Not much is required to get into high-frequency trading these days, according to Peter van Kleef, Chief Executive Officer of Lakeview Arbitrage, in an interview published by FX Trader Magazine. Mr. van Kleef will be leading High-Frequency Trading Experts Workshop 2010 (http://www.HFTExpertsWorkshop.com), “Practical Implementation of High-Frequency Trading Strategies”, 2-day workshop organized by Golden Networking in Hong Kong, November 22 & 23 and New York, December 9 & 10.
Mr. van Kleef continues, “these days you can get a brokerage account that gives you an API you can connect to with a minimum deposit of around 2K USD and you can download an open source engine like Marketcetera for free to get you started. Of course there are serious limitations to what you can do with such a low cost setup but it can get you started on a platform that can grow with your skills and needs. Going forward, you will see university students and even people from high school starting in algo trading from home. Even if you want a state of the art setup, it doesn’t need to break the bank. HFT trading has become affordable for almost anyone.”
Asked about the evolution for HFT in the institutional side, Mr. van Kleef said that “many institutional investors have a fairly long term horizon and it will take them a long time to understand that some high frequency techniques can benefit them greatly. At the moment many consider it a fad that will pass and therefore don’t engage in the topic. That’s a mistake but then again, the markets are usually a means for wealth transfer from many to a few and not the other way round.”