finabuddy: Why so much hating on Goldman?

because the government uses threat of violence against us while giving special favors to goldman sachs. Goldman sachs only buys off elected office holders and has its people appointed throughout the federal government.

There are two ways to wealth. Providing goods and services your fellow man is willing to pay for and the political means through the government. Goldman-sachs uses the later.

edg_mule: /thinks he will be asking some aquaintenances about this program

Man go for it,

If you can afford the membership fees for the exchange, the subscription fees for the less-than-one-millisecond delivered market data, the physical connection on the private network, and can pass the exam to trade on a myriad of exchanges, please feel free to hire me to constantly upgrade the "program" as the constant and disparate exchange API updates are released.

I do this for a living and can probably take care of a few primary markets or a dozen MTF for you. I know about 15 other guys making twice as much as you do if you want to hire them as well to cover the rest of the markets (on one continent anyway)

Weaver95: thomps: Weaver95: i'm wondering why you think it's ok for someone to impose artificially created inefficiencies on the marketplace and then take advantage of the situation....

how are they imposing inefficiencies? from what i can tell they are just taking advantage of inefficiencies caused by the trading rules of other firms.

wrong.

I implore you to shut up. It's embarrassing.

First of all, marking each and every trade as coming from a algo desk is redundant, a waste of bandwidth, and a grossly inefficient way of doing it.

Increasingly the trend is to develop a low latency exchange interface specifically to accommodate this type of trading.

Of the exchanges that actually give a shiat, this is usually done based on trader/userid. A specific user id will be registered as an electronic order routing system, algorithmic trading system, or automated quoting system. Usually an actual human trader will additionally be assigned and legally responsible for all trades that result and may be required to be physically present depending on the venue.

While algo trading is usually based on speed (taking advantage of market inefficiencies), it is also based on strategy. If I decide to bet my money by trading at an offset of +/-0.05% from the last trade price, I need a computer to do that. I can't call in to market operations to manually amend every trade when there are hundreds or thousands happening every second.

Your argument is like saying that its unfair for taco bell to use electronic registers because the hepatitis-ridden street vendor does everything in his head.

Every major investment bank down to the shiattiest little brokers do this. It's not just goldman.

It's not cheating to automate your strategy... but you can get severely farked if the competition knows the nitty gritty of your logic.