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Mind explaining why HFT is 'thievery'? Because it can react faster than you? No laws against using new technology to make faster / more efficient transactions and services. Eg. Email vs Air Mail vs Horse Mail. Things change. Get used to it.

My rule of thumb when backtesting HFT systems. Assume 1 cent of slippage beyond commissions.

Agreed. Though if we are so willing to form concrete opinions while being completely ignorant on the subject matter. It may be for the best that someone else looks after us.

And there should be economies of scale in an electronic market place? Uhhh why? If it is just as easy to trade 100 shares as 100k shares. I think the cost should be 1/1000 for the smaller amount. All 'special' considerations given to market makers do is creates a barriers to entry for smaller...

I think for the market to work correctly. It must be fair for all participants. Meaning no one gets any advantage, once their order arrives at the exchange. Market makers shouldn't be given special considerations imo. Id love to see a company like Google who has a name for being...

So let me get this straight. You are advocating the SEC force whoever sold those 3000 to take your worse bid and pay 60 cents more for the trade to make it 'fair'? If someone wants to undercut you, they should be allowed. Otherwise you are no longer dealing with a free market. That being...

I hear the invention of this 'motorized carriage' thing will make it hard for stage coaches to make a living. We should really step in and put a stop to this nonsense to protect these jobs. But seriously. Anyone who is 'against HFT' really doesn't understand what they are talking about.

just a word of warning if you plan on trading with real money. going all-in works every time except once. ;)

Id beg to differ. When I did news event stat arb. Catching fills against the few market orders which are happening was the most complex part of the algorithm (far far more complex than the actual stat arb calculations). Involved undercutting market makers, jockeying for position (getting first...

Beating other HFTs is 'easy'. All you have to do is accept less of an avg profit margin than they do per share traded. That is, if your cost structure will allow for that. At least, thats the case when it comes to spread games, stat arb and HFT stat market making. The person who is willing to...

Why would you want a 100 millisecond chart? Just use tick charts and generate them yourself from a good data feed, buy historical tick data from a good source.

A simple solution would let traders submit a group of positions (with limited risk) as a 'hedged or risk controlled basket' with IB. IB would have an internal 'expert' review it and flag those positions as immune to auto-liquidate until one of them change. Of course this would only work with...

depends how big your sample size is. markets act differently at different times of the day on average. im sure theres ways to take advantage of it.

Isnt this the same as a 10% limit down?

Norway?

Really? Google the concept of fair value. Company A with X assets and Y revenue (assuming X > 0.01$*shares outstanding). Will never be worth 0 (or 0.01$*shares outstanding). Even if retards are willing to sell it the stock at 0.01$ for a short period of time. Eventually (or rather quickly)...

Speaking as a Math/Physics/CS grad (not MIT). I can't see how the algorithms 'failed' yesterday? The spike down was a result of no one (including the algorithms) wanting to offer tight bands / liquidity with that type of volatility / fear. Causing all the stops, margin calls and band wagon...

http://www.youtube.com/watch?v=TH9BsfyI3JI

nyc isn't much further south than most of the canadian population. ;)

down 47$ is considered down crazy, crazy money?