High-Frequency Trading
Strategy
High-frequency trading is the use of algorithms to execute large volumes of orders at extremely high speed, often held for milliseconds.
High-frequency trading is the use of algorithms to execute very large volumes of orders at high speed, typically holding positions for milliseconds to seconds. HFT strategies depend on infrastructure (co-location, low-latency networks, optimized hardware) that retail traders cannot replicate cost-effectively.
Most retail prop firms prohibit or restrict HFT-style trading because the firm''s simulated-fill modeling cannot reliably price extremely fast in-and-out flow. Some firms ban any trade held under a specific duration (e.g. 30 seconds) explicitly to deter HFT.
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