Why is Schwab Discontinuing Streetsmart's HOD/LOD tool? - Claude Answers

As a crucial tool in my trading toolkit and foundational component of MOMO Pro, I thought it would be interesting to ask Claude.ai (similar to ChatGPT) what would be some possible reasons why they would stop offering it. A few of the reasons offered were quite interesting!

To explore latent and unobvious reasons why Schwab might be deprecating the High of Day/Low of Day (HOD/LOD) scanner functionality in StreetSmart Edge, let's consider some less apparent possibilities:

  1. Data democratization concerns: Schwab may be worried that providing easy access to HOD/LOD data could lead to more retail investors engaging in day trading or momentum-based strategies. This could potentially increase market volatility or lead to regulatory scrutiny.
  2. Algorithmic trading edge: The HOD/LOD scanner might be giving certain algorithmic traders an advantage that Schwab feels is unfair or potentially destabilizing to the market. By removing this feature, they may be attempting to level the playing field.
  3. Intellectual property issues: There could be underlying patent or licensing conflicts related to the specific implementation of the HOD/LOD scanner that Schwab inherited from the StreetSmart Edge acquisition.
  4. Shift in trading philosophy: Schwab might be subtly trying to discourage short-term trading strategies in favor of longer-term investing approaches, aligning with a potential shift in their overall business strategy or risk management policies.
  5. Resource allocation: The maintenance and improvement of the HOD/LOD scanner might require disproportionate resources compared to its usage, especially if it's putting strain on their data infrastructure during peak market hours.
  6. Regulatory preemption: Schwab could be anticipating future regulations that might restrict the availability of real-time market data tools to retail investors, and is proactively adjusting their offerings.
  7. Data quality concerns: If the HOD/LOD scanner is prone to occasional inaccuracies or delays, Schwab might be concerned about potential liability or reputational damage from traders relying on this data.
  8. Competitive differentiation: By removing this feature, Schwab might be creating space to introduce a more advanced or proprietary tool that could serve as a unique selling point for their platform.
  9. Behavioral economics play: Schwab might have data suggesting that users of the HOD/LOD scanner tend to make riskier trading decisions, and removing it could be a paternalistic move to improve overall customer outcomes and longer term satisfaction.
  10. Strategic partnership considerations: The decision could be influenced by a potential future partnership or acquisition that conflicts with the continued offering of this particular feature.

These hypotheses delve into more subtle and speculative reasons that might not be immediately obvious. The actual reason could be a combination of these factors or something entirely different.

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