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  1. #1
    Junior Member Sharon1987's Avatar

    High Frequency Trading? !!!

    Have you heard of this? https://en.wikipedia.org/wiki/High-frequency_trading
    Is there any way we can do that too, or do we need like a supercomputer?

  2. #2
    Moderator Kolyo's Avatar
    Unfortunately we can’t do this manually and in most cases you really need a supercomputer to trade high frequency. It is most applicable to trading stocks within few miliseconds, and sometimes forex withing 10-50 ms. It is not possible to trade high frequency binary options, because of their nature and this is good because the computers can’t compete with us here.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  3. #3
    Junior Member Sharon1987's Avatar
    Thanks for explaining, but isn't it possible to rent one of these supercomputer, just like you would rent a VPS online? I know it would likely be crazy expensive but if (supposedly) you can code a profitable high frequency EA, you could pay for that supercomputer.

  4. #4
    Solid Member ionone's Avatar
    Quote Originally Posted by Sharon1987 View Post
    Thanks for explaining, but isn't it possible to rent one of these supercomputer, just like you would rent a VPS online? I know it would likely be crazy expensive but if (supposedly) you can code a profitable high frequency EA, you could pay for that supercomputer.
    what i don't understand with HFT is how they do with the spread? when they buy they have to sell at some point but the price has to move more than the spread otherwise no benefits, but how to do that at super high frequency? or do they get rebates with very high volumes?

    here is a great article about HFT http://queue.acm.org/detail.cfm?id=2534976
    Jeff

  5. #5
    Junior Member Sharon1987's Avatar
    Thanks for the article, looks great! Regarding spread, I guess they have much thinner spread than us as they trade with no leverage.

  6. #6
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by ionone View Post
    what i don't understand with HFT is how they do with the spread? when they buy they have to sell at some point but the price has to move more than the spread otherwise no benefits, but how to do that at super high frequency? or do they get rebates with very high volumes?

    here is a great article about HFT http://queue.acm.org/detail.cfm?id=2534976
    Jeff
    that's just it, the computers buy, and then sell as soon as they show a profit. Because they are most often dealing in millions of dollar, hundreds of options contracts, it only takes a little bit of movement for the position to show a profit, and then the computer sells... with thousands of contracts a 10 cent move could equal hundreds of thousands of dollars.

  7. #7
    Junior Member Sharon1987's Avatar
    I found a website claiming to offer VPS dedicated to HFT with 1 micro second latency : http://www.ultrafxvps.com/products/u...x-hft-vps.html
    That's a good start, now we need a HFT algorithm, any idea lol?

  8. #8
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Sharon1987 View Post
    I found a website claiming to offer VPS dedicated to HFT with 1 micro second latency : http://www.ultrafxvps.com/products/u...x-hft-vps.html
    That's a good start, now we need a HFT algorithm, any idea lol?
    Yeah, but will it link to a binary account for trading?

  9. #9
    Specialist Member Million Dollar Baby's Avatar
    Quote Originally Posted by Michael Hodges View Post
    Yeah, but will it link to a binary account for trading?
    Is it even possible to do HFT in binary? What would it look like in binary options? In forex you can exit as soon as the profit shows but that is not the case in Binary options. I guess it would be very hard to implement this strategy in binary options.

  10. #10
    Junior Member Sharon1987's Avatar
    Quote Originally Posted by Michael Hodges View Post
    Yeah, but will it link to a binary account for trading?
    No way, HFT is purely for Spot Forex as you have to open and close options in split seconds, but I'm not against trading Spot Forex if I find a good algorithm ^^

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