An article found Here discusses high frequency trading. I am giving below a graphics from the site which explains what high frequency trading is:
A comment from the site:
Quote:
This chart is a great example of what’s wrong with using the term “High Frequency Trading” to mean so many different things. To me, true HFT strategies are those strategies which wouldn’t be viable without the ability to enter and exit a position in under a second.
Three of the strategies mentioned here — Filter Trading, Momentum Trading, and Technical Trading — usually don’t even involve sub-second holding periods.
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