In 2015, Jared Fogle, the former spokesperson for Subway, made headlines for all the wrong reasons. He was sentenced to 15 years in prison for possessing child pornography and engaging in sexual acts with minors. However, that’s not the only controversy that Jared has been involved in. In 2014, a bot named Jaredfromsubway made a profitable trade on the stock market, earning $500k in just 30 minutes. Let’s take a closer look at this incident and what it tells us about the world of high-frequency trading.
First, let’s define what high-frequency trading (HFT) is. HFT is a type of algorithmic trading that uses powerful computers and complex algorithms to execute trades at lightning-fast speeds. These trades are often made in fractions of a second and are based on market data that is constantly being updated. HFT has become increasingly popular in recent years, with some estimates suggesting that it accounts for up to 70% of all trading volume in the US stock market.
Now, let’s turn our attention to Jaredfromsubway. This bot was created by a group of programmers who wanted to test their HFT algorithm in a real-world setting. They chose to trade on the stock of sandwich chain Subway, which had recently announced a partnership with tech company PayPal. The bot was programmed to buy and sell Subway stock based on certain market conditions, such as changes in price or volume.
On April 23, 2014, Jaredfromsubway made its move. In just 30 minutes, the bot executed over 27,000 trades and earned a profit of $500k. This was a remarkable achievement, especially considering that the bot was only trading with a relatively small amount of capital.
So, how did Jaredfromsubway do it? The bot’s success can be attributed to several factors. First, it was able to react quickly to changes in the market, thanks to its lightning-fast processing speed. Second, it was able to analyze vast amounts of data and make decisions based on that data in real-time. Finally, it was able to execute trades with precision and accuracy, thanks to its advanced algorithms.
However, Jaredfromsubway’s success also raises some important questions about the fairness of the stock market. Critics of HFT argue that it gives an unfair advantage to those with the fastest computers and the most sophisticated algorithms. They argue that HFT can create volatility in the market and lead to flash crashes, as we saw in the infamous “Flash Crash” of 2010.
Proponents of HFT, on the other hand, argue that it provides liquidity to the market and helps to keep prices stable. They also point out that HFT has led to lower trading costs for investors and has made it easier for small investors to participate in the market.
In conclusion, Jaredfromsubway’s sandwich attack is a fascinating example of the power of high-frequency trading. While it may have earned a tidy profit for its creators, it also raises important questions about the fairness and stability of the stock market. As technology continues to advance, it’s likely that we’ll see more bots like Jaredfromsubway making their mark on the world of finance. It remains to be seen whether this will be a positive or negative development for investors and the broader economy.
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