What are the HFT scum up to?

Quote from Dustin:

They are simply testing message rates. There is a ceiling by the exchanges that is always being raised, so HFT's are always testing their limits. They have to choose an instrument to do so, and today it was this one.
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Could you explain that a little more? My understanding, and it's not much, I'll admit, is HFT's traditionally use "quote stuffing" to probe hidden market orders (and trade ahead), or jaw-bone the market, by displaying heavy on one side, even though it's not executable, to get price to move in the other direction?
 
Quote from ChkitOut:

Last month, both Direct Edge and Nasdaq OMX announced policies to curb what they consider to be excessive messaging by fining firms that don't produce enough trades relative to the messages they send in.

Direct Edge will reduce its rebate by $0.0001 per share for firms that trade only once for every 100 messages they transmit. Nasdaq will charge its members at least $0.001 per order if their non-marketable order-to-trade ratio exceeds 100-to-1. The policy affects only non-marketable orders, or those posted outside the national best bid and offer.

Both exchange operators say their new policies will result in a more efficient marketplace and reduce their members' message-processing burden. Both policies are aimed at heavy quoters, such as high-frequency trading firms

http://www.tradersmagazine.com/issues/25_335/Exchanges-Set-to-Tax-Heavy-Quoters-109941-1.html
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Whoever posts 100 limit orders to get filled on 1 is a shmuck.
It's simple. Enforce a 50 millisecond minimum before pulling/cancelling quotes. It takes 50 milliseconds for the human eye to discern a man from a woman. You mess with that, you mess with humanity.
 
Quote from PARACLESE:

whoever trades based on order volume is a schmuck
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It takes 50ms for the brain to feel the difference between pain or pleasure. or know the difference between a tranny and a woman. Gaming a system below that threshold is satanic.
 
Quote from PARACLESE:

Look, I think i told you this back in 05. the reason you arent making money trading has nothing to do with the specialist, and now that the specialist is gone, I will tell you the same thing. It has NOTHING to do with HFTs. As a matter of fact , with HFTs and all of the volume they have brought in, it is actually easier to get filled, and stocks that are thick are plowing through levels instead of floating slowly, which equals more money, maybe with more risk but the game has definitely changed for the better. stop making excuses, and start making money. find what you are doing wrong and the problems with your strategy, along with the characteristics of the machines and adjust in order to use this volume to make yourself money.
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No one said you couldn't make money. No one said there weren't new opportunities because of hft.

What I've been saying for YEARS , is the blatant, patent, abuse of co location and other 'edges' is not fair to the rest of the trading community.

And who says, as one poster bleated, you can't execute against these flash quotes?
 
Quote from Lights:

It takes 50ms for the brain to feel the difference between pain or pleasure. or know the difference between a tranny and a woman. Gaming a system below that threshold is satanic.
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You all look like trannies to me, and I've given it more than 50 ms.
 
I think it is similar to a denial of service attack. If you choose a symbol on an exchange and pump in 50k orders/sec you know ahead of time to ignore incoming quotes from that symbol and exchange. Everyone else has to process the quotes as they appear real. This gives the instigator a small advantage by skipping the processing, and if he further can deduce which other symbols are located and process by the same line/cpu at the exchange, he will have advantage in those other symbols for a brief period of time.
 
Quote from stock777:

You all look like trannies to me, and I've given it more than 50 ms.
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Below that and you wouldn't know. Is why most daytraders are really just getting a tranny shafting.
 
what happened in the old days when the phones rang off the hook?

anyone make pretty graphs about that?

Like when they played Godzilla over the radio and people really thought the world was about to end - did someone make a pretty graph of the phone lines or the stock market?
 
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