Strategy behind the HFT? | Bitcointalksearch.org

kiko

sr. member

Activity: 453

Merit: 250

I answered this only a few hours back.

https://bitcointalksearch.org/topic/m.1750626

Quote

When the spread is wide, you put a pair of straddle orders as far apart as you can while still being top of the order book. When people come in with small market orders you take their money then recycle it back around keeping you market neutral. If the price stays range bound for a while and the spread remains, you will might make money after commissions. The best time to execute is after a big move when humans haven't had a chance to close up the spread.

dutt

member

Activity: 135

Merit: 10

You can't HFT mtgox, too laggy.

b!z

legendary

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Sell Sunday night, buy your coins back cheaper Monday morning.

Manticore

member

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Merit: 10

Quote from: bootlace on April 04, 2013, 07:56:34 AM

Looking to find out what the strategy is behind the high frequency trading that goes on in Bitcoin marketplace like Mtgox (the ultra quick buying of many 0.01 BTC in succession)? Is it just to create a psychological impression that prices are going up and to trick people into buying in before the price explodes (because if you're looking at a site like bitcoinity or clarkmoody, it really does give you the impression that something huge is happening while in essence less than 1 BTC is being bought..

Or the tiny buys above the ask that push bid/ask up several dollars in the midst of large scale dumping. You'll see small .25 BTC buys that somehow counteract dumps of 100's of coins. It happens anytime BTC starts falling. You don't see it in reverse.

nobbynobbynoob

hero member

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Annuit cœptis humanae libertas

I use the Preferences tab in Bitcoinity to filter out all trades below BTC5.

bootlace

full member

Activity: 364

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Justice as a Service Infrastructure

Looking to find out what the strategy is behind the high frequency trading that goes on in Bitcoin marketplace like Mtgox (the ultra quick buying of many 0.01 BTC in succession)? Is it just to create a psychological impression that prices are going up and to trick people into buying in before the price explodes (because if you're looking at a site like bitcoinity or clarkmoody, it really does give you the impression that something huge is happening while in essence less than 1 BTC is being bought..

Topic: Strategy behind the HFT? (Read 1708 times)