Hi everyone,
Currently I'm a student working as an intern at a bank in brazil, I have good programming skills with languages such as Python, SQL and some VBA. Most of my experiences at bank were making automations.
Outside of my current work, I do a lot of mathematical modelling and algo trading.
I got this oportunity to be interviewed by a company to work with HFT, which is basically algo trading but in a short timeframe span. Is there someone who work with it? what are the most common asked questions? What should I be prepared for?
Also, my interview has two phases, the first one will happen in portuguese, next one in english. Is there somewhere I can training my speech skills?
I'm interested in exploring potential new lines of work within ECE. Accordingly, I've been doing a bit of looking into the HFT industry, and I wish to know if anyone here has any experience and/or insight that they might share.
I've read that an HFT engineer needs some pretty solid skills with FPGAs and networks. I have a fair amount of experience with FPGAs through course work and job experience, and I think I'm a decently solid Verilog and VHDL coder, but I'm not some God-tier expert. Meanwhile, I don't know too much about networks, and I don't really know what the most relevant topics are for HFT. Does anyone have recommendations for resources, or maybe even FPGA or Raspberry Pi projects, in order for me to deepen my grasp of networking?
Is my understanding of skill requirements correct? Are there other things that I should know or be good at in order to be a competitive applicant?
Also, what's it like to work in the industry? How is the working culture in that field? What about hours and work-life balance? And does the work feel technically and intellectually challenging and stimulating? Do people get burned out?
Also, I'm a little concerned about possibly feeling like a sell-out. I'm aware that the financial sector as a whole has a dubious reputation, and that fintech in particular is seen as not producing anything of true value. Not that I think fintech people eat babies or anything, but I'm wondering how people in the industry feel about this.
Any and all insight would be greatly appreciated. Thanks!
Not asking if it should or shouldn't be permitted. Is it legal or does it violate any trading laws?
Market volatility, whether up or down, is a cause for anxiety among investors and traders. How much money are you going to make (or lose) is always the question of the day. For high-frequency trading firms (HFT) such as the Mumbai-based AlphaGrep Securities Pvt Ltd, however, it’s when they hit pay dirt.
Volatile markets and frequent price disruptions are preferred playgrounds for HFTs, which trade through algorithms and strategies. And at no time was the market more volatile than in March-April 2020, when markets fell nearly 40% in a matter of days.
AlphaGrep, predictably, made a killing. Multiple employees at the firm told The Ken that the first six months of 2020 were the company’s most profitable in its 10-year history.
It was, by all accounts, a turnaround year for a company whose revenues are thought of to be widely divergent. In 2017, AlphaGrep’s Indian entity made Rs 141 crore (US$20 million) in revenue, according to company financials. In 2018, it had come down to only about Rs 44 crore (US$6 million). Recent numbers, though, are unavailable.
AlphaGrep is one of the largest HFT firms trading on Indian bourses. Almost 50-60% of the trades on the National Stock Exchange (NSE) are traded by algorithms. And on any given day, estimate former employees, AlphaGrep can be credited with about 5-7% of the total traded value on the NSE. For some stocks, this number could be as high as 20-30%. Both current and former employees at AlphaGrep that The Ken spoke to preferred to stay anonymous to avoid commenting publicly on the firm.
It trades in stock markets around the world. In addition to the Indian bourses, the company trades in the USA, UK, China, Singapore and even Brazil, and has registered entities in these countries
While official worldwide turnover figures are unavailable, former employees that The Ken spoke to estimated that AlphaGrep’s turnover could be closer to Rs 100 crore (US$14 million). The employees could not specify which year’s figure this was. However, they contended that the actual figures would only be known to the founders and top management.
This isn’t unusual. HFT firms, in general, avoid publicity like the plague. Though profit margins are razor-thin, the volumes they trade in are large. Consequently, actual profits are anything but. For instance, according to data from the NSE, AlphaGrep’s latest purchase—shares of newly listed company Mazagon Dock Shipbuilders—netted it a measly margin of Rs 0.21 per share. But with 1.5 mi
... keep reading on reddit ➡Every evening she uses a magic mirror to ask her parents about the current stock prices and uses the remaining hours in her time turner that she didn't use for classes to travel back. Then she calls her parents again and they boot up the computer, dial up to the internet, and use the NASDAQ online trading system to increase their dentistry money. A few percent increase a day in the beginning, but over the span of years it really piles up. Nobody at Hogwarts suspects she's doing anything but using more time to study than she should (which she obviously does too). Muggle authorities get suspicious but can't prove there's anything illegal. She doesn't quit muggle studies or Divination out of fear of losing access to the time turner, and by early fifth year when Malfoy's bribing half the government, she uses her billions and bribes them right back.
I have been programming in C++ for the last 4 years. I have mostly been doing camera acquisition and network transport stuff. I would like to get a job in trading. How do I get started? What do I need to learn in order to get ready for the interview?
https://www.cnbc.com/2019/04/18/a-controversial-part-of-robinhoods-business-tripled-in-sales-thanks-to-high-frequency-trading-firms.html
>Robinhood’s co-founder and CEO Vlad Tenev defended the practice in a blog post.
>Tenev said like its broker-dealer peers, the start-up “participates in rebate programs which help customers get additional price improvement for their orders by creating competition amongst the exchanges and liquidity providers who fill the orders, often resulting in superior execution quality.”
>“We send your orders to the market maker that’s most likely to give you the best execution quality,” Tenev said a blog post. The company also said it does not take rebates into consideration. “All market makers with whom we work have the same rebate rate.”
Hallo, I recently develop a strategies with statistical arbitraging between exchanges. But what I get from the answer is the API latency always a problem for VPS. How can I compete with that? As a retail trader it is impossible to have HFT VPS service? Would like to execute trades that are within second. Or even milli, but the reality dream is, impossible for a retail trader. Who Has a suggestion?
Is this being done? Is this possible with their current infrastructure?
I've been thinking about this for a while. Like sure HFT improves liquidity but you're getting scalped for it. HFT basically identifies and exploits any inefficiencies in the market regardless of whether that move is causing a divergence of price. Like shouldn't the overall goal to be to make the markets more efficient and fair? They're just taking a cut because their infrastructure is faster. Like robin hood sells all its trade flow to citadel which is just scalping the RH autists, who don't even know they're getting fucked bc they just hear "commission-free trades".
For example, Nav Singh Sarao, the infamous day trader who aparently contributed to the flash crash in 2010, was punished because he made bots that would spoof the market. These bots would make it look like he would put in large orders, which would cause HFT algorithms to react, and then cancel the orders and trade against the reaction. You could argue he understood how these HFT algos worked and he exploited the inefficiencies. Yet, HFT firms complained to regulators that it wasn't fair but they are practically doing the same thing. They're making billions at the expense of every other market participant.
Like I'm all for utilizing technology to make markets more efficient. But who draws the line? Why are some people punished for taking advantage of inefficiencies whereas others are rewarded? I just feel like every market participant should benefit the market.
Sorry if this has been posted before but just thought not everyone watch this video before.
Mod: If this is not appropriate post, please delete thanks!
I'm researching high transaction-per-second accounting software used by financial institutions like stock exchanges and high-frequency trading firms.
Does anyone know where could I get information regarding the hardware used for such purposes?
For example, what is the hardware spec used by the New York Stock Exchange?
All help is highly appreciated.
How do I chouse the best VPS to run my algo? How to chouse the location? How to meshure latency the right way? What tools are used by players using the same strategy in the traditional markets?
Does anyone know if there are any consumer available algorithmic high frequency forex trading software? The reason I ask is because I recently got into learning about forex trading and I have a couple of servers just sitting doing nothing and I thought it would be cool to have then do all the work for me. If you know of any such software that's available to consumers please tell me, thanks
Hi all. I have a lot of experience building high-frequency trading systems in C++. Does anyone here know of any organizations that are using Rust for that now?
might seem like a noob question, but they seem quite so similar at the surface. What are some important details that differentiate the 3?
I recently wrote a research paper on how HFT's and market makers such as Citadel LLC impact market efficiency. Any feedback would be extremely helpful, you can read it here: https://docdro.id/T93yzE7
I worked with many HFT startups and I have a pretty good idea of the initial costs that such trading shops have.
Data: High-frequency strategies are data-intensive, so you need to get the best data providers at the tick level (level 3). That’s expensive. Depending on the market you are in (forex, futures, bonds, etc) the cost could vary. FX is even more complex, because of its highly fragmented nature, so they will need to have a broad view of all of them. Each provider cost could start from $5k per month each, up to $50k per month
Servers: You will need power. A decent server (please don’t use the cloud), could cost you 20k at least. It needs to have 32-cores at least. You can rent a dedicated server, and its cost could start from $2k per month
Collocation: That powerful server must be placed inside a collocated environment. The idea is to reduce the latency as much as you can, so being close to the exchanges/venues is the best choice. These data centers will charge you for your server space and for the connectivity you use (cross-connection). This varies considerably depending on the markets you are in.
Software: this would be the most expensive piece of your setup. Remember, that the software is the brain of your operation. Not only needs to get ALL the data from the exchanges/venues but normalize it, store it, manipulate it, and prepare it to be consumed by your strategies(s) that will be doing tons of different calculations based on the data they receive. And all that must be done in a fraction of milliseconds (hopefully within 10–50 microseconds)
On top of that, you must be sure, that you will have all the different modules in place: price aggregators, order management systems (OMS), execution management systems (EMS), smart order routing (SOR), liquidity manager (LM), risk management systems (RMS). and any interface you may need (to databases, storage, monitoring systems, reporting, etc)
Cost-wise, all of this will depends on what you choose. If you go with an off-the-shelf solution (not recommended, cheaper, you don’t own anything, slow), or you start your own development (time to market +1 year, very costly). The cost could vary between $300K to $1M
People: you will need human resources. This is not a one-guy operation. You will need to have software engineers, quantitative analysts, and researchers. Think about 150k /year at the low end.
Brokers/Prime Brokers: you will need to open up a
... keep reading on reddit ➡#fintech #algotrading #hedgefunds #quants #hft Remember When High-Frequency Trading Was a Bad Thing? Short Memories In 2014, Michael Lewis’s attack on high-frequency trading, “Flash Boys,” was No. 1 for three weeks running on The New York Times’ best-sellers list. Lewis argued that the stock market was “rigged” against small investors, because high-frequency traders (or HFTs) had access to data that others lacked.
The public outrage, to put the matter mildly, has dissipated. Six years later, the organization recommended by Lewis for its refusal to accommodate HFTs, Investors Exchange, accounts for a modest 2.5% of U.S. equity trading volume. Although the company retains its trading platform, it recently abandoned efforts to entice companies to list on its exchange, after attracting only a handful of companies. The revolution will be a long, hard slog, if it occurs at all.
Continue reading at: https://www.morningstar.com/articles/990862/remember-when-high-frequency-trading-was-a-bad-thing
