harryh RSS

I don't really like tumblr much, but all my friends seem to use it so I'm kinda stuck. I miss the era of LiveJournal.

Archive

Apr
5th
Sat
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It’s not front running; it’s getting out of the way

Front-running isn’t really a thing that’s actually happening. Here’s what is actually happening.
The HFTer/liquidity provider wants to sit there all day long buying IBM for 99.99 and selling for 100.00 making his penny a share in return for providing liquidity. But the liquidity provider has a problem. Every now and then Brad Katsuyama (or someone like him) shows up with proprietary information that, say, IBM should really be trading for 101.00. Brad tries to suck up all those shares being sold for 100.00 as fast as possible before the price moves. That’s great for Brad but all of a sudden the liquidity provider has lost a bunch of money when IBM moves to 101.00 and he can no longer buy for 99.99.
So the liquidity provider tries to recognize as accurately as he can, and as fast as he can, that Brad has shown up on the scene and get out of the way by canceling all his orders and resubmitting them with a new price. That’s why when Brad tries to buy 100,000 shares (from multiple exchanges) in the book he sees a bunch of his orders not get filled because the liquidity provider is running away from him.
So it’s not the HFTer jumping in the middle like people think. It’s actually the HFTer running out of the way of a big fish.
So how is this good for you when you’re buying a small number of shares? The more often the HFTer gets eaten by a big fish the wider his spreads have to be to make an overall profit. If he gets eaten too often he has to buy for 99.95 and sell for 100.00 (5 cent spread) instead of 99.99/100.00 (1 cent spread). Spreads used to be really big: 12.5 cents or 25 cents. They’re smaller now because computers can react a lot faster than humans to get out of the way of Brad. They also don’t demand really big salaries so they cost less to operate.
To sum up: HFT isn’t jumping in the middle. It’s jumping out of the way. And because they keep getting better at that they can afford to offer lower prices for liquidity when you show up and want to by 1000 shares of IBM to hold for the next 5 years.
There are other advantages for you as well having to do with faster price discovery by the market, but I’ll leave that aside for the moment as a separate issue.
Feb
19th
Wed
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What’s a save icon?
Seriously. When was the last time you used one? Certainly that kid never has.

What’s a save icon?

Seriously. When was the last time you used one? Certainly that kid never has.

(Source: christina-in-alaska, via parislemon)

Dec
3rd
Tue
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This fall, a truck dumped eight million coins outside the Parliament building in Bern, one for every Swiss citizen. It was a publicity stunt for advocates of an audacious social policy that just might become reality in the tiny, rich country. Along with the coins, activists delivered 125,000 signatures — enough to trigger a Swiss public referendum, this time on providing a monthly income to every citizen, no strings attached. Every month, every Swiss person would receive a check from the government, no matter how rich or poor, how hardworking or lazy, how old or young. Poverty would disappear. Economists, needless to say, are sharply divided on what would reappear in its place — and whether such a basic-income scheme might have some appeal for other, less socialist countries too.

Switzerland’s Proposal to Pay People for Being Alive - NYTimes.com (via rickwebb)

The problem with this is that they can’t afford it. The Swiss budget is 62.8 CHF. They have 8 million people. That’s only 7,800 CHF each which is clearly not enough to make poverty disappear.

The fact that the Times didn’t bother to present this simple math shows how dumb the story is.

(via harryh)

There’s this part: “Evelyn Forget, a health economist at the University of Manitoba, has done some of the best research on the results. Some of her findings were obvious: Poverty disappeared. But others were more surprising: High-school completion rates went up; hospitalization rates went down. “If you have a social program like this, community values themselves start to change,” Forget said.”

That was $10,000/yr Canadian. 7,800 CHF is about 8,57 USD. Not too far off. 

(via rickwebb)

Not too far off if the Swiss government stops doing everything else they do and spends their whole budget on this program. Presumably they’re going to have to spend some money here and there on everything else people want the government to do.

(via rickwebb)

Dec
2nd
Mon
permalink
This fall, a truck dumped eight million coins outside the Parliament building in Bern, one for every Swiss citizen. It was a publicity stunt for advocates of an audacious social policy that just might become reality in the tiny, rich country. Along with the coins, activists delivered 125,000 signatures — enough to trigger a Swiss public referendum, this time on providing a monthly income to every citizen, no strings attached. Every month, every Swiss person would receive a check from the government, no matter how rich or poor, how hardworking or lazy, how old or young. Poverty would disappear. Economists, needless to say, are sharply divided on what would reappear in its place — and whether such a basic-income scheme might have some appeal for other, less socialist countries too.

Switzerland’s Proposal to Pay People for Being Alive - NYTimes.com (via rickwebb)

The problem with this is that they can’t afford it. The Swiss budget is 62.8 CHF. They have 8 million people. That’s only 7,800 CHF each which is clearly not enough to make poverty disappear.

The fact that the Times didn’t bother to present this simple math shows how dumb the story is.

(via rickwebb)

Feb
11th
Mon
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All My Dodgeball Checkins, September 2005

Tue. Sep. 27

Knitting Factory 10:48 PM

City Hall 7:42 PM

Mon. Sep. 26

Arlene’s Grocery 12:42 AM

Verlaine 10:47 PM

Sat. Sep. 24

Punch 10:32 PM

Fri. Sep. 23

The Magician 12:31 AM 

Scenic 11:42 PM 

Duke’s 11:25 PM 

Porch Bar 9:59 PM

Thu. Sep. 22

151 12:06 AM

Wed. Sep. 21

Coffee Shop 11:54 PM 

Webster Hall 9:03 PM

Tue. Sep. 20

Pianos 11:07 PM 

151 9:59 PM 

Pianos 9:08 PM 

Belly 8:24 PM

Sat. Sep. 17

Mercury Lounge 1:06 AM 

Pianos 11:30 PM 

Mercury Lounge 10:13 PM

Fri. Sep. 16

Trash 12:24 AM 

Southpaw 10:54 PM 

Planet Thailand 9:07 PM 

Northsix 8:08 PM 

Hiro 6:42 PM

Thu. Sep. 15

Mama’s Bar 11:11 PM 

Scenic 8:15 PM 

Fader Room 6:48 PM

Tue. Sep. 13

151 1:40 AM 

Snitch 11:46 PM

Mon. Sep. 12

151 1:01 AM 

151 12:34 AM 

Merc Bar 3:13 PM

Sat. Sep. 10

The Skinny 12:58 AM

Fri. Sep. 9

Porch Bar 12:38 AM 

Micky’s Blue Room 10:39 PM 

Lucy’s 8:57 PM

Thu. Sep. 8

Simone Espresso & Wine Bar 9:32 PM

Wed. Sep. 7

12” (12 inch) 12:19 AM 

Nolita House 9:08 PM

Fri. Sep. 2

Max Fish 10:08 PM

CMJ Baby! I wish I remembered what bands I saw.

Jan
23rd
Wed
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Jan
4th
Fri
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heyitsnoah:

This comment pretty much sums it up: “It’s like, how much more metal could this be? And the answer is: none. None more metal.”

(via Compressorhead Ace of Spades - YouTube)

(via weliveinthefuture)

Dec
5th
Wed
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Sep
3rd
Mon
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I don’t even know what the ballpark number for a server is — for me, it would be like knowing what the price of a sword is.

Cue co-founder Daniel Gross talking to Quentin Hardy of The New York Times about the brilliance of Amazon’s cloud services. (via parislemon)

FWIW that kinda makes Daniel sound like an idiot. Amazon’s big 68gb boxes cost about 1.3k a month on demand. That’s the kind of # that a competent tech co-founder should know off the top of their head. Oh wait, he’s the CEO, ya forgivable then. I’m sure Dens doesn’t know this number.

He’s crazy for thinking he’d need 50 extra engineers to run on their own hardware though. That’s just retarded.

Aug
13th
Mon
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laughingsquid:

Kids Today

Kids today don’t know what a save button is.
Seriously, think about it a little. When was the last time you pressed a save button?

laughingsquid:

Kids Today

Kids today don’t know what a save button is.

Seriously, think about it a little. When was the last time you pressed a save button?

(via rickwebb)