A lot of people say this, but you miss 100% of the shots you don't take. If you think you can't do it because there are "better people already doing it", or because academics say the markets are efficient and therefore you shouldn't try -- you will never succeed at anything.
- I really don't think they have the best talents in the world. The last place I'd want to work is a finance company. That's true of most AI/ML engineers I know. Therefore I think the best AI/ML talent is outside, not inside.
- HFT and speed isn't the game I'm playing. HFT firms that trade with FPGAs colocated with the exchange are also cursed by their own working business model and they aren't usually interested in minute-scale AI/ML trades
- Not counting speed, I can get most of their data, you can just pay for it. You just need to work out whether you can make more $ than the cost of the data. I suspect it's possible.
- Being backed by a mountain of capital means you take less risks, and you hedge volatility to please your clients, often at higher prices than efficient. Nobody would $100 million would risk 20% of it to make 100% gains. I'm happy to risk 20% of my net worth to double my money though. Big difference
- The market is filled with price action traders that amplify volatility in surprisingly predictable ways. Markets drift quite predictably to Trump policies over hours, not milliseconds. It doesn't take an idiot to realize that markets are headed down if he announces more tariffs.
- I suspect there are lots of $1000-per-trade opportunities in corners of the market that the big players do not take because they go after bigger fish, and increasing the volume on those trades would result in moving the prices and the strategy not working. For me though, $1000 a day is meaningful. That's enough to replace a dayjob.
- I really don't think they have the best talents in the world. The last place I'd want to work is a finance company. That's true of most AI/ML engineers I know. Therefore I think the best AI/ML talent is outside, not inside.
- HFT and speed isn't the game I'm playing. HFT firms that trade with FPGAs colocated with the exchange are also cursed by their own working business model and they aren't usually interested in minute-scale AI/ML trades
- Not counting speed, I can get most of their data, you can just pay for it. You just need to work out whether you can make more $ than the cost of the data. I suspect it's possible.
- Being backed by a mountain of capital means you take less risks, and you hedge volatility to please your clients, often at higher prices than efficient. Nobody would $100 million would risk 20% of it to make 100% gains. I'm happy to risk 20% of my net worth to double my money though. Big difference
- The market is filled with price action traders that amplify volatility in surprisingly predictable ways. Markets drift quite predictably to Trump policies over hours, not milliseconds. It doesn't take an idiot to realize that markets are headed down if he announces more tariffs.
- I suspect there are lots of $1000-per-trade opportunities in corners of the market that the big players do not take because they go after bigger fish, and increasing the volume on those trades would result in moving the prices and the strategy not working. For me though, $1000 a day is meaningful. That's enough to replace a dayjob.