-anybody familiar with : Jump Trading, Sun Trading, Fat Trading, OPtiver, Tradebot (together with Getco they might represent more than 40% US Vol)
-Besides technology and liquidity gaps, will it be possible one day to use these techiques on a retail level
Last edited by redratsal; January 8th, 2011 at 08:33 AM.
Thanks for answering, my point is: is the actual retail technology enough evolved to come close to HFT in a way that some guys like gomi can start developing something or are we too far away and its not worth the effort. Most important from my first thread can HFT manipulate volumes and consequently falsify all the retail strategies linked to this indicator
I think probably not..even forgetting about market making we are bottle necked by the ability to handle large amounts of data on our end analysis wise.
Maybe at a certain size level on a thinner market, some techniques that deal with market impact could come in handy.
What do u mean?
Anyway not much in the Future Excahnges, much more in Stock ones, but is manipulation of price thru limit orders, so the level 2 data result manipulated, for example putting a lot of limit orders and then cancelling them so quickly to be not executed, but enough to rise or lower the price.
Take your Pips, go out and Live.
The following user says Thank You to LukeGeniol for this post:
Concerning manipulation: Some traders are manipulating U.S. stocks that are worth less than $1 by taking both sides of trades in order to earn big rebates. It happens for hundreds of millions of shares per day." In other words, HFT algos that do nothing but churn and collect "maker-taker" liquidity rebates, are forcing fake prices in, yes, thousands of names.
Reuters informs that "a big high-frequency trading firm faces possible civil charges by regulators after its computer ran amok and sparked a frenzied $1 surge in oil prices in February, according to documents obtained by Reuters and sources familiar with the continuing investigation." The firm in question is Infinium Capital Management, which confirmed that it is the company at the center of a six-month probe by CME Group Inc into why its brand new trading program malfunctioned and racked up a million-dollar loss in about a second, just before markets closed on February 3
Somebody in futures.io (formerly BMT) complained about volume spikes appearing and disappearing does it relate?
Do not think, HFTs want to hide themself.
Anyway I think retails will always remain behind to the tecnology and resouces avaliable to the prop firm, and anyway I don't think HFT could be benificial for retails cos they are undercapitalized for such strategies. What one can do is find a way to try to track some HTFs.