tag:blogger.com,1999:blog-17478547.post4002527245856565102..comments2024-03-27T20:17:30.597+08:00Comments on Growing your tree of prosperity: High frequency trading and having your own hedge fund.Christopher Ng Wai Chunghttp://www.blogger.com/profile/15534057160494859977noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-17478547.post-78678955368568416822010-01-23T12:45:28.719+08:002010-01-23T12:45:28.719+08:00"Right now I've been pretty intrigued by ..."Right now I've been pretty intrigued by the concept of high-frequency trading. If these experts are to be believed, market efficiencies drop precipitously as we reduce the time we hold our positions. This means that if we buy and hold, we will usually just earn the normal market return but we if hold a series of securities position for seconds or milliseconds at a time, we can potentially earn ridiculous Sharpe ratios of 2000+ which trump even the top fund managers in the world."<br /><br />But that's assuming one has the fastest computers and the shortest lag time to the securities exchanges as well as a whole army of IT guys to prop up the server, data, etc etc, which I believe youknw better than me.<br /><br />Only large institutions are capable of such sustained operations or small firms with large capital to start off with.<br /><br />Beside that, the normal market return assume capital growth and doesn't count into your infamous dividend play eh? <br /><br />Cheers<br />ArtArthttps://www.blogger.com/profile/15420928418246877134noreply@blogger.comtag:blogger.com,1999:blog-17478547.post-59618681107389403172010-01-23T12:43:26.548+08:002010-01-23T12:43:26.548+08:00This comment has been removed by the author.Arthttps://www.blogger.com/profile/15420928418246877134noreply@blogger.comtag:blogger.com,1999:blog-17478547.post-41520884659757892292010-01-22T22:06:23.481+08:002010-01-22T22:06:23.481+08:00I'm having the same questions unanswered in Br...I'm having the same questions unanswered in Brazil. HFT is "new" here, but it will not be long until we reach 50% of transactions made by AlgosInvestidor Ninjahttps://www.blogger.com/profile/11753139784792219573noreply@blogger.com