Article New Alternatives To High Frequency Trading (HFT)

T2W Bot

Staff member
Dec 19, 2004
For a time, it looked as if high-frequency trading, or HFT, would take over the market completely. In 2010, HFT made up over 60% of U.S. equity volume. But the trend may be waning. In 2009, high-frequency traders moved about 3.25 billion shares a day. In 2012, it was 1.6 billion a day, according to Bloomberg. At the same time, average profits fell from “about a tenth of a penny per share to a twentieth of a penny,” the report noted.
In 2017, HFT accounted for just under half of all domestic equity volume.
In HFT, powerful computers use complex algorithms to analyze markets and execute super fast trades, usually in large volumes. HFT requires advanced trading infrastructure like powerful computers with high-end hardware costing huge amounts of money and cutting into profits. And with increasing competition, success is not guaranteed. This article looks at why traders are moving away from HFT and what alternatives strategies they are now using.
Why HFT Is Losing Ground
A HFT...
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Well-known member
Jun 13, 2016
Very interesting piece. If what he says about momentum trading is true then perhaps it will suit traders like myself who use that strategy and hopefully will now benefit from riding on the coat tails of big players.