Good afternoon Posters,
Im trying to collate a list of strategies that HFT employ to profit from their special rights granted to them on the market and would appreciate your help. I have a couple of strategies but do not profess to know all of them. I would also appreciate any assistance you can provide regarding resources, videos, evidence etc, that highlight the corrosive nature they not only have on portfolios, but the economy in general.
If you have any evidence that highlights the benefits they bring to market, I would be happy to review that as well.
Some I know of are:
Pushing the price of a stock down on the expectation of cap raising (offered to sophisticated traders at a further 20% discount to a 20 day VWAP) to further increase their allotment of shares
Ice berg orders being filled by loading up the sell side with large fake orders that will never be filled or pulled a moment before execution.
1 share sell or buy transactions give the impression that the stock is constantly trading in the red. usually executed immediately after a trade to the upside or on a regular allotted time.
flash crash dates etc.
