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Time is money

April 1, 2014, 4:18 p.m.
Posts: 472
Joined: April 11, 2011

A long read, but worth it…

The Wolf Hunters of Wall Street

April 1, 2014, 7:09 p.m.
Posts: 403
Joined: Nov. 23, 2002

wow, great read. well worth the time.

I'm not a human in real life, I just play one on the internet. 

April 1, 2014, 8:21 p.m.
Posts: 0
Joined: Oct. 9, 2009

I've heard a lot about this before. It pretty much would stack the odds too heavily against a human day trader for their to be a point in doing anything other than sticking in for long term trades. Correct?

April 1, 2014, 10:45 p.m.
Posts: 1527
Joined: Aug. 6, 2009

Wired had a good (also long) article about this and the tech being used to cut down the transmission times a couple of years ago.

Raging Bulls: How Wall Street Got Addicted to Light-Speed Trading

I've heard a lot about this before. It pretty much would stack the odds too heavily against a human day trader for their to be a point in doing anything other than sticking in for long term trades. Correct?

From the Wired article:

It’s not just that humans are less and less involved in trading; it’s that they can’t be involved. “By the time the ordinary investor sees a quote, it’s like looking at a star that burned out 50,000 years ago,”

April 2, 2014, 9:36 a.m.
Posts: 4297
Joined: June 1, 2009

This is still one of my favorite TED talks. Its a couple of years old but it was the first time I'd heard about algo trading and how connection speed matters so much.

http://www.ted.com/talks/kevin_slavin_how_algorithms_shape_our_world

April 3, 2014, 12:28 p.m.
Posts: 248
Joined: Sept. 4, 2008

60 Minutes story about HFT


https://www.youtube.com/watch?v=8RFLIj4a2kw

April 3, 2014, 12:54 p.m.
Posts: 403
Joined: Nov. 23, 2002

go canada!

I'm not a human in real life, I just play one on the internet. 

April 3, 2014, 2:09 p.m.
Posts: 0
Joined: Oct. 9, 2009

seems like they were late to the party for one unfair setup so they made their own and were first at it

April 3, 2014, 2:11 p.m.
Posts: 403
Joined: Nov. 23, 2002

seems like they were late to the party for one unfair setup so they made their own and were first at it

their "system" makes it fair for their clients, aka you and me. the HFT people were in it to make money for themselves, that's a big difference.

I'm not a human in real life, I just play one on the internet. 

April 3, 2014, 4:59 p.m.
Posts: 2285
Joined: Feb. 5, 2005

Funny that this is all making the news now. I saw that TED talk quite a while ago, and back then you couldn't find much other reliable info, but the bits and pieces that were out there were talking about the damage this would do to the market.

If you want to put on your tinfoil hat, ask yourself this: How much money has the federal govt in the US been pumping into the so called recovery. Your regular Joe hasn't seen much, if any improvement, yet the stick markets are at all time highs. At the same time, HFT has expanded to take over most of the trading. Did we, as taxpayers, directly fund these crooks?

Charles Schwab issued an open letter on the damage this is doing to everyone else.

That's the problem with cities, they're refuges for the weak, the fish that didn't evolve.

I don't want to google this - sounds like a thing that NSMB will be better at.

April 3, 2014, 8:56 p.m.
Posts: 15019
Joined: April 5, 2007

I read a paper today that gave examples of the "take" from this level of HFT front running, on just the NASDAQ. Try $160 million, per day.

Per day.

Yeah, that number was mentioned in the OPs article

Why slag free swag?:rolleyes:

ummm, as your doctor i recommend against riding with a scaphoid fracture.

April 4, 2014, 9:25 a.m.
Posts: 10556
Joined: June 29, 2006

Funny that this is all making the news now.

It is hitting the news because Michael Lewis is pumping his book. Ironically, it is the free market that is shining a light on the subject.

Nanu Nanu

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