Tag Archives: HFT
Quant trading is in fashion nowadays. This article may help you in separating the wheat from the chaff.
Traders who use technical analysis should not blame malicious market makers or high frequency bots for its ineffectiveness. It is technical analysis that often renders itself ineffective. Here is an example.
The problem of trend following is fundamentally simple: choppy markets reduce the effectiveness of trend-following algorithms and shorter trend durations reduce their profitability. There is no need for a more sophisticated analysis. About 15 years ago I derived an equation that describes the problems … Continue reading
Speculators who rely on naive analysis of price action were hit hard yesterday. In the case of the DIA, HFT algorithms got the speculators both sides. In the case of TLT shorts were shaken out. This is how professionals make money … Continue reading
High Frequency Traders (HFT) have been constantly accused of front running orders. Actually, some have even proposed a ban of this type of trading. What they do not tell you or do not realize is that there are many other sources of … Continue reading
If you are complaining all the time about uncertainty in the markets, then you ought to see this. If you are a journalist who uses high frequency trading as an easy target to earn points from uninformed readers then you should also see … Continue reading