From $44 To $4 In Less A Second: Today's Flash Crash

http://www.zerohedge.com/article/44...dq-and-broken-circuit-breakers#comment-607661

How´s this still possible ?

 

Is it real though? It did start to tank but stopped at 38.38 on my chart. I don't see any of those real low ticks.

Am I looking at something different?

 

So did the circuit breaker work or not? If not , who is to say that the dow can't drop 2000 points in one day?

We get another flash crash and any retail investors left will either stop putting new money in the market all together or they will do so without any stops. Our market structure is broken. How do we fix it if the circuit breakers aren't doing shit?

 

this has happened several times in the recent past. i post all of them in stock777's hft thread in the trading forum.

 

someone probably wrote algo to outsmart the circuit breakers its matter of time

 

Backtesting such an algorithm must be a real thrill.

 

The circuit breaker did in fact go off if you look at my chart there is a gap there between 12:57 and 13:02.

But if you also look at the data you can see the circuit breaker did not go off until after it had already recovered.

I still don't see those really low ticks though. Maybe they were already canceled by the time I brought up the chart. In any case, even at 38.38 it would have tripped the circuit breaker (10% in 5 minutes is the limit). Apparently the circuit breaker stuff is crap though, way too slow.

 

Is there a place were to see any busted trades throughout a day?

 

many ETFs literally lost nearly 100% of its value that day. all busted trades. ETFs are not the same as equities, they are merely a promise to deliver as opposed to owning actual shares. so YES it can happen again.

 

More sellers than buyers?
Only fools keep holding positions right now.
Even funds (traditionally bag holders), are getting out.