Wednesday, January 5, 2011

Quantitative Trading in the News

CNBC had an interesting article posted about quantitative trading.  The writer suggests that computerized trading is speeding the demise of traditional long-term investing.  The reported concern is that this approach is “killing the traditional buy and hold philosophy”.

It’s interesting to see the proliferation of computerized trading viewed as a threat, but there may be some truth the market shaping that takes place, particularly by the high-frequency trading  (HTF) group.  According to the article, it now accounts for 70% of daily trading volume. 

Good Trading…

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