A lively debate over high frequency trading (HFT) took place at the Reuters HedgeWorld event in Chicago titled “The Uneven Playing Field.” William Blair on good vs bad algorithms When considering if there are “good” and “bad” algorithms, Brian Ziv, Partner head of hedge fund strategies at the staid investment banker William Blair, said there were points of positive and negative differentiation. Arbitrage strategies that don’t involve front-running of information can be valuable. “Covariance matrix trading, where a move in one stock isn’t reflected in other stocks, is a legitimate and beneficial strategy,” Ziv said. “Market arbitrage can be good…
William Blair On “Good” Vs “Bad” HFT
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.