Update: Algorithmic Trading

An update to the Algorithmic Trading conversation.

HOW TO MAKE MONEY IN MICROSECONDS
by Donald MacKenzie | London Review of Books | May 2011

What goes on in stock markets appears quite different when viewed on different timescales. Look at a whole day’s trading, and market participants can usually tell you a plausible story about how the arrival of news has changed traders’ perceptions of the prospects for a company or the entire economy and pushed share prices up or down. Look at trading activity on a scale of milliseconds, however, and things seem quite different.