How the Robots Lost: High-Frequency Trading's Rise and Fall

[marketsurfer]

Quote from trickshot:

That isnt a pseudo edge, its a real edge and thats how 99% of the profitable market participants make money, the 1% that makes money gambling on direction are merely lucky (for now).

There is no edge in betting on direction, because the future cannot be predicted, battles are won before they've even been fought.

100% correct. Well stated.\
\\surf

 

[Smalltrader]

the best time to beat the algos is the first hour of trading because they have to figure out what is going on in the market

Jea Yu of marketfy is great at scapling this time period

 

[Redneck]

Quote from trickshot:

That isnt a pseudo edge, its a real edge and thats how 99% of the profitable market participants make money, the 1% that makes money gambling on direction are merely lucky (for now).

There is no edge in betting on direction, because the future cannot be predicted, battles are won before they've even been fought.

If you say so….

But then, that means;

You don’t think the htf real-estate will ever become over crowded – to the point of cannibalism

You think the htf “edge” will be enduring (a true edge must withstand the test of time)

You think there is no way to out trade the htfs – meaning PA will never simply evolve to reflect the htf activity, along with all other participants…

But instead, will remain apart from the other participant’s PA – and thus never able to be exploited

More I could list – by why – we think what we think – and trade accordingly
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Can’t count the number of pseudo edges that have came and went over the years
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But like I said;

If you say so

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As for prediction - a trader doesn't - we anticipate (big difference)

RN

 

[TraderSystem]

This is a good article. The comments section on the article itself is also good. The problem is that there’s so much about HFT that’s a mystery to the vast majority of people so I like seeing articles that try to shed some light on it for everyone.