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Man vs machine: Pros and Cons of High Frequency Trading and High Speed Trading cnbc.com

(Last Updated On: September 22, 2011)

Man vs machine: Pros and Cons of High Frequency Trading and High Speed Trading cnbc.com

The two essential elements of high-frequency trading are an algorithm that can accurately identify a pricing mismatch or trading opportunity, and trading systems that are lightening fast—trading speeds are measured in…

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Even in medium speed trading, one great example is constant range bars. Fabulous for trading but difficult for a human because you never know when the bar is going to close. A human has a hard time maintaining focus, whereas a machine is ever vigilant.

 

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

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