seems reasonable.
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HFT/Algo end in sight?
- Thread starter newtricks
- Start date
Quote from Occam:
I think it's a horrible idea if this were a tax; that is, if such fees were collected by/for the government rather than used to offset other trading costs (i.e. paid back directly to the exchanges). If set by the government for revenue-generating purposes, it will undoubtedly be set too high for efficient liquidity provision and kill the market, sending it offshore.
On the other hand, some (small) charge per order might be a good idea, but only if it's not a tax and only if all market participants are treaded equally (i.e., no exemptions for big customers/banks/mm's).
When I said tax i actually mean't charge,I didn't expect it to be taken quite so literally.It should also be collected by the exchange and perhaps contribute to the lowering of fees for traders who provide true liquidity.
The charge shouldn't be for cancelled orders from the first one but should kick in after x amount of cancels occur in relation to number of lots actually executed.
Currently charges occur after a determined amount of messages are breached - this is a loophole between the exchange and the algo firms as 1 message can be for a 1 lot of a 2000 lot,personally I know what is more confusing.
So for instance if an ED spread trader wants to spoof with a 10,000 lot for 3 seconds (as they do all the time) if he were to be liable for a 10c charge ($1000) then IMO that stops him dead.
EVERYONE should be treated equally and held accountable for their orders from the retail guy to huge HF manager.I probably complete 80% of orders (number of lots) inputed,I suspect that the MM's do much less than 20%.(number of lots filled vs number of lots entered)
wake up lads.
rsj , getco and the likes are all market makers.
market makers dont get fined for excessive orders working that dont trade.
they get fee rebates that run into tens of millions.
they are in bed with the hierarchy of the exchanges and vice verca.
the game is rigged in their favour.
if they throw these guys off the volume would be 90 percent less and the exchange would be out of business.
as corrupt as it is it aint gonna change.
rsj , getco and the likes are all market makers.
market makers dont get fined for excessive orders working that dont trade.
they get fee rebates that run into tens of millions.
they are in bed with the hierarchy of the exchanges and vice verca.
the game is rigged in their favour.
if they throw these guys off the volume would be 90 percent less and the exchange would be out of business.
as corrupt as it is it aint gonna change.
The political climate is ripe for going after algo traders. Governments have borrowed themselves silly and can't face the future as debtors. They will be looking for scapegoats...
Personally, HFT's don't bother me at all, I'm not going to EVER try to compete against computers in any arena of speed and accuracy. I repaired/programmed/loved-hated computers for 35+ years and counting, I know them well!! I work from charts, I can simply click a few times and the chart will be slowed down enough such that trading is in a zone that the computers haven't mastered yet... besides when they do they will be doing the same things I do and volatility will pick up in a way that aids me... [I hope]
Personally, HFT's don't bother me at all, I'm not going to EVER try to compete against computers in any arena of speed and accuracy. I repaired/programmed/loved-hated computers for 35+ years and counting, I know them well!! I work from charts, I can simply click a few times and the chart will be slowed down enough such that trading is in a zone that the computers haven't mastered yet... besides when they do they will be doing the same things I do and volatility will pick up in a way that aids me... [I hope]
I dont see all this rubbish about HFT affecting the way the markets trade-Its a simple BUY/SELL -Run your winners- cut your losses- same applied in 1920 as it does today- risk management is the key.I only allow 5% of my trading capital to be at risk intraday.If it I hit my 5% downside I call it a day, and with all these current trend days in the Bunds ( 32.1%)- it's overly difficult to lose cash ( as long as work on a risk:reward ratio of 4:1-scalping is a dead mans game- as with anything depends on the time frame of the individual _ " slowly slowly catch the monkey"
With regards to the last link, this is such an issue when running a lease line halfway round the world, more and more useless data clogging it up. There's now 100 times more data sent down the lines over economic releases than there was in 2007 but the moves and volume traded are no larger
I love HFT.
I trade everyday and pay all my bills of my trading and much more. If HFT goes away it could be that my system isn't working anymore.
I want HFT to stay!
I trade everyday and pay all my bills of my trading and much more. If HFT goes away it could be that my system isn't working anymore.
I want HFT to stay!