Discussion of high-frequency trading on MT5 - page 3
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
You should do this kind of trading only with a regulated broker, preferably with an SGD account
If you mean segregated accounts, I don't mean that the broker will take your deposit, not withdraw it or anything like that, for which theSGD typecan supposedly protect itself, it's much more subtle and cunning. Just as we do automatic trading strategies so do the DCs have automatic interaction with client orders depending on many factors. Such algorithms as well as traders' trading systems are constantly evolving and evolving and if someone notices obvious brute force such as heavy slippage, spikes, requotes and the like, it is an indication that the algorithm needs to be adjusted to make it less noticeable for most. If you do not like it, open your own brokerage company, we will send you a letter with information about slippers and requotes. If you do not like it, open your own brokerage company, go to the interbank, prime broker etc. Who's stopping you?
Aaaaaaaa.... forgot the $100 deposit))))))
If you mean segregated accounts, I don't mean that the broker would rudely take your deposit, not withdraw it or anything like that, for which theSGD typecan supposedly protect itself, it's much more subtle and cunning. Just as we do automatic trading strategies so do the DCs have automatic interaction with client orders depending on many factors. Such algorithms as well as traders' trading systems are constantly evolving and evolving and if someone notices obvious brute force such as heavy slippage, spikes, requotes and the like, it is a sign that the algorithm needs to be adjusted to make it less noticeable for most. If you do not like it, open your own brokerage company, you will not have any problem with it. If you do not like it, open your own brokerage company, go to the interbank, prime broker etc. Who's stopping you?
Aaaaaaaa.... forgot the $100 deposit))))))
What do you think about it? What idea came to me, if we measure differences (in seconds, mertrs, etc.) between quotes of Exchange, DTs and us, we may make a (lagging EA) based on results of high-frequency trading
You are referring to some kind of arbitrage based on access to some advance information, generally speaking. But how much would it cost to access it? Arbitrage is of course cool, the only question is how to get it. Profitable MTS is also a kind of arbitrage, just like quality insider information. The question is access. Access is proportional to capital. You can't cheat the "money to money, poverty to poverty" rule here no matter how you look at it. HFT is a kind of arbitrage, which is bought for tens of millions, and accordingly it brings a comparable amount per year.
We small traders get only scraps of leftovers. This is enough for bread and caviar, I don't think we have enough for our own island...
But it is worth inquiring. Opportunities always appear. Big companies are just people who make mistakes and act irrationally sometimes.
Here's another review article on the subject.
Высокочастотный автоматический трейдинг (HFT)
Как стать волшебником Wall Street у себя дома
It's a long way from Dallas, Pennsylvania, to Wall Street, a small provincial town of two and a half thousand people in the mountains near Scranton. But it was here, from his home office in the basement, that John Joseph performed the miracle of super-fast trading that was changing the face of the world's financial markets. Joseph, 36, describes himself as a well known individual trader, rather than the large trading companies that dominate the business. Which doesn't stop him, however, from standing up for himself in this very trading.
"On every trade, without exception, we get what we want faster than anyone else," he claims.
High-frequency trading, a lightning-fast, high-volume trading method, has gained unrivalled popularity on Wall Street over the past few years. It is mainly used by private trading groups, large banks and hedge funds like Getco, Goldman Sachs, Barclays and Citadel. But for individual traders like John Joseph, this type of trading is also becoming quite acceptable, albeit risky.
Those who want to embark on the path of high-frequency trading need to know that they will be playing head-to-head with the biggest minds and wallets on Wall Street, and most are destined to lose. In this super-rivalry, complex algorithms and the use of a staggering amount of computer power to profit from micro-inefficiencies in the stock, futures, and options markets come to the fore.
John Joseph has the confidence to win with his unique mathematical ability and the ability to find his niche in the market. In his fifth year working on his PhD in mathematics at the University of Massachusetts, Joseph realised somewhat belatedly that he was not cut out for an academic career. In 2000 he left the university to study technology companies and was hired by a brokerage firm which filed for bankruptcy three weeks later. Joseph learned one big lesson from his fleeting brokerage career: you have to build automated trading systems.
Joseph spent the next three years in marketing and, in his spare time, learning how to write robots. When he realised his robots were trading efficiently enough but that he needed more time and money to perfect them, he quit his job and started trading futures on his own algorithms from home. He now manages more than $10 million in the accounts of his friends, relatives, and outside clients.
Joseph's algorithmic principles gradually led him to day trading only. In the beginning, he kept his positions open for 2 minutes to two and a half hours. Realizing that at the same time high-frequency Wall Street traders were changing positions dozens, hundreds, and even thousands of times a second, last year Joseph also got into this dangerous game.
He started with two former stock traders who were interested in electronic trading. He put their trading concepts into algorithms, which were then coded by his business partner, after which they all opened a small trading "boutique" called Rooftop Trading. Joseph's new algorithm traded 2,000 times faster than all his previous creations. He refuses to reveal the exact amount of all the funds in their high-frequency turnover.
With billions of dollars at stake, high-frequency traders today are engaged in a super-technical race in the hope of outbidding each other and other investors in the battle for the most profitable trade. This rivalry involves "collocating", namely placing one's server in close proximity to the exchange's servers. Large companies are willing to pay up to $200,000 a month for such a location for their computers. Through his broker, Joseph uses Zen-Fire, a service which allows him to rent a server in one of these data centres. The price of such quotes is included in his brokerage commission, which depends on the volume of his trading.
Patrick Shaughnessy, founder of Zen-Fire, confirms that the number of traders writing their algorithms is growing steadily. After signing a confidential agreement with some of them, he can help traders determine how successful their robots will be in 'fighting' the big players in the markets. Most promising after that is the sale of a super-speed line to connect with futures exchanges in America and abroad. Patrick plans to launch a lightning-fast stock trading capability next year.
At his Dullo home office, Joseph uses three computers, including standard desktop models and a laptop, to connect remotely to Zen-Fire. He uses both cable and DSL connections, knowing that if, for example, a heavy downpour knocks out his Internet connection, his algorithms will continue to work in the data centre without his direct supervision.
Like large companies, jealously guarding their secrets, John Joseph is reluctant to divulge his strategies, except for brief descriptions of how he finds "inefficiencies" in markets that larger, more capital-intensive companies ignore. Joseph says that while he is still trading profitably, finding opportunities has become harder and harder this year, because long-term investors are reluctant to part with their positions. And he adds, "I tell my wife every day to save her money because it could be her last."
The opinion that HFT won't be around much longer isn't the only one. Three to five years at the most, and then it will be shut down. It is more of a high-tech robbery than trading.
You need at least $15-20m to launch such a start-up alone.
nonsense. Didn't read the rest.
Not surprisingly, my wife had the same reaction when I told her about it))
First impressions are often deceptive. Read about it and it all makes sense.
some companies spend hundreds of millions to be a millisecond ahead of the competition in this business.
you would be sad to hear that some invest in quantum entanglement research because they have been hampered by the speed of light and hope to solve the problem of instant data transfer...
Quantum entanglement, algorithm, neural networks, and what other areas can be researched or are being researched
In my opinion, this is very good, it is one thing for poor nerds to sit in institutes and philosophize, and when a scientist, the Wall Street guys are paid 1-2 thousand dollars a year, just salaries and such a whole department, with equipment worth tens or even hundreds of dollars, the results of such activities will naturally be very different and orders of magnitude faster.
It is all the same to science whether the discovery is made by a hungry nerd or a self-serving villain.
http://www.ted.com/talks/lang/ru/kevin_slavin_how_algorithms_shape_our_world.html
Not surprisingly, my wife had the same reaction when I told her about it))