High frequency trading (explained by a quant developer)
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- Опубліковано 14 вер 2020
- What is high frequency trading? Can you explain it simply? Yes!
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I HAVE INCURRED SO MUCH LOSSES TO TRADE ON MY OWN,I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED.
I HAVE INCURRED SO MUCH LOSSES TO TRADE ON MY OWN,I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED.
having a mentor is also very important when it comes to Trade, with out that, it can be very frustrating.
you must have these things in mind
1. Have a long term mindset.
2. Be willing to take *risk*.
3. Be careful, if you're not spending to earn back, then stop spending.
4. Never claim to know - Ask questions and it's best you work with an assistant.
The wisest thought that is in everyone's minds today is to invest in different income flows that do not depend on the government, especially with the current economic crisis around the world. This is still a good time to invest in gold, silver and digital currencies (BTC, ETH. stock,silver and gold)
When it comes to Trade, I can confidently say that bitcoin is the best option. But most people think it's all about buying and leaving it to rise but It takes a lot more you need to trade it to earn daily.
Your channel and your thought logic are just too awesome. I can't stop watching.
Great simple breakdown bro, thank you
The very basic concept of trading alone. You did not explain HIGH Frequency trading
I chose the correct first video about HFTs. Thank you Jesus 🙏🏽 Now to learn about coding from your other videos🧑🏽💻
Choosing the light of the Lord is always the correct choice.
Great video, super articulate and easy to understand. Keep it up!!
Cheers, thanks!
Yo, CJ! bless us with the knowledge of which programming languages we can learn to become a HFT coder.
I made a video about this "How to break into HFT"
@@CodingJesus PLEASE!
@@CodingJesus LFTL: ua-cam.com/video/iSjNYhbrh1E/v-deo.html
HFT isnt even so much about mispricing of an asset, its about order placement that HFT's recieve that act in accordance with the more volume that exchanges want and thus get prime order placement. This isnt your grandparents markets that want to bring good companies to IPO. It gets way dirtier, these dudes live for institutional firms that place large orders with too much liquidity to fill at a single time, and they tear it to pieces as they flow it into the market.
I have heard HFT is just hardware, colocation, and jamming /cancelling orders. I think the net profit for a "set" of buy/sell tickets is as little as 1/2 tick. But they just trade 10's thousands sets of "buy/sell". Every nanosecond counts, not millisecond or microsecond. HFT prob doesn't care if the tick after next tick is up or down. They just want to make sure they get the next order flat with tiny profit. Pretty much HFT and our idea of quant trading are going separate ways. Maybe I am interpreting it incorrectly.
Hi man,
Do you know what brokers in Toronto Canada allow you to do HFX trading?
🙏🏽 thanks
Love your videos, keep up the great work!
Thanks, will do!
So, basically, quantitative valuation models are highly specific guessing strategies, or, perhaps, opinions written in code, based on as many valuation indicators as possible. That may sound derogatory, but I don't mean it that way.
What I really wanted to know here was how to even be able to trade fast without getting wrecked by fees and intentional delays by brokers.
Hey man, ik you have a business degree but can you suggest any resources for someone in SWE who wants to potentially break into quantitative analyst roles? I.e. where should I start when learning the fundamentals of finance & where should I go from there? Thanks in advance, love the channel btw.
Anything finance related can be learned on UA-cam. Find a channel that goes over the fundamentals
Things like Cashflow Statement, Balance Sheet, Income Statement. Then look into financial modeling. Things like Discounted Cashflow Model. As for quantitative finance, I'm not too sure to be frank. Most quantitative finance involved a fair bit of math.
SIR, Trading forex supply & demand if 4 hour trend is up,& 1 hour trend is up as well--then on 15 minute time frame chart one has to wait until price comes down to support level(derived from 1H chart) & using smaller 15 minutes chart watch that this level holds & then buy. Next step would be how this long position attacks higher supply level ON THE SAME 1H chart & only sell if forex pair turns down at this higher supply level--otherwise just hold the position on to next higher supply level ON SAME 1HOUR CHART--any modifications you suggest
Hey man do you think there will be regulations by the US government imposed to HFT firms in the future that might slow down or even freeze the industry?
Um no. Why is that even a concern of yours?
@@jaco9286 You must not watch the news...
@@sdub2395 worry about the things you can control versus what you can't. All these "regulations" and policy making you can't do ANYTHING about.
Litteraly your channel name made me sub dude 😂
And your comment my friend, is epic..i just subscribed to this coding jesus
Just imagine if his name is actually Jesus
nice background 👀👀and ty for the easy to understand explanation :-D
No problemo. Thanks for the comment :D
Thanks for the simple explanation!
But to be able to exploit leverage one needs to have access to different markets on the same terminal. How do we counter that...?
Good video, man. Keep at it!
The models the HFT firms use in your $1.50/ banana example, project the near term equilibrium price?
Does HF algos use stop losses or as you say they hedge risk somewhere else?
its like if your at a market waiting in line to buy bananas and then you have banana scalpers that all of a sudden get to the front of the line, buy all the bananas before you get the chance and then turn around and resell them to you
i subscribed after you said " Whats up guys, it's Coding Jesus here "
Thanks Coding Jesus, pls how can I successfully carryout this strategy out on a normal manually operated forex mt4 account
Awesome explanation, thanks for making, you gotta do more videos on this.
Thanks! Will do one on market making.
Very clear and interesting ! Thanks
Is there a platform I can subscribe too that will teach how to place High frequency trades with a 70 to 80% win rate
wow, you are in Toronto. From the background, seems the video was shot in Etobicoke?
thank for the video! I want to know what would be the cost for an individual to be a high frequency trader.
Cost in terms of what?
First of all, I LOVE your name! Okay, now let me watch the video all the way through. I just heard the term "high frequency trading" for the first time today.
Okay, thank you. This was very easy to understand, especially for someone like me who struggles with more technical topics (but is still eager to learn). Thanks again for sharing. I'm glad I saw your video before any others on this topic!
Do you mind making more complex videos? Many cover the basics, but nearly no one goes in depth
Sure, what in particular would you like to know?
Isn't this the same as what scalpers and daytraders do ?
powdered form of platinum is used as a catalyst in the ignition of hydrogen in the catalytic converter on your car
How do I as a retail trader get a HFT software or is that not an option
Thanks for the information I love it
Hi Coding Jesus. Could you please tell more about how frequently Java is used in HFT firms? Thanks Coding Jesus.
Almost never if not never.
How can a retail trader go about attempting to begin HFT for their own profits?
High frequency trading is creating, and exploiting market conditions by knowing how the inner workings of the exchange to capitalize off of you, the retail trader. For instance, if you know certain data is processed in alphabetical order instead of the timestamp in which the data transfer occurred, you can exploit that.
I literally learned how my account went from $2000 to 0 in the literal blink of an eye
😂😂
SIR, Which support is more likely to hold-- A) one with fractal support Or B) one without fractal support?
Which support is more likely to hold A) fresh recent support--not tested before Or B) Support which has proved successful being tested many times before?
Which support is more likely to hold A) where price spent little time before being repelled away successfully Or where price spent a lot of time before moving away?And I Seek your wisdom on these life & death questions.
It's trivial to build a statistical model and answer those questions for yourself. You can do it manually by going back over chart history with pencil and paper or use the power and simplicity of a programming language like Python.
I'd say theres some front running involved as well. Everyday unless I place a non display or discretionary order I get front run every single time (trading penny stocks).
Ex: Bid sits at .7525
I frontrun at .7526
A single or a few HFT firms will buy those shares ahead of me and also simultaneously improve upon MY bid with .7527 and place 3-4 lots in front of me. Amazing stuff, speed cannot be matched.
That's some insight :)
NIce Man... what softwares use for High frequency trading softwares, Thanks
If youre in the comments asking, chances are its way out your price range.
5:16 please explain how they hedge out the risk
HFT is when traders have special software and hardware to execute a sale after the sale from other non HFT companies was made but before it shows on stock exchange. At very fast speeds. Mostly very small single sale profits but high volume of shares and volume of sales.
One HFT company once said that they make money every day..never looses.
Loved this brother
Glad to hear it
Okay where can I find a hft trading bot. For td ameritrade
can you tell me best place to learn hft????
Would you consider doing some videos on FIX API and perhaps how to read FIX Logs?
@@condingjesus1 will do
In which HFT company/Firm you are working yet???
Great video
Hey Coding Jesus,
First of all, love the content I just randomly fell into your channel per your recommended C++ books.
I just have a quick question if you don't mind, I am what you would call an aspiring quant. I am a qualified ACA (CPA in the US) and I work in professional services here in London, UK. I am deliberating whether to pursue a masters at university (something along the lines of financial mathematics/computational finance) or undertaking the CFA (Chartered Financial Advisor)
I am also trying to get into a role which has more exposure to programming, something like a M&A Analytics role or one of the technical consulting roles that my firm offers. I am hoping to continually improve on my programming in the meantime as well.
In your opinion which of the paths would best prepare me for a career in the Quant space? If it's even feasible.
Keep up the good work mate!
Hey!
Ok I'm going to break down the response here:
"something like a M&A Analytics role or one of the technical consulting roles that my firm offers.""
This won't happen in an M&A Analytics role, or a consulting role. I doubt you'll get any programming experience there.
"I am deliberating whether to pursue a masters at university (something along the lines of financial mathematics/computational finance)"
I think you'll need a structured educational environment if you'd like to be a quant. Unlike self-teaching programming I don't think you can self-teach yourself being a quant, but I may be wrong! I'm just afraid that financial mathematics or computational finance may be watered down, and not really computational. Also, taking on debt isn't appealing.
"In your opinion which of the paths would best prepare me for a career in the Quant space?"
I'm not too sure, but before you do, I'd consider looking at training courses, or self-taught avenues. Being a Quant is more about understanding how to think about mathematical problems than it is having a degree.
I'm not really qualified to give advice here though, so take it with a grain of salt.
@@CodingJesus Many thanks man, I appreciate your insight!
One final request, are there any self taught avenue that you recommend?
Thanks again for replying, peace!
@@jlnbello94 I made a video on it. See my video on learning to code in 3 months
@@CodingJesus Yes sir!
Thank you for sharing such valuable information.
Do you accept strategy coding gigs? I have a few market strategies I would like to contract out
any github for trading C++?
Have you made any successful softwares?
2:40 i dont know if those other people will capitalize for you they might capitalize before you but i highly doubt they would capitalize for you to benefit.
I still confuse brother. How High frequency work??
That’s the Public Relations explanation. What about the “front running” of investors, thus making the mom/pop investor who pay a higher price because they can get there first?
Cf. Brad Katsuyama and “Flash Boys”
The short answer is Flash Boys is discredited bullshit sensationalism. I am a fan of Michael Lewis but realized he is more of a story teller than a reporter. The reality is high frequency trading profits have dropped by 90% since their peak right before that book was written. There is a reason all of those doomsday high frequency trading stories all of sudden went away. Front running is not a real problem. I have placed billions of dollars of transactions and would have every reason to complain if I thought I were being screwed. Transaction costs for mom and pop investor are a small fraction of what they were 20 years ago. I know we live in an age of populist outrage but facts should matter.
@@Markdfadf If profits are dropping, why is the percentage of HFT increasing? It was about 15% at the time of the Flash Boy’s book and is about 55% now. Somebody must be making $$$$. They are hitting the Bid-Ask Price spread with a vengeance and getting away with it.
was this shot in toronto? It looks like lakeshore/park lawn
Yes
Hey there Coding Jesus I'm in my 1st 2yrs of trading both stocks an cryptocurrency. I REALLY WANT TO TRY SOME TRADING BOT BUT THERE SO MUCH VS OUT CAN YOU PLSE GIVE ME YOUR TOP 3 RECOMMENDED TRADING BOTS! THANK FOR ALL YOU DO AN YOUR TIME AN EFFORT!!
High frequency trading be high frequency draining my tendies
Same
Correct me if I am wrong, but your last example is having a model that seeks value investing. Wouldn't you require security analysis for this, a combination of quantitative analysis followed by qualitative affirmation? Or does the model only take into account of quantitative analysis and try make micro gains on quantitative speculation?
It's moreso that a model tells you at any given point in time what the asset should be worth. You can act on that information if it's beneficial to you. So your second point on quantitative analysis.
He is not the messiah he is a very naughty boy. Thanks for the vid CJ.
thank you!
Amen!
Most of the time graphs go against the direction I bought - gave up on this😏
The only way to do this is with a super computer?
Thanks for the content. I'm already on my way to success. Trade has been the main source of income, although I barely do it myself .
@Stephanie Jacobs There is no magic in trading. The main secret of trading is to have a very strong and reliable signal, but that's not for novices, that's why I work with Larry Kent Nick. His trading strategies are superb
What a coincidence!! It seems that you recently started trading with Mr. Kent. He has been the secret behind my trading success and his experience gives him an edge over other expert traders. I appreciate his services
@Stephanie Jacobs He is obviously the best. I made a profit of $13,500 trading with him last week. He has made bitcoin trading easier than i think.
@Beatrice R. Damiano Larry Kent Nick Trading
Instagram
subscribed my guy
I love coding Jesus
I think I get it. But what if I'm trying to cut down on carbs. Then it doesn't make sense to buy a lot of bananas.
However your example wouldn’t technically be arbitrage since you bought the bananas. On an arbitrage you would borrow the money for the bananas, pay principal + interests and make gains on the rest
Hi coding man the world is doomed the world is over, let's pray may our souls rest in peace 🙏🙏🙏
🎉
🥺 can't we make money using signals??
Would it be possible to make a video going more into the details of high-frequency trading? ...as a specialist in this space it would be a great value to have some more information about it since it's always a black box for the public. How can a model derive the fair price of futures on oil or gold? What happens if the underlying goes in the other direction? How long is the position taken? How is the quantity of money invested in an arbitrage opportunity determined? The trade could last for a week until convergence is reached. Why it is called high-frequency? Could you give real examples instead of taking bananas? Does the edge disapear since more hegde funds go into this space? Do you program what others tell you to do or do you find yourselff opportunities first and then implement them? Who is is charge of the search for opportunities in the company (1 person, a team or is the algorithm bought externally?) What is high frequency in the forex and fixed income space? How successful are those strategies? Do you have statistics on returns for the different strategies? How is a trading system fine-tuned since the strategy may work for a time period and not in other periods? Thank you for considering a more in-depth series on high-frequency trading and bringing more transparency to the public.
Hi, buddy. Can i also use your HFT software, please?
Yes ofc, just make research on the best and your choice too, btw I’m using TCPRO.
@@forflies9642 what is tcpro? May i have the link, please p
@@spynoza69 It’s a set of certain algorithms trading, instructions and action of the traders on the basis of the technical analysis. In each trading system, the conditions for entry/exit time intervals, money management and risk management are clearly defined.
@@spynoza69 Text me on T.G @Dchaser, it’s T.G oriented
@@forflies9642 i cann't find your telegram account, buddy.. 🤔
What is your profile picture on telegram?
Lovely awesome video
Hey Jesus, I am interested in your video and would like to present you with our project and see how we can cooperate together to market our product
Email me.
@@CodingJesus May I have your email address please
@@CodingJesus hello, I sent you an email. Please kindly check
cheers m8
I basically end up having to hit the ask for half of my fills. The sell walls get canceled as soon as I start poking it. Funny though the algos dont act this way if I hide my true size like the big guys do.
plz create a telegram channels also
I guess I will be one those guys who after 2 years will comment I was there when he had 100 subs. I can't see your subs btw
Haha, I made my subs private.
@@CodingJesus Naughty jesus. I might get active on your discord. U seem pretty chill
Cut the low ends of your audio
I knew that one with apples
So how do I get a job as a HFT developer?
Do you know how to code?
@@CodingJesus just java and springboot working on my comp sci degree right now.
@@wuyev Learn C++\C# or C++\Python well and you can get a job as a Jr
@@CodingJesus alrighty then
@@wuyev Not sure what else to tell you. Hahah. I don't know you, your capabilities, what you're good at, and what you need to work on.
"Coding Jesus, what the hell..."
No, bro
Coding Jesus !
Replace "model" with "pattern" and it sounds exactly like day trading. You even used the word "hope". It all sounds like gambling still.
Now if you care about the commodity, or the business, and evaulate what some have called "deep value", then I can see some potential for an edge over the random behavior of the market.
ahahhaha....i watch your video not bcoz of your content but the funny name
Dude, you look like Zayn Malik with glasses, long beard, and long hair.
No way, hahah
is that Mimico I see
You remind me of a young Charles Manson.
I love it
I need a job skill besides living in a semi truck. 🤔
0:58 this is the man that shits on day traders for the exact same thing 🤣
Fellow Torontonian?!
；）
Great insights! If you crave more, I'd steer you towards a related Udemy course. "Trading Stocks Mastery Course" by Stuart Mills
Man didnt you see the notice about long haired freaky people signing off on thoughts they notice by the sea?
Risk+Volatility=Opportunity
What you said has absolutely nothing to do with high frequency trading
Grow bananas and speculate on weather😂😂😂😂