“Practical Considerations on the effects of HFT on price” Webinar recording now available – November 5, 2014

Dear Friends!

Yesterday I held a Webinar for FXStreet.com titled “Practical Considerations on the effects of HFT on price“.

In the webinar I have touched on the following 4 points:

• I have  provided a brief introduction on HFT (High Frequency Trading) and how it matters to us
• Presented the major effects of HFT on market price and price structure (very important)
• Touched briefly on the “war” between algorithms in the market
• Closed with an example of HFT “disturbing” a well-formed setup of a Program Trading algos.

Why am I so interested in HFT if, as retail traders, we cannot leverage them to our advantage? HFT algos run on specialize technical infrastructure and networks that are attached  to the main electronic exchanges. Therefore, there is no way we can compete with HFT.

However it is important to know HFT and study what are its effects on price. Particularly HFT behavior is capable of modifying price structure and can “help” Market Crashes!!! This is why there is a lot of talking about HFT and whether they are “socially useful”.

The debate surrounding high frequency trading has become increasingly heated, reflecting the varied perspectives on the ability (and desirability) of high frequency traders to move faster (and on the basis of potentially greater information) than other traders. In the past I have written about the contrarian view represented by Paul Krugman represents on HFT.

But my interest in HFT – like my interest in trading – is practical. Why am I worried of HFT? Because I know how it can have impact and skew my edge.

And what is my edge? If you do not know my work you may not know that I model effects of classes of Algorithms (other than HFT) on price. By doing that I can understand if/when/where Algos participates on price.

At the end of last year I have studied a typical example of how HFT can “disturb” my trading setups. If you are interested you can read here the full article on the battle of HFT versus Program Trading.

 

There are only few things that can be proven or are true about the markets. One of these is the existence of algorithms (which trade a very high volume, in some cases more than 80%) and they work on all time frames, in high volume markets, with clearly observable effects on price. And I am not talking only about HFT (High Frequency Trading) here.

The good news is that we can leverage the Algos (other than HFT) on price and and obtain a powerful edge that can significantly improve our rate of success. Something that the application of Traditional Technical Analysis will never be able to provide.

Have a look at how in the brief summary of this webinar.

“I will provide a brief introduction to HFT (High Frequency Trading) and some definitions. I will then elaborate on 2 major effects of HFT on the markets. First is the effect on price structure and how it changes. I will then touch on the underlying “war” between classes and families of algorithms (not only HFT). I will conclude with the effects of HFT on methods that attempt to frame price structure and show a real market example – during planned news – and what can happen in those cases.”

So, if you haven’t had the time and the opportunity to watch yesterday’s webinar  you can watch it here below:

Click here to watch the webinar recording here, and then let me know what you think about it.

Have a good day all.

To your success, rooting for you…

~FibStalker

 

“A New Philosophy for Trading Success in Modern Markets” Webinar recording now available, October 20, 2014

Dear Friends!

Last week I held a Webinar for FXStreet.com. The title of the webinar is “A New Philosophy for Trading Success in Modern Markets“.

In it I explained how badly do we need a new Philosophy to trade successfully the markets nowadays. The webinar also covers the content of my Workshop I presented at the Toronto MoneyShow last Thursday.

The content of this webinar is important. Why? Well, if you look at the results of the average trader, as well as the majority of traders, you would immediately think that we are much in need for new and effective ways of analyzing, reading and trading the markets differently.

Actually, over 90% of traders lose consistently in the markets. Moreover, 22% of Forex traders do not use any kind of hard stop (recent data shared from OANDA, one of the largest Forex brokers in the world).

So doing things differently is key is a much needed substantial change. And as we do thing differently we must look at the reality of modern markets. Markets have changed and in trading we must employ ways of reading price that are grounded in the way the modern markets work.

There are only few things that can be proven or are true about the markets. One of these is the existence of algorithms working on all time frames, in high volume markets, and their observable effects on price. I am not talking about HFT (High Frequency Trading) here. Those work only on the smaller timeframes and there is really nothing we can do about them.

Can we leverage that and obtain a edge that can significantly improve our rate of success? Yes we can. And anyone can once the rules to model effects of algos on price are known.

Have a look at how in the brief summary of this webinar.

“I will introduce a revolutionary and effective way of thinking, analyzing and trading price dynamics and reading price structure, as well as obtaining information through price discovery. I will talk about the richness of information in price brought about by classes of algorithms in modern markets. I will then touch on the 13 points of my philosophy in trading, the 11 ways of doing things differently, the 7 Pillars of Trading Success in modern trading and the 4 major steps I follow in my trading. This webinar is going to challenge what you believe about trading and what can be done without traditional technical analysis, and the complexity of its rules. This is not for the faint of heart.”

If you haven’t had the time and the opportunity to watch the webinar just yet, do it. It’s an eye opener. I had people very excited coming to me after the Toronto MoneyShow Workshop.

Maybe there is a good reason… 😉

Watch the webinar recording here, and then let me know what you think about it.

Have a good day all.

To your success, rooting for you…

~FibStalker