Money Bots: The Hidden World of High-Frequency Trading

High-frequency trading (HFT) is the hidden engine behind markets. Algorithms trade in microseconds. Retail traders think they can compete — they can't.

1. What HFT Really Is  

Powerful computers, co-located servers, direct exchange access. Firms profit from tiny price differences and arbitrage.

2. Scale Is Massive  

HFT 50–70% of US equity volume some days. Firms like Citadel, Jane Street, Virtu dominate.

3. Retail Can't Match Speed  

HFT spends millions on infrastructure. You see price move — they've already acted.

4. Liquidity They Provide  

Tight spreads in calm markets — makes trading cheaper.

5. Liquidity They Withdraw  

During volatility, HFT pulls quotes — amplifies crashes like 2010 Flash Crash.

6. Front-Running Edge  

See large orders first, trade ahead. Legal but worse fills for you.

7. Hidden Costs on Retail Platforms  

Orders routed through HFT — spreads widen, execution slips.

8. Psychological Damage  

Fast moves tempt overtrading, revenge trades. Most retail HFT attempts blow accounts.

9. Regulatory Risk  

Taxes or bans debated. Rules change — strategy illegal overnight.

10. Real Edge Is Elsewhere  

Long-term fundamentals, patience, risk management — not speed.

HFT is institution game with billions and microseconds. Retail copying it loses.  Leave bots to machines. 

This book exposes the dark side of HFT — how firms front-run orders, manipulate markets, and profit from speed. Lewis tells the story of traders fighting the system. Eye-opening, no technical overload. Read it — understand why retail can't compete with bots. Real wake-up call.(Affiliate Link)