:

I would think HFT firms would mostly be bust within a few years. Take a flash crash. Is anyone actually saying that an HFT firm didn't go long in huge size 1 microsecond before the flash crash last year? That firm would have been blown away.
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I think it is fairly well known that most established HFT firms did well during the flash crash. Some reporting their biggest days ever. At least the ones that kept their computers on (Tradeworx being an example of one that did not, and I believe they have stated it was their worst day in their history for that reason (i.e. took the hit on the way down, but didn't reap huge profits on the ride up cause their algos were turned off)).
 
Quote from emg:

HFTs are killing small traders! u don't even know it
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Its a good thing most ET traders on here don't listen to "know it all" ppl like you...

Your repetitive rant: "90% of traders lose, they just lose!"

You obviously have an obsessive compulsive disorder. Please go see your nearest psychiatrist, your insurance should cover it.
 
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