The Obama Re-Election thread......

[the glowing carp]

I always thought Humanity wouldn't be so stupid to turn the running of integral systems over to Algorithms, always thought we would have a little more faith in our own creative ability to solve problems.

HFT pays no fees and yet people who spruik it pay fees, a bizarre example of Stockholm syndrome.

HFT is a scam, it always makes a profit, which is impossible as any real Trader will say. HFT always makes a profit because it is not about normal selling and buying, it is about exploiting the technical limitations of information transferral "Hoovering up Nickles and Dimes", this charade can only continue for so long, like the hiding of Crap debt.

I look forward to the resulting collapse of the entire Financial system, it will make Sub-prime look like a picnic as HFT is systematic, I'll be there waving with a big sign that say's "F#ck you later".

[Azrael]

[Azrael]

[Azrael]

[Mr. Perfect]

[Mr. Perfect]

[Mr. Perfect]

[Azrael]

I'm not mistaking volume for volatility. When you're looking at shares in S&P 500 companies, in days with extreme volatility, there is also very high volume.

[Mr. Perfect]

Not always. Often the extreme days the indexes gap down in the first few minutes and then trade heavily at the session low, which proves it further, the heavy trading is not what whacked the price. We may get into what is volatility, but I like watching certain people squirm and chafe as they wrestle for the answers. Normally I am happy to educate people but on certain things I demand payment, and I take the payment in the form of permanent ideological capitulation.

There is no relationship between volume and volatility, well there is, but it is like the relationship between horses and trees. They both exist on the same planet, but there is no functional (in the math definition) relationship. Horses can live where there are trees or where there are no trees.

[Azrael]

[Azrael]

[Mr. Perfect]

[Mr. Perfect]

[the glowing carp]

[Mr. Perfect]

[the glowing carp]

[Mr. Perfect]

[the glowing carp]

[Mr. Perfect]

The Capital Markets. Been going on for thousands of years.

Can't go against gravity gc.

[the glowing carp]

[anderson]

Mr Perfect,

You argue in favor of HFT in general based on some benefits to market making efficiency and lowered costs in terms of spreads for average folks buying and selling. 2 questions.
First, in terms of these benefits, there must be some diminishing returns for average folks in terms of benefits, while the march for faster and faster goes on. I.e. what difference does it make to me trying to sell or buy a few hundreds to a few thousands of $$ of stocks whether the process can be filled in 1 s versus 1 ms versus 1 microsecond? Average percentage fluctuations are too small on that time scale.
Second, What are the costs of this ability of people to make money off of these quantum noise type fluctuations? And is the marginal fringe benefit to normal investors of this ability to trade faster and faster higher than the net marginal cost to the society?

[Mr. Perfect]

[anderson]

[Mr. Perfect]

[the glowing carp]