Comments on: HFT and the Effects on the Markets http://www.smbtraining.com/blog/hft-and-the-effects-on-the-markets Sat, 13 Mar 2010 22:10:14 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Seymour Faikouts http://www.smbtraining.com/blog/hft-and-the-effects-on-the-markets/comment-page-1#comment-20873 Seymour Faikouts Mon, 09 Nov 2009 00:16:15 +0000 http://www.smbtraining.com/blog/?p=2426#comment-20873 This is not even a new problem, it started years ago, but is now quite obvious even to the slow witted. In effect they HFT boys are running an anti gaming program against scalpers and day traders. And it's not just HFT, its buy and sell programs that deliberately bob and weave in a random manner. The net effect is , you cant make a dime without risking a dime or more. It was never easy, but it used to be easier. This is not even a new problem, it started years ago, but is now quite obvious even to the slow witted.

In effect they HFT boys are running an anti gaming program against scalpers and day traders. And it’s not just HFT, its buy and sell programs that deliberately bob and weave in a random manner.

The net effect is , you cant make a dime without risking a dime or more. It was never easy, but it used to be easier.

]]> By: Aaron Wise http://www.smbtraining.com/blog/hft-and-the-effects-on-the-markets/comment-page-1#comment-20755 Aaron Wise Sat, 07 Nov 2009 05:27:42 +0000 http://www.smbtraining.com/blog/?p=2426#comment-20755 Stocks like C, CIT, and LVLT are blaring examples of HFT traders effectively "becoming marketmakers" and making a killing by playing the spread and banking ECN rebates. I also see the ever-annoying "peg" orders that continue to one-up your bids/offers by a fraction and cause you to lose your execution when someone hits "market." And in general, I see the HFTs make it hard to play momentum, because price action becomes so volatile even in very obvious setups. Some traders just back up the the larger time frames... but it's really annoying for those of us who still rely on those 1-minute charts that are now littered with HFT. It's reality, and I'm adapting, but the noise and the stop-outs can be frustrating. Stocks like C, CIT, and LVLT are blaring examples of HFT traders effectively “becoming marketmakers” and making a killing by playing the spread and banking ECN rebates. I also see the ever-annoying “peg” orders that continue to one-up your bids/offers by a fraction and cause you to lose your execution when someone hits “market.” And in general, I see the HFTs make it hard to play momentum, because price action becomes so volatile even in very obvious setups. Some traders just back up the the larger time frames… but it’s really annoying for those of us who still rely on those 1-minute charts that are now littered with HFT. It’s reality, and I’m adapting, but the noise and the stop-outs can be frustrating.

]]> By: newton paulo linchen http://www.smbtraining.com/blog/hft-and-the-effects-on-the-markets/comment-page-1#comment-20694 newton paulo linchen Fri, 06 Nov 2009 02:03:29 +0000 http://www.smbtraining.com/blog/?p=2426#comment-20694 Hello, SMB members, Hello, Bella, Hello, Steve, HFT is beginning to have impact here in the Brazilian market, specially in the form of "noise" in the intraday price time series. Once upon a time the charts were straight and beautiful - nowadays mostly noise and sudden moves. The only way around that was to focus on price leves such as Round Numbers and in volume-price relationships. Regards, Newton Linchen, Brazil. Hello, SMB members, Hello, Bella, Hello, Steve,

HFT is beginning to have impact here in the Brazilian market, specially in the form of “noise” in the intraday price time series. Once upon a time the charts were straight and beautiful – nowadays mostly noise and sudden moves.

The only way around that was to focus on price leves such as Round Numbers and in volume-price relationships.

Regards,

Newton Linchen,

Brazil.

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