Tag Archives: HFT

Is There Any Future in Equity Index Trend-Following?

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

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Naive Speculators Were Hit Hard

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

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Bluffing May Be Worse Than Front Running But Nobody Seems to Care

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

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Markets Have Never Been Easy So Please Stop Complaining

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

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The VIX Illusion

In my opinion, most of what one reads about VIX and its relation to stock market moves can be attributed to common misconceptions and chart illusions and possibly to some misinformation campaigns where the non-technical investor is the target. The … Continue reading

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HFT Robot Flocking is the Emergent New Order in the Markets

Flocking is the behavior of a group of birds when in flight. Such behavior is similar to the swarm behavior of insects and the herd behavior of animals. This behavior is emergent and not governed by central coordination. Flocking accomplishes certain objectives, like for example … Continue reading

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Did I Ever Say that HFT Has Ruined the Markets?

No, I did not. As a matter of fact, I believe that HFT is the modern version of the local or the specialist group but faster and more efficient and in turn the potential for markets becoming efficient is much … Continue reading

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Why is Peter Brandt Calling me a Daffy Duck and a Nut?

I received an email message from a reader of another blog where Peter Brandt calls me a Daffy Duck and a nut case. I was surprised. I did not expect this from Peter. Yes, people can argue about things and … Continue reading

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