a lot of these systems are used by brokers for more efficient order filling of large (commercial) size apparently... http://www.appliederivatives.com/co...7&IssueID=0D6B610A-B0C0-4615-86ADE39F9BBC9A07 ...not just prop/quant money makers. imo this is what kills the trend - massive orders being trickled out rather than dumped in blocks over the course of the day. who knows - im speculating here (again!!)
adapt or die they say. Wink wink nudge nudge....you know if your careful programs that peg the bid/ask can be gamed quite easily....thats all I have to say about that.
Speaking of 'bots. Can you say "Spring Break 'Bots Gone Wild" today at 12:05:23. YEEEEHAAAAAAWWWWWWW!!!!!!!!
What they do in German markets is impose a cancellation fee for canceling orders that would cure it in one second.
Good question. remember: Trend Finding is Edge Finding and Edge Finding is Trend Finding nononsense's axiom
Love them machines. They can't be smarter than the people who built the. Not many smart people hang around in the market, so most of them machines are rather clumsy as well.
The edge is not "mythical". If they lost money doing it, they wouldn't continue. And it's more prevelant now than ever before.