There Is Absolutely NO VALUE To High Frequency Trading

[JuniorCTA]

Quote from sheda:

I dont know, im just sick of bullshit in this world, from financial transaction tax bullshit, clueless politicians talking bullshit, clueless public screaming bullshit, complete industry's denounced as the satanic pit of GREED then some bullshit about the new dark age.

What the fuck

+100

 

[StarDust9182]

Quote from vicirek:

Why do we have blackouts ?

Electrical blackouts are caused because of modeling complexity tradeoff from model simplicity in my opinion. One of the best transmission systems engineers caused a stir 40 years ago by admitting that a no fail electrical system could not be modeled or built. That caused quite a stir for politicians who quickly ignored him delivering a message that would not be heard.

Any model (as explained above) by definition must limit the accuracy somewhat. Due to other very small effects that go on constantly (mankind's limited knowledge, chaos theory, quantum mechanics, etc.) there are parts of reality simplified out in the model.

When some tiny effect thrown out swamps the model, we have black swans or blackouts.

 

[JuniorCTA]

The biggest HFT operators are central banks, broker/clearing house matching algos.

If we stop government intervention in markets and clearing houses being able to use your money to trade while writing you fancy IOUs.. 90%+ of HFT will be gone.


If they pass bans on HFT, and this shit still goes on (because govt and clearing houses wouldn't be subject to the bans, only independent marketmakers(ie. daytraders)) then what? What will you fuckers complain about then?

Quote from clearinghouse:

I'm not complaining about HFT, and in fact, I don't mind its presence. But saying the technology can be acquired by anyone is not quite true -- and I'm not talking about bullshit technology. I'm talking microsecond latency and top of the line networks.

The technology cannot be acquired by anyone. I battle against HFT every single day using lower grade technology, and I can tell you it is a non-stop fight. But, it is extremely difficult to get even close to what they have because:

- You need programmers working on tasks to build decent infrastructure that will need constant refinements
- You need to have cash on hand to finance all the networking and equipment
- You need some volume already. The biggest barrier to success sometimes isn't even the technology, so much as it is fees and cost structure.

Because these three things are all required, it is EXTREMELY DIFFICULT to get into a position where you can make money without working with players who've already effectively "won" and have capital to deploy.

Do these guys harm the retail investor? I'd say no. But can the retail investors just decide to go get a presence in 80 market centers and get all the best feeds from all the major market centers on a whim? Hell no.

But then, I don't go complaining to Washington that I can't compete with Walmart either, so asking for regulation against the HFT advantages just seems ridiculous.

 

[StarDust9182]

Quote from vicirek:

Why do we have blackouts ?

Should we tax the frequency of alternating current? We should implement Hertz tax.

You like to move the argument to secondary effects yourself I think. Please stick to the question asked in the title.

Tell us all the precise value that HFT adds to a market system that has worked for longer than you have been alive.

 

[CT10Gov]

Hang on a sec - what does central banks have to do with HFT??

Quote from JuniorCTA:

The biggest HFT operators are central banks...

 

[vicirek]

Quote from StarDust9182:


Tell us all the precise value that HFT adds to a market system that has worked for longer than you have been alive.

Continuous liquidity at each time frame you require. There is always somebody to buy and sell with no wait, low commission and tight spread.

HFT player operates in free markets where nobody should ask why and how often you trade. You can trade at your own speed and it is nobody business what others are doing as long as it is legal (by the way I am retail and do not mind HFT).

My concern is to have free and unrestricted access to market place with fewer regulations but easy to enforce.

HFT scare is being used to introduce further restrictions for independent traders and give big dealer banks working for the Fed total control over asset prices.

 

[vicirek]

Quote from CT10Gov:

Hang on a sec - what does central banks have to do with HFT??

Everything. That is why people who do not know should ask for opinion instead of offering uneducated guess.

 

[StarDust9182]

Quote from vicirek:

........... Continuous liquidity at each time frame you require. There is always somebody to buy and sell with no wait, low commission and tight spread.

.............

OK.

So before HFT, did this not happen?

What do you think market makers do in a market and what is the HFT relationship to market makers?

 

[JuniorCTA]

your kidding me right? hahaha good one

Quote from CT10Gov:

Hang on a sec - what does central banks have to do with HFT??

 

[JuniorCTA]

lol @ improving any system. hilarious, you should be a stand-up comic.

Tell me why it can't be the other way around? why isn't a ban on HFT looked at as the criminals and henchmen trying to protect their business? who didn't realize that this fast adaptation of technology would hinder their bottom line? Oh that's right, you're fucking clueless!

You do realize the normal trader can't HFT stocks? The commissions are just not worth it. Sub-penny and all that shit is done by BD's! :eek:

Quote from StarDust9182:

If you are talking from the point of view of philosophy, then there is almost nothing known.

If you are talking about the future, then nothing is known. What kind of world would it be if every trade I made worked out?

Consider that the biggest protests about improving any system of laws will come from those who have the most to lose - the criminals and their henchmen.