These markets are pure algos. I stopped trading the mini s@p last year because of the algos. Now they are in the European stock indices. What markets are left to trade?
i was studying market action more closely for last couple months(since i'm not happy with my good old system performance) and became more and more convinced that those bots are fairly predictable. specially on liquid markets.maybe it's not that bad to have them around..they been programmed by humans anyway. looks to me that they been programmed around basic\simple TA support\resistance\breakeouts etc...
which only makes sense, if the markets are dominated by algorithms then patterns are now certain to repeat.
As of now, small, medium, and large HFT firms are wiping out small traders, traditional prop traders/large traders, and traditional institutional traders. In 5 years from now, HFT vs HFT. That will wiped out small hft firms vs large institutional hft (Goldman, Getco, etc) 10 years from now, HFT will be controlling your mutual funds, 401K, pension, etc etc etc
What happens to 90% of small traders emg? I forgot Yes there are discretionary human traders left. But they are in the minority. They can make a killing if they can read the market properly.
30 years from now, the introduction of AI (artificial intelligence) HFT vs Traditional HFT. Small Traders, HFT will blow u away. far far away
emg..are talking to yourself? ------------04-24-12 01:16 PM Quote from emg: As of now, small, medium, and large HFT firms are wiping out small traders, traditional prop traders/large traders, and traditional institutional traders. In 5 years from now, HFT vs HFT. That will wiped out small hft firms vs large institutional hft (Goldman, Getco, etc) 10 years from now, HFT will be controlling your mutual funds, 401K, pension, etc etc etc 30 years from now, the introduction of AI (artificial intelligence) HFT vs Traditional HFT. Small Traders, HFT will blow u away. far far away-----------
The only way one becomes like emg is when one is only willing to hear his own thoughts (one that talks to oneself). If he actually knew how computers worked (they can only do what we tell them), then he would know we are far from the AI that he is talking about. Not only that, but if AI really existed, then the market woudln't really change at all!
Lol... you send your order to the market and right away it comes back with the loss for your trade... It'll be like south park (S3E13) ... Stan Marsh: I got a hundred-dollar check from my grandma and my dad said I need to put it in the bank so it can grow over the years. Bank Clerk: Well that's fantastic. A really smart decision, young man. We can put that check in a money market mutual fund, then we'll re-invest the earnings into foreign currency accounts with compounding interest aaaand it's gone. Stan Marsh: Uh... what? Bank Clerk: It's gone, it's all gone. Stan Marsh: What's all gone? Bank Clerk: The money in your account. It didn't do too well, it's gone. Stan Marsh: What do you mean? I-I have a hundred dollars! Bank Clerk: Not any more, you don't. [Gestures] Poof! Stan Marsh: Well what can I do to get back my... Bank Clerk: [Interrupts] I'm sorry, sir, but this line is for bank members only. Stan Marsh: I just opened an account! Bank Clerk: Do you have any money invested with this bank? Stan Marsh: No, you just lost it all! Bank Clerk: Then please stand aside for people who actually have money with us. Next please! Stan Marsh: [Getting pushed out of the way] Hey! Bank Clerk: Hello Mrs. Farnickel. How are you, today? Making a deposit, are we? Greeeat. We can just put that into your retirement account and make it go to work for you aaaaand it's gone. Mrs. Farnickel: Whaaat? Bank Clerk: Sorry, yeah, it's gone. Please step aside for people who actually have money with the bank. Next please! Stan Marsh: Dad! Randy Marsh: Hey, I'm trying to teach my son the importance of savings. You already lost his money? Bank Clerk: Oh, Mr. Marsh! D-d-don't worry. We can just transfer money from *your* account into a portfolio with your savings... AAAAAND IT'S GONE! This line's for people who have money with the bank, only, please step aside! http://sharetv.org/shows/south_park/quotes
50 years from now, the introduction of precogs HFT vs AI HFT <iframe width="560" height="315" src="http://www.youtube.com/embed/KVzJLBb6KiY" frameborder="0" allowfullscreen></iframe>