Thursday, November 15, 2012

Fun With High Frequency Trading Before The "Big One" Arrives

Everyone I have heard interviewed that has an in depth knowledge or personal experience working with the high frequency trading industry says that the flash crash was only the warm up and there is a far bigger event coming. It is impossible to avoid forever based on the size and scope of HFT in the market today.

For a primer and story-like way to learn about this mysterious portion of the stock market, I always recommend people begin with the book Dark Pools, which was released earlier this year.


1 comment:

  1. Thankfully now at least the HFT's and their bots can be tracked in real time by anyone.Have a look at the way the bots were in action last week during the US Presidential election courtesy of Carl Weiss from sceeto http://www.sceeto.com http://youtu.be/N1ouo0aeO7o
    As you know High Frequency Trading and these type of algos as a matter of fact are responsible these days for more than 70 to 80% of all the daily US volume. hfts have been quote stuffing, i.e placing massive buy sell orders within milliseconds for a long time now. sceeto is one of the first small companies anywhere in the world that tracks the hft's in real time across various markets. Have a look for yourself ,Carl Weiss has done numerous videos on these algos. http://www.sceeto.com The chief software developer of sceeto he has for a decade tested to come up with software designed a system to sniff these out and try to at least again level the playing field a bit for the ordinary investor.

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