High Frequency Trading - William Arnuk Video

Documentary for an 8th Grade Civics project.

HFT is the ...
HFT is the beginning stages of an ongoing evolution that will eventually lead to the complete governance of the global financial sector. Good job? on your video...very well done!

Great project? man!
Great project? man!

good job. I never ...
good job. I never thought about such things at your age, and even though I think perhaps you should broaden your scope a little bit about this particular issue, the very fact that you're interested in such things at 16 bodes well for your future. Everything you're saying is correct but there is more then one way to look at this issue. But nice video. It is obvious you like to find out things for yourself and? ask questions, and that will take you far in this world.

fellow algo traders ...
fellow algo traders. Not many people use VWAP/TWAP orders, and those are the types that suffered the most. Human daytraders like myself stayed out for the most part, and many even made? significant profits from the bounceback. And average investors (people who aren't watching the tick by tick movements of the Dow) would have been even less affected. By the time they heard about it, the damage was recovered. But, as mentioned to the maker of the video...... (cont)

Well put. The ...
Well put. The liquidity that HFT provides seems like it's not sucha big deal.....unless you're a trader and are familar with trading WITHOUT liquidity. I am a career daytrader, and I the benefits of HFT far outweigh the negatives. There certainly are shortcomings - the system is not perfect - but much like, say, democracy, which also has shortcoming, we are better of with it then without it. As you say, the people? who got turly killed on the May flashcrash were (Cont)

[continued...] I ...
[continued...] I really encourage to look past what's presented in financial media. Also, to question certain people's motives in promoting/demonizing something (they usually have something to gain). Of course, don't take what I have to say as fact really look? into the subject and come up with your own conclusion. Keep up the good work, this is certainly a subject most adults wouldn't even consider looking into so you're far ahead of the curve.

[continued...] ...
[continued...] because at the end of the day high-frequency traders? are saturating their market and they're losing money because of it. I'll admit that not everyone has the skills or can afford the technology required to implement a profitable HFT strategy. However, when is anything ever fair in finance - can joe retail investor afford to hire a research staff? A well funded bank/fund could, saying they can't hire a research staff would be more unfair in itself. [continued..]

[continued...] One ...
[continued...] One of the reasons why we saw such a quick recovery in the "flash crash" was because of that. In regards to predatory trading, it seems unfair but at the end of the day - this is finance. I don't believe most retail investors are executing algo (VWAP/TWAP) orders (these are the types of orders that are being picked off) to begin with either, so? at the end of the day HFT benefits the small guy. Firms like Themis are ultimately against it because at the end of the day [continued..]

While I certainly ...
While I certainly applaud your intellectual interest in the topic (I certainly wasn't thinking about such things at your age). I think you should have been a bit? more objective with this. Here's my point of view, HFT is just the natural evolution of trading. Liquidity is the real thing HFT brings to the table, which in the end benefits MOST investors. We're talking about tighter bid-ask spreads, faster recovery (extension of deeper order books). [continued..]

I guess this guy ...
I guess this guy may be a bit young to remember what happened? in the pits or history isn't his strong point.

I? know the guy, he ...
I? know the guy, he got an A+

unfair unless your ...
unfair unless your in on it..?

Actually, this was ...
Actually, this was done in New Jersey, USA. I should know I was his teacher. Great Job Billy! Still so proud of you a year later! Keep reaching? for the stars! I can't wait to see what you will do in the future.

So, next time ...
So, next time there's a mass shooting, don't blame the shooter because he's a victim of the financial? crisis. Blame Goldman Sachs and their HFT computer system, located closest to the central computer at the NYSE. I don't think it's too much a stretch to think that way. I think it's funny that New York state literally had a blind governor. They know about NYC investment banks and can't fix the problem, so warn us with a metaphor. :-)

Regular investors ...
Regular investors can impact the market in a similar way by buying and selling leveraged ETFs. Underlying a leveraged ETF are swaps, options and/or index futures positions. A? computer wisely hedges those derivative positions by buying and selling the underlying stocks. That said, it's a lot of pressure to be putting on the stock market and individual 401K accounts. Everyone involved in its creation is probably very wealthy by now, exhibiting willful ignorance about the whole thing.

This is better ...
This is better reporting than CNBC has done in? the last ten years.

Wow - 8th grade ...
Wow - 8th grade civics project - who knew that they were still teaching civics in school anymore? - must be from Canada. Congrats on the CNBC nod - although, I'm not sure if that is a positive or not. I give you an A for presentation, an A for effort, an F for talking about HFT (a topic that shouldn't be talked about) - so your final grade is a D - you need to learn early on that what the teachers really want is for you to regurgitate what they say and think otherwise? you're a threat to them.

ditto everything? ...
ditto everything? that you just said :P

this is a great ...
this is a great video... by the way, billy, what grade did you get on it? i can't remember, but i think it was an a. -your inspiration?

billy! great video! ...
billy! great video! yes i actually did watch it :) fyi evry1 now hes in 9th grade and hes one? of my best guy friends ever! any way great video and thanks for helping me understand this stuff haha

for an 8th grader ...
for an 8th grader this is a pretty good presentation.?

GREAT? Presentation!
GREAT? Presentation!

Great Job William. ...
Great Job William. Kudos? to you for selecting a topic that many finanical news media outlets are not able to wrap their arms around. Maintain your level of professionalism as future generations so need representation from those not on the inside in order to make a difference. Vigilant Grandpa

Remember when ...
Remember when computers first came into offices across the USA? People thought computers would take over the world & eliminate everyone's job & run the world. The fear has now come to computers at Wall Street. go to elitetrader com & search for the article out of Canada about firms eliminating the predatory trading by continually eliminating via software any latency edge other firms may get from their client's orders. The article describes it? more than I feel like typing here.

This is a ...
This is a completely outstanding presentation! I am using it in a posted article? on this subject. Thanks!

High frequency ...
High frequency trading is simply legal fraud by large entities raping the markets and the exchanges looking the other way because they are getting fat off charging for the transactions. Then the exchanges pay off Congress to not scrutinize this and the stealing continues. HFT strategies since most are? simialar have a racing effect.