I always assumed it was to obfuscate strategies and mess with other HFTs...kind of like in poker you bet based on probability of what the other guy will do, in conjunction with your hand.
Market conditions of real money players don't change in micro-seconds. For some reason this flapping of HFT strategies is a Nash equilibrium among the HFTs.
Market conditions of real money players don't change in micro-seconds. For some reason this flapping of HFT strategies is a Nash equilibrium among the HFTs.