re algo & hft , page-13

well it appears many are arriving at the same conclusions regarding computer generated trading strategy.

its difficult to describe,very fluid and extremely responsive
they hold most of the information regarding trading volume and of course who is trading.

hft trading is not emotive just an algo and i am wondering how they might establish upper parameters that recognise the underlying presumed value of a stock or do you think its all just cause and effect.
growing competition will probably reduce margins ,so does this cause stagnation or are we in for hills and valleys.

the hills and valleys are becoming dramatic meanwhile we have the media presenting various theory for the turmoil,perhaps the media are correct in the underlying basis for movement but it does not explain the method.

the method is still aiming for a profitable outcome creating a very moody Mr Market through the use of electronic trading.

my trading practice over the past 4 years is 100% at market
no bid and ask for me--at presnt i trade infrequently using fundamantals presented by simple trading ranges and all done on a comparative basis with other stocks on my list--in short i am using a simple algo method involving simple numeracy

i am registered as a trader and i would presume through the use of the register combined with information that us retail players do not have they are able to develop suitable strategy to undermine your position.

my other trading practice is to allow very wide mental stops
only buying into stocks i might be happy to retain for the long term.

its all really boring however protection of capital is paramount even though it would appear a fortune is on offer
from the hills and valleys.

the fortune will soon disappear if you actively participate without a plan that generally speaking only allows modest real profit because of algo participation and the response that draws.

i have no clear answers,however one look at MRE and Glencore
are enough to show how they have captured enormous market share through active trading,yes i know they say they are an investment company however algos have redefined the terms of investment, evidently this is a highly profitable investmnet company with strategy that might be lead by trading as opposed to more traditional investment concepts.

so far my methodolgy has allowed me to track the market with minimal erosion of capital,however that does not equate to significant profit.

and i note with great interest how happy investors are when the market rebounds which i find perplexing given they are investing for income and traders buy and sell on the basis of short term equity.

you would think investors would be overjoyed with low valuations and high dividends.

so for the present perhaps even longer i am enjoying a break from trading and actually working more to get a profit from my labour which appears to be better in $$$