High Frequency Trading - HFT
It is interesting to note the resistance that most of people has about any subject related to Quantum Mechanic, when it comes to the meaning of quantum phenomena.
However, this is not applied to using technologies in common life, almost nobody makes a stand.
This is being proved again in cases of high frequence machines, used to negotiation of financial actives.
These machines with algorithm programs allow to execute 40 thousands operations in a blink of an eye. Literally. Nowadays, 56% of United States´negotiations are made by HFT. Nowadays, negotiations happen in less than seconds. The millionth part of a second.
Of what it seems, today the limit to an operation is about 10 micro seconds. Actually, people want to reach the speed of light.
In order to this be possible, it is necessary the machines to be the closest as possible of the computer that operates the stock market, for example. This is a service that is already being served too.
To each 160 kilometers, it is related 1 millisecond in the time of operation. Who has more speed, makes more operations. The minimum latency is being seeked between an order and its execution. Nowadays, to be informed is to be faster than you competitor. To have information is not enough, it is also necessary to be fast.
The objective is to win 0,001 of Euros in each operation. Multiply this in micro seconds, 8 hours a day, 5 days a week, 52 weeks a year…
While a human operator thinks about what to do, the machines will already have made millions of operations. That is why they have been used more each day.
The algorithms are made by mathematicians, physics, engineers and even musicians. It doesn´t matter anymore the real economy, but the speed of the operation. To discover opportunities and tendencies using machines that create a great random flow of purchase and selling orders in less than one second.
It is possible to induce the other machines to act when it is input a great number of purchase and selling orders without an evident logic.
Until now, there is an operator who observes the machines, but this implies in a minor decision velocity, and the greater the velocity, the greater the profits. Therefore…
See until where it is going the use of technology to obtain financial gains.
The other face is the quality of information and the capacity to generate faster and more efficient algorithms. Just to illustrate how an algorithm is, check the book “High Frequency Trading”, by Irene Aldridge.
The knowledge to analyze the market and to create the algorithms can be transferred to you by the Harmonious Resonance, that is an application of Quantum Mechanic, related to the in-formation to who wish to increase and improve his/her knowledge.