IMO the patterns are quote stuffing. Designed to input useless bids and offers away from the market price. No intention to trade here. The intention is to slow down the other HFT systems making markets in these stocks just enough to tip the scales to your algo's advantage.
imo the problem isn't black boxes nor electr. MMs nor fasttrading... but financial engineering cds on option on futures on volatility on CPI etc etc etc complex financial engineering => complex risk evaluation how to limit that? i don't know
Has the market over its history ever become less complicated? Has the world in general that you have grown up in ever become less complicated? I don't say that to be rude but sincere in my comments. To me this is just the next step. Might as well at least try to learn how to be a player / profit by keeping pace with evolution. Or you could just bitch about shit that you don't / will never understand for a multiple of reasons on the internet like some choose to. Might as well spend the time studying it IMO at least rather than complaining because someone outsmarted you. I am not speaking to you directly of course.
The size of the amount of capital, both financial and intellectual, that is being used to fund this trading is a clue as to why the world's economy is in the shitter. This same HFT trading economy could just as well be accomplished gaming the Auction House in World of Warcraft to make sick gold.
HFT is a farce and by no means changes the overall game. Losers just like to place blame for losing. It does not change the market nor negatively effect it. liars in the mainstream media looking for a scapegoat. This is absurd!
I believe there is a good case for it effecting these smaller timeframes that a lot of us are trading in. I do not believe that is a bad thing though - although I do 100% believe it is making a "difference" so to speak. Some of this shit about crashing economies etc... yes these are total garbage and invented because people in general are idiots. Multiply that times 10000 when it comes to the marketplace.
I agree. Then they will come up with another law that you have to keep your wife for at least 10 years.