What do u think will happen if all traders use the same ATS systems :)?
- Thread starter aonelite
- Start date
People with low latency and fast computers will make money.
the hypothetical race to zero latency always has people thinking of what the end game is. Truth is, there are faster ways (lower latencies added) for direct feeds to get them into your models; there is a faster way to process that info/signal in and out of your model, and ultimately, there is not only a lower latency but also a higher throughput (read...less back up) for some of the monsters out there to keep sending orders and making money, model willing.
The better things get the more the volume, because better pipes and better data represent more opportunities. It's far from equal at this point....
The better things get the more the volume, because better pipes and better data represent more opportunities. It's far from equal at this point....
Agreed.
I've tested 6 ATS' running at the same time. The systems were running the exact same strategy, with the same amount of money, and running 100% on their own.
Within a week, you could not tell they were running the same strategy.
Each trader was seeing different opportunities and buying/selling different stocks at times and when a few of them actually bought the same stock, the fills were almost always a few cents different, which resulted in the adding to and removing of positions at different times.
Ed
Within a week, you could not tell they were running the same strategy.
Each trader was seeing different opportunities and buying/selling different stocks at times and when a few of them actually bought the same stock, the fills were almost always a few cents different, which resulted in the adding to and removing of positions at different times.
Ed