who ruined the US markets ?

http://www.forbes.com/sites/davidwi...hungry-and-driven-and-some-investment-themes/

----I asked one question during the general Q&A, which was how did he feel about the notion of the “Death of the Individual Investor” and the many related issues of HFT/algo-trading, insider trading, and inequities in access to information and “research”.

His answer: “How can you allow the trading companies to locate computers closer to exchanges and flash millions of bids to give an unfair advantage?….Even professionals are losing faith in some aspects of the system”.----------
 
Spot on post..

"Based my experience, the algorithmic trading is making an impact for some traders/styles. I've been very successful at trading compared to common measures. Some people wrongly believed that "causing problems" means "not profitable". One common theme I see though is that the algorithmic trading is pushing those who wish to make money trading into higher risk spaces/trades. Basically, this means that traders are forced to use larger stop losses or hold trades for longer periods of time.

Some of the tendencies I've observed in terms of futures:

* Faster intraday movement
* Fewer pull backs.. i.e larger moves
* Sharper/faster reversals.
* Gaming of open/close prices (or more "efficient" markets). Some of my systems relying on open/close prices no longer work as well but adaptations that don't rely on open/close still work. I view this as a function of an increasingly efficient market. Basically inefficiencies that might have existed for a few days are resolving intraday now.
* More herding behavior..

What I haven't seen to any tangible effect:

* Spoofing/pulling orders. Most shown orders in the book seem legit. A small % may be pulled but the majority are there.
----

Based on what I've seen, I don't believe that futures HFT systems are "pulling limit orders" as might exist in say stocks. Instead, I suspect they are sending in large quantity of market orders in order to trigger stops or for a few ticks gains. This is not to say they always work.

This would make sense as to why we have greater straight-line vertical movement... if the bots are buying at highs and selling at lows. Another tactic may be selling at lows then buying everything up."


http://www.traderslaboratory.com/fo.../11763-more-flash-movements-2.html#post167914
 
Going to decimals hurt the markets the worst. It brought out the absolutely despicable traits in people that like to take advantage of others.
Vulture mentality is the rule of the day. The only way the Good guys win is when they stick to their convictions and not listen and watch the noise that the HFT people create to try to get them to make bad decisions.
 
SEC is the problem. They are completely useless. IMO this internalization sub pennying is the worst thing ever. It baffles me how this is legal. Its a licence to steal money. People who compare these times to markets past IMHO are insane. In stocks anyways,
there is no comparison.
 
Quote from halfwaythere:

Some of the tendencies I've observed in terms of futures:

* Faster intraday movement
* Fewer pull backs.. i.e larger moves
* Sharper/faster reversals.
* Gaming of open/close prices (or more "efficient" markets). Some of my systems relying on open/close prices no longer work as well but adaptations that don't rely on open/close still work. I view this as a function of an increasingly efficient market. Basically inefficiencies that might have existed for a few days are resolving intraday now.
* More herding behavior..
More...

Which markets are these?

Thanks.
 
if you take out best trade in every 50 trades batch, your return will look miserical at best. It just happens that illegal behaviour described earlier intensifies before larger move. I got dose of this while ago and realised that shortterm is not sustainable option because of manipulation so I ditched it for good.

Maybe now more people realising this and it getting even harder to win.

to say no effect.... you may be lucky but will get to you soon. 500 indian phd will figure out what you do.
 
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