Are the glory days of HFT over?

L

LukeZen

The tremendous growth momentum in high-frequency trading (HFT) seems to have reached its limits in recent years. The increasing cost of infrastructure and relentless competition within the industry are probably the first to blame.

In addition, high-frequency trading firms are hardly participating in those dark pools where large block transactions are executed. Both trends are challenging their business model and trading strategies as HFTs have seen their revenues and profits erode.

Furthermore, forthcoming tighter prudential regulatory oversight may lead to an overhang of capacity in the HFT industry.

https://www.dbresearch.com/PROD/DBR...gh-frequency_trading:_Reaching_the_limits.pdf

Back a few years there were all sorts of shouts that Something Must Be Done. HFT was disturbing the markets, someone was losing and thus politicians must act! Fortunately, it takes politicians time to get their act together and this technological cycle was faster than their ability to do that. The people who have lost out are the old market makers, the people who have won are us regular investors. We pay very much less to invest today than we used to. The people actually doing HFT now are no longer making those super profits

https://www.forbes.com/sites/timwor...y-trading-is-over-dead-its-done/#1a901e7ddcf8

Do you think HFT will grow in nature in the coming years? Are the worst aspects of HFT gone or will it get worse for retail day trader guys like us?
 
In my opinion it is not over yet but how much worse can it get as it already is right now. I hope that in maybe 5-10 years we will see new trading environments which are completely decentralized like bitcoins. A privately hold exchange is always a pain in the arse.
 
Nothing will be done about HFTheft until the markets flash crash again but don't bounce back.
It's so obvious that there is zero liquidity when real selling starts. Nobody cares as long as the markets keep going up. We need a massive flush out to expose the rigged system.
 
zdreg said:
"Are the worst aspects of HFT gone or will it get worse for retail day trader guys like us?"
I repeat it again. I have never see a retail trader offer proof or even a worthwhile unproven hypothesis that hft traders affect them negatively. I hear whining/noise from poor traders.
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I saw HFT profits on a WSJ chart downTrending; but WSJ charts are so goofy usually, in comparison with IBD . Sorry i cant speak for daytraders LOL. MODERN TRADER magazine had thus debate some time go+ they did not invite WSJ ; looks like HFT,it is here to stay, but that's not a prediction.....................................................................

Mr Comagnum;T Bone Pickens lost a lot of money in Chicago cattle contract$; did real well in gas + oil [TX Tea-contracts ]+ cash cattle, TX.
 
zdreg said:
"Are the worst aspects of HFT gone or will it get worse for retail day trader guys like us?"
I repeat it again. I have never see a retail trader offer proof or even a worthwhile unproven hypothesis that hft traders affect them negatively. I hear whining/noise from poor traders.
More...
Those "poor traders" who made high 7 and 8 figures in their careers pre-HFT can show you their runs from the 90's until 2010-2012ish and then the last 5 or so years.

Or look at all the "Trader P&L" threads over the last decade.
Those threads were riddled with guys printing cash in the 00's and now they are a ghost town.

It's simply IMPOSSIBLE to move size now against the algos. And you can't get anything filled at the bottom or sell at the top anymore.
Maybe you don't see it because you trade small. Not knocking you. Just saying.
 
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