The only regret in my life at present is the awareness that I could not be a good computer programmer. With all my trading experience in stocks and derivatives I could have become a winner by creating superior strategies. Just imagine having an algorithm that can see every order coming to the exchange much before others can see them. The algorithm (Robot) can watch the accumulating orders and find out whether the orders are for selling or buying. It can sense the presence of an institutional order and can find out when the order becomes active or remains dormant. With my high speed I can buy and sell in front of every one because I see the order book before every other robot. I can also reverse direction when I see the incoming orders reversing a trend. These are not my imagination. This is what happens in our exchanges with high frequency traders in action. The robot with highest speed can front run every order. When you place a buy order, the robot buys the shares and you will see the price going up or shares offered making a vanishing act. When you change the price upwards you will again find the shares disappearing. Probably you may get a partial fill. When you stop buying out of frustration you will find the price falling. If you try again to buy your quota you find again the shares disappearing. You and me and all institutions are puppets on the shoe strings of high frequency traders.
Posted on: Mon, 26 Jan 2015 14:57:56 +0000