Black boxes have destroyed the stk market and its time to stop the insanity with cancel charges.The exchanges need to allow a certain # of cancels per day per account and charge a fee per cancel over that threshold.you can't even put an order in without a robot penny jumping you anymore. give the mkt back to the humans
sounds like you need to increase your time frame. Forget about wishing for this and that and just fix your problem.
Next request is to punish all women because they cannot get any. I think there are many attempts the last couple of years, you know since when, to convince us that retards, idiots, uneducated morons, are protected species.
Can us humans call in orders on the telephone, or should we send them by pony express? If you artificially limit the efficiency of trading, efficient traders will simply find other markets and work around your arbitrary limits. If you really want to fix this, ALL of the system's safeguards have to execute at the exact same speed as the fastest trades, or faster. Simple math.
Leave their "fancy technology" in place...just introduce a transaction tax high enough to force them to hold positions overnight. If a trader, HFT or otherwise never holds any trades overnight, then, they are of no value to the market. From the large overnight gaps in the last few years, what's obvious is that the US market has tons of intraday players screwing each other during the day and substantially less willing to hold positions longer than mere minutes.
There is a transaction tax already in place: Exchange fees and clearing costs. Approx $3 for HFT traders. From a HFT's perspective: Assume $500 intraday margin, $3 trading costs and max position size of 10 contracts. 200 RT's making just 1 tick on ES nets $1900 while tying up only $5K. In order to make the 200 RT's: estimate 2000 total orders are placed, canceled and processed. Assume new rules are in place and $0.01 is charged to place orders. $20 in additional fees will not curtail the HFT traders. If you charge the full exchange fee $3 per order placed, canceled or processed the markets would seize. If your goal is to require positions to be held for 24 hours than charge a transaction tax for positions opened and closed inside of 24 hours. ie. $25 per contract. Doing so you will see a mass exodus from the US Markets to Foreign Markets. I think you underestimate the Value of Liquidity and price discovery brought about by HFT's.
If all kinds of taxes, fees, rules and regulations are implemented, there will be nothing but investors and position traders creating dysfunctional markets and making multi-decade crashes like the crash of 1929. Everyone should be prepared for at least a 50% loss, whether you are a long-term investor or short-term trader. Or get out and stay out. "If I could only get the government to create conditions to fit my specific "system", then I could finally make money."
keep on repeating a myth often enough and it becomes reality? HFT is a parasitic activity that provides little or no value. The markets were doing well enough before the exchanges figured they needed more volume translating to fees and more profits. Recent events prove the bastards bit a whole lot more than they can chew.