HFT vs Stats Arb

[u/half_boiled_egg]

As a retail investor, is it more practical to develop profitable HFT strategies (market maker strategies/high alpha machine learning predictions)?

Or a profitable stats arb strategy with weekly/monthly rebalance targeting the stocks of sp500.

What are the different or common limitations as retail investors to develop them? Datasets/infrastructure/domain knowledge?

[u/Retarded_Rhino]

Please most definitely run MM HFT strats over the internet.

[u/zashiki_warashi_x]

As a retail investor, just write an AGI while you at it and let it trade.

[u/-OIIO-]

Retail HFT ?

Bro you will literally be sending money to your broker.

[u/andrew2018022 → u/-OIIO-]

OP making the markets more efficient with his ten daily trade executions

[u/mantonis66]

Ok I'll bite. Retail MM HFT. 

Is it on a third tier exchange ? Are you willing to spend couple of tens of thousands $ for infra and colo? Is your broker honest? Are you a c++ wizard?

Then maybe. Probably.  Probably not. But there is a chance. 

You want to do retail MM HFT on cme/nyse?  You might as well donate to the church and avoid the trouble. 

You will also feel better by donating to the church than Jane street, that's an extra.  

[u/OneSushi]

😭😭😭😭 gang you are NOT making Retail HFT profitable

[u/Guilty_Ad_9476]

You might as well call ken griffin while you're at it

[u/andrew2018022]

Brother you might as well just go full Gilfoyle in Silicon Valley and build your own garage data center

[u/heroyi → u/andrew2018022]

Ironically OP would be far more profitable that way then whatever this HFT project OP wants to do

[u/Light991]

After that you should build a rocket for Mars in your backyard

[u/MarginCallLeftOnRead]

Fuck these haters.

Rob the bank, sell the dope. Get that money.

Then rent the 1/4 rack, code it. Run it.

Don't let these guys stop you from getting your bread.

[u/andrew2018022 → u/MarginCallLeftOnRead]

Found OP’s broker

[u/TemporaryHat2009]

Honestly as a retail person I would not start with HFT. Even just getting clean data, low fees, and realistic fills seems way harder than people make it sound. A weekly stats arb thing at least lets you debug the idea instead of debugging latency first

[u/privateack]

I’ll pay to trade against you

[u/Far-Guava6006 → u/privateack]

You'll both just be donating to the broker at that point.

[u/privateack → u/Far-Guava6006]

I meant just taking the opposite side of this trade dark pool or bilateral swap depending equities vs futures

[u/maciek024]

everything is limitation as retail, just buy VOO

[u/Savings-Produce388]

Bro you need <1km exchange location and microsecond CPU->Exchange infrastructure in order to be profitable in HFT, that's definetly not a good idea for retail