Quote stuffing. High Frequency Trading

Discussion in 'Forex - Currencies Forums' started by Casper, Aug 16, 2014.

  1. Casper

    Casper Well-Known Member

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    http://www.nanex.net/aqck2/4670.html

    But sometimes there are more than 6,000 quotes in 1 stock in 1 second


     
  2. Casper

    Casper Well-Known Member

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    http://www.nanex.net/aqck2/4666.html
     
  3. Casper

    Casper Well-Known Member

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    Trading without a stop loss?

    HFT, understanding it and what it could mean for you.

    Watch the May 6th 2010 'Flash Crash' as it happened and how it happened.

    I wonder how many accounts got wiped out in those few seconds.


    http://vimeo.com/103128278
     
  4. BudFox

    BudFox Well-Known Member

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    It's why any small currency/stock trader should take a long view when it comes to trading. Trading short term market 'noise' becomes a bots game and the big boys will clean you out before you can take a breath.
     
  5. Casper

    Casper Well-Known Member

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    [​IMG]
    Amazing. Millisecond quote stuffing but a 'minute by minute' analysis is 'more than sufficient' :confused:
     
  6. Casper

    Casper Well-Known Member

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    Lol. Wonder if FXM placed some sizable buy orders before informing Bloomberg.
    http://www.zerohedge.com/news/2014-...ng-algos-get-crushed-wrong-bloomberg-headline
     
    Last edited: Aug 19, 2014
  7. bulding

    bulding Member

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    Hmm, I wonder if this is a strategy related to pip hunting... makes me think if this is what FXM is up to.

    And speaking of stop loss, am I the only one here that doesn't use stop-losses? I mean, yes I've read the literature and the advice columns, but it seems like no amount of back-testing and algorithm stuffing can beat the pattern recognition of the human mind, but maybe that's just my luck. The only time I actually rely on SL is when I have an open trade and desperately need shut eyes.
     
  8. Casper

    Casper Well-Known Member

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    Stop losses are a major source of consternation imo. Would be really pleased to have a discussion on them.

    The HFT's hunt them down high and low. Loads of people were chopped out on the Spoos the other day. Mom and pop traders putting their stop losses too close were a feeding frenzy for the HFT's.

    I try not to over use them myself but it depends on what I am trading. Eg, I would never leave Gold or Silver Indices etc unprotected because I know it is open to attack which could wipe my account out.

    I always have a stop loss but it is well back at the maximum I am prepared to lose in case of a 'worse case' spike disaster. Other than that I will close it manually or hedge if I think a position needs protecting.

    Would be great to hear other's strategies.
     
  9. gekko41

    gekko41 Active Member

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    HFT is a very new, although profitable industry. I have not been day trading as much as I used to, and I think the only way for individual investors to "win" is to hold longer term positions. In regards to the flash crash, since then I have always used a stop loss, as a repeat of that event could theoretically happen at any moment.
     
  10. Casper

    Casper Well-Known Member

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    I think you are right there.

    Luby's being quote stuffed a few minutes back.

     

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