Do you think there are too many algo traders in the market?

>>1410719
Yes.

Volume is a meaningless measure, where I interned my desk had a 1.5MM account but we turned over 100MM+ notional a day.

Do you have stats on how much capital in the markets is managed by algo traders (maybe split HFT, slower algos and boring robo advisors)?

>>1410719
They can trade all the algo they want.
I find it better to trade utility stocks.

>>1410794
Except we've already seen what happens when all the algos panic and stop trading for a few minutes. What's to say that can't happen again?

What exactly has happened? If you throw out market orders (or your stop loss does) you deserve to get fucked. Wait 5 minutes and everything is as good as before?

Fuck all retarded investors who don't have an iota of understanding the technical workings of markets. These dipshit faggots are the ones complaining about hfts/algos whom are just scapegoats when markets get volatile. You know what causes sharp movements? It happens when everyone piles in one direction for eight fucking years even though fundamentals are saying they shouldn't do so because some shit head in charge of managing market bubbles use their policy tools to force everyone in to go long for political reasons. Since majority see that markets are out of wack they have their trigger fingers ready on the slightest hiccup. As with everyone being long the sell off will be quick and massive since there will be few buyers below.

Now what do hfts/aglos provide? They allow you to enter and exit in rapid moving markets with very little slippage. What else other than computers can analyze market conditions run a risk profile and send out a quote in nano seconds? Don't like it? Go back to the 90s and enjoy losing multiple percentages on a position as you spend hours calling dealers in hopes you'll get lucky and get a reasonable quote from one of them. Don't forget there will be thousands of other people calling trying to get trade in. Oh and I almost forgot you better hope after getting through to a dealer that they won't end up re-quoting by the time you try to execute the deal. Hfts/algos have made markets a lot more efficient. Anytime markets were moving fast I had to hope my slippage wasn't going to be too bad. Compare that to today were slippage is so small that I don't even bother to account for it when doing a risk profile, even during summer liquidity.

The market is literally 95% algos

Algo traders provide liquidity man. Really the only reason we can buy and sell shit in an instant in the stock market. The problem is when they all panic and cause a massive price drop. That applies to humans too.

>>1411157
its those retards that make trading profitable at all.

Making the market more "competitive" also makes it less accessible, which is great if you are an elitist.

Since you are trying to control the market anyway, why not do it in the old fashioned way, by passing legislation?

Algos are just a fad, making pennies in profits is only attractive in times of recession.

>>1410719
Nice graph. Didn't know there were only 85 algo traders in 2012.

>>1411081
Yeah, liquidity starts drying up and you get filled for worse orders. Having high liquidity is a privilege. It can be taken away at any moment.

This anon (>>1411157) is correct.

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>>1411231
>Algos are just a fad, making pennies in profits is only attractive in times of recession.

you mean tens of billions. goldman for example make their annual profits 40-60% by trading only. if i recall correctly they had 2013-2015 over 200 winning days annually, losing days 10-30 annually. they might be the best bank trading but they certainly arent the best trading or hft company out there.