Interesting article about trading parasites - aka HFTs

Discussion in 'Trading' started by heiasafari, Jan 17, 2011.

  1. 1) ?....a fill-or-kill order?
    2) ?....a stop-limit order?
    3) ?....a "stop with a separate limit" order?
    4) Does that Canadian investor still underperform their benchmark? :confused:
  2. "The HFT strategy of placing and then cancelling orders to gain an information advantage".

    To place an order with no intent to trade is 10% illegal as per exchange rules. There you have it, HFT's freely admitting their whole game is based on breaking the rules and cheating. What a effing joke:mad:
  3. Of course that should be 100% illegal not 10% illegal in the last post :D
  4. Perhaps we should have the faster sprinters in the Olympics to run with a midget on their back because the others in the race can't keep up.

    The RBC are pikers.
  5. Or maybe the exchange need to start banning the drug taking hft cheats from running. You lot are nothing but a bunch of ben johnsons. Could you explain yr constant bid order stuffing as genuine orders to trade in any court io the land? NO. I cant wait for the first legal case against hft scum. Come out from behind the computers you hide. Let us see who has been robbing us!
  6. High-frequency trading

    High-frequency trading is the execution of computerized trading strategies characterized by unusually short position-holding periods. In high-frequency trading, programs analyze market data to utilize trading opportunities that may open up for only a fraction of a second to several hours.[1] High-frequency trading, (HFT), uses quantitative investment computer programs to hold short-term positions in equities, options, futures, ETFs, currencies, and other financial instruments that possess electronic trading capability.[2][3] High frequency traders compete on a basis of speed with other high frequency traders, not long term investors (who typically look for opportunities over a period of weeks, months, or years), and compete with each other for very small, consistent profits.[2][4] As a result, high-frequency trading has been shown to have a potential Sharpe ratio thousands of times higher than the traditional buy-and-hold strategies.[5]

    By 2010 High Frequency Trading accounted for over 70% of equity trades taking place in the US and was rapidly growing in popularity in Europe and Asia. Aiming to capture just a fraction of a penny per share or currency unit on every trade, high-frequency traders move in and out of such short-term positions several times each day. Fractions of a penny accumulate fast to produce significantly positive results at the end of every day.[2] High frequency trading firms do not employ significant leverage, do not accumulate positions, and typically liquidate their entire portfolios on a daily basis.[4]

    One financial industry source claims algorithmic trading, including high frequency trading, substantially improves market liquidity.[4] A recent academic study claims [6] additional benefits, including lowering the costs of trading,[6] increasing the informativeness of quotes,[6] improved linkage between markets,[6] and positive spillover effects,[6] at least in quiescent or stable markets. Algorithmic and high frequency trading were both implicated by regulators in the May 6, 2010 Flash Crash.


    It appears smarter people have found a way to profit that the pikers don't like. Perhaps some people shouldn't play the game.
  7. What part of it being 100 illegal dont you understand? Do you want to tell the exchange that 98% of your orders have NO intention to trade. You call it being smart... everyone else calls it what it is, fraud.
  8. Aside from the one who should buy a magnetic wristband to help with his trading (and understand that HFT is legal and has been around since '99), here's something interesting:

    Battle for Tech Geeks: Street vs. Silicon Valley

    There were a few sites over the past year comparing the average salary + bonus of a surgeon vs the average Goldman Sach employee and the results, average surgeon pulled in $500k while the GS employee bonus in 2007 alone was $600k. It makes ya wonder, if you have the talent, would you rather go into finance or the medical field.
    #10     Jan 18, 2011