perfect storm situation -- new regulation ceases hft/algo ops as we know it liquidity reduced by 50% bad economic news hits the market dow down -1700 points in a day 4 years later at dow 5,000 congress mandates human traders must make markets
wtf you are talking about? what regulation? stop making assumptions based on whatever you have in your head..i spend 3 fucking hours today unloading 500 shares lots on about 10-15 stocks..cause every time i tried to sell at ask-they keep moving away NBBO. common..it's can't get much worse than that..seriously..fuck this hft shit..i had enough of it..
Trade futures, Bob. Experience no liquidity problems. For the most part, the government needs to butt out. You'll have to exsqueeze me; it's just that I'm not a Democrat. I don't believe more government is the answer, except in certain situations.
Without HFT- A handful of HFT shops close down. A few hundred MIT/Stanford quants/programmers are laid off. Most retire with all the cash they made stealing from the markets over the last few years. Thousands of human traders go back to making a great living trading. Hundreds of small trading and finance companies reopen, hiring back the tens of thousands of previously laid off back office workers. Small restaurants, deli's, lounges, boutiques, and bars reopen around trading offices hiring thousands of employees. Public has new faith in markets without computer glitches, flash crashes, sub pennying, quote stuffing, and algo manipulation. Public starts putting money back into stocks. Wall st. wealth is trickled down throughout the economy. Unemployment drops, housing values uptick, economy shows first signs of unassisted growth in half a decade.
You seem to make some good points, brother Club, but don't traders have to adjust and deal with the markets they are offered, with or without HFT? Aren't we still just going to react to price, no matter what?
99.9% of displayed quotes are cancelled. Absolute phantom liquidity. Impossible to move even small size without predatory algo's attacking. HFT routinely causing artificial spikes and dumps for no reason other than to manipulate stops. Our markets are a joke.
I saw a thread a few days ago concerning HFT and how to adapt. It was a spammer but I participated with very rudimentary examples. No comments. Now either people don't understand it or they refuse to believe but the end result is ...... HFT needs regulated. You will be bled to death very slowly, it is already happening. After the groundwork and observations, my conclusion is human trading will be non-existent very soon. The world is now computer vs computer. You see the volume okay only because it's HFT, it's all fluff. The HFT algo's will be deployed across the board. Any human trader thinking they can overcome is misguided arrogance. I seriously hate posting this but the market is systematically being leeched. I can pretty much guarantee everyone on this board is reactionary trading. Try to put yourself into a position of what you would do if you had the programs and serious funding to move the markets. It ain't pretty.
like i said- i have no problem with HFT,but as it's been pointed out by me and others-it's need to be regulated.current set of 'rules' ain't working or to be precise-it's working very well for certain group of people and we all know(including SEC and DC) who they are. the 'liquidity' they are posting is big pile of BS. as for trading futures- i did explain my theory many times here..i'm not going to repeat it over and over and over again.. and i have no system for futures. and developing WINNING one for markets without the limits can take a while...plain and simple..cause if i would have one with my current win ratio-i will put 10's of M's into it..and will be BILLIONAIRE in just few months..i'm realist.. it's impossible..i prefer small,but sure thing- few hundreds every day on stocks..use to be better without HFT,but i can live with current stream..but don't get me wrong-I'm working on market neutral system where loss is limited(and so profit) but liquidity is practically unlimited. unusual approach,but looks like it has some potential.