Comments on Capital Mind: Algo Trading Scaling Up in India

Hey Deepak, Y not have a LOS - Long Only Strategy ...

2009-10-06T23:31:18.990+05:30

Hey Deepak, Y not have a LOS - Long Only Strategy .. now that the senses looks north

HFT slides in this GS report might be of interest:...

2009-10-02T12:37:27.866+05:30

HFT slides in this GS report might be of interest:

Goldman Sachs Presentation: Market Structure Overview (September 2009)

Green Man, HFT does not affect investors. It oper...

2009-10-02T12:10:09.201+05:30

Green Man,

HFT does not affect investors. It operates in time intervals of seconds or lower and at best will affect intraday strategies. It does not affect long term prospects for businesses and their stock performance over longer durations.

"why don't they let the stock markets be simple anymore"

this argument comes up over and over for every technology and every generation. For example; people from a generation or two back wonder why they have to start using computers at work instead of on paper. Move on...

Oh fu** why don't they let the stock markets be si...

2009-10-02T09:14:35.196+05:30

Oh fu** why don't they let the stock markets be simple anymore. Eventually people forget why they are 'investing' in the market in the first place - buying a piece of the profit making corporations and make this some numbers game

So, vampire squid is jamming its blood funnel(HFT)...

2009-10-01T23:47:40.020+05:30

So, vampire squid is jamming its blood funnel(HFT) into India.

Oh and by the way, do people remember the report a...

2009-10-01T21:10:32.614+05:30

Oh and by the way, do people remember the report about Goldman's stolen code having the potential to manipulate markets in the "wrong" hands?

Anon, My 2 cents: - It might change intraday beha...

2009-10-01T21:07:21.291+05:30

Anon,

My 2 cents:
- It might change intraday behavior (and hence effect intraday traders) so that strats that worked may not work anymore and one may need to find new intraday strats. Especially running out stops and stuff might be easier with algo trading. This is more speculation on my part though but it entirely feasible.
- the biggest impact is in the institutional space. Insti block orders are now handled by brokers and they use techniques to reduce market impact and get good execution prices for the block order. Algo trading will drive them out of business - see Joe Saluzzi's whining on this in the US as to what happens to these brokers.

NSE is in contrast with NYSE. NYSE has an SLP program whereby algo traders get a rebate (a frikkin' rebate!) as they supposedly provide liquidity. Who's willing to bet on how long before NSE is in GS's pocket?

Please provide a write up on how the algo trading ...

2009-10-01T12:39:34.492+05:30

Please provide a write up on how the algo trading will affect ordinary retail traders and also brokers who dont depend on algo trading.

check out omnesysindia.com they have pretty many t...

2009-10-01T11:17:53.208+05:30

check out omnesysindia.com they have pretty many trading platforms including ones for which you can create custom formulas yourself...

Don't you feel NSE is putting up restrictions on t...

2009-10-01T09:34:18.854+05:30

Don't you feel NSE is putting up restrictions on the order flow just because it is getting insecure about its system going down taking all the load that may get generated. Basically it simply doesn't have any buffer. Basically complacency has set in and so no technology upgrades were done and so people have to pay penalty for "unsuccessful orders"