re algo & hft , page-2

"I have been reading this Forum for a while. I believe you guys don't have a chance against any Algo/HFT trading. The odds are stacked against you for access and speed."

im not quite sure why you think algo trading is a battle of the bots where the faster guy wins

here is a simple algo trade you can do for yourself

download data (8 years on commsec) for STW(XJO) and GOLD (price of gold in AUD)

load them into your spreadsheet

do a 50/50 bet on both, never trade in or out

calc the return

chart it

What do you get? I will tell you, its mostly a straight line going up for 8 years

Now imagine if you developed a simple algo that bought GOLD and STW on their dips and sold on their peaks using an oscillator?

your straight line would get even steeper with a higher return

no bot battle there...