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"Automated trading systems will probably raise alerts on that stock since someone must know something for that to happen." Unlikely. Automatic trading systems
by plouffy 7y ago
"Automated trading systems will probably raise alerts on that stock since someone must know something for that to happen."
Unlikely. Automatic trading systems will not see their trades. Most (if not all) of WSB trades are done through the Robinhood app. Robinhood users are not charged transaction fees executing their trades, they can do this because they sell their flow (these orders) to HFT firms. HFT firms are willing to pay for Robinhood's flow (trades) because the average user is not an insider, has no idea what he's doing and is most likely gambling. If you're an HFT you'd rather trade with a common person, then an informed investor because maybe they know something you don't.
- vasco 7y agoSo you start by saying automatic systems won't see their trades and finish by saying automatic trading systems are in fact seeing their trades and playing against them?
- scythe 7y ago>Most (if not all) of WSB trades are done through the Robinhood app. Robinhood users are not charged transaction fees executing their trades, they can do this because they sell their flow (these orders) to HFT firms. Doesn't this make it more likely, rather than less likely, that HFT algos are affected by WSB madness?
- is0tope 7y agoI'm guessing that they are implying that the HFTs already know that these trades came from robinhood (because of order flow feed) , and therefore would discount them heavily on having inside knowledge.