Can you see the Algos tracks?

[Bad_Badness]

I see Algos . Seriously, if you read over the IB Algo descriptions and watch long enough, you can see what would be the evidence of them or the equivalent.

An old acquaintance once said, "Follow the dinosaurs tracks in the sand, and pick up the crumbs."

Anyone else?

 

[traider]

yeah some patterns are detectable, but don't forget things can change faster than a human reacts because these hft dump without hesitation when they detect adversity

 

[guru]

I even see people pointing them out and making fun of them on Twitter. Some traders can game them, or at least ignore them.

 

[bone]

The CME can since every order is tagged.

 

[QTrader20]

If you're a day trader and you've been focusing on momentum strategies for years, you'll discover something about it. I'd say half of them are driven by market moving news.

 

[TimMykes]

almost everything you see is an algo or 10,000 rh traders at once

useless, unless you think you can fade/piggyback the algo and make money consistently

99.999999999% of you cant. Else you'd have all the money in the world in three weeks

 

[Amatrue]

I even see people pointing them out and making fun of them on Twitter. Some traders can game them, or at least ignore them.

Can you share an example of these algo patterns?

 

[guru]

Can you share an example of these algo patterns?

I don’t know what they are, just said that traders point them out on Twitter and make fun of them, others ignore them, some complain.
And they aren’t necessarily patterns, could be just unrealistic order size seen in order book that appears and disappears.

 

[2rosy]

what about algos that get internally matched and only sometimes go to an exchange? you will only see partial tracks

 

[guru]

what about algos that get internally matched and only sometimes go to an exchange? you will only see partial tracks

Those may not be a problem because they’re executed orders, while internal matching doesn’t need to be bad.
I think the problem is with algos that try to trick others into assuming specific price direction.
Btw, sometimes I see some algos myself on low-liquidity stocks and options, when every time I change my price, they also adjust their price. Many of them are just basic market making algos that compete with you for orders. Sometimes I may lose track of what was the original mid-price, so I may keep adjusting my order price until it’s so bad that they quickly fill my order at unfavorable price.
But I don’t read tape, while I think the main issues are with algos that try to trick tape readers into assuming that there are large buy or sell orders waiting to be filled. Some spoofing may still be going on, even though should be illegal. It’s legal to cancel an order, as long as you can justify it and explain why this wasn’t done for spoofing purposes.