Sovestor's  Instablog

Send Message is a financial blog that provides its readers with useful information & insight on investing.
My company:
My blog:
  • Thought on High Frequency Automated Program Trading 0 comments
    Jul 21, 2009 11:41 PM

    High frequency automated program trading is part of capitalism, quite interesting and useful forces to provide patient value investors with occasional inefficiency opportunities since these automated trading systems do not care about the intrinsic value of the companies behind the securities.

    In my view, the more program traders out there, the better it is for value investor. At the end of the day, these automated systems are hard to manage, not tax-efficient and despite their advanced algorithm, they are actually dumb systems that are expensive to build and manage that know nothing about intangible value of great management and brands.

    The high frequency operators can certainly accumulate pennies many times over; however, they almost always blow up big time eventually sooner or later just like John W. Meriwether's LTCM and JWM Partners (both blew up....two timers for the same guy.) I'd rather stick to buying 50 cents on a dollar and repeat this tried and true principle many times.  

Back To Sovestor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • Any stocks, any assets can go down to zero or close to it when liquidity dries up due to demand and supply. This is the basic of economy.
    May 7, 2010
  • Likely the markets to go down even further than current level for months if not years? Common sense tell us Euro economy is getting worse.
    May 7, 2010
  • No one shall ever again believe automated program trading as sound. Te automated approach can kill traders anytime when it fails to perform.
    May 7, 2010
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.