Flash Boys

Educate Yourself on HFT Practices: Start by understanding the basics of high-frequency trading. Look for resources that explain how HFT works, its impact on the market, and why it can be advantageous or detrimental to different types of traders.

Use HFT-Resistant Brokers: Choose brokers that offer tools or strategies designed to protect orders from being exploited by high-frequency traders. Some brokers have developed technologies that disguise the order flow or route orders in a way that minimizes exposure to predatory HFT practices.

Implement Order Routing Strategies: Learn about and utilize advanced order routing strategies that can help avoid detection by HFT algorithms. This might include using 'iceberg' orders that hide the true size of your order or 'smart' routing that dynamically chooses the best path for your order to minimize HFT interception.

Stay Informed About Market Structure Changes: The financial markets are constantly evolving, with new rules and technologies emerging. Stay informed about these changes, as they can affect how HFT operates and what strategies might be most effective in mitigating its impact.

An individual investor notices that their trades often result in worse prices than expected. They learn about HFT and decide to switch to a broker that offers smart order routing technology, which helps to protect their trades from being picked off by high-frequency traders.

A small investment firm realizes that their large orders are being detected and exploited by HFT firms. They start using iceberg orders, breaking up their large orders into smaller, less detectable ones, thereby reducing the adverse impact of HFT on their trades.

Stay Informed About Your Investments: Regularly research and understand the platforms or brokers you use for trading. Look for those that prioritize transparency and ethical practices in their operations.

Support Ethical Trading Platforms: Choose to invest through platforms that are known for fair trading practices and that advocate for reducing the advantages of high-frequency trading (HFT) firms. This can include platforms that offer flat-rate fees without giving preferential treatment to HFT.

Advocate for Transparency and Fairness: Engage in discussions, forums, or social media conversations about the importance of ethical trading practices. Support regulations or initiatives that aim to level the playing field for all investors.

Educate Yourself on Market Structure: Understanding how the market works, including the role of HFT and its impact, can help you make more informed decisions. Look for resources or courses that explain these concepts in an accessible way.

Diversify Your Investment Strategy: Instead of focusing solely on speed or short-term gains, consider a diversified investment strategy that looks at long-term growth and stability. This can reduce the impact of any potential predatory practices by HFT firms on your investments.

Choosing a brokerage like Vanguard or Fidelity, which are known for their customer-focused approach and transparent fee structures, over platforms that might prioritize HFT orders.

Participating in a community-led initiative or online petition demanding greater transparency from stock exchanges and trading platforms regarding their relationships with HFT firms.

Stay Informed About Your Investments: Regularly review the performance and news related to your investments. Understanding how your stocks or assets are performing in the market can give you insights into any unusual patterns that might indicate manipulative strategies.

Use Trusted Platforms: Opt for trading platforms that have a reputation for implementing robust surveillance mechanisms. This ensures that your trades are executed in a fair environment, minimizing the risk of falling victim to high-frequency trading (HFT) manipulation.

Diversify Your Portfolio: By spreading your investments across different asset classes, you reduce the risk of being significantly impacted by manipulative practices in one particular market. Diversification is a key strategy in protecting your investments from market volatility and manipulation.

Engage in Continuous Learning: The financial market is constantly evolving, with new technologies and strategies being developed. Keeping yourself educated on these changes can help you make informed decisions and recognize when something doesn't seem right with your investments.

If you notice that a stock you've invested in has sudden, unexplained spikes in trading volume or price without any corresponding news, it could be a sign of manipulative HFT practices. In such cases, reviewing the trading platform's policies on market surveillance and how they handle such anomalies can be insightful.

Choosing a trading platform like E*TRADE or Charles Schwab, known for their advanced security measures and commitment to fair trading practices, can serve as a practical step towards safeguarding your investments against manipulation.

Research Your Broker's Order Routing Practices: Start by asking your broker for details on how they route orders. Many brokers have disclosures or reports that outline their routing practices. Understanding this can help you assess whether your trades are being executed in a manner that aligns with your best interests.

Use Limit Orders to Protect Your Trades: Instead of market orders, which execute at the current market price, consider using limit orders. A limit order allows you to specify the maximum price you're willing to pay for a buy order, or the minimum price you're willing to accept for a sell order. This can prevent your order from being picked off by HFT firms looking for small price discrepancies.

Monitor Your Trade Execution Quality: Regularly review the execution quality of your trades. Look at factors such as the speed of execution and the price you received compared to the market price at the time of your order. If you notice a pattern of poor execution, it might be time to switch brokers or adjust your trading strategy.

Stay Informed About Market Structure Changes: The stock market is constantly evolving, with new rules and technologies emerging. Stay informed about these changes, as they can impact how your orders are routed and executed. This knowledge can help you adapt your trading strategies to maintain an edge.

If you're using an online brokerage, go to their website and search for 'order routing information' or 'execution quality'. Many brokers publish reports that detail how they handle orders, including the venues they use and the average execution speeds.

When placing a trade, instead of selecting 'market order', choose 'limit order' and set your desired price. For instance, if you're buying a stock currently priced at $100, you might set your limit price at $100.05 to ensure you don't pay more than that amount per share.

Stay Informed: Regularly read up on the latest developments in high-frequency trading (HFT) and algorithmic trading. Websites like Investopedia, financial news outlets, and specialized trading forums are great resources.

Learn the Basics of Algorithmic Trading: Enroll in online courses or attend workshops that cover the fundamentals of algorithmic trading. Understanding the basics will help you recognize how HFT operates.

Use Simulation Tools: Practice with stock market simulation tools that offer insights into how HFT impacts trades. This hands-on experience can be invaluable.

Monitor Your Trades for HFT Signs: Keep an eye out for signs of HFT in your trades, such as extremely rapid fluctuations in stock prices or unusual trading volumes. Recognizing these signs can help you adjust your strategies accordingly.

Consult with Professionals: If possible, consult with financial advisors or traders who have experience with HFT. Their insights can provide practical strategies to navigate or leverage HFT in your trading activities.

Signing up for a Coursera or Udemy course specifically focused on algorithmic trading to understand the technical aspects of how trades are executed in milliseconds.

Using a stock market simulator like Thinkorswim or TradeStation to observe how high-frequency trading might influence the execution and outcome of your trades, allowing for a risk-free environment to learn and adapt.