algorythmic trading (algos) - messing up the markets!

jfutures said:
there is no logic behind their trades. the way they make money is by screwing the other traders over. If the market only had algos in it would be untradeable.
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Whats the logic behind your trades?
I don't understand what you mean by that; Are you suggesting there is logical reasons behind your trades and not theres?
 
spreader_legger said:
Perhaps traders are a dying breed?

oh well ... guess its time to look for another job:cry:
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I predict that sooner or later 99% of all short term trading will done by automation/algos.

The top 5% of algos/bots will take money from the rest.

You either need to implement your own algo if you think you can compete, or go out to a longer time frame if you want to do manual trading.

The days of the very short term arcade/prop trader are numbered.
 
donaldduke said:
I predict that sooner or later 99% of all short term trading will done by automation/algos.

The top 5% of algos/bots will take money from the rest.

You either need to implement your own algo if you think you can compete, or go out to a longer time frame if you want to do manual trading.

The days of the very short term arcade/prop trader are numbered.
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Nah... we have an edge that isn't going to disappear... the spread :)
 
random question, anyone remember the usual size movement most exchanges require before all algorithms have to be shut down, i know this only happens on big events such as 9/11 but it would be interesting to know.
 
crude_lover said:
random question, anyone remember the usual size movement most exchanges require before all algorithms have to be shut down, i know this only happens on big events such as 9/11 but it would be interesting to know.
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Think this only refers to programmed stock market trading, buying or selling a large basket of stocks in one go. Not to all types of automated trading.
 
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Due to 1987 the US exchanges have a limit on how much the stock futures can move in a day, from memory it's 5% pre cash open (I remember one day earlier this year or maybe late last year the S&P was limit down pre open at one point, I believe I started a thread about it) and then there are circuit breakers at same levels as NYSE during the cash open.

I'm not aware of any actual algo restrictions.
 
donaldduke said:
Think this only refers to programmed stock market trading, buying or selling a large basket of stocks in one go. Not to all types of automated trading.
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Actually this was scapped in Nov 2007.

The NYSE formerly implemented a curb on program trading whenever the NYSE Composite Index moved 190 points or more from its previous close, and remained in place for the rest of the trading day or until the gain or loss had decreased to 90 or fewer points. This curb permitted program sales to be executed only on upticks and program buys on downticks. A program trade is defined by the NYSE as a basket of stocks from the S&P 500 where there are at least 15 stocks or where the value of the basket is at least $1 million. Such trades are generally computer automated. Since over 50% of all trades on the NYSE are program trades, this curb limited volatility by mitigating the ability of automated trades to drive stock prices down via positive feedback.
This curb was fairly common, and financial television networks such as CNBC often referred to it with the term "curbs in."
On November 7, 2007, the NYSE confirmed that the exchange has scrapped this rule as of November 2[1]. The reason given for the rule's elimination was its ineffectiveness in curbing market volatility.
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GladiatorX said:
Whats the logic behind your trades?
I don't understand what you mean by that; Are you suggesting there is logical reasons behind your trades and not theres?
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My trades are based on a fundamental point of view then TA where to get in and out. But some algos go against the trend and push the market the other way. There is logic behind there trade, that was the wrong word to use, theres no technical reason for the trades.
 
donaldduke said:
I predict that sooner or later 99% of all short term trading will done by automation/algos.

The top 5% of algos/bots will take money from the rest.

You either need to implement your own algo if you think you can compete, or go out to a longer time frame if you want to do manual trading.

The days of the very short term arcade/prop trader are numbered.
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Algos make upto 30% of volume in some futures markets. Its only going to increase.
 
jfutures said:
there is no logic behind their trades. the way they make money is by screwing the other traders over. If the market only had algos in it would be untradeable.
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Can you even hear yourself Aaron? What is your trading style that has so much more intellectual purity?
 
Ah - just seen above. Well I'm sorry, but I don't see your reasoning as superior to theirs. It's just trading pen1s envy and you know it.....
 
no not at all. Im saying that the exchanges shouldnt be aloud to sell that data to the algos, to give them a massive advantage
 
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