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This Is Your Fund Manager’s Secret Weapon To Fight High-Frequency Traders

TedTed
edited February 2016 in The Bullpen
FYI: Mutual-fund and other asset managers trying to get the best price on a stock purchase or sale face a formidable challenge from fast-moving high-frequency traders — but managers are not defenseless.

To be sure, it’s difficult to execute large trades when HFTs deploy sophisticated pattern-recognition software in search of order-flow information that they can use to their advantage. When an asset manager unintentionally leaves footprints that tip its hand to these HFTs, the price is often impacted to the detriment of the asset manager.
Regards,
Ted
http://www.marketwatch.com/story/this-is-your-fund-managers-secret-weapon-to-fight-high-frequency-traders-2016-02-24/print

Larry Swedroe:"High Frequency Trading's Impact "
http://www.etf.com/sections/index-investor-corner/swedroe-high-frequency-tradings-impact?nopaging=1
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