HIGH-FREAK TRADING AND DA REVOLUTION

Read white paper – AI FOR THE INDIVIDUAL TRADER (pdf)

.

An open letter to my trading buddies about the white paper –  AI for the Individual Trader

Loop Lonagan comments on the White Paper:

I just heard stats that nowadays, 70% o’ the action in the financial markets is these high-frequency trading outfits. Them high-freak syndicates enjoy the right of first look before they trade. You got it—they SEE YOUR ORDERS and FRONT-RUN YOUR TRADES. It oughta be against the law.  No, I ain’t talkin’ about them Occupy Wallstreet hoodlums.  This is big money.

Why’s it allowed? Hey, 70% o’ the volume adds up to a whole lotta money for the exchanges. That clear enough for ya?

Just to clue you in—used to be only the Market Specialists got those kinda rights. And for a good reason.

  • Market Specialists gotta maintain orderly markets.  BIG RESPONSIBILITY.
  • Market Specialists gotta participate whether they like it or not.  BIG RISK.

But these high-freak syndicates ain’t got no duties. No allegiance to the public. No nothin’.   They’re speculators, plain and simple—in if for themselves and the rest ‘o the world can go take a flyin’ leap. They wait till the time is right, run their bombing raids, then disappear over the next hill.  At 70% of the volume, that explains a lot about what’s been goin’ on in the markets.

Hey, I ain’t got no beef with speculators. I’m a speculator. But givin’ one group special rights and privileges is against the spirit and the ideals that made the good old USA a country of opportunity for the common man. A few years ago we had, maybe 7,500 floor traders working in Chicago. Today? About 2,500 and dwindling. I know. I was one of them guys. Now I’m out. And the people trading on their own computers? Think they don’t get hurt? Think again.  But I ain’t takin’ it layin’ down.  I joined da revolution.

The thing about these high-freak guys is they trade like hit men. Don’t leave nothin’ to chance.  They cram their operations real close to the exchanges so the wires from their computers to the trades are real short. They pay $100K and more a month for super-fast internet access—and they can afford it. You ready to plunk down that kinda cash? I didn’t think so. The high-freaks trade in and out in milliseconds using super-powerful computer programs.

How does the common man compete against that?  Sure, some folks got enough capital and the right connections and they buy-in to these outfits. If you can’t beat ‘em, join ‘em, right? But what about the masses?  Markets is supposed t’ be fair.

Turns there’s stuff we can do about it.  Lemme lay out a few ideas and you can give it some thought:

1.) SLOW DOWN – Whatever you do might just work a whole lot better on a higher time frame.  If you’re a scalper, try holding for at least a few hours.  If you’re a day trader, try swing trading.  If a swing trader, think about long term holds. If you’re already long-term, think about the new crowdsourced venture capital funds or maybe even distressed real estate.

2.) LOOSEN UP – Ya can’t use them tight stops no more.   These high-freaks see them orders and scoop up volume whenever they want by spiking price for just an instant. Yeah that’s right—runnin’ your stops ain’t hooey no more. It really happens. Nobody likes gettin’ kicked outa a trade just before the thing takes off to the moon. But anybody with any brains knows ya can’t make a living long-term without protectin’ yerself with stop loss orders, so my advice is just back off a bit.  And while you’re at it, how ‘bout some good old-time diversification? How ‘bout putting on a hedge? Ya gotta protect yerself. I know—you heard it before. But now we got no choice.

3.) BEAT ‘EM AT THEIR OWN GAME – Here’s where it gets good.  Do all of the above but do it smart.  Nowadays you gotta get way more high tech. Big time. You gotta adapt and keep adapting, again and again. The faster your trading style, the sooner ya gotta switch systems.  That means you need automation, ’cause nobody’s got enough hours in a day to do all this stuff alone.  Some guys run new simulations every night.  This market’s not efficient and random like the professors say but the easy money keeps moving around.  You gotta find where it’s goin’ on and get there first and grab it up. And I’m finding out it’s not so hard to do with the right tools. Sure I try new ideas – all the time. Yeah, I test ‘em. But if you wanna stay ahead, ya gotta teach your computer to figure out when there’s money layin’ on the floor. That’s right—get that electronic gizmo working for you for a change. Just don’t go head-to-head with the high-freak syndicates – you’ll get stomped.  Run right around them guys.  Go high tech.  Join da revolution.

So I read a white paper “AI FOR THE INDIVIDUAL TRADER.” That’s where I get most o’ these ideas.  It lays it all out plain and simple and it doesn’t cost me nothin’ to read.  And it ain’t selling nothin’ neither.  So I’m sending it to ya.  Yeah, I been givin it a go.  So far so good.


So what’s with da Bears hat?  Sure I like da Bears but that ain’t the point.  The white paper tells a story about “The Parable of the Hats.”  But most of all, it talks about AI—that’s Artificial Intelligence—yeah I can say the word and now I can use it. Neural Nets vs. Rule-Based Trading.  Genetic algorithms. Simulations. Walk-Forward Analysis, Auto-trading. Hey, I can understand this stuff so I think most of you won’t have no problem with it. And it’s written up by a guy I know and trust.  Give it a read and make up yer own mind.

Good trading, youse guys. Loop Lonagan *

* [Verbatim transcript of an MP3 file dictated by Loop Lonagan]

.

Read white paper – AI FOR THE INDIVIDUAL TRADER (pdf)

.

Find Chicago Venture Magazine at
www.ChicagoVentureMagazine.com
Comments and re-posts are welcomed and encouraged. This is not investment advice – do your own due diligence. I cannot guarantee accuracy but I give you my best.

© 2012 John Jonelis – All Rights Reserved.

39 Comments

Filed under Financial Markets, Software

39 responses to “HIGH-FREAK TRADING AND DA REVOLUTION

  1. Greetings from Florida! I’m bored to tears at work so
    I decided to check out your site on my iphone
    during lunch break. I really like the info
    you provide here and can’t wait to take a look when I get home.

    I’m surprised at how fast your blog loaded on my mobile ..
    I’m not even using WIFI, just 3G .. Anyways, awesome site!

  2. Hi! I simply wish to give you a big thumbs up for the great information you’ve got right here on this
    post. I’ll be coming back to your blog for
    more soon.

  3. Heya! I just wanted to ask if you ever have any trouble with hackers?
    My last blog (wordpress) was hacked and I ended up
    losing many months of hard work due to no back up. Do you have any solutions to prevent hackers?

  4. For the reason that the admin of this site is working, no uncertainty very soon it will be famous, due to its quality contents.

  5. I usually do not write a ton of responses, but i
    did a few searching and wound up here HIGH-FREAK TRADING AND DA REVOLUTION | Chicago Venture Magazine.
    And I actually do have a couple of questions for you if you usually do not mind.

    Could it be only me or does it look like a few of
    these comments appear as if they are coming from brain dead people?
    😛 And, if you are posting on additional online social sites, I would like to keep
    up with everything new you have to post. Would you list of all of all your community
    sites like your linkedin profile, Facebook page or twitter
    feed?Learn How To produce music At home

  6. Hello to every body, it’s my first go to see of this web site;
    this blog carries amazing and actually fine stuff for visitors.

  7. This blog was… how do I say it? Relevant!! Finally I’ve
    found something which helped me. Cheers!

  8. Thhere are many instances in which those rdsponsible
    for the unlawful deaths are never held responsible in court.
    ” The day after the interview 21 year old Melinda Duckett committed suicide. Civil Lawyer: Deals with relationships between individuals and businesses and organizations, including marriage, divorce, property etc.

  9. Hey there, I think your site might be having browser compatibility issues.
    When I look at your blog in Firefox, it looks fine but when opening in Internet Explorer, it has some overlapping.
    I just wanted to give you a quick heads up! Other then that,
    amazing blog!

  10. Also take a moment to do some study into the standing of your potentil dog insurance
    carrier to make sure they are a reputable company.
    Unfortunately, many owners are unprepared to the high tariff of
    certain operations and medications their dog need.
    That being said, there’s also the liabilities off dog-related injmuries to take into account
    ‘ in addition to injuries on the animals themselves.

  11. It’s amazing in favor of me to have a website, which is useful designed for my know-how.
    thanks admin

  12. When some one searches for his vital thing, therefore he/she
    wishes to be available that in detail, so that thing is maintained over here.

  13. Shoot for anywhere between 800 and 2000 words to start, but
    naturally you have to comply with your host’s submission requirements in every cases.
    Next, the fake paunch, a padded bodysuit Sheila had sewn for
    his thirty-first birthday, which served both as
    costume and as some volume of protection. In general Tuesdays, Wednesdays and Saturdays are usually
    the cheapest days to fly.

  14. Wow, that’s what I was seeking for, what a information! existing here
    at this webpage, thanks admin of this web page.

  15. Have you ever thought about publishing an ebook or guest authoring on other websites?
    I have a blog based on the same ideas you discuss and would love to have you
    share some stories/information. I know my audience would enjoy your work.
    If you are even remotely interested, feel free to send me an email.

  16. t use people foods as dog treats; instead use healthy dog treats like carrots
    or celery. It is not surprising therefrore that they quickly win their way into our hearts as ouur four-legged
    family members. ] iin oone study); also helps proteect the smmall and large intestine.

  17. We recommend Alll Natural Pet Food tto alleviate furtther issues.
    Mojoo would have been a black and tan German Shepherd and Mushni was
    big dumb Rottweiler andd Shepherd mix. Do not inrerfere wiyh the eggs or chicks in rder to avoid stressinhg the hen.

  18. Excellent post. I was checking continuously this blog and I’m impressed!

    Extremely useful info particularly the last part 🙂 I
    care for such information much. I was looking for this particular info for a long time.
    Thank you and best of luck.

  19. Hi there to every one, as I am in fact keen of reading this web site’s post to be updated on a
    regular basis. It contains good information.

  20. Spot on with this write-up, I honestly believe this amazing
    site needs much more attention. I’ll probably be back again to read through
    more, thanks for the advice!

  21. If you require long term medical care, this money will be there to help.
    A dense fog shrouded the countryside preventing
    thhe engineers from seeing much ahead. Smith was out
    for the season but not out of the minds of the Nebraska
    coaching staff.

  22. Hello very nice site!! Man .. Excellent .. Amazing .. I will bookmark your blog and take the feeds also?

    I am happy to find so many useful info right here within the post, we need develop extra techniques
    on this regard, thanks for sharing. . . . . .

  23. We will continue to work closely along to come to a contract that
    brings you out of trouble on top, and all of our encounters will likely bee professional
    and dignified. On June 4, following a death of her
    son, Anderson posted to her Facebook page ‘My baby
    was my world my angel my everything i really like you selecting mommy will find
    out just what happened to you. OSHA has the directly to conduct workplace inspections and
    investigations to ensure employers are compliant using the federal safety standards.

  24. Huvudstadsborna älskar att festa och välkomnar gärna
    främlingar och turistfer att tа ddel i festlivet.
    Sök efter medlemmar från ddin stad och ԁu kommer med ɑll sannolighet att hitta någon і diin närhet.
    Allt från onne night stands, anal, läɗеr och lack, gruppsex till boneage och annan fetish.

  25. I couldn’t refrain from commenting. Very well written!

  26. I do agree with all the concepts you’ve introduced on your post.
    They are very convincing and can certainly work.
    Nonetheless, the posts are too brief for starters.
    May you please extend them a little from subsequent
    time? Thank you for the post.

  27. Heya! I just wanted to ask if you ever have any issues with hackers?
    My last blog (wordpress) was hacked and I ended up losing many months of hard work due
    to no data backup. Do you have any solutions to protect against hackers?

  28. The other day, while I was at work, my cousin stole my
    iphone and tested to see if it can survive a twenty five foot drop,
    just so she can be a youtube sensation. My iPad is now
    destroyed and she has 83 views. I know this is entirely
    off topic but I had to share it with someone!

  29. Howdy! Do you know if they make any plugins to protect against hackers?
    I’m kinda paranoid about losing everything I’ve worked hard on. Any recommendations?

  30. Hi! This is my first visit to your blog! We are a team of volunteers and starting a
    new initiative in a community in the same niche.
    Your blog provided us beneficial information to work
    on. You have done a outstanding job!

  31. This post is worth everyone’s attention. How can I find out more?

  32. With this software you can easily synchronise audio playback and use blendshapes from existing targets and tailor-make procedural animation effects, all
    to develop a high quality cartoon animation. Here are a
    few ideas with examples to use cartoon character logo designs in your brand mark:.
    They are smart tools for non-commercial use in newsletters, memos,
    tattoos, one-of-a-kind greeting cards, cartoon cliparts, and so on.

  33. His Manhattan-based attorney, Joey Jackson, woul not object for the prosecutions request thatt bail be denied.

    Buddy is a mellow dog annd his presence might
    hep clients calm with what can be a very stressful time particularly if thy have been arrested and also
    have tto go through the daunting court process. This article will discuss the various
    treatments and explain how sales tax pertains to Medicare receipts
    in general.

  34. It’s actually a cool and useful piece of information. I’m satisfied that you just shared this useful information with us.

    Please keep us informed like this. Thank you for sharing.

  35. Nice weblog right here! Additionally your site loads up fast!

    What host are you the usage of? Can I get your associate hyperlink in your
    host? I wish my site loaded up as fast as yours lol

  36. They are a very good way to promote business
    service. However Yahoo marketing and other
    pay per click search engines offer some excellent traffic at a more reasonable price.
    For more information visit: security gives you the protection from all kinds of worms,
    viruses and other problems.

  37. Understanding both advantages and disadvantages are important in order to choose the best internet marketing strategy.
    Then consider yourself one of the few, true internet marketers.

    By ranking your website on the very first page of
    search engine results, you are tapping into a
    huge number of people looking for what exactly you offer.

Please leave a reply:

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s