HFT means us SFT's make money while sleeping thanks to equity options All that Volatility and up/down/up/down churn adds up. But it requires patience. So complain but HFT opens up other ways of making money.
When you are front-running( which means you have knowledge by whatever means of an order that will move the market before it hits the quote ), you submit 1000 orders per second? That's interesting...I would submit just 1 single order.
http://www.zerohedge.com/article/algorithmic-crop-circles-redux-rise-stock-market-machines-part-2 love these algo crop circles. haha...
Agreed, I think you should all read this for an explanation of the crash: http://www.nanex.net/20100506/FlashCrashAnalysis_Intro.html
Not a billionaire and never claimed to be, also never claimed to understand much of anything - all I know is you don't know anything about trading/markets. HFT is not "all about frontrunning" as you say. Actually it couldn't be further from that. Internalization, order flow and making markets with order flow IS about frontrunning - but you don't understand the difference so I'm not going to waste my breath.
no, your order flow would push through your one order, you'd get filled at the expense of your order flow and then your order flow would push you higher and then you would sell into your order flow. you would win. not likely, I'm much younger & better looking - besides as a fan I'm into open-wheel and in practice I do BMWCCA/SCCA events.
Aug. 12 (Bloomberg) -- The May 6 crash shows how the fragmentation of U.S. stock trading across 50 venues dominated by computerized traders is hurting investors, executives from Invesco Ltd. and TD Ameritrade Holding Corp. said. Regulations for market makers should be improved and better coordination among exchanges mandated, said Kevin Cronin, director of global equity trading at Invesco, and Chris Nagy, managing director of order routing sales and strategy at TD Ameritrade. They spoke at a meeting of the Commodity Futures Trading Commission and Securities and Exchange Commission. U.S. regulators are exploring ways to avoid a repeat of the May 6 selloff, which erased $862 billion in equity value in about 20 minutes before the market rebounded. Cronin and Nagy said the plunge highlighted a deteriorating environment for investors where efforts to increase competition have left traditional buyers and sellers more vulnerable to predatory tactics by high-frequency traders. âWe have no incentives to post large amounts of liquidity,â Cronin, whose firm oversees $560 billion, said at the meeting in Washington yesterday. âWeâre not sure what the value of a quote is.â Mutual funds and asset managers often avoid exchanges because of concerns about the strategies of some high-frequency trading firms, who may submit and alter quotations thousands of times a second, Cronin said. Atlanta-based Invesco believes some of those strategies may include manipulative activity, he said. http://noir.bloomberg.com/apps/news?pid=20601087&sid=aD_dvmMh0_qo&pos=7