Comment on The rise of Algo trading platforms & everything you need to know

Rahil Bhansali commented on 13 Oct 2021, 09:25 AM

Think there are certain other non-regulatory risks you should highlight:

1. Nobody knows the volumes such strategies can handle or even if these 3rd party vendors are simulating trade execution correctly keeping a check of volumes against a trade price. In short, we do not know if the strategy scales.

2. Slippage costs when a lot of people use the same strategy together.

3. Are they accounting for the impact of dividends and stock splits in historic data?

4. Are they prioritising certain trades or is it FIFO?

5. What their failovers are to limit downside?


On another note –

1. would love to know if there is any regulation preventing brokers from using order flow data they collect from their retail platforms for their prop desks?

2. Can brokers sell order data in india? Similar to Robinhood in the US – believe they could.

View the full comment thread »