I cant imagine how those things are profitable..
Aside from manipulation. Is that the goal? I saw something about someone using an HFT bot to prop the price up and offload at higher prices. How I cant totally understand, but apparently it works.
So how do ones that trade on relevant markets movement work? Only the first one there can win.. and its not even high frequency, just low latency trading then?
from my extremely limited understanding they are able to respond to changes faster and thus make money off of their speed. one thing i remember is that they scour relative news sources for names of companies and keywords that predict future impact of price. extremely interesting stuff. i am sure the first HFT bots for bitcoin will have problems that are able to be exploited.