APOL LO
Faster and faster
Before anyone else. 650 ms is the time needed by a chess expert to understand if his king is in danger or not. That 650 millisecond mark it really represents a sort of fundamental limit of human strategic thought, the point where we can't actually process information any quicker and that's not a lot of time. It's about this long but little window has profound consequences because that's the window where algorithms start to dominate. This is a world where the international exchanges are connected by undersea cables, a world where 300 million dollars is being spent to shave five milliseconds of time so the algorithms can be a little more competitive with each other. It's not our world anymore, it's the world of the machines. In this world where the machines dominate and nanoseconds count how can we attempt to understand the market and race against these huge opponents? We can adapt our resources to the new rules of the game.
Some details
So we're talking about algorithmic trading and a subset of that is high frequency trading or HTF. These are just some details about that and the world of algorithmic trading.
- % of trades by AT 73 %
- av. speed <1 μS
- IT expenses $26,4 B
- Market Liquidity increased