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You like to move the argument to secondary effects yourself I think. Please stick to the question asked in the title. Tell us all the precise value that HFT adds to a market system that has worked for longer than you have been alive.

Electrical blackouts are caused because of modeling complexity tradeoff from model simplicity in my opinion. One of the best transmission systems engineers caused a stir 40 years ago by admitting that a no fail electrical system could not be modeled or built. That caused quite a stir for...

If you are talking from the point of view of philosophy, then there is almost nothing known. If you are talking about the future, then nothing is known. What kind of world would it be if every trade I made worked out? Consider that the biggest protests about improving any system of laws...

Yes there are those who know (not me). I can't read the link but here is a thought for the legislation. Electrical engineers know that systems can be modeled. The computer printout for an ideal oscillator model contains infinite points. Any physically created system has some kind of...

Just to be clear, I am not saying any method of dealing with such an anomaly is best, I am just saying we are different. That is a good thing, or there would be no market.

Your kidding .... but is he a mark?

This doesn't surprise me at all in my studies. There is a (mathematical) reason for it that is fairly obvious if you think about it. I also believe that it is the reason that certain strategies rotate in and out of favor in time periods. You and I are different. My natural instinct is to try...

It much like last call at the bar, everyone thinks someone else has a better deal going home. I once told a group of daytraders that your imagination will offer far better profits than reality. The numbers of winners and losers in a given trading methodology is a reflection of the group of...

Good points. I agree with all you say. IMO, market makers are reducing risk and not being manipulative. At any time, news can hit and put them underwater through no fault of their own. If the news is so sudden and bad, it can ruin a month or more of profits. They should be allowed to lessen...

Posting false liquidity HFT orders can be taken out as well. The market evolves as others learn the tricks. By the way there are lots of edges hinted at in this thread. I was delighted to read about Royal Bank of Canada designing Thor. They told us what they are doing. I have no doubt other...

Interesting comment. Do you have any reference for me to research this further?

I don't understand your argument here. True market makers have legal responsibilities to buy stock when no one else will and sell when no one else will don't they? So they are given certain edges (subject to rules) like setting the spread. HFT's step in front of market makers to make some of...

Well lookie here - After posting above, I read a wall street journal report that Germany is taking on the HFT folks. In the article, they mention 500 milliseconds as I said in my post. (I am currently searching for the bugs in my office.) This is not rocket science if I can do it. They also...

Not if the orders are pulled before they are confirmed or during the confirmation process. Yes that happens and how can the NBBO exist if the confirmation matching takes any time at all? What is NBBO if any arbitrage is possible? I have (occaisionally) hit the order at price with a normal...

What is most disturbing to me, is not that business frauds occur, but the resulting response to them by regulators. In the S&L crisis, there was hell to pay for many. (William Black - the best way to rob a bank is to own one) These days I have trouble of thinking of any entities caught that...

Or pay nothing and listen to the buddha: To enjoy good health, to bring true happiness to one's family, to bring peace to all, one must first discipline and control one's own mind. If a man can control his mind he can find the way to Enlightenment, and all wisdom and virtue will naturally...

Isn't this done mostly on credit since the 1970s? The Chinese can't get credit so they have to save for things. Their time will come also. I read once that it is the comparisons that matter. If everyone is perceived as poor, then that is OK for most people. It is only if most are perceived as...

Some countries consume to make a living. Some countries export to make a living. All countries debase their currency. Such is keynesian economic life today.

Agreed. Another advantage he had was he started very young with a huge capital base because of his doctor partners. (Assuming you invest well and don't go bankrupt, time AKA compound growth and low taxes is a friend.) He was a good wheeler-dealer and a smart hard-working guy. That paid off...

I am curious, why would this be a mistake?