High Frequency Trading

>>1227246
>will regulators ever catch up?
Why would they? Nothing wrong with hft.

>>1227246
as an industry as a whole or individual firms? Some firms wil lose their edge to competition - others will thrive

so long as you've got electronic exchanges and open competition to provide liquidity to them then there will be firms competing to do that - being fast is generally a good idea when providing liquidity

regulators are on top of a lot of it as politicians have piled on pressure for them to do 'something'... there isn't a specific problem with 'HFT' in a general sense - it encompasses a wide range of activities, but there have been some dubious practices at times - flash orders are often cited as one example... but most criticism of HFT is completely overblown. Unless people want to go back to open outcry exchanges or the NYSE's old specialist system then HFT is here to stay in some form or another.

>>1227246
Basically they try to make very tiny profits every time you trade. All the top banks are doing mostly HFT and very little prop trading.

>>1227246
Read "flash boys" for the lowdown

>>1227250
i mean, i agree with you. but lots of people who don't understand HFT are on a witchhunt for it.

>>1227380
reasonable. i mean more the industry as a whole.

>>1227400
i get that much, i'm looking for some deeper shit. like how screen traders interact with with the developers who make the pricing models and trading products. or how much faster TCP back channels are compared to waiting for an exchange to update its market price.

>>1227422
already read it. got anything else more focused on implementation and actual algorithms/practices?

>>1227246
If you aren't hooked up directly to NYSE from right next door or within a few blocks with the best communication infrastructure the world has to offer, don't expect to succeed in this.

>>1227461

The actual algorithms are closely guarded secrets for obvious reasons. It's no different than regular trading, just much faster.

>>1227246
The reason many traders lose money day trading is that their trade signals are "reverse indicators" for HFT algos. They bully the price their way. Live and learn kiddos.

>>1227471
i don't expect to be able to develop an HFT platform on my own, regardless of circumstances. i just want to know more about it.

>>1227484
ok then, what are standard trading techniques that HFT firms use?