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Webinar: Telvent DTN / Nanex High Frequency Trading (HFT)


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Webinar: Telvent DTN / Nanex High Frequency Trading (HFT)

  #31 (permalink)
 
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 Big Mike 
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Laurus12 View Post
Sure seemed like it.

I am not ready to do longer time trading yet. The advantage for me personally with day or sometimes a couple of days is that it forces me to pay attention to what is actually happening. Mentally it can sometimes be too demanding, but for now it has shown me that it is the right choice. If I look for longer time I still have a tendency to get some picture in my head which makes me lose sight.

Laurus

Longer time frame can just mean minutes instead of seconds.

Scalping is the hardest possible thing to be profitable at, based on my knowledge and experience and opinion. So you don't need to swing trade, but you would probably be well advised to simply move away from scalping if you are struggling at all with trading.

I've been preaching for a long time to trade bigger charts with the same or lower risk, by simply changing sizing or the product. Trade micros if needed. Trade ETFs. etc. Just scale up your time frame, but it does not mean increase your risk ($$).

Mike

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  #32 (permalink)
 
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 Big Mike 
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Does anyone know the difference between a clearing and non-clearing firm when it comes to margin requirements?

If 10,000 of your customers are long ES, and 10,000 short ES, then you have 20,000 customers who have posted margin. But you are net 0, so your margin requirements as the FCM are minimal, a far and away difference than the money you have received as margin collateral.

I would like to know more about how this is handled in terms of clearing/non-clearing firms, if there is a difference.

Mike

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  #33 (permalink)
 
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 Laurus12 
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Big Mike View Post
Longer time frame can just mean minutes instead of seconds.

Scalping is the hardest possible thing to be profitable at, based on my knowledge and experience and opinion. So you don't need to swing trade, but you would probably be well advised to simply move away from scalping if you are struggling at all with trading.

I've been preaching for a long time to trade bigger charts with the same or lower risk, by simply changing sizing or the product. Trade micros if needed. Trade ETFs. etc. Just scale up your time frame, but it does not mean increase your risk ($$).

Mike

Sorry, lost perspective regarding the topic and misunderstood you for minute there I think. A 3:15am in the morning problem

I see your point. I have never seen it as any goal to do scalping. It's too far off from what I am doing.

Laurus

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  #34 (permalink)
 
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 Big Mike 
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Tip


The webinar recording has been posted:

Webinar: Telvent DTN / Nanex on High Frequency Trading




Mike

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  #35 (permalink)
 jthom 
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Fantastic Webinar. Highly fascinating. Wonderful Job!

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  #36 (permalink)
 
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 Big Mike 
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Eric sent me a link on the comparison of growth in quotes vs trades:

Nanex ~ High Frequency Quote Spam


Nanex
It's not high frequency trading (HFT) that concerns us. It's high frequency quoting, and it should concern everyone. The two images below tell the story. The chart on the left shows the growth of high frequency quoting. The chart on the right shows the (lack of) growth of high frequency trading. Quote data is from CQS, trade data is from CTA, both which cover listed stocks on NYSE, AMEX, and NYSE-Arca between 2008 and 2012. Quote spam has exploded with no signs of stopping, while trade frequency has stalled and is actually lower than it was years ago. Each day is plotted in a separate color over the course of a trading day (9:30 to 16:00 Eastern): older data uses colors towards the violet end of the spectrum, recent data towards the red end of the spectrum. The gaps you see between color groups on the quote chart (left-side) is when system capacity was upgraded to handle the increase in traffic, and quote spam jumped to fill the new capacity that very same day.

(left) Quote Message Growth (right) Trade Message Growth


Mike

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  #37 (permalink)
 
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 Big Mike 
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I came across Eric's (Nanex) YouTube channel, some killer stuff, love the way he conceptualizes these things.

EricHunsader - YouTube



















Mike

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  #38 (permalink)
 samurai 
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Having just read Patterson's book, I found this webinar both timely and extremely informative. I wish I had been able to catch it live.

I hope we have more webinar's like this one.

Thanks to Big Mike for such great webinars!

Samurai

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  #39 (permalink)
 
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 Big Mike 
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Looks like a popular webinar. Over 1,000 views of the recording in the last day.

Mike

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  #40 (permalink)
 Shamal 
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A whole bunch of us went back for another view, and we told a lot of people to watch this one, it's a beauty!

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