If you trade the S&P 500 Emini Futures, or trade the Nasdaq, Dow Jones, Rusell mini futures, or if you trade Forex and Crude Oil you need to check out www.sceeto.com for one of the worlds most advanced indicators. A no obligation Free Trial is availible.www.sceeto.com
Flash Crash 20th December 2012As Seen By ...sceeto's Order Flow Algorithms http://www.sceeto.com . High Frequency Traders re positioning the market by almost 50 points on purpose or whoops !!! did someone push the wrong button ? From 8pm until 8.20 the market crashed over 46 points and 50 points from yesterdays close.
It was caught live by sceeto as it happened. Carl Weiss a high frequency trading expert who writes algorithms that track the hfts says that the markets have changed forever and this crazy type of thing will continue to happen. traders now need real time order flow indicators to monitor the hfts in real time and stop relying on lagging stoneage indicators. Any one using sceeto tonight would have seen the market break down live and have known not to be long thats for sure.The gains from the recent days of the Sanat Claus rally were wiped very quickly it will be now interesting to see what the high frequency traders do next .
To monitor the hifts in real time yourself and be alerted when they are buying or selling please check out http://sceeto.com/user/register/ and protect yourself.
Any media enquires are welcome to Carl Weiss at http://sceeto.com who would be happy to answer any of your questions. .Markets also dropped very quickly overnight due to either human error or possible high frequency trading algorithms thankfully now high frequency trading can be tracked by anyone in real time so perhaps you can avoid getting caught on the wrong side of a move like this and at the very least be able to get yourself out quickly without incurring too many losses if you would like to monitor High Frequency trading yourself in real time get whats probably the worlds fastest set of trading indicators at http://www.sceeto.com we even have a great free trial your trading will be changed for the better and it will help you stay more on the winning side of trades
For all media enquires please contact Carl at the Sceeto website or at www.algofutures.com
Definition of A FlashCrash Courtesy Of Wikipedia Creative Commons Licence
As of July, 2011, only one theory on the causes of the flash crash has yet been published by a Journal Citation Reports indexed, peer-reviewed scientific journal.[40] One hour before its collapse, the stock market registered the highest reading of "order flow toxicity" in recent history.[40] The authors of this paper apply widely accepted Market microstructure models to understand the behavior of prices in the minutes and hours prior to the crash. According to this paper, "order flow toxicity" can be measured as the probability that informed traders (e.g., hedge funds) adversely select uninformed traders (e.g., Market makers). For that purpose, they develop the VPIN Flow Toxicity metric, which delivers a real-time estimate of the conditions under which liquidity is being provided. If the order flow becomes too toxic, market makers are forced out of the market. As they withdraw, liquidity disappears, which increases even more the concentration of toxic flow in the overall volume, which triggers a Feedback mechanism that forces even more market makers out. This cascading effect has caused hundreds of liquidity-induced crashes in past, the flash crash being one (major) example of it. One hour before the flash crash, order flow toxicity was the highest in recent history.
Note that the source of increasing "order flow toxicity" on May 6, 2010 is not determined in this paper or captured in the VPIN metric. Whether a dominant source of toxic order flow on May 6, 2010 was from firms representing public investors or whether a dominant source was intermediary or other proprietary traders could have a significant effect on regulatory proposals put forward to prevent another Flash Crash.
