Algorithmic Trading / HFT and the new markets.

hello all,

i wanted to get a thread going on algo trading and HFT ( high frequency trading) i have been a long term trader but with dropping volumes the HFT guys seems to have changed the game.

insights in how as traders we can profit from and help out own trading.

i will start
We are using different "slow fill programs" to try to pick off the extended moves the HFT shops are causing in todays markets.

who uses any techniques for to deal with the stupid trends and reversal created by HFT

hey dude

define stupid trend please with examples.... didn't the trend go to college ?

Alphaesgesystems said:

hello all,

i wanted to get a thread going on algo trading and HFT ( high frequency trading) i have been a long term trader but with dropping volumes the HFT guys seems to have changed the game.

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Hi Alphaesgesystems,

With a user name like that you sound like a quant!

From what I understand, increased volumes are synonymous with HFT so I am not quite ready to jump to the conclusion that dropping volumes are from the "HFT guys".

As far as using "slow fill programs" to pick off the extended moves, do you mean that you are automating your longterm trading strategy? From my experience, I find it best to trade with the extended moves.

I am a manual trader myself, but I do notice evidence of HFT strategies using TWAP on the lower timeframes from the 4hr chart on down when the candles just shoot straight up or down right after it opens - so I usually just avoid trading the lower timeframes.

Hey, I just found your website and am checking it out now.

Now I can see where you are coming from, and it is a great idea.

Oh, for God's sake!

Do you really think people are that stupid?

Round here, you'd be right actually.

Seriously, mods?

Pboyles still banned and these two t0ssers (or rather, one t0sser pretending to be two) able to post?

The Leopard said:

Seriously, mods?

Pboyles still banned and these two t0ssers (or rather, one t0sser pretending to be two) able to post?

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you are so quick at jumping to conclusions my friend. look at my profile i have been a member for over a year and am no way affiliated to the author of this post.

so what I posted a link to this quys website, there are no rules against that

I am interested in a thread here at this forum for once in over a year of being a member, decide to post for the first time and get greeted by someone calling me a t0sser...

open outside said:

... and get greeted by someone calling me a t0sser...

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That's right. I was being polite.

Better hurry folks, looks like there are only 89 left...
What a spamtastic tardfest this place is becoming.

Liquid validity said:

Better hurry folks, looks like there are only 89 left...
What a spamtastic tardfest this place is becoming.

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The Leopard said:

That's right. I was being polite.

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there, i edited the post just for you Leopard....
you are doing a very good job at regulating this forum to make sure that nobody posts any links, even if there is valuable free information.
People need regulators like you to do the due-dillegence for us and so we can be protected from links that you classify as spam - although it would be nice if you actually knew what the link to the website was before you make decisions for us.
I would hate to click on a link or make a decision with out your aproval.
thank you

Liquid validity said:

What a spamtastic tardfest this place is becoming.

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definition of forum spam= the creating of messages that are advertisements on Internet forums

it was not my intention to post the link for advertisement purposes. I am not affiliated with Alphaesgesystem or his/her website. The link I posted has to due with the thread topic about trading strategies in markets where the majority of the volume is coming from high frequency traders. The reason why I posted the link is because the idea from his/her video is to create medium frequency, low-latency automated trading strategies in a market dominated by HFT, and I thought that is a novel idea

open outside said:

The reason why I posted the link is because the idea from his/her video is to create medium frequency, low-latency automated trading strategies in a market dominated by HFT, and I thought that is a novel idea

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That is a lie.

The Leopard said:

That is a lie.

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ok I get the point.

I just ckecked out some of the "reported post actions" thread and I see that you guys have been dealing with allot of spammers... so enough said, I know better not to post links in here anymore

am voting for the Leopard to be granted the priviledge of a mod

Alphaesgesystems said:

hello all,

i wanted to get a thread going on algo trading and HFT ( high frequency trading) i have been a long term trader but with dropping volumes the HFT guys seems to have changed the game.

insights in how as traders we can profit from and help out own trading.

i will start
We are using different "slow fill programs" to try to pick off the extended moves the HFT shops are causing in todays markets.

who uses any techniques for to deal with the stupid trends and reversal created by HFT

Click to expand...

HFT is different based on the market you trade. i.e. US equities; you get rebates for providing liquidity; whereas in FX you dont.

what market are you trading?

alphadude said:

am voting for the Leopard to be granted the priviledge of a mod

Click to expand...

Probably not a good idea.

NVP said:

hey dude

define stupid trend please with examples.... didn't the trend go to college ?

Click to expand...

hi NVP, although this question was not directed towards me, I thought I would try to provide some insight on what I believe this means - just from my interest on the subject and reading as much stuff as I can about HFT lately . Quoting Avinash Persaud, Elara Capital Chairman - " HFTs run ahead of the trend, draining liquidity just when it is needed the most." and "Less high-frequency trading could mean that overshoots and undershoots in markets would become less extreme". and also quoting a reference paper written for the United Nations Conference on Trade and Development titled the synchronized and long-lasting structural change on commodity markets: evidence from high frequency data states “The competition among trend-followering lies in identifying first changes in trends: first (fastest) to invest at the trend inception, first (fastest) to reverse position when the trend fades.” And “We think that HFT strategies, in particular the trend-following ones, are playing a key role” and “affect the price discovery mechanism.” - And quoting Al Berkeley (former President of NASDAQ) that HFTs are “looking for temporary imbalances in supply and demand, seeing that there are more people that want to buy than sell they try to buy the stock faster than everyone else, then come back and sell it to people that have a demand for it at a much higher price”. I've found other various articles that have said similar to this as well as reading about some quant strategies that are programmed to use retail Speculative Sentiment index as a contrarian indicator to price action – trading against the majority of retail traders when price is trending ---- I have all the links to the articles that I pulled these quotes out of but for the sake of not spamming I will not add them

as far as calling the trend a "stupid trend", those were not my words, but just like most traders can probably vouch for also, having experience trying to trade against the trend and watching/waiting at every bar for any hint that the trend will retrace while being ran over because the trend is just being relentless - I have definitely called the trend far worse words than stupid