1. I typically type here while I am on the phone. Its called multi tasking... this task gets a very low priority. 2. Phased out... I must have missed the memo. I have seen the SEC say it is looking in to it. Do you have link? By the way, I have been a member of multiple exchanges... I let my licenses expire but I have traded tens of millions of shares. I understand front running and what it does to the integrity of the nasdaq market.
"As of May 2010[update], the proposals have not been implemented. Even though most programs have been stopped voluntarily, it is still possible, at least with Direct Edge" http://en.wikipedia.org/wiki/Flash_trading (I didn't mean banned by the SEC, I meant banned by the ECNs) Pretty much its over - the markets are an amazing thing. People have adapted and have either been run out of the space, stopped the practice or the edge has been saturated or arb'd out. There really is no need to ban flash trading now that algorithims have advanced like this - Market Makers know what is real and what isn't. Then why such the argument? If you don't want to discuss here please feel free to send me a PM. I think its pretty clear that we all agree front running is bad but I also think its pretty clear that people in the know understand that HFT does not front run. Can you provide any valid links/examples that demonstrate HFT frontrunning orders? The only examples I can think of are internalization, which isn't really HFT.
Prior to your link I had seen no reports that it has ended by nasdaq although your wikipedia article is interesting and I am reading the links right now. If the nasdaq has really ended flash orders... my main concern with hft is eliminated.
brownegg-here is my examples of how HFT or whatever you prefer to call it impact the markets and me in particular ..i would appreciate your comments on those particular examples above, rather than saying some shit that make no sense... one of my favored depeche mode songs comes to mind-"try walking in my shoes." just fucking try it..or try to explain the "fairness" Thank you!
Winston wants me banned because I keep the pressure on. I'll go away the same day the hft colocated frontrunning microarb fake size botnets go away. Hold your breath. PS If the ONLY crime was the colocation, that would be bad enough. That the exchanges sanction and bless it means diddly.
1. If you have a mouse in your hand, you are TOO SLOW. Learn to deal with it, it's not changing. 2. NO exchange will allow for participants to aggress / take liquidity ahead of another order that does so first. 3. NO exchange will allow ANY participant to "pull their order" when a matching one is presented. Nor can the resting order choose to only execute some and delete/pull the rest. If you don't believe, go to the exchange websites and download the rule books. These are publicly traded, heavily regulated and seriously scrutinized companies we're talking about, not a card game in Chinatown. Much like Las Vegas, legit businesses don't have to cheat or bend the rules: doing things above the table is lucrative enough that it's not worth risking. Look, what you described is frustrating. It happens to everyone, including me. But that doesn't mean there's anything wrong with the system or the rules as they exist. By the time that order can be seen on a screen and "clicked", probably 500ms has gone by. And that's if your delivery is good and you're ridiculously fast with your mouse. Likely it's far longer than that. In a world where 200 orders / second is possible with $2k/mo of leased software, why would you even expect you could get filled in the first place? I'm not saying there's not shady elements of the markets--but there are shady elements in shipping, utilities, construction, real estate, government, education, and everything else you can think of. I've watched 99% of the guys who used to make $200-300k a year on the floor take jobs as salesmen, mortgage brokers, financial planners, etc., because once they weren't handed vig on a silver platter they became extinct. Sorry to be harsh, but the same is mostly true for the solo daytrader, and it will only get worse. That's how capitalism works. Adapt or perish. I did it, and others did it. Decide if you're going to do it. Just don't whine about it or blame anyone other than yourself.
Thanks for the link, will read later. the egg says the solo daytrader is dead but gives no empirical evidence as to why. look at any series of charts of any random day and tell me why a trader with even a 10 minute time horizon can't make money.
There's a reason there are over 21,000 hits on this thread I created. Traders know they are being ripped a new one, and want as much information as they can get. Pipsqueaks with skin on the other side of the game continue to exclaim how we are all paranoids that don't 'understand' the markets. No one is fooled. http://sec.gov/comments/s7-02-10/s70210-258.htm Commentary worth reading. And this http://blog.themistrading.com/?p=1184
"This thread you created"... you seem to say things like that a lot. You do realize success in the markets is measured in buying power of some sort, right? Not posts/views on ET? 777: You, and the people who pay attention to you (though I wonder if they exist), get what they deserve. Your concept of "trader" is literally laughable. PT Barnum was truly a prescient man.