hey HFT scum, yeah, you. Watch this

Quote from einai:

Pretty much by definition...
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Not true at all. Besides there aren't really any more pit traders around.

It is the brokerage companies that have trading wings (Goldman, IB, Knight, etc...) or relationships with trading companies (Etrade with Citidel for instance) or the companies that operate dark pools (such as Knight and Getco) that are abusing current market structure loopholes, allowing them to effectively front run your orders. They are not front-running as it is currently legally defined though--which is the problem.

Internalization and weak regnms rules also allow these same companies to steal liquidity from the marketplace by sub penny-ing your limit order. This allows them to coat-tail the price discovery of the displayed market, internalize the liquidity they want, and use the market displayed order as a backstop to any potential losses.

None of this should be allowed.
 
Quote from TRYKtrading: ...........

we've got better things to do, like shorting the EUR.
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Looks to be in the beginning stages of a wave A of a ABC correction so I'd wait a little for more upside before adding to any shorts.
 

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Quote from walterjennings:

This statement shows how truly naive you are about HFT in general.

If you honestly think 'super computers' are required, they arn't. I can guarantee you that no HFT are having custom made CPUs designed and manufactured. And beyond that HFT calculations are usually dead simple, and dont require a heavy amount of computation, unlike prime factoring or physics simulations.

The speed of a computer is always limited by the minimum clock cycle of the CPU, which in turn is limited by the physics involved with traditional silicon transistors. So their 'specifically designed super computers' are not going to be clocking much faster than your regular home computer. Of course, they arn't slowing down their systems by running windows or porn in the background like you ;)

As for your statement for 'jumping ahead' of natural buyers and sellers. Thats just tin foil hat paranoia. What you are describing there is insider trading (trading based on not public data), and if you think any exchange actively allows any of their clients to front run other clients. You need to start doing some research.

I for one, have done HFT on a PC built out of store bought components. I am not co-located at the exchange (though I do co-locate on a fiber backbone). And I do not have _any_ knowledge of people's orders who arrive after mine. (And do not jump the queue in any sort of way beyond offering a better price).
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That depends on which type of HFT you are running, right?

And if you operate in NYC and mainly thru NYSE, then depending on your strategies, you probably don't need colocation...
 
Quote from tgtrader:

This whole belief that to participate in HFT you need to (1) have tens of thousands of dollars per month to get co-located, and (2) a supercomputer is so far off it actually IS funny.

(1) I know of a firm that offers co-location (or at least sits at a facility near the NYSE/NASDAQ with a direct data pipe to the exchange) for $200 per month.

(2) As mentioned by other (smarter) members, you don't need a supercomputer to do this. In fact, a $300 Playstation 3 (I'm not kidding) has MORE than enough power to HFT quite a few stocks.

So, $200/month for co-loation, $300 one-time cost for a PS3, and monthly data fees (which many already pay at their home anyway). All that is required to successfully run a HFT strategy is intelligence, hard work, and skill.

Whiners need not apply.
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Any good cost-efficient colocation recommendation for futures exchanges in Chicago?
 
Quote from walterjennings:

5) "Open a company which offers server rentals for co-location at $50/month and I will drop my argument." No thanks, the co-location company offering me 150$ a month does quite nicely.

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May I ask what colocation service are you using?

Thanks
 
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