High-frequency trading (HFT) coming to bitcoin

johncitizen

newbie

Activity: 56

Merit: 0

Quote from: itod on March 12, 2014, 06:42:53 PM

Quote from: johncitizen on March 12, 2014, 10:15:30 AM

Forget what you think you know.

The worlds HFT expert,

Eric Scott Hunsader
Twitter: @nanexllc

Go to nanex.net

Help me clear this one: johncitizen == Eric Scott Hunsader?

No, johncitizen is not Eric Scott Hunsader.

Swordsoffreedom

legendary

Activity: 2884

Merit: 1115

Leading Crypto Sports Betting & Casino Platform

Quote from: jonald_fyookball on March 12, 2014, 05:49:17 PM

Quote from: Swordsoffreedom on March 12, 2014, 05:41:23 PM

This irritates me although if you look at the charts I think someone beat them to it already the spreads are very jagged and square shapes
Characteristic of an HFT bot

I just got done explaining why "HFT" barely effects price. What chart are you talking about anyway?

Well after Gox died the HFT effect faded again but I was referring to
http://markets.blockchain.info/

If you were watching intra day trading a few weeks ago you could clearly see the trading patterns of API

Nagle

legendary

Activity: 1204

Merit: 1002

Quote from: niner on March 12, 2014, 09:16:20 PM

"Their goal is to facilitate bitcoin trading by large financial institutions."

source: http://www.coindesk.com/perseus-telecom-launches-digital-currency-initiative-integrated-exchange/

That's what Tradehill said too. Didn't work out for them.

If you want to run an exchange for big transactions, you need sizable capital of your own, or no one with real money will trust you.

niner

full member

Activity: 189

Merit: 100

You are here ---------> but you're not all there.

"Their goal is to facilitate bitcoin trading by large financial institutions."

source: http://www.coindesk.com/perseus-telecom-launches-digital-currency-initiative-integrated-exchange/

corebob

full member

Activity: 238

Merit: 100

Exciting times. The old era is rigging their cannons at the new.
I'm sure the bitcoin developers are exited. Its the perfect stress test.
If this gets big chances are that weaknesses of all kinds will appear and there will be a lot to learn, if it survives long enough.

The question is, are ordinary users going to move to other coins when the blockchain gets too big to handle?

Nagle

legendary

Activity: 1204

Merit: 1002

Atlas AFT is not "professional". They're just another marginal "exchange". Read the Atlas terms and conditions.

* Customer funds segregated from company funds - NO.
* Right to sue - NO, forced binding arbitration.
* Right to class action - NO.
* Published outside audit - NO.
* Published financial statements - NO.
* Member of regulatory association like FINRA - NO.
* SEC registered broker-dealer - NO.
* Customer balances insured - NO.
* Permanent office address (Utah): NO (50 West Broadway, Suite 1000 Salt Lake City is a "virtual office" rental space.)
* Permanent office address (NY): PROBABLY NOT.
* Accepts responsibility for assets losses due to own negligence - NO. ("IN NO EVENT SHALL WE ... BE LIABLE FOR ... DAMAGES, ... RESULTING FROM ... UNAUTHORIZED ACCESS TO OR ALTERATION OF YOUR TRANSMISSIONS OR DATA; ... OR (IV) ANY OTHER MATTER RELATING TO THE SERVICES.")

Those are worse terms than Mt. Gox had. This matters.

Co-founders:
* Shawn Sloves - Business Week profile SEC filing for previous unsuccessful startup, Global Over The Counter Bulletin Board LLC

Yes, they're registered with FinCen. (#31000033855084) As of today. The address they gave FinCen is the Greenwich Village Mail Center.

This looks like a couple of guys in shared office space just starting out. They probably shouldn't be entrusted with your money.

itod

legendary

Activity: 1974

Merit: 1077

Honey badger just does not care

Quote from: johncitizen on March 12, 2014, 10:15:30 AM

Forget what you think you know.

The worlds HFT expert,

Eric Scott Hunsader
Twitter: @nanexllc

Go to nanex.net

Help me clear this one: johncitizen == Eric Scott Hunsader?

MarketNeutral

sr. member

Activity: 434

Merit: 252

High-frequency trading isn't inherently unfair or unethical. It can be, but please make sure you know what you're talking about.

http://en.wikipedia.org/wiki/High-frequency_trading
http://www.investopedia.com/terms/h/high-frequency-trading.asp

Highly-levered, illiquid naked short selling low-volume altcoins? Yeah, that would be bad.
HFT? Go for it. Like bitcoin mining, faster tech yields more profits.

jonald_fyookball

legendary

Activity: 1302

Merit: 1008

Core dev leaves me neg feedback #abuse #political

Quote from: Swordsoffreedom on March 12, 2014, 05:41:23 PM

This irritates me although if you look at the charts I think someone beat them to it already the spreads are very jagged and square shapes
Characteristic of an HFT bot

I just got done explaining why "HFT" barely effects price. What chart are you talking about anyway?

Swordsoffreedom

legendary

Activity: 2884

Merit: 1115

Leading Crypto Sports Betting & Casino Platform

This irritates me although if you look at the charts I think someone beat them to it already the spreads are very jagged and square shapes
Characteristic of an HFT bot

bananas

sr. member

Activity: 364

Merit: 257

It is only for american residents, if you are not don't even bother. I actually felt scammed for my personal data when signing up for atlasats.com and i'm requiring them to delete my data.

Without any previous notice of the above stated they ask for your full name, address(anywhere in the world) and e-mail for a step 1 verification which allows only one thousand dollars deposit or withdrawal.( Which is the same as not being allowed to trade ).

Then when you try to do step 2 and 3 that allows up to 150k you see in practice that it is only for americans.

Luno

sr. member

Activity: 504

Merit: 250

There was some rumour early last year here that some British Asic HFT hardware manufacturer was hiring programmers knowing about bitcoin.

jonald_fyookball

legendary

Activity: 1302

Merit: 1008

Core dev leaves me neg feedback #abuse #political

Quote from: Maxxt on March 12, 2014, 06:52:27 AM

HTF makes markets more volatile

No it doesn't. It changes almost nothing as far as price action
because all HFT is, is computers running algos trying to scalp fractions of a penny.

Anyway, market isn't liquid or deep enough to be at all practical for HFT bitcoin at this time.

LeChatNoir

hero member

Activity: 699

Merit: 501

Coinpanion.io - Copy Successful Crypto Traders

Quote from: Maxxt on March 12, 2014, 06:52:27 AM

HTF makes markets more volatile but that's not bad. More trading = more "quick" liquidity

This is absolutely wrong, the opposit is true.

bitjoint

sr. member

Activity: 333

Merit: 250

Commander of the Hodl Legions

Quote from: runam0k on March 12, 2014, 12:30:13 PM

Check this out, a video showing one half-second of trading in one stock (Johnson & Johnson) - it's insane:

http://www.huffingtonpost.com/2013/05/09/video-half-second-high-frequency-trading_n_3245999.html

17k orders per second... not bad. Almost like me in bitstamp's site.. http://www.youtube.com/watch?v=cW7ZfCZRER8

Grin

bitcasino

sr. member

Activity: 342

Merit: 250

High Frequency losses and gains.

runam0k

legendary

Activity: 1092

Merit: 1001

Touchdown

Agree with the general sentiment here.

On the one hand, it's another pro service coming to Bitcoin.

On the other, HFT is purely extractive and serves almost no purpose.

Check this out, a video showing one half-second of trading in one stock (Johnson & Johnson) - it's insane:

http://www.huffingtonpost.com/2013/05/09/video-half-second-high-frequency-trading_n_3245999.html

SeaofBTC

newbie

Activity: 43

Merit: 0

Long term, HFT will be a good addition to bitcoin because it means more people will be holding it at any given time. Even if they do not intend to hold it, traders represent occupiers of bitcoin.

Short term, HFT is fairly well known to cause more volatility. For traders, this is a good thing. I look at this with excitement. For investors, this is not as good looking, but I would argue that it does not affect them as a good investor is not focused on short term fluctuations in price anyway.

There are only a few trusted/large exchanges where HFT is possible, and some of them are not willing to open for discussion. Bitstamp has a stringent 600 API calls per 10 minutes policy, and they sent me to their legal department when I was asking about that since I run a fund.

As for HFTing and TA, I saw someone say that HFTing will make TA easier to use with bitcoin. I highly doubt this will be the case. HFTers typically eat TA users for profit.

bitjoint

sr. member

Activity: 333

Merit: 250

Commander of the Hodl Legions

Quote from: BCB on March 12, 2014, 10:17:19 AM

More important, this announcement means that real "professional" services, with experience in tradition FX/Trading are entering the market.

This is a good thing and indicates a maturation of the market.

+1, but bitcoin doesn't have enough market depth for big players (yet). I'm curious about what will happen in the coming months: which major players will jump in, etc.. I concur these are 'generally speaking' good news but we still need to see the real impact. A single "big WS guy" could crash the whole market easily since a market with this depth is like a toy for them...

*Popcorn*

BCB

vip

Activity: 1078

Merit: 1002

BCJ

More important, this announcement means that real "professional" services, with experience in tradition FX/Trading are entering the market.

This is a good thing and indicates a maturation of the market.

Topic: High-frequency trading (HFT) coming to bitcoin (Read 4475 times)