What I want to know is why small cap stocks which used to do their own thing now have such high correlation to the general market. Is this HFT too?
I suspect this has more to do with this Fed induced equity boom and the hedge funds that participate on it rather HFTs but I don't have a strong view on that
So let me get this straight, the Russell 2000 and crude oil have both DOUBLED in price since you started trading them and you couldn't (or cannot) make money because of these... "no-good" high frequency traders? You must be joking, right? I mean this is serious Seinfield material, Austinp. You want to make money or you want to get filled? If , for whatever reason it does not matter, your trading activities are not profitable anymore, change your trading style or your time frame, period! Don't just stay there dreaming about the good old time, do something about it and simply adapt, like Grandluxe rightly said. I used to successfully day-trade the S&P 500 with tight stops, back in the 80's. Then it became more volatile and my stops were no longer doing their job, so I started using dynamic, volatility-based stops instead and the problem was fixed overnight. Adapt or die, that's the reality of trading. Oh please.
Thanks Brad..looks like an interesting book, one question in reading the intro it doesn't say how he came about these traders or vetted them. Does he say elsewhere ? I'm just curious to know if he actually saw results or just related stories. thanks
Let's take the off-topic discussion over to it's own thread... http://elitetrader.com/vb/showthread.php?p=3972062#post3972062
I don't think so. Correlation is on a much longer time frame that HFT's trade. I suspect this has more to do with the relative volume increase of ETFs in the markets. I do think that the lower average VIX is a function of increasing HFT transactions however.
The rather odd comments on this website about HFT not affecting trading, have lead me to believe that MOST people who comment on ET are not experienced traders. It is not that they disagree - I don't mind that at all, it's that theircomments show an ignorance that is hard to explain. Maybe it is me? Adapt or die and to adapt one has to know one's enemy first.