July 21st, 2010, 7:24 am
Hi,I've been reading an awful lot about the necessity of having low latency networks and software for high frequency trading systems. One thing that has escaped me thus far is what exactly the strategies are. If you only have fractions of a millisecond to make a decision, doesn't that severely limit the scope of potential strategies?Is speed the only thing that matters because everyone is trying to do the same thing? If so, what is this same thing, and how does one show that it is indeed a profitable strategy?