What is the best COMPROMISE between HFT and LFT?

M

mcgene4xpro

Hi,

Tool and resource- wise, how could a retail trader utilize what he thinks " a HFT strategy"?

He needs the highest execution speed possible, among other requirements, in the world of low frequency trading platforms.

Or if you have any other idea , please share

Thanks

All opinions are highly appreciated
 
Quote from mcgene4xpro:

Hi,

Tool and resource- wise, how could a retail trader utilize what he thinks " a HFT strategy"?

He needs the highest execution speed possible, among other requirements, in the world of low frequency trading platforms.

Or if you have any other idea , please share

Thanks

All opinions are highly appreciated
More...

In other words, if he wants to go towards higher profits and lower risk without using the classical HFT resources, and by only using the retail trader tools " charting, execution, brokerage, data feeds, ... etc".

No Streambase, no Apama or even Marketcetera.

Is it possible and how?
 
Yes, it is possible. Design a system that works with limit orders placed way ahead of the HFT game. In other words, when you drink a glass of water to quench your thirst you certainly should not care what momentum and position each water molecule has. HFTers make money out of impatient traders who place market orders that take out liquidity from the market. Limit orders provide liquidity and as a result they are rewarded with a fixed price.
 
Quote from intradaybill:

Yes, it is possible. Design a system that works with limit orders placed way ahead of the HFT game. In other words, when you drink a glass of water to quench your thirst you certainly should not care what momentum and position each water molecule has. HFTers make money out of impatient traders who place market orders that take out liquidity from the market. Limit orders provide liquidity and as a result they are rewarded with a fixed price.
More...

Thanks

I understood this is code-wise solution. I learned now that a code based on limit orders will alleviate the bad effects of HFTers on the profitability. Is my understanding correct? . If so , i could see that too and i agree

However, tool and resources-wise speaking, how this could be applicable with the highest accuracy possible?

I wish to hear from you regarding this part..

Thanks very much Intradaybill
 
Quote from mcgene4xpro:

Thanks

I understood this is code-wise solution. I learned now that a code based on limit orders will alleviate the bad effects of HFTers on the profitability. Is my understanding correct? . If so , i could see that too and i agree

However, tool and resources-wise speaking, how this could be applicable with the highest accuracy possible?

I wish to hear from you regarding this part..

Thanks very much Intradaybill
More...

What are the package of softwares ,brokerage services and hardware " in the NON-HFT world" , that would provide:

1- highest execution speed
2-minimum calculation time

POSSIBLE

Thanks in advance
 
Quote from mcgene4xpro:

What are the package of softwares ,brokerage services and hardware " in the NON-HFT world" , that would provide:

1- highest execution speed
2-minimum calculation time

POSSIBLE

Thanks in advance
More...

Fifteen years ago while trading JPY futures intraday I had about 38 winners in a row. I grew 8K to about 40K in a week. Then one day, in a few seconds, price gapped way below my stop and I lost quite a lot. This story repeated a few more times and I gave all my profits back to the market.

I then realized I could not compete with the guy in the pit or nowadays with the collocated computer. They have the information long before you do. Retail trades with conventional technology must position/swing/trend trade, have wider stops and focus on probabilities and market timing rather than on getting there fast, in front of others, because that is impossible to do.

The first step in getitng an edge is to realize what type of an edge you can get. After that it is hard work.
 
In the day no one could effectively play the floor's game from off the floor and currently no one can play the HF game without co-location and the bells and whistles that go with it. I think Bill has it right. Retail traders need to be realistic about what types of strategies avoid those head to head battles that revolve around the best execution winning. Retail execution can't compete.
 
Quote from intradaybill:

Fifteen years ago while trading JPY futures intraday I had about 38 winners in a row. I grew 8K to about 40K in a week. Then one day, in a few seconds, price gapped way below my stop and I lost quite a lot. This story repeated a few more times and I gave all my profits back to the market.

I then realized I could not compete with the guy in the pit or nowadays with the collocated computer. They have the information long before you do. Retail trades with conventional technology must position/swing/trend trade, have wider stops and focus on probabilities and market timing rather than on getting there fast, in front of others, because that is impossible to do.

The first step in getitng an edge is to realize what type of an edge you can get. After that it is hard work.
More...

Very informative story , i learned from. Thank u..

I agree, competing ' even it is relative term' is impossible with HFTers. However, i noticed that even i consider myself a retail trader but i DONOT position/swing/trend trade. So, i feel i am intermediate breed between retail traders and HFTers. :)

I am considering your words too much.. Thank you again..
 
Quote from Swan Noir:

In the day no one could effectively play the floor's game from off the floor and currently no one can play the HF game without co-location and the bells and whistles that go with it. I think Bill has it right. Retail traders need to be realistic about what types of strategies avoid those head to head battles that revolve around the best execution winning. Retail execution can't compete.
More...

Guys,, ...

I am looking of the grey area so i am not into either:

1- playing HFT game, nor
2- competing HFT

Again my strategy is not BASED on the best execution but would be less risky if i play quickly..

So, it is profitable on ANY time frame.

Experts, Elites, ..

What is the best resources in the retail buy side that would be the closest as much as possible from the HFTers. ..

Softwares with quick executions and powerful calculations capabilities..


IN Summary,

How could i get the least latency possible WITHOUT playing or competing HFT?

The quickest side in the conventional arena..

Please specific answers

Thank you very much for all
 
Quote from mcgene4xpro:

What is the best resources in the retail buy side that would be the closest as much as possible from the HFTers. ..
More...

There is no continuous spectrum here like "closer to HFT", "closest to HFT" or "almost HFT". It is binary, you are either HFT or you are not, 0 or 1. If you trade through a broker, you are at 0 anyway as far as HFT status regardless of resources. HFT is a whole new ball game. No retailer can do it. It also renders a good part of daytrading unprofitable since the HFTers sqeeze out all the profit. You may still be able to compete in the 10 to 30 minute intervals but you may be forced to keep open position for next day.

I think there are no answers to your question that will satisfy you.
 
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