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by infecto 259 days ago
That’s what always surprises me when folks bring this up. Nobody in the market cares. Institutional investor experience some of the lowest trading cost in history. These complaints are most often coming from retail traders where again I don’t follow the argument. Instead of some guy on the floor picking up dollars with have machines picking up pennies. This is a win for everyone.
1 comments
fijiaarone 259 days ago
Nobody in the market cares because everyone in the market are cheaters. There is a huge untapped potential of people outside the current market that do not participate because they know the market is rigged against them.

A fair market could be huge, but the trick is keeping it fair. It used to be more fair, and we used to have a healthier economy because of it.

It’s not like most of the unfairness in the current market couldn’t be dealt with, probably with laws already on the books. Most HFT strategies are not only blatantly dishonest but also clearly illegal. The government looks the other way though, because corruption.

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infecto 259 days ago
Hyperbole, hyperbole, hyperbole. Define more fair. Spreads are some of the lowest they have been in history.
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usefulcat 259 days ago
> Most HFT strategies are not only blatantly dishonest but also clearly illegal.

What specific strategies are you referring to? Genuinely curious.

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chronic74939 258 days ago
> > Most HFT strategies are not only blatantly dishonest but also clearly illegal.

> What specific strategies are you referring to? Genuinely curious.

Any strategy that outperforms his 10-20% passive index fund VTI/QQQ ETF.

HFT is pulling 50-100% annual returns for decades.

HFT is capacity constrained, yes. But anyone would take 100% return every year on “only” $100 million on deployed capital.

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infecto 257 days ago
Where is the citation for this 100% HFT? Lots of numbers floating around but the only time I have seen those types of numbers are for short lived periods.

My issue as always with these numbers is that back in the day you had some bloke on the floor vacuuming up this wide spreads and today we have some of the smallest spreads in history. It has a cost but that cost is generally less than what you were paying before.

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