I've been telling you clods this for years

well at least you have been a member since 2001, it's funny when you see the same type of thread title and then the OP registered like 3 months earlier :D
 
I totally agree with that article.

The problem for now is that these HFT's, in aggregate control and have access to a *huge* amount of capital that they now drive the market in whichever direction they want, at least for 30 min-1 day. This has changed the character of US market in last 2-3 years substantially.

Too bad the morons in Washington don't impose a 1 Bps charge on trading. That would certainly kill these computerized thieves and generate some dough in taxes at the same time!

For those who don't understand Bps calculations, 1 bps=.0001

The tax being proposed earlier this year was 25 Bps. That's a huge difference but big enough to drive these morons out of business.

I'm sick & tired of seeing fake prices/size changing every second.
Total garbage!
 
no shit, I've been bitching about the noise these morons create for many years.

That and the fact that they are basically taking unfair advantage by co locating and seeing the book before anyone else.

soes bandits did the same thing. this guy is right on , if a little late to the party.
 
And the thieves fool the public in several ways.

For example, 1 thing they claim is that spreads are now narrower and it saves the "public" $xxx Ha! What's the use of some spread being "narrow" if the prices moves like crazy up & dn every 5 seconds? That's not helping anybody. That's just enticing people to play in their casino. It's all fake shit. It's not true buying/selling at all. No thanks!
 
Don't compete with them. Ease off your bar interval to where their noise is not affecting your strategy.. oh, wait, you guys are trading off the DOM /T&S or something.....

Marx was right, the guys with the machines make the money...
 
Quote from stock777:

no shit, I've been bitching about the noise these morons create for many years.

That and the fact that they are basically taking unfair advantage by co locating and seeing the book before anyone else.

soes bandits did the same thing. this guy is right on , if a little late to the party.
More...

Nothing preventing you from colocating. 10g a month should give you a pretty nice shot.
 
http://www.themistrading.com/

check out the white paper on this page
Themis Trading White Paper: Toxic Equity Trading Order Flow on Wall Street

MARKET CENTER INDUCEMENTS FOR HIGH FREQUENCY TRADERS
Most high frequency trading strategies are effective because they can take advantage of three major inducements offered by the market centers and not typically accessible to retail or institutional investors.
1.
Rebate traders trade for free. Because they are considered to be adding liquidity, exchanges and ECNs cover their commission costs and exchange fees. This makes it worthwhile for rebate traders to buy and sell shares at the same price, in order to generate their ¼ penny per share liquidity rebate on each trade. Exchanges and ECNs view the order maker as a loss leader in order to attract the order taker. In addition, the more volume at different prices, even if that means moving back and forth a penny, the more money the market center makes from tape revenue. Tape revenue is generated by exchanges and ECNs from the sale of data to third party vendors, such as Bloomberg for professional investors, and Yahoo for retail investors.
Page 3 of 5
2.
Automated market makers co-locate their servers in the NASDAQ or the NYSE building, right next to the exchanges’ servers. AMMs already have faster servers than most institutional and retail investors. But because they are co-located, their servers can react even faster. That’s how AMMs are can issue IOC orders – immediate or cancel – sometimes known as “cancel and replace.” They issue the order immediately, and if nothing is there, it is canceled. And that’s how AMMs get the trades faster than any other investor, even though AMMs are offering the same price. AMMs pay large fees to the exchanges to co-locate, but it obviously has a decent return on investment. According to Traders Magazine, the number of firms that co-locate at NASDAQ has doubled over the last year.
3.
People often wonder whether it is fair or legal for program traders to move the market the way they do. Everybody forgets, however, that in October 2007, just a little more than a year ago, the NYSE very publicly removed curbs that shut down program trading if the market moved more than 2% in any direction. The NYSE said it was making the change because “it does not appear that the approach to market volatility envisioned by the use of these ‘collars’ is as meaningful today as when the Rule was formalized in the late 1980s.” On a more commercial level, the NYSE had been at a competitive disadvantage because other market centers that didn’t have curbs were getting the program trading business.
More...
 
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