“HFTs appear to assist in decreasing excessive price volatility,” [Professor Alex Frino, CEO of Capital Markets Co-operative Research Centre (CMCRC) and Professor of Finance at the University of Sydney Business School] said. “This is partly due to the way HFT algorithms identify trading opportunities – they’re built to recognise when prices are abnormally high or low, and respond in a way that naturally pushes prices back towards the middle.”
via Securities Technology Monitor: Dark Trading Bad, HFT Good.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.