Monday, September 09, 2013

The Ten Commandments (of HFT)

If Moses were alive today, what might he have been doing? Perhaps a down-on-his-luck former SOES Bandit? Perhaps a refugee from Lehman or Bear Stearns  ?  Contemplating the Exodus from the lawless  Kingdom of Pharaoh Neferjamie Dimonhotep II where remnants of The Bear tribe remain enslaved in the vast expanses of the Corporate Trust & Agency Group?  Perhaps, but I think he'd be in Chicago, where the Supreme Being slipped him an updated version of the Ten Commandments (of HFT)....

1)  Exchange co-location with 10GB Ethernet is God. Exchange(s) shalt have no other HiFTers before Thou.
2)  Thou shalt not speaketh nor make images of strategies or their technical details.
3)  Thou shalt not maketh markets in liquid instruments, nor collect rebates, in vain.
4)  Honor the Holy Sabbath day which is for re-compiling code and beta-testing.
5)  Honor thy exchanges, legislators, and thy best C++/ KDB+ programmers
6)  Thou shalt not allow oneself to be killed by large orders.
7)  Thou shalt not alow oneself to be caught whilst spoofing or quote-stuffing.
8)  Thou shalt not be stolen from [more than 35% of the time] (or thou will spend thoust time doing MSWindows Sys Admin for an accounting firm in Poughkeepsie).
9)  Thou shalt avoid losses on others false quotes.
10) Thou shalt not covet thy neighbors positions in fast, event-driven, or cascading markets.  

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