HFT Myths

Discussion in 'Automated Trading' started by hft, May 3, 2013.

  1. hft: are you active in FX? If yes, how did the EBS randomization window impact your strategies?
     
    #341     Feb 3, 2014
  2. zmax

    zmax

    hft,

    thank you.
     
    #342     Feb 3, 2014
  3. hft

    hft

    It's the same both ways. You still need to convince a clearer to let you do it and need the credentials to do it (seat leases are relatively cheap). I haven't done it myself on a personal level, but general business practice if you're going through some type of sponsored access is to convince the clearer that you have a risk limit system in place and give them asynchronous access to your system (kill switch).

    In the end I don't think there's a clear-cut standard on how they decide to set you up, but it depends on your credibility, account balance, and expected revenue generation for them. I've never had any major issues with it at a firm level, and I've heard of people doing on a personal level as well.
     
    #343     Feb 3, 2014
  4. hft

    hft

    It impacted them a lot. That's all I'll say about it due to ongoing discussions.

    I do wonder what retail investors think about it though. Do you notice it? Like it? Analyzed it?
     
    #344     Feb 3, 2014
  5. I dont think retail traders are active on ebs, nor am i. I just followed the press coverage.

    I would assume this only benefits less competitive or slower marketmakers. I don't see how it would affect for example point & click gui traders. To me this whole idea sounds silly. And apparently they are still losing marketshare, so not sure who came out ahead here.
     
    #345     Feb 3, 2014
  6. Do HFT trader's lose money the way day trader's do?
    Is the perception that HTF makes insane money accurate?
     
    #346     Feb 7, 2014
  7. Surfeur

    Surfeur

    You need very very low fees to do only 1/10tick ... not possible for retail trader :(
     
    #347     Feb 7, 2014
  8. HFT's make consistent money making markets in thousands of stocks. They make consistent profits until Vix volatility rises to 40-50. Then they either get smoked or get shut off and then there's no liquidity and that's when markets get destroyed.
     
    #348     Feb 7, 2014
  9. 2 HFT: Is your company use or plan use FPGA? Something like Enyx solution? Solarflare reduce latency, but server should decode FIX/FAST still (6-7 microseconds additionally).
    PS. I do not like be smart spy - plan start my own E-mini venture soon (DMA from shared CME DLink) :cool: My apologize that HFT club split daily profits because all traders have similar speed (and this is big question what speed I'll have) and need send average lot size orders for avoid big losses on exit from the position.
     
    #349     Feb 9, 2014
  10. zmax

    zmax

    Hft,

    When you do latency arbitrage on fx can you do it in between USA exchanges or you need to go further europe-us, uk-us, jpn-us...? Also, which banks/mm are more reactive to sudden price changes? (which banks you follow for sudden price changes in order to jump on a latent price somewhere else? Are you first looking to their NY orderbooks in 95% of cases? ) :)

    thank you
     
    #350     Feb 10, 2014