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> > Most HFT strategies are not only blatantly dishonest but also clearly illegal.

> What specific strategies are you referring to? Genuinely curious.

Any strategy that outperforms his 10-20% passive index fund VTI/QQQ ETF.

HFT is pulling 50-100% annual returns for decades.

HFT is capacity constrained, yes. But anyone would take 100% return every year on “only” $100 million on deployed capital.


Where is the citation for this 100% HFT? Lots of numbers floating around but the only time I have seen those types of numbers are for short lived periods.

My issue as always with these numbers is that back in the day you had some bloke on the floor vacuuming up this wide spreads and today we have some of the smallest spreads in history. It has a cost but that cost is generally less than what you were paying before.


> Didn't HFT compete itself out of outsized profitability years ago?

No

> So now we get instant super liquidity for pennies?

Not pennies yet. Still dime and quarter range.


Last I checked, the spread on SPY is on the order of <1 basis point.


> And providing fake proprioceptive, vestibular and tactile feedback? That would be quite some tech.

Yes, he’s saying metaverse will take off once humans achieve transcendence.

Only then will Meta recoup their AR/VR investment.


> since house always wins.

House doesn’t always share with outside investors


The owners of the house can’t wait for their cash cow to grow up and print money so they will take it public and cash out with promise for future returns. This is a game as old as capitalism.


> Hope they have ample backup power

Texas has more reliable electricity than California

considering the California electricity provider PG&E shuts off the electricity multiple times a year when it gets windy outside, to prevent power lines falling (due to lazy maintenance) and starting a wildfire

I wonder where the California’s additional 13% tax on capital gains is being spent? SF parking ticket enforcement?



Wondering why you'd bring up California in a discussion about Texas.


"us versus them", "blue vs red", "liberals vs conservatives"

Texas is the favorite punching bag of the left, and California is the favorite punching bag for the right. When one side is attacked, they defensively jump to the default. Which is kind of ironic, when you consider there's more Democrats in Texas than in many "blue" states, and the inverse is also true for California.


I can find many Republican representatives, Trump, and media personalities insulting New York with sweeping generalizations and hateful rhetoric.

The only negative comments from Democrat representatives and the media on the left I see is are critical of specific laws, for example abortion, but they don't insult the entire state or generalize.

If you need specific quotes let me know.



What did California have to do with this other than everything you are saying being laughable cope and false.

(Regional controlled brownouts and state wide power grid failure are not comparable)


> The CME is currently building a “backup” private Google Cloud datacenter in Dallas.

This has been “in progress” for over 5 years now.


Probably doesn't ever need to be completed, just in the works as a reminder every time the aforementioned taxes are floated as an idea


> Does this actually mean something specific?

Probably:

Trade matching algorithms (prorata, FIFO, TOP) and rules (capital requirements, market impact definitions) will align with the interests of the most profitable customers.

Citadel Securities, with their HFT-level returns of 50-100% per year will not venture into a losing business.

Note, CitSec is different from Citadel (hedge fund), and the hedge fund is also crazy with 40% annual return before fees (past 20 years) and 19% after fees to the outside passive investor.


How does this compare to HRT?


> had spent their entire little farming family's fortune back in some austere rice farming village.

Depends on tier of university.

At Harvard, MIT, Stanford, the asian international students are moderately rich (US$10 million+ net worth) from tech or manufacturing businesses.


> All those students, along with their talent and money and connections went _somewhere_ so that’s a shame for USA.

Money? Yes.

Talent and connections? Not necessarily.

Top PhD students are still coming to America.

It’s the money-grabbing 12-month masters programs that are the problem.

Come buy a F-1 student visa for $200k! It’s the Trump silver card.


>Top PhD students are still coming to America.

They probably are, and that won't stop anytime soon. The question is how much talent is being lost now.


Well, the only astrogeologist I know chose northern Europe, and the two nuclear physicists I know are doing their thesis in Zurich despite one of them having been proposed a subject by the MIT and a Singaporean university (I think he took the better subject tbh, probably didn't have anything to do with the current immigration policies in the US).

The admin stopping some research for no reason probably got a lot of PhD students quite distrustful of the US, that could cause some of them to go back after their thesis. Top PhD often choose countries for the lab director and the thesis subject. The US lost a few lab directors in the last 6 months, and at least in therapeutic engineering this year doesn't propose a lot of new thesis subjects (less than last year it seems), but maybe they keep them for their own students.


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