HFT and the Effects on the Markets
Nov 5th, 2009 | By Bella | Category: Mike Bellafiore's (Bella's) BlogsI am writing an article for SFO magazine on HFT (High Frequency Trading) and its effects on the markets. For me the most glaring change are the plays that no longer work. Specifically paying for a new high in a stock and playing for upside momentum. Too often the result of paying for the new high is a seller sticking the offer, and then coming sharply low offer, causing the short term longs to hit the bids lower. Ripper. We can this the Sell the New High Program. A mirror image of this program is placed into the market for a stock that hits a significant low.
My question to our readers is: What effects do you see HFT having on the markets? What changes have you made to your trading as a result?
This article will be published in SFO magazine and then I will discuss this article and HFT in greater detail on my Sunday night show on StockTwits TV.
