Customer Quote by Michael Lewis
““In early 2013, one of the largest high-frequency traders, Virtu Financial, publicly boasted that in five and a half years of trading it had experienced just one day when it hadn’t made money, and that the loss was caused by “human error.” In 2008, Dave Cummings, the CEO of a high-frequency trading firm called Tradebot, told university students that his firm had gone four years without a single day of trading losses. This sort of performance is possible only if you have a huge informational advantage.””
About This Quote
Source Book: Flash Boys, Michael Lewis, 2014
High‑frequency trading can appear infallible, but occasional human mistakes expose limits of even the most advanced systems.
In simple terms: Even top traders can have rare losses due to human error.
Key Takeaway
Expect occasional failures despite strong data advantage.
Themes
technology
risk
human error
Mood
analytical
cautious
Type
explanatory
informative
When to use this quote
- trading floor
- risk management meetings
- investor briefings
Key Concepts
information asymmetry
systemic risk
Questions to Reflect On
- How can firms mitigate human error in automated trading?
- What safeguards are essential for high‑frequency strategies?
A Different Perspective
Human factors can undermine algorithmic precision.
![“Crucial decisions are made, today as thousands of years ago, in terms of the intuitive guesses and preferences of a few men in positions of authority...[it is] quite likely that the fate of entire societies may be sealed by a series of avoidable mistakes committed by their leaders.” quote by Michael Lewis](https://sms4smile.com/quotes/img-quotes/a59/michael-lewis-705_decision-making_crucial-decisions-are-made-today-as-thou_16888.jpg)
