Tag: curtailing high-frequency traders

Investment lessons from Ed Thorp

Here I summarise the financial market lessons imparted by Ed Thorp in his book “A man for all markets”. My first three sections cover his views on investing, risk and market inefficiencies. My last two sections describe the hedge fund strategies Dr Thorp employed as well as his views on hedge funds in general.

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Why high-frequency traders are here to stay

Replacing continuous time trading with frequent batch auctions substantially mitigates the advantage that latency arbitrageurs, such as high-frequency traders, enjoy. Discrete time trading reduces the number of races to the top of the order book. It does not altogether reduce the advantage latency arbitrageurs have though.

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