I was playing around on cash app and spent a few dollars on the stocks there. I got bored of it eventually, but it got me thinking that there has to bots for this already.
I want a bot that I can give a dollars worth of stock. If that dollar’s worth rises by two cents, I want it sell a cent, and put the other cent into a pool for the next dollars worth of stock.
This has to have been done before, I just never learned anything about it.
Yes, people do it. In fact, there are huge hedge funds who lease datacenter space right next to the exchange’s servers, pay for a special connection to the exchange that bypasses the Internet, and pounce on any price changes before you can, over the regular Internet, through a normal low-cost broker.
You can try to compete with them, I suppose. But what do you think happens to a little fish in a tank with sharks?
Yeah. They pay huge amounts of money to shave microseconds off of their latency to the exchange. Mere mortals should not even try to play the game by their rules
And not just one exchange. They do this at multiple exchanges and then build infrastructure between them to have ridiculously low latency to trade on the stock price difference between exchanges.