High Frequency Trading - Hype or Substance?

Cambist,

Its nice of you to offer to throw some light on the secretive world of HFTs. Allow me to suggest you to write at least basic strategies and ideas about HFT on the open forum. This way you will save yourself a lot of time answering similar questions on the PM. You can answer v. specific/deep/sensitive questions via PM to interested parties.

Best,
 
(03-18-2010) Quote from Cambist:

If any of you truly want a Q&A regarding HFT you can feel free to PM me. I worked for a couple years as the FX desk manager at a HFT hedge fun in Chicago. The concept is actually quite simple and transaction costs not an issue. We accounted for 15-20% of CME volume in most of the majors and raked in about 5-10x the average american salary per day on our 8 person desk (firm was 250 people and a desk for any asset class).

The barrier of entry is the huge cost of technology.
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(12-28-2007) Quote from Cambist:

Have people given up on AutoTrading? I will soon be starting with my live account and wish there was more first-hand information/experiences with auto-trading.

I have read every thread in here and have been to the fx245 website, but it's still not enough for me. I just posted in another thread explaining that I will be starting in January with TAB signals. I plan to also start a blog so that there is more information for people like me.

Have people simply given up or are there autotraders out there in the silence. It seems to me that the same problems are occurring with autotraders as manual traders. People get greedy and pick terrible, champ of the week, signal providers only to watch their account evaporate by 50% the next week when they go on and move on to the next weekly champ. Pick stable providers, keep it to a few and increase your size as your account balance allows you to do so. I ran a spreadsheet doing just this on TAB's signals for all of 2007, you'd be amazed at the profits one could have realized.
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cambist is well known in the hft industry. i can attest, he was a star trader and then manager of the desk he speaks of above and led his talented team to make incredible multiples of the average american household. it was truly a spectacle to behold. a few years ago however, after a horrible accident involving both a zebra AND a gorilla while visiting the local zoo, he lost his memory completely and was forced to try and reconcile his amnesia along with the horrible event that had occurred.

i know it's been awhile cambist, but please forgive all the "jungle love" gags we sent to your hospital room, our desk really didn't understand the severity of the situation (we're still paying down the personal steve miller serenade, btw). so, it's with great joy then to see that you're back on track again! welcome back cambist, you've been missed!
 
Quote from Cambist:

But what it comes down to is that HFT is nothing what everyone here believes it to be.
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I am pretty much sure HFT is another name for market making. Not that market making is simple, I guess it's very hard game to play today because of low spreads and high competition.
 
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