The equity market has HFT firms to help with volatility. Crypto needs HFT firms. Tempted to start one

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The crypto market definitely has high frequency traders evidenced by all of the bots active on the exchanges. Definitely not to the extent of the equity market though. You would need to form good relationships with large exchanges like Coinbase to succeed

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Most exchanges charge high commission for trades from anywhere between 0.075%-3% of the amount traded. They do have volume discount if you trade huge quantities every month like 100 million plus in a month. You'd have to be able to work out a deal with them. Trading crypto is incredibly expensive compare to trading traditional markets. Which is probably why hft is not in crypto yet.

You need to be able to work out some sort of deal with the exchange in addition to getting the right software

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We should start a thread/bowl and get this company started. I’m in. Lol

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Go for it.

Yeah, I’ve been doing research on HFT since college, so it’s something I’m v interested in. Some exchanges offer the ability to co-locate servers, but those are expensive options. And there’s all that stuff about order type issues and such. Most importantly is getting the right people the write the algorithms since you can also crash and burn pretty quick if something goes wrong 😬

Yeah, I imagine that crypto exchanges would be willing to give discounts since they’d see volume increase and if this helps with stabilizing prices in the future. Anyone know some stellar Quants? I only have a few friends that work as quants/modelers

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