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Algo, Machine Trading and Dark Pools ... Liquidity: Hide and Seek Mode

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 Middy Zakaras, Derivatives Trader, Portfolio & Business Developer, Macro Analyst (Multi Asset)

 Monday, March 5, 2018

If one man (Navinder Singh Sarao), trading from his mothers loft supposedly and singlehandedly managed to break the most liquid market in the world and cause the 2010 Flash Crash event, just imagine (near decade later) what a well financed, well prepared army of rocket scientists will be able to do here with this supposedly liquid marketplace. http://thinvalues.com/betting-on-the-machine-correction-like-we-never-seen-before/


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2 comments on article "Algo, Machine Trading and Dark Pools ... Liquidity: Hide and Seek Mode"

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 private private,

 Thursday, April 19, 2018



data manipulation? it's 4 real.


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 Ammar Berrou, BIM Developer, Algo Trading

 Saturday, April 21, 2018



Lovely article, thanks for sharing.

I noticed the same and wrote about it couple of years ago, I think poor coded algos are behind it: like relying on single very simplified approach for example using a simple technical analysis technique.

How this will stop? When machines need to use smarter algos to win? Or the size of alternative products like cfds get better regulated? Or as mentioned in the article few more flash crashes! Few weeks ago the 1 minute chart of major stock indices was moving bigger than daily chart in common days.. a quick flash crash, then minutes later same machines probably "noticed" it was good price to buy again! Ruining stop/loss positions of a-would-be winning trade for human traders.

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