Manifold Max Dama on HFT: Millisecond Algos and Bid/Ask Dynamics — #92
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Aug 14, 2025 Max Dama, Co-chairman of Headlands Technologies LLC, shares his journey from a curious student at UC Berkeley to a high-frequency trading expert. He discusses the impact of AI on trading strategies, revealing how technology is transforming the industry. Max also delves into the vital role of theoretical foundations, the complexities of algorithm optimization, and the economics of performance metrics in HFT. He offers career insights for aspiring finance professionals, emphasizing the importance of coding skills and passion in navigating this dynamic field.
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College Blog Became A Lasting Trading Guide
- Max ran a trading blog and taught a student trading class at Berkeley that later became a widely circulated PDF.
- He converted the blog to a PDF to preserve it when joining Headlands and it still circulates years later.
HFT Firms Mostly Trade Their Own Capital
- Major HFT firms trade with their own capital because high Sharpe returns make outside capital unnecessary.
- Startups may take external money briefly but often buy out investors once profitable.
HFT Is A Technology Business
- HFT is primarily a technology business: success comes from building superior software infrastructure.
- The edge often lies in systems-level excellence, not only in isolated research ideas.
