Hi Salman…I would agree with what Venu said.Just adding my 2 cents…
As you may know, any sort of high frequency trading (irrespective of the strategy you adopt) involves buying and selling large, really large quantities of shares for a very small profit per trade.Typical High Frequency trader would probably do few hundreds, if not more number of trades per day…now the problem is, you need to have a trading strategy to ensure your hit ratio is positively skewed …consistently. In order to develop and deploy such a strategy you need deep pockets, awesome infrastructure and huge appetite for risk.
High Frequency Trading (HFT) is like saying that you are gonna drive a high speed Porsche Carrera GT in the most crowded area, each and everyday of your life and bet on the fact that your automobile is gonna be scratch free! Now that’s a tough ask isn’t it?
Warren Buffet famously quoted “HFT is like picking up a nickel while standing in front of a bull dozer”. I think it brilliantly sums up the HFT scenario.
Having said all this, HFT can be a very rewarding career choice, especially if you do it right. DE Shaw, Renaissance, Citadel, GS etc are few great places to be if you are in HFT business.
By the way, you can start by reading “Inside the Black Box” by Rishi K Narang. Gives you a brilliant perspective into what needs to be done in order to get into the HFT arena.
I would like to know if there is any upper cap beyond which it is considered to be HFT?
For e.g in a minute, there are 60 seconds, so if a HFT software does more than 40 trades per minute then will it be considered as an HFT - any such hard limit?
Secondly, let’s say I opted to use Kite Connect API and start HFT (say 50+ trades per minute), do I need to have any additional permission from anywhere?
Thirdly, what’s the latency of one trade when directly bought at market price vs. when a pre-created GTT gets triggered at the same time - consider both happening from Kite Connect API?