Went Long Today But Still Feel SICK with HFT

Discussion in 'Trading' started by Joovenile Jatt, Sep 2, 2010.

  1. promagma

    promagma

    Well I will be watching & trading at 7:30 as usual ... but I'm not expecting any slowdowns :)

    BTW there is a lot more than 2-5 HFT nerds out there.
    They say 70% of the volume these days is algorithmic - even the big time discretionary traders use algorithms to work orders.
     
    #31     Sep 3, 2010
  2. I was talking in relation to each market. The market I trade the ES I would say there are only 2 or 3 HFT freaks that have the limits and desire to quote stuff every single bid with thousands of orders every minute. Anyhow, good luck for tomorrow, unless your a HFT yourself :( :D
     
    #32     Sep 3, 2010
  3. businessstaxes

    businessstaxes Guest

    new exchange trading rule

    all bids and sell orders cannot be cancelled or get a cancellation fee


     
    #33     Sep 3, 2010
  4. promagma

    promagma

    No not 2-3, what you see is a huge number of mild-to-moderate freaks.

    CME messaging policy

    http://www.cmegroup.com/globex/resources/cme-globex-messaging-policy.html
     
    #34     Sep 3, 2010
  5. promagma

    promagma

    errrr...... ahem.
     
    #35     Sep 3, 2010
  6. Yes, but the bots don't see the future, they don't need to. They see more buy orders coming in than sell orders, so they buy, and then sell for maybe as little as a penny of profit. So if you software can predict the future, you don't scalp but instead swing. They can scalp since they are probably getting paid for liquidity, but the retail trader normally can't make profit on a 1 penny or 1 tick trade.

    So if you can predict with high probability a greater move for the day, and stay in the trade, then the bots can not affect you as much.

    Maybe the bots were slowing down the market while I was long ES, but eventually all the buy orders came in and the market slowly rose higher.
     
    #36     Sep 3, 2010
  7. Joovenile, I don't think you quite understand HFT.

    There are many forms of HFT. The type of HFT you're talking about with flash orders and subpennying bids/asks is only on equities, not futures. The ticks are too wide to do this kind of strategy and the order depth is too thick, especially on the ES. CME doesn't "flash" orders, either, the way that some exchanges do, or at least did.

    Getting access to other's data is flat-out illegal and way too easy to track.
     
    #37     Sep 3, 2010
  8. Joovenile-

    You set the tone. You made your bed - now, time to sleep in it.

    Kind Regards,
    HFT Nerd.
     
    #38     Sep 3, 2010
  9. Do you have the respective links for the stock exchanges?
     
    #39     Sep 3, 2010
  10. I don't know, he makes a good point when you look at the colocation, it's obvious front running from insider trading - constantly chasing flash crashes and NBBOs.

    Sometimes, the latency drops and I can't stuff bids, so I have to wait for those damn HFTs to finish cycling. Frankly, it's making it hard to sniff arbitrages and I'm short demand.

    ...now, where did I leave my tinfoil hat.
     
    #40     Sep 3, 2010