Now, i think there is a big mistake we guys are doing in blaming algo trading for this glitch. Under Algo trading there are two basic sub-sets:
1. HFT: arbitrage related strategies(Mostly big prop-desks do so with co-located server)
2. Non-HFT: automated technical,jobbing, charting etc strategies. (Mostly prop-desks and retail traders like me do it)
All these glitches were due to HFT fat finger syndrome. The parameter entered by one of the trader using HFT platform entered the wrong parameter. Hence, the brouhaha about Algo trading.
1. HFT: arbitrage related strategies(Mostly big prop-desks do so with co-located server)
2. Non-HFT: automated technical,jobbing, charting etc strategies. (Mostly prop-desks and retail traders like me do it)
All these glitches were due to HFT fat finger syndrome. The parameter entered by one of the trader using HFT platform entered the wrong parameter. Hence, the brouhaha about Algo trading.
retails are not even permitted to full fledged automated trading....
retails terminal are cripple by 2 FA authorization and 2 types of passwords ...password expire every 2 weeks...and and ....confirmation box on auto trading..
and dont forget time lag ...glitches ...software hang...and what not..:lol: