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Max Dama on HFT: Millisecond Algos and Bid/Ask Dynamics — #92

Manifold

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Understanding High-Frequency Trading Metrics

This chapter explores the financial metrics crucial for high-frequency trading firms, emphasizing trading profit over traditional AUM metrics. It discusses compensation structures influenced by technology, the significance of alpha models, and the complexities of performance evaluation in HFT. The conversation also contrasts different trading strategies while analyzing the challenges of assessing skill versus luck in the trading environment.

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