Question of The...

[zdo 20]

Is ndx trading becoming, as Tyler Durden describes it, “a ping-pong match between high frequency traders”?

[Soultrader 12]

To grasp a better idea of the world of algo trading, Automated Trader might be an interesting site to read. Good folks too, met them at the FIA in Tokyo last year.

[brownsfan019 17]

Is ndx trading becoming, as Tyler Durden describes it, “a ping-pong match between high frequency traders”?

 

On certain markets, for sure. No doubt.

 

Where you see high volume = many bots playing the game.

 

This is part of the reason I have incorporated other markets into my trading where it appears/feels like there are a minimal amount of bots playing their games. While most gravitate towards the highest volume contracts, that may not be the 'easiest' option to go. I'll dive into this some other time as I've been meaning to do a little write up on it.

[zdo 20]

A related question - is ndx trading becoming a ping-pong match between institutions and high frequency traders?

And when the institutions dial back for the day, so do the HFT’s?

This emergent relationship - competitive at best, to symbiotic in the middle, parasitic at worst?

[brownsfan019 17]

A related question - is ndx trading becoming a ping-pong match between institutions and high frequency traders?

First, are these two trading parties dissimilar enough to distinguish them as 2 separate entities? B/c I think you could argue that institutions utilize high frequency trading in order to establish positions and that high frequency traders trade enough size to be called an institution.

 

If you assume that institutions and high frequency traders need to push big size, then I would assume they are using bots to do this. The more bots on one side (buy or sell) will win.

 

And when the institutions dial back for the day, so do the HFT’s?

Look at the daily volume as the big boys make up the majority of it. When that volume is down on the day, some entity dialed back on that particular day.

 

This emergent relationship - competitive at best, to symbiotic in the middle, parasitic at worst?

It's competition at it's finest. You have these huge, well funded bots going after other well funded bots and then you have the little guys like us just trying to tag along since we know we can only react to what they do. So far, the system works.

[zdo 20]

Question of the …

In addition to “normal” intervention through open market operations, the discount window, and lending money to banks and encouraging them to make the funds available to brokerage houses. (like in 10/87, etc) - what probabilities would you assign that the equity markets are now being actively and directly traded / manipulated by ‘agents’ of the Fed /& Treasury ?

[zdo 20]

Question of the …Sort of a poll:

In addition to “normal” intervention through open market operations, the discount window, and lending money to banks and encouraging them to make the funds available to brokerage houses. (like in 10/87, etc) - what probabilities would you assign that the equity markets are now surrepticiously being actively and directly traded by ‘agents’ of the Fed /& Treasury ? Thx