What does /biz/ think of robots doing the vast majority of trading these days? Is the stock market now about who has the best algorithms for buying/selling?
>>1221970
dude... like 5 years ago already.
>>1221990
>these days
I'm aware.
the vast majority of algos have no impact on longer term pricing. unless you are daytrading or scalping very short term then algos wont have much of an impact on your performance, for better or worse.
>>1221990
more like over 10... they killed off a lot of the point and click scalpers in futures markets (though some still exist - but no where near at the scale of the early 00s)
but for other people, trading on longer timeframes, they've narrowed spreads
I'd say certainly 10 years ago it was still possible to look at a change in the order books on some correlated market and react/get some edge - flipping/spoofing had already started (I was trading on eurex in my first job back then... Paul Rotter definitely messed with some of the older locals). These days things have evolved a lot and all sorts of order book games are played.
almost everyone is using some form of algo... not just HFT firms - while they've got thier dedicated hardware, colocated servers etc.. even people using futures markets for hedging purposes will use autospreadders
(for example proposed CFTC rules on HF trading could have an impact on even the hedgers too... some politicians come out with soundbites about 'banning HFT' out of some general perception that it is 'wrong' but when getting into the details of it it is harder to define and there are a whole host of things that could catch out some of the very people moaning about it/lobbying for regulations)
algos dont make much of an impact on pump n dumps.. they can easily be fooled
