Next Crisis: "High-Frequency Algorithmic Trading Will Destabilize Market"

[Landis82]

Quote from NY0BScalper:

This guy doesn't argue his point or explain HOW HF trading would destabilize the market, just "everyone is doing it so it can all unwind" and "I'm not sure adding liquidity helps," and "stocks used to be about long term value, not short term blips." He doesn't explain in a cause-effect way why it's a bad thing.

Stupid article.

Agreed.

 

[Landis82]

Quote from Kassz007:

Why anyone would take a vacation to Turkey is beyond me.

 

[Cdntrader]

Quote from Landis82:

You guys and your "conspiracy" theories give Goldman waaaaaaay to much credit.

First off, there are others out there such as Citadel
(a buy-side firm) that is just as big, if not bigger a "player" in this area.

Secondly, Goldman's revenues from high frequency algorithmic trading is only 1%.

I find that people that embrace "conspiracy" theories are usually the one's that missed a big market move ( such as the rally off the March lows ) and seek to someone to "blame" for their inability to make money.

Exactly. On last IBKR cc Petterfy said these high frequency guys are just breaking even because spreads are so tight. Just a matter of time before spreads widen out to find some equilibrium in this trading technology arms race .