Post
Topic
Board Trading Discussion
Re: High Frequency Trading
by
Mauser
on 12/03/2021, 06:45:42 UTC

I am using stock as an example because the documentary that I watched was mostly focused on that. My question is, will HFT be feasible in the cryptocurrency market? Will it face any problem?


I followed HFT a lot when it came out back in the days. Remeber LTCM back in the day, they were already trying to go in HFT and make a small profit of each trade. If you can make 1 cent profit of 1 million trades than you are going to be fine. In todays world there are so many computers constantly trading. So getting HFT traders into the crypto world should not be a problem and would likely make a decent profit. But there is also quite a lot of risk involved in these black box systems. You need to be 100% sure there is no error in your system. If the trades go wrong you could lose all your money. And even worth people could start exploiting your trading system like in 2010 with the Flash Crash.