New Flash Boy Books have captured the imagination of everyone investing in or trading in the stock market. 5 Tips to Avoid High Frequency Traders HFT Forward
The market is "bound" fear everywhere. IEX chief executive of course wants his new deal to benefit from all the media hype and panic
However, most investors and retail traders do not need to worry. If you invest in a long-term portfolio as a large mutual fund or pension fund, these funds are using dark pools that HFT can not see and trade with.
If you are a retail trader, keep in mind that most online broker orders with retail dealers are filled from online brokers. So your order will never be handed over to the exchange. If you are using ECN, most orders will not be sent to the switch. Here are five tips to avoid front-end running HFTs :
Use bulk bulk accumulation / distribution metrics to study your stock charts. These are based on the up / down indicators, tracking larger batches means 50,000-500,000 shares, smaller batches, usually 100 shares, up to 5000 shares. Entering Giant Purchases Prevents You from HFT Order Flows Because Dark Pool Order Hides From HFTs
Keep in mind that any stock of 10,000 or more is considered a "high volume" order, and if your online broker's inventory is too low, these orders are often sent more frequently to the exchange
If you are a day trader, you must accept that HFT activity will interfere with your trading. There is no way around it today. HFTs trade 1000-3000 transactions per second, you can only trade in minutes by law and environment. Most retail traders can not afford the $ 1 million HFT transaction set for hardware and software
Do not use "In Market Orders". Market Order Tell your broker to place an order at market price. This can set the slip point and the chance of a wider spread, which will give you higher cost of entry. In addition to sending orders in the market order to the online brokers and the market in general, you are not an educated, experienced investor or trader. In the market orders rarely use experts and professionals. Such orders are only rare for specific purposes.
Do not use a simple "limit order". Limit orders are the most common causes of retail traders, especially day and dealer losses. Professionals stopped using limit orders a few years ago and have switched to more complex multilayer control brackets orders.
Huge HFT activity is usually an effective process, a news-based equity fund, an arbitrage from another market or instrument, hedging, The resulting retail cluster orders, all of which use the same trading system, strategy, MACD or Stochastic, as well as some technical settings. As a retail trader, one of the great advantages of using technical analysis and stock charts is that you can see HFT, dark pools, small funds, corporate repo activity, and more models that tell you who controls prices,
The last tip is that HFT rarely moves in a trend, so do not start shorting after a huge HFT drop