re algo & hft , page-7

This is my favourite paragraph.

"HFT rigging helps explain how Goldman Sachs earned at least $100 million per day from its trading division, day after day, on 116 out of 194 trading days through the end of September 2009. It?s like taking candy from a baby, when you can see the other players? cards."

Now your suppose to be able to see the other players cards playing Blackjack(except for the dealers down card).

You then use statistical probability and entropy from cards that have gone by to try and adjust your basic strategy according to what's left in the deck of cards to be dealt, and then use all this info by applying Kelly to adjust your bet size so as not to break your Bankroll and continue to make a health hourly rate with your positive expectation while at the same time have nerves of steel to cope with your fluctuations.

I call that skill.

To be able to view your opponents cards while playing poker,

That's called cheating.


Now imagine being able to view the dealers down card in Blackjack. You don't need any of the above skills.

It would be like taking candy from a 1 day old.

(In the US the dealer deals himself 2 cards and he is allowed to peek at his down card. If he has BJ you cannot play on,(some tables offer early surrender which allows you to lose half your bet before they check). In Australia, no peeking by the dealer.)