What is the best COMPROMISE between HFT and LFT?

[mcgene4xpro]

Quote from intradaybill:

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.

The last trial to reformulate my question. Forget about the HFT. How could i execute my orders as quickly as possible as a retail trader.?

suppose the execution speed sectrum from 0 to 100 and HFT on the 100 edge and retail traders from 0-10 so my question , how to get to 10?

I am not talking about the 100 here

Got it..

I am still waiting for an answer.

 

[jem]

Quote from mcgene4xpro:

The last trial to reformulate my question. Forget about the HFT. How could i execute my orders as quickly as possible as a retail trader.?

suppose the execution speed sectrum from 0 to 100 and HFT on the 100 edge and retail traders from 0-10 so my question , how to get to 10?

I am not talking about the 100 here

Got it..

I am still waiting for an answer.

a few years ago the answer would have been to work with a broker or a clearing firm who would let your orders go right to the exchange. It generally took a license.

 

[mcgene4xpro]

Quote from jem:

a few years ago the answer would have been to work with a broker or a clearing firm who would let your orders go right to the exchange. It generally took a license.

caementarius


Registered: Jul 2007
Posts: 298


11-27-09 11:51 PM

So, I've come across names for various program trade algorithms and I'd like to understand what they are about. I figure, if these algorithms are common enough to have names and platforms advertise supporting them, then they are worth trying to understand. I realize these are mostly for institutions to try to get the best prices on buying and selling large quantities for the best execution but I think it's likely good stuff for a Trader to understand for better insight into overall market mechanics. Here is a list of terms:

Geurilla (Credit Suisse)
Sniper (Credit Suisse)
Ambush (Banc of America Securities)
Razor (Banc of America Securities)
Cobra (Instinet)
Nighthawk (Instinet)
Dagger (Citigroup)
VWAP and TWAP (Credit Suisse) -- I think these are pretty straightforward
Inline - FlexTrade
Iceberg - FlexTrade
Auto Market-Making (from Portware, do we have a good idea what this does? how it manages inventory and risk?)

There are more. I know the idea is largely to find liquidity and execute without signaling intent - but can anyone shed some light on the mechanics of doing that?

terms mostly from:
http://advancedtrading.thewallstree...-algorithms.php
http://w4.stern.nyu.edu/news/news.cfm?doc_id=6789

 

[Occam]

Quote from mcgene4xpro:

caementarius


Registered: Jul 2007
Posts: 298


11-27-09 11:51 PM

So, I've come across names for various program trade algorithms and I'd like to understand what they are about. I figure, if these algorithms are common enough to have names and platforms advertise supporting them, then they are worth trying to understand. I realize these are mostly for institutions to try to get the best prices on buying and selling large quantities for the best execution but I think it's likely good stuff for a Trader to understand for better insight into overall market mechanics. Here is a list of terms:

Geurilla (Credit Suisse)
Sniper (Credit Suisse)
Ambush (Banc of America Securities)
Razor (Banc of America Securities)
Cobra (Instinet)
Nighthawk (Instinet)
Dagger (Citigroup)
VWAP and TWAP (Credit Suisse) -- I think these are pretty straightforward
Inline - FlexTrade
Iceberg - FlexTrade
Auto Market-Making (from Portware, do we have a good idea what this does? how it manages inventory and risk?)

There are more. I know the idea is largely to find liquidity and execute without signaling intent - but can anyone shed some light on the mechanics of doing that?

terms mostly from:
http://advancedtrading.thewallstree...-algorithms.php
http://w4.stern.nyu.edu/news/news.cfm?doc_id=6789

You'll probably have to investigate these on your own as probably very few people here use them; my impression is that these are primarily buyside-marketed algorithms -- they might be termed "HFT algorithms for the institutional buyside" confused: ). I've seen (but mostly ignored) a lot of articles/"research" on these systems, some of which you can find with google.