The adaptive market hypothesis and high frequency trading

Ke Meng1, Shouhao Li1

  • 1School of Public Policy and Management, Tsinghua University, Beijing, China.

Plos One
|December 17, 2021
PubMed
Summary

High-frequency trading (HFT) activity increases during periods of low market efficiency, suggesting traders adapt their strategies based on information processing and market conditions. This supports the adaptive market hypothesis.

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