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Seeking partner for setting up a FX High-Frequency Trading Desk

FXBird
Dec 11 2011 at 19:34
20 posts
I'm very sicked and tired for those bad design trading bots/EAs, that's just wasting money if not been deceived! So I'll try to seeking partners and rising funds ($10K would be sufficient) then setting my/our own HFT desk. If you're 'seriously' want to plunge into this business you can join the discuss. I have well connection with the 'industrial', but still need some seed funds to fire up. Any question and PM welcome. Please no broker or EA seller. And I don't sell any system! Thanks.

forexproptrader
Dec 12 2011 at 07:31
25 posts
Interesting idea, is the $10k for trading capital or for your startup expenses?

FXBird
Dec 12 2011 at 08:52
20 posts
Hi forexproptrader,
It'll be mainly spend on infrastructures (high performance trading engine, data analyzed tools, ticker plant, colo server, .. etc.), and first few months' regularly expenses. The system needed testing at least few weeks even months before trading real money.

Add: The personnel costs should be included, yet you always paid for what you got. Experienced personnel may cost more but will be worth.

mistificator (mistificator)
Dec 12 2011 at 11:20
453 posts
What platform you will be using? If you are serious about HFT you need a DMA and institutional access to trade within spread, so 10k looks very naive in my opinion. Unless you mean something like MDP and MT4...

Was mich nicht umbringt, macht mich stärker.
FXBird
Dec 12 2011 at 12:59
20 posts
Hi MistiFx,
LMAX would be qualified. And yes, 10k for a HFT start-up could be quite low compared to those multi-million dollar ultra high frequency trading operations/firms. But you virtually could do sub-second high frequency trading (hundreds trading per second) with no problem by using many off-the-shelf solutions (of course they're far more sophisticated than 'MT4' and 'scalpers EA') these days. And for those firm which have plenty resources, they might be choose R/D their own tools and systems form the ground, and often need far more time and manpower for these works since they're almost trading as many instruments as they can to reducing risks. But for low budget operations which focus only on trading few instruments these custom-built tools/systems certainly wouldn't be economic effected. Indeed, there'll be always have some 'trade-off' factors.

PipGnostic
TheCyclist
Dec 13 2011 at 04:50
724 posts
10k is not nearly enough and for a FX HFT in the traditional sense you need access to an order book.

You have that?

FXBird
Dec 13 2011 at 08:43
20 posts
Hi PipGnostic,
We could accessing 5 levels order book by LMAX's $1,000 account. That would be sufficient for the early stage testing and trading operations.

PipGnostic
TheCyclist
Dec 13 2011 at 09:26
724 posts
I see. Hope they're fast enough.

PipGnostic
TheCyclist
Dec 13 2011 at 09:34
724 posts
I like them actually by the looks of it and have my API in JAVA anyway, be easy to integrate.

PipGnostic
TheCyclist
Dec 13 2011 at 09:43
724 posts
I would submit though, that at this stage of the HFT game I wouldn't try take these guys on in their own game. Needs to be a new form of strategy that is not dependent on speed alone.

For forex you can't expect more than 20 000 maybe 40 000 ticks per pair per day, so there is only that many value changes. If you try and battle it out at the order book real HFT style on speed, most likely these guys are to far ahead to stand a real chance.

Tell you another thing, LMAX saying they update 10 times a second on that entry account, so they work in milli seconds rather than micro seconds BATS style, so here you're looking at 1/1000 of a second where there are people out there working in 1/1 000 000 of a second, so already this exchange is 1000 slower than the benchmark.

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