High-frequency participants in exchange trading cost billions of dollars every year

Once a year, frequency trading costs financiers of the global securities market billions of dollars. Continue reading “Высокочастотные участники биржевых торгов обходятся в млрд долларов каждый год”

TOP 10 – Самых успешных трейдеров 2018 – 2019 of the year. Wall Street rankings

It was mainly those traders who were able to make money in a difficult year for investors., who relied on mathematical models to make decisions

Wall Street is being taken over by computer geeks. In a difficult year for investors, when ordinary hedge fund managers lost money, elite traders, who trade based on mathematical models (such trading is called quantitative), stood out against the general background. More than half of the most successful traders and hedge fund managers in 2018 made decisions, using computer algorithms.

Continue reading “ТОП 10 – Самых успешных трейдеров 2018 – 2019 of the year. Рейтинг Уолл-стрит”

A python trading robot from scratch. Algotrading

How to start algorithmic trading. Writing robots from scratch for trading. Training Python Trading Robot from Scratch. Algotrading :

My first thought about trading came from 4 Faculty of Economics course, when I realized, what you need to have passive income. Started with bank deposits and mutual funds (mutual funds), then fate threw me into IT. I am very addicted to this, entered a technical university and set a goal to combine information technology and exchange trading, because it's interesting, promising and highly paid.

I will talk about, where to start mastering algorithmic trading without experience in trading and programming. More precisely, it will be a series of articles broken down into stages with a detailed description of the learning process and recommendations.. The training program is suitable not only for beginners, but also for experienced programmers, because. it also involves the development of exchange trading. Also, it may be of interest to traders, who will acquire the necessary knowledge in programming. Each stage is structured like this, that it won't take a lot of time, possible combination with work or study.

Continue reading “Торговый робот на python с нуля. Алготрейдинг”

Layering ( layering )- strategy, which came under the ban of American regulators

High frequency trading, depending on the strategies used, has a different effect on the market condition. Some of them are draining liquidity from the market, другие – добавляют рынку ликвидность. Many of them are the cause of sudden unexpected movements in market quotations., and also generate new borderline methods of unethical, and sometimes illegal income generation on stock exchanges.

This controversial practice includes the method layering ( layering), the essence of which is to create the possibility of artificially shifting the quotations of purchases and sales of securities in order to force the rest of the exchange market participants to make a profitable deal for the manipulator.

Continue reading “Layering ( layering )- strategy, которая попала под запрет американских регуляторов”

LAYERING PRACTICE: IMPLEMENTATION MECHANISM AND LEGISLATIVE BARRIERS

Layering – это стратегия высокочастотной торговли, where does the trader do, and then cancels orders, which they never intend to carry out in the hope of influencing the share price. For example, to buy shares at a lower price, the trader first places orders to sell at or below the market price

High frequency trading, depending on the strategies used, has a different effect on the market condition. Some of them are draining liquidity from the market, другие – добавляют рынку ликвидность. Many of them are the cause of sudden unexpected movements in market quotations., and also generate new borderline methods of unethical, and sometimes illegal income generation on stock exchanges.

Such a controversial practice is the layering method., the essence of which is to create the possibility of artificially shifting the quotations of purchases and sales of securities in order to force the rest of the exchange market participants to make a profitable deal for the manipulator.

Continue reading “ПРАКТИКА LAYERING: МЕХАНИЗМ РЕАЛИЗАЦИИ И ЗАКОНОДАТЕЛЬНЫЕ БАРЬЕРЫ”

How high-frequency trading has changed the world on global exchanges: 4 Credit Suisse analysts' withdrawal



In the spring 2017 года аналитики банка Credit Suisse опубликовали report о «реальной роли HFT торговли в современной экосистеме финансового рынка». The document states that, how high-frequency trading has changed the state of affairs on world exchanges - we have selected five main findings of the study.

Continue reading “Как высокочастотный трейдинг изменил положение на мировых биржах: 4 вывода аналитиков Credit Suisse”

Why traders can no longer earn without robots

This approach to trading will only gain popularity in the future and ultimately will almost completely oust the human factor from the market.

In recent years, more and more funds and investment banks are laying off traders and portfolio managers., replacing them with mathematicians, quanta and machines. Famed financier Paul Tudor Jones after being laid off 15% staff of his fund told the remaining staff: No man is better than a machine, and no machine is better than a man with a machine ("No man is better than a machine, and no car is better than a man with a car ").

There is every reason to believe, that such an approach to trading will only gain popularity in the future and ultimately will almost completely oust the human factor from the market. To verify this, enough to take a closer look at, What have modern financial markets become?.

Continue reading “Почему трейдеры больше не могут зарабатывать без роботов”

Who will win the stock market robot war??

Most of the decisions in the stock market today are not made by humans., but a computer. Will there be a place for us in the investment market??

Robots brought unprecedented speed to the stock market. They buy and sell stocks several thousand times in one second.. As a result, if in 1975 year, the average holding period of one share in the United States was about 18 days, then in 2014 year it shrank to 2 days. Considering unofficial exchanges (so called dark pools), which account for most of the turnover of high-speed robots and at the same time whose data are not disclosed, the actual average holding time today is almost certainly already measured in hours.

Continue reading “Кто победит в войне роботов на фондовом рынке?”

Athena Capital Research fined for HFT

Американские власти предъявили компании из Нью-Йорка под названием «Athena Capital Research» иск, accusing her of illegal price manipulation on the NASDAQ electronic exchange. According to the Federal Securities and Exchange Commission, this is the first time a firm has been punished in the United States, which carries out superfast trading. The company agreed to pay a fine of $1 million.

As it turned out later, company from June to December 2009 manipulated stock prices, almost every day making a large number of trading operations in the last two seconds of the exchange. To carry out these transactions, she used a super-fast computer and a special electronic transaction algorithm. And even despite the relatively small size of the company, the share of transactions for this company came out solid - about 70% all transactions, which were before the closure of the site.

“Если компании, performing high-frequency trading, will cross the line and cheat, we will prosecute them legally, how do we pursue anyone, кто манипулирует рынками”, – предупреждает глава Комиссии по ценным бумагам и биржам Мэри Джо Уайт. She also says, that in case of repeated violation of the rules by this company, even tougher sanctions will be applied.

but, although Athena Capital Research agreed to pay the fine, publicly she does not admit her guilt. AND, as was expected, promises to strictly comply with all requirements in the future, which are presented by federal authorities to participants in trading on stock exchanges.

Interview: how C # and C ++ help make money in the stock market

One of the most popular topics in our blog was the story about Jesse Spaulding - a guy, who earned $ 500k in the stock market, applying your knowledge of programming and understanding of the basics of the stock market (part 1, part 2). In the comments to these texts, some habrap users expressed their doubts about the realism of such a scenario in our country.. There were also phrases like "well, he used to work in this field".

In this regard, the editors of the ITinvest blog spoke with Andrey Gorkovenko, the developer, who followed the path of Jesse Spaulding and managed to turn his life around with the help of the stock market and technological knowledge. With this text, we open a cycle of interviews with direct participants in the processes on the Russian stock market - software developers, traders and company executives.

Note: Andrey Gorkovenko used to work as a programmer at ITinvest. In particular, he worked on a project trading terminal SmartX (the history of its creation is described in a separate habratopic). He later created a universal mechanical trading system, with which you can implement various trading strategies in the stock market. This development brings him the main income., which exceeds the average developer salary in Moscow.

Andrey, Hey! tell, how did you get involved with the stock market?

IN 2007 year I left the fourth year of the Voronezh Military Institute of Radio Electronics and started looking for a job. Since I have always been into programming, And, as it seemed to me, possessed certain skills in this area, then considered relevant vacancies. It happened, that I was offered a place in the local Voronezh branch of one of the largest Russian brokers. Continue reading “Интервью: как С# и C++ помогают заработать на фондовом рынке”