Interesting Read - Percieved Impact of High Frequency Trading

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Old Jan 5, 2010, 10:28am   #1
Joined Sep 2004
Interesting Read - Percieved Impact of High Frequency Trading

Was sent this not long ago (although it's not hot off the press). Worth a read for a peek under the lid of the institutional world for anyone interested.

GJ

http://www.thetradenews.com/trading-...he+buy-side%29
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Old Jan 5, 2010, 12:16pm   #2
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Re: Interesting Read - Percieved Impact of High Frequency Trading

decent read but still quite a polarised view from someone selling the tech.

example: market is 23-28 on abc security, size up 1000x100. i offer 25's in 250. Suddenly market is 23-25 in 1000x 800. Someone lifts 25's and i get eg 100 lots and it's left offered over. the algo that joined me gets the majority. according to scott (head of sales, algo trading) i should amend my market practice. this means i should hit the bid, costing me money.

Last edited by gooseman; Jan 5, 2010 at 12:37pm.
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Old Jan 5, 2010, 12:32pm   #3
 
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Re: Interesting Read - Percieved Impact of High Frequency Trading

1) Markets should always operate on a FIFO principal (except where a spread trade is entered) imo
2) Orders should be placed for a minimum of (say) 250 milliseconds to eleiminate a lot of the "gaming"

Put these two rules in place & I'd be a lot less sceptical about the value algo trading brings.
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Old Jan 5, 2010, 12:33pm   #4
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Re: Interesting Read - Percieved Impact of High Frequency Trading

GammaJammer started this thread How come the algo that joined you gets the majority? What are the matching rules - you saying it's not first in? Am I being a bit dense? (Have to admit I did skim-read it a touch).
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Old Jan 5, 2010, 12:37pm   #5
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Re: Interesting Read - Percieved Impact of High Frequency Trading

exactly-exchange dependent.
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Old Jan 5, 2010, 12:43pm   #6
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Re: Interesting Read - Percieved Impact of High Frequency Trading

anyone complaining about high frequency trading its simple stop piking around for 1 tick. I couldnt give a damn how quickly someone can hit the bid or offer before me when im looking for a $10 move.
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Old Jan 5, 2010, 1:07pm   #7
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Re: Interesting Read - Percieved Impact of High Frequency Trading

Quote:
Originally Posted by crude_lover View Post
anyone complaining about high frequency trading its simple stop piking around for 1 tick. I couldnt give a damn how quickly someone can hit the bid or offer before me when im looking for a $10 move.
utter horse plop.
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Thanks! The following members like this post: Rossini
Old Jan 5, 2010, 1:12pm   #8
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Re: Interesting Read - Percieved Impact of High Frequency Trading

Quote:
Originally Posted by gooseman View Post
utter horse plop.
its just a new way for 90% of traders to use it as an excuse for losing money when really its there own inadequacy to trade. You watch 5 years time they will have something new to blame. Its human nature its never the traders fault its nice to be able to fantasise conspiracy theories but at the end of the day yes high frequency trading causes some probems but in the long term it shouldnt cause huge problems to your trading.
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Old Jan 5, 2010, 1:18pm   #9
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Re: Interesting Read - Percieved Impact of High Frequency Trading

i'm not talking small fry here mate, coming off resistance lines etc. i know for large orders you pay a premium, no problem with that. what i mind is getting dimed and haviong to pay 2/3 extra ticks on large orders which soon add up.....
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Old Jan 5, 2010, 1:58pm   #10
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Re: Interesting Read - Percieved Impact of High Frequency Trading

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Originally Posted by gooseman View Post
i'm not talking small fry here mate, coming off resistance lines etc. i know for large orders you pay a premium, no problem with that. what i mind is getting dimed and haviong to pay 2/3 extra ticks on large orders which soon add up.....
thats a different story i get where you are coming from in that case, maybe it was just me getting tired of every 1 ticker moaning plus having to be back at work
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