this post was submitted on 17 Nov 2025
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Using AI for trading (media.piefed.world)
submitted 1 day ago by The_Picard_Maneuver@piefed.world to c/memes@lemmy.world
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[–] Blue_Morpho@lemmy.world 4 points 1 day 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 23 hours 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 23 hours 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 23 hours ago* (last edited 23 hours 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 22 hours 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 22 hours 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.