Who really has the pricing power in the investment market? The founder of Fogo, coming from the TradFi forex background: Trading doesn't look at the news, only at the order book.

Is the price fluctuation in the trading market based on monetary policy or a reaction to news events? Robert Sagurton, the founder of FOGO from the traditional finance forex sector, stated that market fluctuations stem from buying and selling pressure and the perception of order book pressure by high-frequency trading models, rather than events. This is also why he hopes that Fogo validators, DEXs, and Oracle Machines can be deployed in data centers close to exchanges, as this allows for early access to quotes.

Gate founder, founder of Formula News attributes market fluctuations to the overall economy.

From the perspective of Gate founder Han Lin, Bitcoin no longer has a clear cycle. In the past, when the scale of cryptocurrencies was relatively small, Bitcoin halving was considered a significant event in the industry, which is why the four-year cycle theory emerged. Now, as cryptocurrencies gradually expand, they have become highly related to TradFi. For instance, if a war breaks out in a certain place, it significantly affects the fluctuation of Bitcoin.

(Gate Founder Han Lin: Bitcoin no longer has a clear cycle, Equation News Vida: Altcoin season will wait for monetary easing like in 20 years )

The founder of Formula News, Vida, who is skilled in news trading, pointed out that the altcoin season will have to wait for another major crisis or event like those in 2001, 2008, or 2020 to occur again. Then the global Federal Reserve will activate their supersonic money printing machine, leading to a significant devaluation of fiat currency. A new era of easy money-making will arrive. At that time, we will welcome another cycle of speculation and gambling.

Market fluctuations stem from buying and selling pressure, as well as high-frequency trading models' perception of order book pressure, rather than events.

However, Robert Sagurton, co-founder of FOGO, who has a background in the forex divisions of J.P. Morgan and Morgan Stanley and has served as a business consultant and global digital asset sales head at Jump Trading for five years, disagrees. This senior executive from the traditional finance trading sector stated: "The market rarely fluctuates due to a news event, like a shipwreck somewhere in Asia. If we have to wait for such events, then the market would be devoid of any fluctuations."

He further stated: "The market's fluctuations are mostly based on buying and selling pressure, correlation, and the perception of order book pressure by high-frequency trading (HFT) models, predicting how the mid-price of a related asset will move in the next 20 seconds. Any news event will be reflected across all assets and the global exchanges they are on. All true high-frequency trading systems are actually running an optimized server network located in data centers (CoLo) that can update their orders within microseconds.."

Regarding news trading, he stated: "This is why real price discovery events do not come from Reuters news pushes, but from these predictive models driving the flow of assets on the most liquid exchanges. You don’t need to look at the news, just look at the order book. This is also why we want our Fogo verifiers, DEX, and Oracle Machines to be deployed in data centers close to the exchange matching engines. We are not reinventing the wheel; high-frequency traders have already solved this problem for us."

( How can FOGO become a dark horse in the SVM track? Former Jump Trading executives strongly advocate for the full-chain Firedancer to create TradFi-level performance )

This article discusses who truly holds the pricing power in the investment market? The founder of Fogo, who comes from the TradFi forex background, states: trading does not look at news, but only at the order book. It first appeared in Chain News ABMedia.