ai trading / high frequency trading / algorithmic trading / fact check
AI High-Frequency Trading? This 100ms Claim Doesn’t Hold Up
Ray Fu presents Jev as a way to build a high-frequency trading system that makes decisions in under 100 milliseconds. Austin Starks reacts to the original clip and contrasts that claim with Google’s explanation of microsecond and nanosecond trading speeds.
Austin also challenges the evidence behind the trading decisions. He explains why an out-of-sample test and a comparison against another model matter: a confidence score does not establish better trading results. The video closes with his direct criticism of the creator’s presentation and engagement incentives.
Transcript
0:00Most people don’t realize that you can use Jev
0:01to build a 24/7 high frequency trading system
0:03that makes trading decisions in under 100 milliseconds
0:04while normal LLMs take three to 10 seconds.
0:06Let's fact check this video.
0:08First thing I wanna say is,
0:09you're not building a high frequency trading system, period.
0:13You cannot build one on regular home internet.
0:18In his video, he explained that you can use Jev
0:20to respond in less than 100 milliseconds,
0:25even if that's the case.
0:27High frequency trading systems respond
0:30in the order of microseconds.
0:33Even nanoseconds, you can't respond in 100 milliseconds
0:38for a high frequency trading system.
0:41You just simply can't.
0:43Here's how you set it up in three steps.
0:44Step one, connect your live exchange feed.
0:45Instead of dumping raw charts into AI,
0:46your code summarizes buyer demand.
0:47Order depth and price data into a tiny data snapshot.
0:48Two, send that snapshot over to Jev
0:50using the type-safe SDK.
0:50Jev then evaluates multiple typed questions in parallel,
0:52flagging whether incoming market flow is informed or noise.
0:53This part of the video is pretty interesting
0:55because I can see a universe where it might actually work,
1:00but he does a horrible job of proving it.
1:02He has no evidence that his set of rules,
1:05his set of questions, actually lead to better returns.
1:09Step three, execute with deterministic pricing.
1:10Your code then computes the reservation speed
1:11using the Avellaneda–Stoikov formula,
1:12verifies account limits and automatically cancels
1:14or posts limit orders.
1:14The best part is Jev is trained with RLCD
1:15instead of human preference.
1:16This means that high confidence scores
1:17actually correlate with real market probability.
1:18That's a lot of claims for absolutely no evidence.
1:22Like if he had something,
1:24even if it were back test results out of sample,
1:28then I might give him a little bit of credit.
1:30Sounds like a decent idea on paper,
1:33but he has absolutely no evidence
1:35that the reinforcement learning
1:37for calibrated decision making
1:38leads to better decision making
1:40than I don't know, a specially trained model.
1:43And the fact that he's presenting the video in such a way
1:46is extremely irresponsible.
1:49Someone might actually try to use Jev for this,
1:52trade on it and then lose a bunch of money.
1:56And I think the worst part about this video
1:58is that he knows he's lying.
2:01He's an ex-SWE at Meta,
2:04and he knows what he's telling you
2:06doesn't make any actual sense.
2:09But he doesn't care because the likes, comments,
2:12and follows he's getting from this video are reward enough.
2:17Do better.
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