High frequency trading using algorithms without human intervention has recently grown into a new leading force in the domestic and foreign stock markets. This study analyzes whether day trading (DT) with high frequency trading (HFT) exhibit different investment performance from general DT (GDT). This study derived the following main results. First, HFT differed from GDT based on stock selection and investment performance. Second, HFT displayed statistically significant performance. However, since volatility is a key factor in determining the performance of DT strategy, the financial authorities need to pay attention to the possibility that HFT will artificially expand volatility and disrupt the market to maximize profits.
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Mincheol Woo (2024) studied this question.
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