Will the HFT algorithms and AI based trading software be available to retail traders ?
- Thread starter traderwald
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Just took a look at it. So basically, you use their platform to develop and test HFT strategies and you get to "compete" to have your strategy have capital allocated towards it. This is of course after their research team evaluates your strategy, but don't worry, you still have full rights to the IP
Go back and read what Turvey said: "HFT needs infrastucture mainly really fast network access to the exchange, the software isn't a big deal, it's the milliseconds."
As for getting the necessary infrastructure, good luck to Joe Sixpack, who just quit his $50K/year job and plans to "day trade with the big boys" like he keeps seeing in all those YouTube videos with his $15K account. Without the speed, that software won't help him much...
Of course it's available to you ... right now.
Go pay the $100 Million in start up costs, and start an HFT firm for yourself. Personally, I don't see the advantage, as that's a race to zero, and has HUGE start up costs, and I can make money just fine, without paying that sort of overhead.
From Shipping Magnates paying for Dock Space and Runners to get to market and market information first in the 1600's, to Guys Trading in the Pits in the 20th century, to HFT today?
If you want to be close to the market, and have that information first, you have to pay for it.
And it's no one's "job" ... to make it available to you
Go pay the $100 Million in start up costs, and start an HFT firm for yourself. Personally, I don't see the advantage, as that's a race to zero, and has HUGE start up costs, and I can make money just fine, without paying that sort of overhead.
From Shipping Magnates paying for Dock Space and Runners to get to market and market information first in the 1600's, to Guys Trading in the Pits in the 20th century, to HFT today?
If you want to be close to the market, and have that information first, you have to pay for it.
And it's no one's "job" ... to make it available to you
Right, that's the problem ... nobody says - here is the server connected to market data and exchanges, go knock yourself out within our risk limits. Even that is not securing your IP really, but at least it's better than - explain to us exactly what you are going to do and then maybe we will grant you permission to code your system within our infrastructure.Just took a look at it. So basically, you use their platform to develop and test HFT strategies and you get to "compete" to have your strategy have capital allocated towards it. This is of course after their research team evaluates your strategy, but don't worry, you still have full rights to the IP
I have understanding that $100m is around 5 years ago. Nowadays it is north of $300m to jump the order flow. Next thing will be to have a data center underneath the data center hosting the exchange.