High Frequency Prop Firm in London looking for 4-8 traders

OrderFlowDashPro

Member
76 9
London, Thanks for the info. Do you find that the edges you discover "erode" quickly? This was also suggested by the same study. That study suggested there were only a few successful HFT shops. New shops are initially profitable but within 8 to 12 months they tend to become unprofitable and quit.
 

london_hft

Newbie
7 1
London, Thanks for the info. Do you find that the edges you discover "erode" quickly? This was also suggested by the same study. That study suggested there were only a few successful HFT shops. New shops are initially profitable but within 8 to 12 months they tend to become unprofitable and quit.

The problem with "edge" being discovered is one of the greatest issues of a successful model - there are those much more well-funded than us who hire armies of people to "front-run" models like us. So you have to be able to deal with it by organising your infrastructure around it.

Main problems are:

1. If you execute via same venues and same counter-parties your model will be "decrypted" by their guys. Front-running will lead to you getting slaughtered when you try to hit the liquidity.
2. You will run the issue of getting "piggy-backed" if you're too profitable through the same venues/counter-parties - which will lead to further absorption of liquidity - leading to lower vol upon the event (less profit to be divided between all participants).
3. Piggy-backing will potentially lead to false direction as too much liquidity is being soaked by you and those piggy-backing you, which will lead to the larger MM's preventing shorter-term direction to go to your favor by aligning the liquidity they push in to the market.

All of a sudden a model which is based on an extremely short time frame can take minutes or maybe an hour to realise to your favour.

Important thing is to have your deals spread evenly across multiple venues/counter-parties and not get "spotted" too frequently. Run multiple proxies and execute contradicting models via different venues - creating an overall confusion by your counter-parties and preventing them to piggy-back or front-run your models.

Most important for us is to just milk the cow and not slaughter it - that's the only way we think we have been able to keep the models going for a "long" time.

There are those who do the opposite of us, find an opportunity and hit it until other MP's "figure out" what they're doing - if you do that (like a very famous London shop did) - you better make sure you make enough money to support you for a life-time in a very short time frame.

Those guys (according to my sources) doubled their risk-capital almost on a daily basis, and it went on for almost 1.5 years until they cashed out at the peak. Very sharp guys!! For us it's not just about creating wealth but also generating a sustainable income for those involved. However the wealth they created is far above what we have been able to do. And don't take me wrong, would I have discovered the same arb - I would have done it too!! Maybe in the long-run - we can beat them at that.
 

supremegizmo

Active member
219 86
looks like a sophisticated broiler room re branding itself. HFT firms do not operate in this fashion? the whole post tells the story itself! I know very good HFT firms who are struggling to squeeze ticks due to current market conditions and here come a bunch of monkey offering a split .. stay away.. this sort of jobs to my experience negates the value of cv rather than adding value to your career!
 
 
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