this post was submitted on 17 Nov 2025
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Using AI for trading (infosec.pub)
submitted 3 days ago by The_Picard_Maneuver@piefed.world to c/memes@lemmy.world
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[–] Blue_Morpho@lemmy.world 4 points 3 days ago (1 children)

Hft aren't just taking from day traders. They profit from all transactions. Your 401k is bled a fraction of a percent every day by hfts that take a cut before the Index fund or Mutual fund makes its daily rebalance.

[–] UnderpantsWeevil@lemmy.world 3 points 2 days ago (1 children)

Your 401k is bled a fraction of a percent every day by hfts

Every month, maybe. These big portfolio funds aren't rebalancing at that frequency or scale. They're relatively static and conservatively positioned.

[–] Blue_Morpho@lemmy.world 1 points 2 days ago (1 children)

They rebalance continuously. If they waited until the end of the month it would be billions that would be impossible to rebalance without distorting the trades they're trying to execute.

Even if they waited it wouldn't matter .001% of $1 billion a month is the same as .001% of $333m daily.

[–] UnderpantsWeevil@lemmy.world 2 points 2 days ago* (last edited 2 days ago) (1 children)

They rebalance continuously.

On the margins. You're not seeing the whole portfolio turn over day by day.

Even if they waited it wouldn’t matter .001% of $1 billion a month is the same as .001% of $333m daily.

Which 401k is flipping $333M of balance sheet every day?

Also, how many days do you think are in a month?

[–] Blue_Morpho@lemmy.world 1 points 2 days ago (1 children)

Sorry I dropped a decimal. 33.3*30

Your 401k isn't $33 million a day. It's the funds behind it that are trading daily.

.001% of $33M from the Vanguard Index means you lose .001% of the $50k in your 401k which holds Vanguard.

[–] UnderpantsWeevil@lemmy.world 2 points 2 days ago (1 children)

It’s the funds behind it that are trading daily.

$33M/day is an enormous churn, even for a big pension fund. Again, I'd like to see where you're finding these numbers. The NYSE trades $18.9B/day across a pool of $52T in asset value. By proportion, you're talking about a fund with a $90B market cap showing that kind of activity.