HFT Forcing Traders to Become More Sophisticated - Traders Hideout | futures io social day trading
futures io futures trading


HFT Forcing Traders to Become More Sophisticated
Updated: Views / Replies:1,966 / 5
Created: by Big Mike Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

HFT Forcing Traders to Become More Sophisticated

  #1 (permalink)
Site Administrator
Manta, Ecuador
 
Futures Experience: Advanced
Platform: My own custom solution
Favorite Futures: E-mini ES S&P 500
 
Big Mike's Avatar
 
Posts: 46,238 since Jun 2009
Thanks: 29,350 given, 83,218 received

HFT Forcing Traders to Become More Sophisticated

Brandon Rowley of t3live.com wrote a new blog article about HFT (high frequency trading) today and it is worth reading.

Check it out:
HFT Forcing Traders to Become More Sophisticated ~ T3Live Blog: Daily Stock Market Trading Commentary

In the article, he stresses how the game is changing. But that's always true, look at how different trading is today vs 10 years ago or 20 years ago, the game is constantly changing and traders have to constantly adapt to these changes in order to be profitable.

Lately I feel the platform itself has been a limiting factor in HFT, I am hoping for some new revolutionary platform to come along that greatly improves things for the average trader. Wishful thinking.

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
6)
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member.

Reply With Quote
The following 3 users say Thank You to Big Mike for this post:
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Trading Apprentice
sarasota fl
 
Futures Experience: Intermediate
Platform: esignal ninja trader
Broker/Data: IB esignal
Favorite Futures: eur/usd
 
Posts: 39 since Dec 2009
Thanks: 30 given, 14 received


Thanks Mike I always find it interesting that the really important stuff like this information goes largely un-noticed by the average trader. You can be be sure that these guys are on the other side of most of your losing trades. And that is only if you know how to trade. Newer traders do not stand a chance against them.

Reply With Quote
 
  #4 (permalink)
Trading for Fun
Dallas TX/USA
 
Futures Experience: Advanced
Platform: NinjaTrader
Broker/Data: AMP/CQG
Favorite Futures: ES
 
Posts: 154 since Jun 2009
Thanks: 33 given, 281 received

Everyone's scared because they are soooo fast. But, remember 30 years ago you traded by picking up a phone, and calling a broker. Then the broker called down to the floor, who then got someone at the pit to trade for you. And after lots more time you finally heard about your fill. Back then, you traded against floor traders... and it seems to me that their advantage over you, in terms of ability to trade quickly, was far greater than the current HFTs advantage over the daytrader directly connected to the electronic marketplace. The more things change, the more things stay the same...

So I kinda felt like they were just capitalizing on people's fear of the unknown. Let's look at the advice they give:


Quoting 
First, minimize the impact of HFT by trading “in-play” stocks that have large volume from “real” players. Second, avoid non-volatile stocks trading below average volumes.

That has always been the advice when daytrading stocks. Hasn't it? Have you ever heard someone say, "to daytrade well, find a sleepy stock that no one cares about. Preferably find something non-volatile and trading way below average volume."? No way.


Quoting 
Third, greater anticipation based on sound technical analysis is also needed. Most of us will need to fight hard for better prices and avoid the temptation to buy highs or short lows as algos are programmed to manipulate prices around these areas.

... Yeah, because institutional traders have never manipulated prices around those areas before HFT. I guess now we'll need sound technical analysis, whereas we all know that previous to HFT we could just buy and sell willy nilly and make a fortune. Whatever...



Quoting 
Fourth, many of us will need to cut down our size and look for larger moves in stocks. Scalping very small moves is not nearly as profitable when a predatory algo scalps 3 cents from you on your buy and another 3 cents on your sell, just as a hypothetical.

The only advice I saw that rings true to me. Since it's hypothetical I have no idea, but you probably don't want to play the computer's game against the computer. If they are scalping 3 cents in limited liquidity, you don't want to try to scalp the same 3 cents.


Quoting 
Also, levels in stocks are not as clear-cut because algos are programmed to push stocks through the level to shake out weak holders.

Again, obvious prices have always been probed, as long as there has been a professional messing with a retailer. If there's anything new there, the article failed to point it out to me.

Reply With Quote
The following 4 users say Thank You to Richard for this post:
 
  #5 (permalink)
Elite Member
minneapolis
 
Futures Experience: Beginner
Platform: ninjatrader
Favorite Futures: nq
 
Posts: 6 since Aug 2010
Thanks: 1 given, 0 received

hfts vs little guy

So, is the general message here (for someone still trying to figure out their time frame) that, to not fall victim to high-speed-automated-large volume-algo traders, one needs to not trade based on too short a time frame? If so, what is too short and what is too long, if you just want to trade a couple hours in the morning? I'm talking emini futures....

Reply With Quote
 
  #6 (permalink)
Membership Revoked
British Columbia
 
Futures Experience: Advanced
Platform: NINJA
Broker/Data: ZEN
Favorite Futures: Crude
 
Posts: 1,091 since May 2010
Thanks: 192 given, 484 received

another good read.. Interview With A High-Frequency Trader | ZeroHedge

Reply With Quote
The following user says Thank You to syxforex for this post:

Reply



futures io > > > HFT Forcing Traders to Become More Sophisticated

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
HFT High Frequency Trading Michael.H The Elite Circle 806 August 20th, 2017 09:10 AM
Forcing display of an indicator in a strategy as Type=logarithmic nanobiotech NinjaTrader Programming 5 January 8th, 2013 03:08 PM
IMF CHIEF ARRESTED FORCING ORAL SEX kbit Off-Topic 4 July 1st, 2011 12:52 AM
Forcing Ninja to recompile all custom indicators jagui NinjaTrader Programming 5 September 9th, 2010 04:16 AM
Indicator forcing NinjaTrader to close / shutdown dsraider NinjaTrader Programming 14 July 27th, 2010 08:09 AM


All times are GMT -4. The time now is 12:46 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-11 in 0.10 seconds with 19 queries on phoenix via your IP 107.20.115.174