Tag: HFT firms

  • Robinhood order flow income rose thanks to HFT firms

    Robinhood order flow income rose thanks to HFT firms

    2 min read

    Robinhood order flow income rose thanks to HFT firms
    It looks still strange to engage HFT firms in order to increase order flow income. The skepticism is great. Also the criticism.

    But the facts are that Robinhood’s order flow income rose 227% in 2018, thanks to HFT firms.

    And this is a standard offer among Wall Street brokers such as E*Trade or TD Ameritrade.

    What Robinhood did?

    It engaged HFT firms to increase order flow.

    Payment for order flow is still unknown and strange to the majority.

    And somehow they read that kind of market presence as the immoral.

    Traders Paradise wrote about HFT firms and strategies already.

    But, let’s see what Robinhood did.

    The popular millennial stock-trading app earned $69 million in order routing income in 2018. According to a survey from Alphacution Research, it three times more than the company made in 2017.

    Payment for order flow is a standard offer among Wall Street brokers.

    When employs HFT firm, the company is expecting more flow through its platform and it has it.

    Robinhood app is very popular among the millennials.

    The millennials like high-tech. And they will adopt any new product or gadget that can help them and make easier to buy anything.

    When we all adopted the internet, didn’t we have the same idea on our minds? To make communication easier, to provide ourselves better access to everything.

    So, where the problem is now?

    High-frequency trading is called ”dark-pool” because of the absence of regulation.

    Traditional traders are opponents. They say that these millisecond trades are against Wall Street and everything that is present on the markets for decades.

    Actually, it is not.

    High-frequency trading is based on traditional trading strategies. The main difference is the time of performance. The journey from the moment when trader see the opportunity and the moment the trader place the order is shorter. HFT algos will need millisecond while the traditional way would require much more.

    Yes, it is still unknown for the majority of how this HFTs work.

    Honestly, most of us will never reveal how the dishwasher works. But it isn’t the reason not to use it. Right?

    We have one simple question.

    Are high-frequency trading influenced based on who is paying the most?

    Opponents of HFT say that it can produce big market swings.

    Also, that HFT may result with an advantage for institutional investors.

    Yes, engaging some HFT firm will cost you money. But, as far as we remember, only very rich houses had a dishwasher when it entered the scene. Today, it is almost impossible to find a house without it.

    Even better, smaller retail investors may have benefits.

    How?

    HFT brings liquidity to the market.

    High-frequency trading grows the market intensity and liquidity and reduces volatility.

    And, there are also ordinances that require brokers to execute trades at the best price for the traders.

    Considering the Robinhood’s increasing in income, well we have to say it isn’t so big as some the opponents want to say.
    Also, HFT firms didn’t record such a big increase in order-routing income. For instance, TD Ameritrade had a 43% growth in this sector in one year.

    And one note for the opponents of HFT.

    HFT is not a trading strategy. It is the practice of advanced technology that plays traditional trading strategies. The particular trading strategies need to be evaluated rather than HFT as such.

    Hence, any strategy that has a conflicting influence on market integrity or enables market abuse, has to be are completely reviewed.

    And to quote our post HFT STRATEGIES – THE TIPS AND SECRETS: “Technology by itself is without morality. The people are those who can add it to high-tech.”

    Don’t waste your money!

    risk disclosure

  • HFT firms that need new employees

    HFT firms that need new employees

    3 min read

    HFT firms that need new employees
    Numerous HFT firms are actually small companies with a small number of employees. If you want to be one of them, you will need to show a capacity to produce income bigger than your salary plus bonus share. You have to be fantastic and have unique skills.

    If your knowledge is really excellent, there are no barriers to enter some HFT firm even if the firm might not be hiring right now.
    Yes, you would be asked to work almost 70 hours per week when it is necessary but the salary and intellectually provocative environment will cover your engagement.

    There are a few roads into HFT. Any of them you chose you MUST have a great knowledge of math, computer sciences, physics or related technical focus.

    Traders Paradise wants to represent you some of the HFT firms that are looking for new workers.

    Liquidnet

    The position required: Liquidnet is looking for Junior Data Scientist/Quant Developer.
    Skills required:

    • Bachelor’s degree in Computer Science, Mathematics or similar technical field.
    • 2+ years of relevant experience OR recent Masters or Ph.D. grad in Computer Science, Mathematics
    • Knowledge in a mainstream programming language, such as Python, C/C++, C#, Java, JavaScript, Haskell

    FIND MORE about this job HERE
    Specialty: It is a world known institutional investment network which connects asset managers with liquidity.

    Company Overview: Its headquarter is in New York City but has departments in  San Francisco, Boston, London, Dublin, Sydney, Toronto, Hong Kong, Singapore, and Tokyo. This trading network is connecting asset managers to pools of liquidity for both equities and fixed income. Last year it was recognized as 8 out of 34 large organizations category in New York City. That means it is one of the best employers in New York City.

    Salary for this position per year: $110k – $159k 

    Old Mission Capital

    The position required: Quant Trader.
    Skills required:

    • Candidates must be proficient coding with one of the following languages: Python, Java, C++, VBA, R, Matlab, Ruby.
    • 4-10 years of relevant trading and research experience, with a primary focus on global equities, commodities, or fixed income instruments and/or related derivatives
    • Experience with systematic market-neutral strategies over a range of holding periods/forecast horizons (short, medium, and long).

    FIND MORE about this job HERE
    Specialty: They have high performance automated trading system that operates globally. Old Mission Capital trade equities, currencies, commodities, bonds, options, futures and other derivatives.

    Company Overview: Old Mission Capital, LLC provides brokerage and trading services. That include a model for security valuation, trading algorithms, tools for risk management. Old Mission Capital was founded in 2008 and it is headquartered in Chicago, Illinois. Old Mission Capital, LLC works as a branch of Old Mission Holdings, LLC.

    Salary for this position per year: $7k – $8k per month 

    NJF Global Holdings

    The position required: Junior Quant Trader
    Skills required:

    • Quantitative background
    • experience with a programming language Python/C++ a plus but not required
    • Ability to collaborate on projects with others but also work independently when needed

    FIND MORE about this job HERE
    Specialty: The company provides finance, technology, legal, and financial research services.

    Company Overview: NJF Global Holdings Ltd was previously recognized as NJF Search International Ltd and modified its name to NJF Global Holdings Ltd in August 2013. The company was founded in 2003 and is based in London, United Kingdom.  It has offices in New York and Chicago.

    Salary for this position per year: unknown

     Milliman

    The position required: Quantitative Analyst to work in the Portfolio Management Group in an entry-level role
    Skills required:

    • Strong Excel/VBA and PowerPoint skills
    • coding skills, especially C# (or other Object Oriented languages) and SQL (or other database management tools)
    • experience working with Bloomberg or Morningstar

    FIND MORE about this job HERE
    Specialty: Retirement funding and healthcare financing, risk management and regulatory compliance, data analytics and business transformation

    Company Overview: Milliman Financial Risk Management LLC is a market leader in the field of portfolio management and risk management. Their focus is on trading securities and derivatives to manage capital market risks for banks, asset managers, insurance companies, and pension plans. The Portfolio Management Group, located in Chicago currently implements risk management overlay strategies on over $50 billion in assets.

    Salary for this position per year: $45k – $82k

     The Princeton Group

    The position required: Quant Developer
    Skills required:

    • Advanced programming knowledge of at least 3 programming

    languages, including Python

    • Strong understanding of statistical and Machine-Learning methods
    • experience with Tensorflow and Keras, React.js and HTML data visualization libraries

    FIND MORE about this job HERE
    Specialty: Technology professionals proficient in developing computing solutions and skilled in complex business activities such as trading and trading tools technology

    Company Overview: Specializing in IT placement services for Startup, Fintech and Hedge Funds. IT staffing and recruiting in New York and New Jersey. Financial modeling, quantitative analysis, and development buy and hold strategies, the generation of portfolio accounting tools and report generation.

    Business initiatives including risk, trade processing, trading and the development of trading instruments.

    Salary for this position per year: flexible from $24 – $27 per hour

    General skills to get a job at HFT firm

    The positions at an HFT firm are pretty different. Almost everyone must have extremely technical experience and knowledge.
    HFT is typically a technology field, so if you want to work there you must have an excellent background in programming or electronic engineering. Some of them will require deep knowledge of hardware, for example, GPU or FPGA.     

    Actually, every skill that can reduce the latency and improve the execution speed of algorithmic calculations will be required in HFT.

    Widespread knowledge of trading exchange is a general skill for any high-frequency trader.

    HFT requires large dimensions of estimates in a very short time frame. So, the advantage is to know how to increase the speed of execution.

    Also,  deep knowledge of hardware design such as GPU and FPGA is an advantage. A lot of HFT firms will require a background in Linux kernel modification.

    Background in Linux kernel modification is beneficial to many HFT firms.

    The bottom line

    The top HFT firms are usually placed in New York and London. Chicago is also a large hub for HFT.

    But it is very rare to find a job in those HFT firms directly. They are doing that via recruiters.

    The direct application to HFT firms is possible, yes!

    But the tricky element is estimating which firms are actually in HFT.

    The best way is to join some recruiter.

    Traders Paradise offers you several and we will continue doing that.

    Stay tuned!

    Don’t waste your money!

    risk disclosure