I (heart) HFT, still

I’ve written a few posts defending HF traders. Mainly ’cause I get irked by know-nothings haranguing successful traders . Tip to the know nothings, go and find something you can do successfully instead of bitching about those beating you. Even better, keep on doing what you are doing, more money for the rest of us (& BTW, thanks).

Here is a good article, Computers vs. the News: What’s Behind the Stock Market Chop?

Money quote about why the market is volatile:

This volatility reflects one thing and one thing only — markets react to news, and since 2007, there has been an abundance of news which has caused investors to panic.

Those blaming HFT for the volatility are idiots. Head-in-the-sand idiots. Do a bit of research, start by Googling (in no particular order):
US housing bubble
Mortgage-backed securities
Lehman Brothers
Sovereign Risk

Read a book, Bailout Nation is a great start.
There’s more, let me know and I can refer you to other sources.

This entry was posted in HFT / Algo. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s