Regular readers know I use Schwab’s SSPro platform for equity and option trading. Here’s a setup of SSPro tools that can be used to help detect when HFT (high frequency trading) programs are running. The setup uses 3 files of the Hi/Lo screener and 3 files of the Dynamic Ticker (laid on top of one another). I plant this 3×2 style box in the middle of a 23″ monitor and still have room for 2 complete charts, 2 trading windows and a NYAD chart. The 3×2 provides a real time, tick by tick visual barometer of market temperature and helps keep me on the right side of the market regardless of whether HFTs are running or not.
The HFT 25 list is the GS list of most actively traded HFT stocks as of November. There’s only 24 now as MOT has been split into 2 companies. For the Dynamic Ticker I set the leftmost chart to net value with 10 second increments. The middle Ticker is set to activity rate and the right Ticker is also set to activity rate but the stock list is another 24 stocks actually traded by an HFT firm with which I’m acquainted. For proprietary reasons I’m not showing that list but it’s actually irrelevant . . you an just use the top volume 24 Dow stocks with similar results.
I’ve set the color of the activity Tickers to light gray since the Ticker is only measuring momentum, regardless of direction. The lower Hi/Lo screens are set to capture NYSE, NASDAQ and the Indices daily hi/lo counts and when the Hi/Lo screens are scrolling all red and the activity Tickers above are fully extended, that’s a sure sign the HFTs are piling onto SELL orders. When BUY orders are in effect the Hi/lo screens are all green and rolling fast and the activity Tickers are likewise fully extended. In today’s markets traders need every edge they can find and Schwab users have free one with this setup.
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