Hidden financial ...
Follow
Find tag "HFT"
23.3K views | +0 today
Hidden financial system
All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.   ~~~  Arthur Schopenhauer
Curated by Cyrille
Your new post is loading...
Your new post is loading...
Scooped by Cyrille
Scoop.it!

HFT Accounts For 76% Of All Orders In Europe

HFT Accounts For 76% Of All Orders In Europe | Hidden financial system | Scoop.it

 

But what about Europe: just how prevalent is HFT there. Now thanks to a new report by ESMA titled "High-frequency trading activity in EU equity markets" we know: in the lifetime total of all orders, HFT accounts for 76% of all orders by, 49% of all trades and 43% of total value traded.

 

more...
No comment yet.
Scooped by Cyrille
Scoop.it!

The Holy Grail Of Trading Has Been Found: HFT Firm Reveals 1 Losing Trading Day In 1238 Days Of Trading

The Holy Grail Of Trading Has Been Found: HFT Firm Reveals 1 Losing Trading Day In 1238 Days Of Trading | Hidden financial system | Scoop.it

 

Think JPM's 0 trading day losses in 2013 was impressive? Prepare to have your mind blown. The chart below shows the chart of daily net trading income by High Frequency Trading titan Virtu, taken from its just filed IPO prospectus.

 

The punchline: in 4 years of trading Virtu has had one, one, day in which it lost money. Let that sink in: one trading loss day and 1237 days of profits. And that, ladies and gentlemen, is the Holy Grail of the New Normal broken, manipulated markets.

more...
No comment yet.
Scooped by Cyrille
Scoop.it!

Video : Exposing Wall Street's Hidden "Code"

Video : Exposing Wall Street's Hidden "Code" | Hidden financial system | Scoop.it

 

The following is a must-watch documentary for every investor and trader to comprehend just what it is (and who it is) that drives stock prices day in and day out.

 

more...
No comment yet.
Scooped by Cyrille
Scoop.it!

HFT Infographic

HFT Infographic | Hidden financial system | Scoop.it

You know how we feel about special order-types and expert networks.  I'll save you the long-winded paragraph so you can keep selling AMZN.  Here is an HFT infographic.

more...
No comment yet.
Scooped by Cyrille
Scoop.it!

Mysterious Algorithm Was 4% of Trading Activity Last Week

Mysterious Algorithm Was 4% of Trading Activity Last Week | Hidden financial system | Scoop.it

A single program that placed orders — and subsequently canceled them — made up 4 percent of all quote traffic in the U.S. stock market last week. The motive of the algorithm is still unclear.

more...
No comment yet.
Scooped by Cyrille
Scoop.it!

Morgan Stanley Is Replacing Some Of Its High Paid Traders With Computers

Morgan Stanley Is Replacing Some Of Its High Paid Traders With Computers | Hidden financial system | Scoop.it

>>> The end of traders ?!?

more...
No comment yet.
Scooped by Cyrille
Scoop.it!

Artificial Stock Price Support in Action

Artificial Stock Price Support in Action | Hidden financial system | Scoop.it

The patterns below are sawtooth wave forms in the markets indicating machine trading on the hour and every hour.

more...
No comment yet.
Scooped by Cyrille
Scoop.it!

"The Market Is Rigged" - Michael Lewis Explains How HFTs "Screw" Investors Every Day

"The Market Is Rigged" - Michael Lewis Explains How HFTs "Screw" Investors Every Day | Hidden financial system | Scoop.it
It was almost excatly five years ago to the day, on April 10, 2009, that Zero Hedge - widely mocked at the time by "experts" - began its crusade against HFT and the perils of algorithmic trading (which of course were validated a year later with the Flash Crash).

 

In the interim period we wrote hundreds if not thousands of articles discussing and explaining the pernicious, parasitic and destabilizing role HFT plays in modern market topology, and how with every passing day, markets are becoming increasingly more brittle, illiquid and, in one word, broken. Or, as Michael Lewis put it most succinctly, "rigged." With Lewis' appearance last night on 60 Minutes to promote his book Flash Boys, and to finally expose the HFT scourge for all to see, we consider our crusade against HFT finished.

 

At this point it is up to the general population to decide if this season's participants on Dancing with the Stars or the fate of Honet Boo Boo is more important than having fair and unrigged markets (obviously, we know the answer).

 

more...
No comment yet.
Scooped by Cyrille
Scoop.it!

The Wall Street Code: HFT Whisteblower Haim Bodek on Algorithmic Trading

The Wall Street Code: HFT Whisteblower Haim Bodek on Algorithmic Trading | Hidden financial system | Scoop.it

 

For more background, here are the relevant sections from a September 2012 Wall Street Journal article, For Superfast Stock Traders, a Way to Jump Ahead in Line.

 

more...
No comment yet.
Scooped by Cyrille
Scoop.it!

Today's 482 Millisecond NFP Leak, The Subsequent Gold Slam And Trading Halts In Treasurys And ES

Today's 482 Millisecond NFP Leak, The Subsequent Gold Slam And Trading Halts In Treasurys And ES | Hidden financial system | Scoop.it

On Monday we brought to you proof of a 15 millisecond frontrunning of the Mfg ISM number by what turned out to be HFT clients of Reuters which admitted subsequently it had "inadvertently" leaked the number to select clients.

more...
No comment yet.
Rescooped by Cyrille from Backstabber Watch
Scoop.it!

Full Text: Madoff Speaks Out on Insider Trading, Dark Pools

Full Text: Madoff Speaks Out on Insider Trading, Dark Pools | Hidden financial system | Scoop.it

The reason I chose to begin doing convertible arbitrage also known as riskless arb.  as opposed to Merger Arbitrage, was because Merger Arbitrage could only be executed successfully  by having the INSIDE Information as to whether there was going to be board of director approval of the pending merger.

 

This is very different than the FLICKERING quotes that are provided by the High frequency Trading firms.


Via #OpDejaVu
more...
No comment yet.
Scooped by Cyrille
Scoop.it!

We Need a New Stock Market

We Need a New Stock Market | Hidden financial system | Scoop.it

[ ] the stock market now bears little resemblance to traditional markets. [ ] Most of the trading on the market is done by computers that hold shares for perhaps 11 seconds before skimming a slice from investors who lack the high-speed data flows from the exchanges, warp-speed processing power and sophisticated algorithms.

more...
No comment yet.
Scooped by Cyrille
Scoop.it!

Interview With A High-Frequency Trader

Interview With A High-Frequency Trader | Hidden financial system | Scoop.it

Trending movements are when an HFT deliberately moves a stock price up or down for its own benefit. For example, a computer can submit an overwhelming number of sell orders, knock the price of a stock down a few percentage points, then buy the stock back cheaply.

 

HFTs can model other traders’ behavior. When someone trades through Scottrade or Interactive Brokers, their order has a unique number attached to it – the same number every time a client places an order. This number is bundled with all relevant trade information (time, price, etc.) and sold as an encrypted “enhanced data feed.” An HFT can then use those past results to predict the trader’s behavior.

 

[ ] there are many different HFTs that do many different things. But in my experience, in the aggregate, both of those claims are false. High-frequency trading will reduce liquidity when we need it most, and will flood the system with nonsense at other times.

 

On net, HFTs hurt liquidity more than they help.

 

Themis Trading did a white paper called the Phantom Indexes, and they found that only 30% of all traded assets are traded on visible exchanges. Think about that: it means that indexes – like the Dow and S&P 500 – are being calculated with only 30% of actual volume. The majority of trades – 70% – occurs in the dark and is not factored into the indices.

 

[ ] talking to you about this actually hurts my trading system in the long run, but truthfully, my strategy of exploiting dislocations shouldn’t exist.

 

 

more...
No comment yet.
Scooped by Cyrille
Scoop.it!

The Dark (Pool) Truth About What Really Goes On In The Stock Market

The Dark (Pool) Truth About What Really Goes On In The Stock Market | Hidden financial system | Scoop.it

Courtesy of the author, we present to our readers the following excerpt from Dark Pools: High-Speed Traders, AI Bandits, and the Threat to the Global Financial System, by Scott Patterson, author of The Quants.

more...
No comment yet.