[gowld]

Why wouldn't HFT be disrupted by AI? AI-enhanced trading algo designs are likely to be competitive? AI disrupts everything on the computer from the low-end on up. The higher end requires more expensive or custom models that aren't as easy to obtain yet.

[lossolo]

Because HFT is about adversarial play with a lot of hidden information.

Relevant article from two days ago https://www.latent.space/p/adversarial-reasoning

[_se]

HFT is about the last technical domain that could possibly be touched by LLMs. There is next to no good training data and there is zero margin for error.

[yencabulator]

I could see analyzing news getting easier with LLMs. They have a history of using NLP there for sentiment analysis.

[ej88]

i mean llms

happy to be corrected but im not aware of any direct improvements llms bring to ultra low latency market making, time to first token is just too high (not including coding agents)

from talking to some friends in the space theres some meaningful improvements in tooling especially in discretionary trading that operate on longer time horizons where agents can actually help w research and sentiment analysis