Every once in a while my spider senses pick up a familiar signal...that is, The Herd is moving in lock-step and picking up speed.
This time around it's about the obsession of shaving latency.
Shaving latency seems to have become the biggest cottage industry in trading.
Every day I get more and more spam about latency....and you know that things are out of hand when the spammers are on to it.
How about this one:
I am a Nigerian Prince who has been exiled from my country. My father has deposited $420,000,000(US) in a trading account in Zurich.
If you give me your latency shaving algos, in return, I will share our increased profits with you 50-50.
Please e-mail your source code, router IPs, passwords, etc to:
I agree that speed is important, but is it the whole ball of wax?
Could it be that the latency shaving stuff is just another arms race?
A contest where no one is the clear winner?
Won't we all continue to have pretty much the same speed as the technology continues to evolve and leak out?
Wouldn't it be better to spend your time working on algos that are just plain smarter at analyzing and digesting all of the true market data that is currently available than simply playing the same old card over and over again of trying to be faster?
I was chatting with developer friend at a prop shop in Chicago and he told me that their in-house programming bench consisted of 6 guys and that each and every one of them was only working on shaving latency.
If a shop's algos can only thrive with that extra nth of second in their pocket then perhaps it's time to focus a little more of energy developing cleverer setups and entries....Just a thought.
Anyone care to comment? Am I off base here?