He makes his money from selling trading tutorials and courses. Back in the day when he made money, things were far different. It hasn’t worked out for him, like it hasn’t worked out for most, in the past few years. Anyone who’s making tons of tutorials is obviously not making money because they’d be focusing on making money instead of giving out tutorials. There was a huge, long article on him that talks about this in much more detail but I’m about to go to sleep, so I’ll find it later.
Your other article that says no one plays in equities isn’t true. Most HFT is still going on in equities, in fact, moreso than other arenas. The reason is because you have so many different exchanges and also order types which are present in futures markets for instance. If you trade WTI crude, you’re trading it through the CME. There’s a couple other exchanges like SAFEX in Africa and such but nobody’s trading that stuff. If you try to find out about market microstructure on Globex, for instance, they are extremely vague and secretive about how it all works, and part, if not all, is because they are trying to keep out market manipulators.
One great way to sort of level the playing field now would be to randomize the queue when it’s queried by the order managing servers. So say 100 orders come in and the first 20 are HFT orders scalping, you shuffle the 100 orders so that they’re randomly distributed in the queue. It’s not that I have a problem with HFT, they’re basically doing the same things the guys in the pits did years ago but electronically. The problem I have is that it’s made it where only a select few can play in that arena with FIX engines, custom operating systems, FPGA chips, etc. You’re talking 100 grand just to get STARTED, meaning turning it on and then debugging, etc. You need a team of people to do it
Hmm sounds reasonable to me.
Join us in this disscusion on HFT through our FREE newsletter. Yeah, we even talk Tim SykesNOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!