How to invest in HFT
Liquidated 400k worth amazon stocks, want to explore how to invest in HFT. Current Portfolio includes index funds and popular tech stocks, primary residence mortgage for 1 M house, 2.5 interest rate. DINK, wife works as DS in small startup. I have already invested in real estate Blind tax L6 ASM Alexa, 10 YOE, 450 2023 comp
Before you go throwing down 400k on crazy hft strategies, you should do a shit ton of research and paper trading. Don’t blow up an account. You don’t have all day to monitor this if you have a job so you’re better off sticking to your favorite index funds / tech stocks.
Op is most likely asking about a HFT index fund or having their 400k managed by HFT wealth managers. For the latter, I think citadel requires or likes do they require atleast $10m invested.
I am asking for 400k managed by HFT, any other HFTs which take lower amount like 400k
I am ok to take risk of losing this 400k, need to make money fast, Amazon sucking my youth and blood is not worth it
Virtu is a publicly traded HFT. That is the only way a retail investor can get HFT exposure of any kind.
Do you think investing in Virtu is better than spy500?
Nope
HFT? High Frequency Trading?? Simple: you collocate in a datcenter with the exchange, pay them an exorbitant fee for market data over a fiber optic lline, pay an army of engineers 800k to bypass the TCP kernel on your collocated box, so you can TRY beat Citadel to market so you can get a .0001/share rebate “maker” fee, a million times a day. Good luck!
Maybe I'm wrong but I don't think any hfts do that anymore. Now they all use asics and it's not a fiber optic line it's a direct microwave since it travels faster than fiber optic does since fiber optic isn't direct it has to bounce around the cable. Also pay for engineers is more than 800k, that might be just base, but bonus or equity or profit sharing will put them north of 1.5 million
When you co-locate at the exchange, the data center cuts everyone with the same length of fiber optic so nobody gets a speed advantage by having a shorter fiber cable. I’ve heard third hand that some firms will attempting to use laser relay towers between Chicago and NYC to arb exchanges. Programmable logic boards. Yeah people do that as well.