HFT and program trading is everywhere (English Language)

The following short article appeared on my free weekly newsletter issued last week with a title “News you may have missed this week”:

‘A single mysterious computer program that placed orders — and then subsequently canceled them — made up 4% of all quote traffic in the U.S. stock market last week, according to the top tracker of high-frequency trading (HFT) activity, Nanex. The motive of the algorithm is still unclear but, of course, the program slowed feeds down to gain a money-making arbitrage opportunity, which is typical of HFT. Find the related article here. This is not the kind of behavior I take advantage of in my trading methodology, but I think it is important to understand there are a lot of programs out there and while on the one hand this fact requires additional care from the trader, on the other hand it also represents new opportunities.’

I believe program trading is well alive and kicking on the FX currency futures, as well. What’s your take on this?

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Filed under Articles, English language, Program Trading

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