High frequency trading is the new nightmare for the 21st century trader.
Powerful computers, located next to the exchanges, run complex algorithms to execute trades in split second timing.
These setups are expensive and require very smart people as well as very smart computers.
So how can you, the amateur investor, stand a chance against these brutes in the open market? Simply put: you can’t.
Cyborg Trading, a company we discussed in brief here on TBI, looks to close the gap for small fry investors looking for an edge. For a relatively low monthly cost ($200-$400), you too can have access to GUI-based algo builders and pools of liquidity.
Cyborg has been creating a series of videos aimed at “teaching” you how to HFT, or really, how bad you’re getting screwed by their customers and why you too should subscribe to their service. We’ll look at 10 videos that prove once and for all, the little guy has no chance in this game of chance.
Their claim: The Shake algorithm will help fill profit orders in penny-based increments. Essentially, you do multiple rapid trades with a one cent spread. You collect that one cent and an additional two cents from the liquidity rebate from the exchange.
Their claim: This setup lets you formulate your own trading strategy with specific conditions and variables. Once it gets going, the process is completely automated. Essentially, if used correctly, the oddsmaker will print you free money. Sounds pretty good to us!
Their claim: 'Optifresh Entries' and other buzzwords make up the world of high frequency trading, especially with Cyborg. You can build strategies with an algorithm-builder and plan risk management strategies to limit losses. Want to split up a block trade so you don't set off red flags? Cyborg can make that happen.
Their claim: Use the Smartspreader feature to create dynamic spread charts along with FOX trading to gain the egde. According to Cyborg, FOX stands for 'fixed order execution,' it allows you to bid at the price you want despite market volatility. Hold your mouse down on a Level II cell and the price will not change.
Their claim: Depth-threshhold entries allow you to get the best bid for the best price of your choosing. It takes options trading to a whole new level by allowing you to have a dynamic threshhold of triggers, meaning your executions will be measured by a specific percentage. In other words, you can spread out your orders based on various triggers you've set.
Their claim: Want to dive into HFT but don't want to risk capital? This engine will allow you to play around with strategies in different markets without getting burned.
Their claim: Basket trading allows you to have multiple strategies across multiple products that run automatically and adjust accordingly to your parameters. This is some incredibly complex stuff that really gives HFT traders an edge. This video from Cyborg uses airline companies as part of the example.
Their claim: This feature will automatically replenish an entry order once a profit order is filled. This is particularly useful for trading off of levels of support, where the market may retrace from a price several times. Different entry and exit strategies allow you to maximise profits while minimising loss.
Their claim: This strategy is based around gaining liquidity at multiple price points. If a stock you're interested in is tanking and you want to reverse it, this is how HFT'ers get it done.
Their claim: A strategy that allows you to break even on a trade. Another excellent tool for minimising losses.
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