Category: Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

One Response to “Catching Falling Knives”

  1. I only read the abstract and gave up. Observation of the markets reveals that, contrary to his abstract’s conclusions, the high-frequency traders AREN’T THERE during the very frequent flash crashes, stop-runs and bear-raids. So no, they do not “decrease the likelihood of short-lived mispricings by trading against price pressure”. When the market’s peaceful, they front-run everyone, and when the market’s awry they don’t try to catch the falling knives. Heck, a fair amount of the time they CREATE the “short-lived mispricings” by running stops and then reversing.

    If anyone takes time to read further and feels this guy has a clue, let us know…