Flash Boys: A Wall Street Revolt

[Magos]

"Can a book change Wall Street? Michael Lewis's bestselling expose of high-frequency trading has caused a '****storm'. What will happen next? And will the real problems be solved?" By Andrew Ross The Guardian, Friday 16 May 2014 11.00 BST

What does the trade2win community think about the book?

 

[melodillen]

Just getting ready to read it. After dark pools ;-) I'll let you know.

 

[Magos]

A well written book

Just getting ready to read it. After dark pools ;-) I'll let you know.

It explains technology and high-frequency trading in layman's terms.

I am sure you will enjoy it I did

 

[Mr Fox]

Thank you for the recommendation Magos. That was a most enjoyable, and interesting read.

However, may I ask you, or anyone else who has knowledge on this subject, as to how prevalent HFT is in todays market, and what instruments do you think are the most affected.

I look forward to your response.

Best
John

 

[Magos]

what instruments do you think are the most affected?

Thank you for the recommendation Magos. That was a most enjoyable, and interesting read.

However, may I ask you, or anyone else who has knowledge on this subject, as to how prevalent HFT is in todays market, and what instruments do you think are the most affected.

I look forward to your response.

Best
John

I would say securities due to their nature!

..and this is a nice article to read: http://en.wikipedia.org/wiki/2010_Flash_Crash

 

[Mr Fox]

I would say securities due to their nature!

..and this is a nice article to read: http://en.wikipedia.org/wiki/2010_Flash_Crash

I must admit I did read the article before I actually read the book, so I could gain more of an insight into what the flash crash was.

Let me ask you Magos, how does HFT affect most of the traders on T2W, if at all if it does.

Best
John.

 

[Magos]

I must admit I did read the article before I actually read the book, so I could gain more of an insight into what the flash crash was.

Let me ask you Magos, how does HFT affect most of the traders on T2W, if at all if it does.

Best
John.

If traders (retail or institutional) are trading equities for example in e*trade; and CITADEL is feeding them I guess HFT is affecting them...

 

[Mr Fox]

If traders (retail or institutional) are trading equities for example in e*trade; and CITADEL is feeding them I guess HFT is affecting them...

Thank you for your reply, and please excuse me if my questions are those of a layman, however in my defence, one is a layman.

After reading the book the first thing I did was pull up historical data on the S&P, and looked at charts months before the event, during the May 6th event, and years after the event, and the only thing I could deduce was that if one has a sound trading strategy, then HFT, does not hinder you, but more importantly helps you.

Now if HFT is still prevalent today, and we look at the S&P today between 17.19-17.30 there is a level of support and at 17.32 the market shoots up 50 points, so if you were in this trade, how would the dark pools work against you, and take your money.

I look forward to your response.

Best
John.

 

[Magos]

Thank you for your reply, and please excuse me if my questions are those of a layman, however in my defence, one is a layman.

After reading the book the first thing I did was pull up historical data on the S&P, and looked at charts months before the event, during the May 6th event, and years after the event, and the only thing I could deduce was that if one has a sound trading strategy, then HFT, does not hinder you, but more importantly helps you.

Now if HFT is still prevalent today, and we look at the S&P today between 17.19-17.30 there is a level of support and at 17.32 the market shoots up 50 points, so if you were in this trade, how would the dark pools work against you, and take your money.

I look forward to your response.

Best
John.

When you are looking at the charts you are just looking at Momentum Ignitions (another strategy) nothing to do with the traditional lifting the bid or the offer up/down.

This is what usually HFT are doing, you try to buy the market - is not there and then if you want to buy, you buy higher.