HFT Stock Manipulation In Action - page 13
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I am not sure that we can learn enough. Lack of information is terrible
We have to learn to read between the lines. Otherwise we shall never get the "big picture"
We have to learn to read between the lines. Otherwise we shall never get the "big picture"
We can not read between the lines - when all the lines are lie
We can not read between the lines - when all the lines are lie
We have to look for information on other sides - where there usually people do not pay attention
We have to look for information on other sides - where there usually people do not pay attention
All that is highly manipulated
Recently it was discovered that FED "leaks" information on purpose. That is used for two things : stuffing money into pockets of their friends and fooling us small traders. All that is the oldest game in town. Only they don't use red lights any more
Trading has a few simple rules - do the opposite of Goldman's Thomas Stolper; don't fight the Fed; and buy low, sell high. However, as this series of charts from Nanex shows, it is the latter rule that is the easiest to comprehend and yet - thanks to massive and obvious HFT manipulation - is an extremely difficult thing to do. As Nanex's Eric Hunsader notes, high frequency trading algos do not get much clearer than this as the machines buy low (from you) and sell high (to you) each and every millisecond of the trading day.
Via Nanex:
Nanex ~ 11-Jun-2013 ~ Clever HFT Manipulation
Manipulation by high frequency trading algorithms doesn't get much clearer than this.
1. ASBC trades color coded by exchange and NBBO shaded gray.
As soon as the market closed (16:00), the NBBO (National Best Bid/Offer) rapidly expanded. What happened next will astound you..
read more ...
HFT can be front runners using time advantage at an exchange or they can be standard market makers being payed to provide liquidity.
Even flat rate or ultra low commissions makes the edge very small to be traded certainly.
There are dozens of fascinating, and theoretically working trading strategies, yet even institutional can't trade them all profitably.
Retail traders who want to beat the CAGR of a buy and hold investing strategy by some points are constrained almost to one strategy and higher time frames.