HFT High Trequency Trading in Stocks and how to adjust to it.

[kosai19]

That price move to me isn't any indication of high frequency trading. Notice how the low of the breakout bar was never hit? This was a manipulated pullback by traders to absorb more demand as the "weak holders" liquidate positions. Just before that massive move there was supply absorption also.

[kosai19]

Not sure if you study volume but buyers will have to absorb as many sell orders as they can to "clear the way" for higher prices. There were about 4 strong indicators that this is what was going on instead of HFT.

HFT is just computers that widen the spread, but this price action shows something else.

[crazyfast999]

Its good to see the mind behind the magic. Make more, if you have the time!

[BackTestingReport]

Nice video - really illustrates HFT and also I like how you tell what you're thinking and feeling when making decisions about the trade

[pjjmsn]

great video andy! Regarding big vol bars: when there is HFT in a stock there will always be a lot of volume. The question is is how much of the volume is real and how much is the robots? So does volume mean a lot less now, than it used to?

[ajk8547]

I wonder if the HFT is just more apparent the last several months since the volume has been so low (and the volatility has dropped off significantly) so the prices are easier to be manipulated by the bots without them needing to take on much risk. If there's a ton of high-volume panic selling like the first few months of 2009 it might be harder for the bots to do their thing without taking on a lot more risk if there's a lot of human-trader follow through on the moves.

[TSXtrad3r]

Great video, really nice patience on that 20 min pullback Andy. I was thinking about where I would average in on that trade as it was unfolding and I also figure I would have probably stopped out at 6.09 for a terrible loss (if it got to that level), however I don't think I would have been able to hold the full size much past 6.35 on the move back up after all of that garbage! Thx again and Good luck this week traders.

[webozzy21]

thanks for the info.

[averageneo]

i was wondering why some of my trading are working out great. didn't know the reason behind it, i just knew it works.  now i know :) thx

[MichaelPatterson9]

@averageneo fuck you

[joeeltaco]

am aware of High frequency Trading but I ve seem a lot of moves like those, they look like pull-backs or irrational movements. But still I prefer leaving soon and maybe re enter because in this case LEAP could also have a reajustment to the downside

[dave997]

are u anticipating a big move to the downside before april when the fed is suppose to raise rates? This whole rally is from liquidity surplus, I think if the fed is pressured to get more aggresive with rates to preserve dollar value by china you might see a big move on the downside, do you agree? In my opinion 80% of this rally was just from 0% fed rate, the other 20% was blind optimism, the real economy is in shambles

[andyatm2000]

Yes, I am anticipating a big downside move at some point but will not fight the trend. It may not occur until well into the first quarter of next year. Until then I remain hedged in my swing acct and look for good risk/reward entries to the long side but my upside targets get shorter the higher we go (i.e. 2 or 3 days in some cases)

[MichaelPatterson9]

@andyatm2000 Fuck off!!

[glasszz]

great video

[goldenshots]

Great video Andy....Some moves are just ridiculous sometimes (especially for a starter like me)...

[lti12]

when did this high frequancy trading start? I just recently hear you talk about it.

[goldenshots]

i think its always been here, it just has taken a higher toll on the market since the financial crisis started...