[raviolo]

One does not need a lot of bandwidth to trade successfully. In fact, a limited number of signals agreed upon ahead of time is enough. E.g. signal “A” could mean “buy 10 contracts”, signal “B” - “sell 100 contracts”, etc. And you can of course wrap 256 such signals into one byte. So transmitting a single byte at an opportune time let’s you control your trading on the other continent in a quite precise fashion. If you make such transmission, say, 10 times per day your bandwidth utilization is technically 10 bytes per day or about 0.001 bps - yet you can make a ton of money.

[jandrese]

All you really need to do is to beat the trade you just saw enter the system so you can buy the trade out from under them and mark it up while their bits are still stuck in glass. You know, "provide liquidity".

[KirillPanov]

Heh. Yeah I have no idea why everybody who isn't doing HFT hasn't decided to stop letting these guys rip them off and moved to

    investor sex change

er, sorry, put the spaces in the wrong place there, I meant:

    investors exchange

They basically encoded a bunch of HFT-thwarting principles into their clearing policies:

https://en.wikipedia.org/wiki/Investors_Exchange#Operating_p...

It's a great idea. But every time I see that name I can't keep my brain from moving the spaces around. I mean seriously what were they thinking with that name.

[kasey_junk]

That’s not at all how it works.

[m4rtink]

Something similar was used for landing the original Mars Rovers - not actual full data telemetry channel but just a very simple very low bandwidth signal that can be translated to symbols, each signifying an important phase of the landing being reached.