High Speed Trading Unfair To Retail Traders
- Thread starter vingbel
- Start date
You are talking to someone (milimabuse) who started off here with about 8-9 identical posts spamming his website and pretending it belonged to someone else, which have been removed.
Then had the nerve to get angry at others for questioning his faked claims about his own ability. Read for yourself and then put him on ignore:
http://www.elitetrader.com/vb/showthread.php?s=&postid=2513363#post2513363
traderzones, complete crap you say about me.
I am not advertizing anything.
On the contrary, in each of my posts I HAND OUT a lot of information from my own experience.
It is probably guys like you TRaderzones and some other negative, uncultivated people you attacked me here who get paid by some advertizer to puke on any other system which could harm your own bogus sales..
that' s nothing new, and the web is full of such paid negative bloggers
I am not advertizing anything.
On the contrary, in each of my posts I HAND OUT a lot of information from my own experience.
It is probably guys like you TRaderzones and some other negative, uncultivated people you attacked me here who get paid by some advertizer to puke on any other system which could harm your own bogus sales..
that' s nothing new, and the web is full of such paid negative bloggers
Imo, again people are blaming the messengers. If something legal exists that you can use to advantage, then you use it. So to say that it is manipulative by GS or whomever is a horrible misuse of words.
What it comes down to is this. Exchanges are constantly trying to dream up ways to increase revenue. So they invent products they hope will be big hits volume wise, or they invent FLASH orders they can sell to the big players, etc.
STOP BLAMING THE MESSENGER! Find the root source of the problem, and either join the party, or complain to your congressman that these rules do not "make for a fair playing field" whatever that means in this world.
You want to make trading markets fair?
1) Make direct multicast exchange data is available to everyone for "free" or enough to cover the infrastructure and make a little profit, not the huge profits they make now from data fees. We have a fibre backbone that can handle this now. In other words, democratize access to the highest quality market data.
2) No one can be colocated in the same building as the ECNs. You must be at least a certain distance, and that distance should be such that being <= 1MS (milli second) faster makes no difference. In other words, democratize physical distance to market data and execution latency.
3) Do away with brokers and have Clearing Firms do what brokers do now. This removes middle men and brings down the cost of execution and clearing down to bear minimums. If the exchange offers payment for order flow, then I get that. If exchange offers payment for liquidity, I get that. KILL THE MIDDLE MEN! In other words, democratize the fees that exchanges pay to attract volume and give it to the people directly connected to generating that volume.
4) Balance the interest of the customer with that of the exchanges, not just the trading firms.
What it comes down to is this. Exchanges are constantly trying to dream up ways to increase revenue. So they invent products they hope will be big hits volume wise, or they invent FLASH orders they can sell to the big players, etc.
STOP BLAMING THE MESSENGER! Find the root source of the problem, and either join the party, or complain to your congressman that these rules do not "make for a fair playing field" whatever that means in this world.
You want to make trading markets fair?
1) Make direct multicast exchange data is available to everyone for "free" or enough to cover the infrastructure and make a little profit, not the huge profits they make now from data fees. We have a fibre backbone that can handle this now. In other words, democratize access to the highest quality market data.
2) No one can be colocated in the same building as the ECNs. You must be at least a certain distance, and that distance should be such that being <= 1MS (milli second) faster makes no difference. In other words, democratize physical distance to market data and execution latency.
3) Do away with brokers and have Clearing Firms do what brokers do now. This removes middle men and brings down the cost of execution and clearing down to bear minimums. If the exchange offers payment for order flow, then I get that. If exchange offers payment for liquidity, I get that. KILL THE MIDDLE MEN! In other words, democratize the fees that exchanges pay to attract volume and give it to the people directly connected to generating that volume.
4) Balance the interest of the customer with that of the exchanges, not just the trading firms.
This point is mute!
Thatâs like saying, people shouldnât group drug dealing with violence.
The reason HFT and front running is group together is because HFT shops are front running.
+1 for your post Nitro
Any market will always be skewed by any one group of partcipants, HOWEVER THE ISSUE HERE IS, the day the banks decide to switch off their NYSE SLP partcipation, remember when Goldman Sucks did that for a week in June ? These guys on some days are responsible for 73% of volume, but as they are for profit imagine when an exogenous event forces them to switch off for the day/week/month and KAPOOOT !!! 73% of "market volume vanishes"
Over and out
Any market will always be skewed by any one group of partcipants, HOWEVER THE ISSUE HERE IS, the day the banks decide to switch off their NYSE SLP partcipation, remember when Goldman Sucks did that for a week in June ? These guys on some days are responsible for 73% of volume, but as they are for profit imagine when an exogenous event forces them to switch off for the day/week/month and KAPOOOT !!! 73% of "market volume vanishes"
Over and out
Yeah, there is some question as to whether the NYSE had to shut down systems to prevent (take networks off) promiscuous mode!!???!!
http://en.wikipedia.org/wiki/Promiscuous_mode
the sorts of abuses initiated by the Sergey Aleynikov incident:
http://market-ticker.org/archives/1192-FLASH-Goldman-Code-Theft-BOMBSHELL.html
It is not clear if this is related to "FLASHING" or SNIFF ing in particular
http://en.wikipedia.org/wiki/Packet_analyzer
etc. It appears that only a small portion of the GS code was stolen, 10%, not 100% as was feared by GS. Hence Joseph Facciponti may have overstated the threat to markets:
http://federalism.typepad.com/crime...acciponti-lied-at-aleynikov-bail-hearing.html
This stuff gets more bizarre by the minute. Imo, every Exchange should be subpoenaed to see if their networks have been or are in promiscuous mode.
These pricks always want you to think that they make money because they deserve it and are so much smarter than everyone else. Truth is, and always has been, that they are no different than anyone else without all their built in advantages and insider information (order flow, no commission, these flash orders, etc). As for drawing a distinction between the exchanges and the big B/D's and MM's I think it is pretty obvious that it is a cozy little club that has no problem colluding on some level to screw everyone else.
Hidden orders can be seen indirectly if they are best bid/lowest offer; there must be an order parameter where one can maintain bbo displayed.
How many times have you seen your "hidden" best bid beaten by a penny the instant it is sent, then have this new order disappear once you cancel? Either that, or the guys in the back office are hitching a ride on your coattails
Great post.
And if you are going to play the game -- play it paranoid, play as if it were all true. Assume everyone sees your orders, knows your stops, knows your max pain points, knows exactly when the risk manager at your branch will liquidate all your positions for the day.
Because seriously, how difficult could it be to trade off that information? Isn't this just "customer flow" trading? Would you really be surprised to hear that your prop shop's clearing firm has access to all the same information that your risk manager does, and may perhaps even use that information to their advantage?
Assume the worst -- it can only make you stronger.