i would appreciate,if you post here monetary proof of this statement. i.e-account statement for a 1-2-5 years,displaying nice and steady growth,uncorrelated with market. Thank you!
I don't think anyone will be willing to post account statements. Nonetheless, the rapid rise of HFT over the past five years didn't occur in a vaccuum. HFT continues to increase for the simple fact that it is profitable, very profitable. This would not be possible if algorithms couldn't continue to extract value from the auto-correlation and volatility clustering present in the market. Try running a correlation analysis of @ES over the past decade. The results are quite revealing.
I don't think anyone will be willing to post account statements. Nonetheless, the rapid rise of HFT over the past five years didn't occur in a vaccuum. HFT continues to increase for the simple fact that it is profitable, very profitable. This would not be possible if algorithms couldn't continue to extract value from the auto-correlation and volatility clustering present in the market. Try running a correlation analysis of @ES over the past decade. The results are quite revealing.
Stock trading is a bunch of Mickey Mouse shit. Honestly, stocks are fuckin' joke. Look at BATS, Facebook, etc. Can't even have an orderly market. Stocks going to one penny then rebounding...what a laugh. None of that crap EVER happens in Listed Futures: CME, NYMEX, CBOT, etc. You *do* see now and again a 500-lot spoof (meaning they put it in for a few seconds, then pull it before it gets filled) in the GLOBEX crude oil, but that's about it. I'm proud of the futures market and know too much about stocks to EVER put a penny behind them.
Dude, you are completely ridiculous. Futures is a ZERO SUM GAME, so when your 1000 "friends" were winning before, somebody was losing before. Now your 1000 friends are losing and the HFT, according to you, are winning. How does this change anything? Your friends are losers and so they are losing, 15 years ago someone else was the loser. I'm not sure why you want the heavy hand of government to come in and pass laws which help a certain number of people become winning traders and cause other people to start losing again. The point of the law should be to have FAIRNESS and transparancy. If there is no fairness, tell me where in the rules does one group get the advantage over the other due to CHEATING!
So it goes. Adapt or die. Those old prop firms were leeches, now they've been eaten by newer, more capable leeches. Don't see any players in this story worth shedding a tear over. Like the man once sang, "Same as it ever was..."
Your old firm filled a gap that was created by the old guard's resistance (old NYSE specialists, etc.) and the new efficiency created by electronic markets. The old guard was so resistant that it took Congress and the SEC to help break things open. Now that the efficiency of electronic trading is here, your old firm (and its employees) are no longer needed, and they can start new careers in some other area. That's capitalism at its best and worst, seen in a single event. It's not as though some supercomputers are amassing some fortune for themselves. The profit of "looser markets" of 5-10 years ago are simply gone, eliminated by ruthless efficiency that's gotten so good that even the most prominent HFT's are now having layoffs and/or trying to sell themselves. The only ones who are probably doing well now as a group are brokers who intenalize or otherwise send "muppet" customer orders off market to one of the 5 members of the PFOF oligopoly.