http://www.zerohedge.com/news/2015-10-2 ... -overnight
Boiled down to its base elements ... HFT predatory algo's, which are distinctly different from the Pip Hunter family / type of program, are basically just using what THEY know YOU are using to help screw you by forcing your "technical" trade based on specific paramters.
A quick list of basic (crappy) 'strategies,' which kill retail traders and boutique firms alike include: VWAP (lol), TICK divergence, ADD / VOLD / TICK vs VIX third derivative ratios, intra-day trendlines, any Bill O'Neil pattern, intra-bar stop hunts where a candle's wick triggers obvious sell / buy stops but its real body closes well away from the assumed line of demarcation, Elliott Wave by its lonesome, ANY default indicator / oscillator settings, and that just barely scratches the surface of a basic central component or simple conditional filter. Low volume baby trend days like today typically crush retail speculators and options traders who aren't looking for a high probability scalp of 0.5 to 1.25 ES points or a dime within the Q's and CL but rather a swing trade of 50 - 100 YM points or 2-5 points on Goldilocks and Gurgle.
The market is dead, with only Cyborg algos trading amongst themselves, as is the norm lately. No reason to even comment on this. Nobody wants to sell courtesy of moral hazard, and nobody wants to buy courtesy of 100x P/E. Can we just call it a stalemate and all go home.TD 11/17/2009 15:40 -0500
a Nov 13, 2009 8:47 pm
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