My theory that hft traders are scum, proved and documented

Quote from ChkitOut:

HFT is nothing more than automated market making except they have no obligation to provide any liquidity. So they can shut off their machines and go home whenever they feel like. Having said that I suppose some would argue the old nyse specialist and nasdaq mm's didn't do a good job during market "stress" either so, i don't know. But there is anything inherently wrong with hft. I actually hate that its become some stupid buzz word in the industry.

And for those who think they ripping off mom and pop when they buy 500 shares of IBM, thats just dumb. The old specialists were masters at that, and if you're that concerned about it, use limit orders.
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once again- i did mention 3 very specific issues applied to stocks only :subpenny,pulling out orders before my order can reach them and posting the quotes(thousands of them per second) without intention to buy or sell anything. this have nothing to do with limit order vs market(which would be suicidal in these markets anyway),market making,liquidity, etc..get rid of those 3 above and i have no problem with HFT,just like i have no problem with my broker selling me shares from his own inventory(basically trading against me). as long,as they are match with current NBBO.
 
Quote from Bob111:

once again- i did mention 3 very specific issues applied to stocks only :subpenny,pulling out orders before my order can reach them and posting the quotes(thousands of them per second) without intention to buy or sell anything. this have nothing to do with limit order vs market(which would be suicidal in these markets anyway),market making,liquidity, etc..
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canceling orders is nothing new, and that goes back to the obligation thing. and sub pennying, thats a market structure/ rule making issue that goes back to the sec or the exchanges or whatever. I think you gripe is with the rules not with the people taking advantage of them. You want the rules to suit your style of trading and thats fine i guess.
 
Quote from Bob111:

once again- i did mention 3 very specific issues applied to stocks only :subpenny,pulling out orders before my order can reach them and posting the quotes(thousands of them per second) without intention to buy or sell anything. this have nothing to do with limit order vs market(which would be suicidal in these markets anyway),market making,liquidity, etc..get rid of those 3 above and i have no problem with HFT,just like i have no problem with my broker selling me shares from his own inventory(basically trading against me). as long,as they are match with current NBBO.
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+1
 
 
Quote from ChkitOut:

canceling orders is nothing new, and that goes back to the obligation thing. and sub pennying, thats a market structure/ rule making issue that goes back to the sec or the exchanges or whatever. I think you gripe is with the rules not with the people taking advantage of them. You want the rules to suit your style of trading and thats fine i guess.
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that's the problem with US stock market..combination of the rules and participants that promote zero transparency and fairness between retail and wall street. i know,it was always like this,but today we have complete dominance by wall street over retail.i mean it -COMPLETE.
it is your own words and you are correct-HFT does serve today as a sofisticated market marker. market maker,who got all the rules,all the rights,all possible and impossible for retail data and ZERO obligations. that's a big difference,compared to "traditional" MM. at least the old one use to have some obligations. 80% of the volume on US stock market is fake,it's just bots shuffling those shares back and forth..once you step into this market with real order-all that "liquidity, provided by HFT" will disappear,right after you hit your buy\sell button
 
today,i'm trading 1/3 of my size of let say 2005-2009 levels. because today,same size will have much more significant impact on the stock prices,compared to years mentioned above. HFT "liquidity" my a**..
those papers with fancy formulas are written by academics,i'm practitioner with a quite a bit of experience..
 
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