High Frequency Trading algorithms are not exotically advanced machine learning techniques, they’re shockingly simple (ForexLive)

Here’s an interesting little weekend item on High Frequency Trading algorithms, in which the writer says that the best HFT firms now trade in around 2 microseconds (“context: sound takes about 150ish microseconds to travel from the back of your throat to your mouth”) in signal to trade time, and that doing advanced calculation work on a computer takes a lot longer than that… and thus

• The strategies employed by the most advanced HFT firms are shockingly simple in terms of Maths or Stats: think exponential moving averages, with a handful of if statements and safety checks…


• when faced with the decision to produce a reliable, stable strategy that provides good liquidity, or simply the fastest adequate one possible, speed wins every time.

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Originally Published on FX Times

by InformedTrades via InformedTrades