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Tag Archive: Algorithmic trading


The technology may have advanced to HFT Trading, algorithmic trading but the rogue inside the human will always US Flash Crash Traderoverpower the technology.

Let’s try to understand the case of Navinder Singh Sarao , Has he became the scapegoat ?

According to the justice department Mr Sarao and his firm is guilty of Nav Sarao Futures, made £26m ($40m) illegally over five years.

He has been accused of using an “automated trading program” to manipulate markets, and contributing to the flash crash of 6 May 2010. On that day, the Dow Jones index lost 700 points in a matter of minutes – wiping about $800bn off the value of US shares – before recovering just as quickly. Continue reading

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In the past years my posts on 14th February some way or the other have been in conversations between Love and Finance, my last blogpost in 2013 on Feb 14th was a kind of open proposal expression through the priceless charts Love you by Finance Market Professional : Valentine day! , also today my blog turned-up 6 years old, and my first ever post was on the Mergers and Acquisitions in India! and the government policies .

Getting back to the topic for today A few years ago, somebody asking this question on market timings would have been dismissed as a nit-picking nerd, but today that question has become extremely important. Last week, the Wall Street Journal’s Money Beat blog ! carried an interesting story about how this difference cost a trader $100,000. Continue reading

Europe finally has agreed on the terms of MiFID II, extending its regulatory reach into fixed income, FX, OTC trading and blogcommodity speculation. Here are seven details you need to know as implementation begins.

We still have technical meetings to go through to finalize details, so the complete text is unlikely to be available until won or close to January 27, but here is what we understand so far:

1.  HFT will be restricted through greater testing of algorithms, but there will be no 500 m/s rule.

  • Final organizational requirements for investment firms engaged in algorithmic trading have been passed to ESMA Technical Guidelines for greater analysis concerning the risks potentially raised by technology-advanced trading practices.  Continue reading

Planning your trade sounds like one of the most straightforward aspects to trading. Perhaps you sit down during the FUNNYevening, scouring charts for the technical setups that you plan to enter the following day and go to sleep confident that the entry, stop and take-profit levels give you a high probability of success. This type of thorough planning is your key to success and the one thing which will provide you an edge when the market opens the following morning. This leaves the question of why so much of this planning goes out of the window as soon as you sit down in front of the live market the following day.

Failing to follow your trading plan is the single most influential element in losing money in any financial market. Similar to opening a bakery and deciding to sell shoes, losing focus on a trading plan creates confusion and, more dangerously, lets your emotions dictate the trade. Many traders prefer mechanical or even automatic trading systems for this very reason; the simple inability to follow their own trading plan and adhere strictly to the rules. Continue reading

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