Eric Hunsader: Investors Need to Realize the Machines Have Taken Over

By the way, this action is for a single exchange there are 13 in total. So you get the sense for the tremendous amount of trading activity that HFT algos generate in just 1 millisecond. Try to conceive of what the activity volume is in a second, a minute, a hour it's mind-boggling. No wonder the regulators are so ineffective.

Is the presence of these HFT algorithms aiding with true price discovery? Quite the opposite, says Hunsader. Instead, HFT has made our markets unsafe especially for the individual investor as big institutional players, unchecked by our regulators, use their unfair advantages to fleece those without:

A lot has to do with the regulator not being in the room just clarifying some basic ground rules that are already in place. I mean, a lot of the tactics and things that go on now, if they tried to get away with this face-to-face in the past, somebody would be walking away with a black eye. People just don’t put up with this poor behavior. But the market is set up anonymously. So you don’t know if it's the same guy who hit you really hard the other day at your tipping point. I mean, 'everything goes.' And without a regulator or any sense of a regulator ever doing anything about it over time you get this creeping in of You know, we did that before and nobody ever said anything. So let’s try this. And that’s what happens. You just get this slow creep of a drop in ethics.


Click the play button below to listen to Chris' full interview with Eric Hunsader (34m:58s):

This is a companion discussion topic for the original entry at

This was an EYE OPENING Podcast, nice. wink
Adam, the honey is great, I made some raison bagels, and spred a little over them for my Lady and I. Good stuff. The flavor was mild and the honey smooth-ish soooo very delightful. I have noticed my energy level while always high to be even more so since using your families honey. Time to bounce on outta here, I have my grand sons for the best fish dinner I know of in Michigan. Perch of course, Thanks again.

Gooooo Tigers


Isn't free market Capitalism wonderful?
Not a chance. I am immune to the importuning of the stockmarket. I know when I am out of my league.

What I am desperate to know is "Does my pension fund manager have one of these toys?" I get the destinct impression of someone with pipe and slippers reading the newspaper. We can't get rid of him. He is such a nice fellow.


I have noticed that after you release a podcast, it sometimes takes quite a long time to show up in the iTunes list of "Featured Voices" episodes. The delay can be anwhere from a day to a week or two. I know that I can download the podcast directly from this page, but it's really convenient to use the iTunes interface because after setting everything up, episodes go straight to my ipod (in my car in the garage!) and then without unhooking and re-hooking things i can just listen to the episode on the way to work.
Just wondering if there is a known reason for the delay.

Thanks for making these fantastic interviews available.

Mr. Hunsader stated “You just get this slow creep of a drop in ethics.” that one sentence says it all. People used to believe in - an honest days work for an honest days pay. Now the goal seems to be - manipulate to get what you want. Slow creep, no I think it’s a lot faster than that.
AK GrannyWGrit

Professor  Bill Black said on The Keyser Report that there is a competition  amongst markets to de-regulate. The City of London for instance, tried to woo the criminal class to London with the promise of the lowest standards.
I will stick with my hypthesis that The Beast is at large. The evidence is overwhelming.

“There are decades where nothing happens; and there are weeks where decades happen.”
                -Vladimir Ilyich Lenin

…and now we have, in the blink of an eye the possibility that your entire wealth can go "Poof" even though you sent a Sell trade just a second ago!!!, is this right? GM, still got that 'Risk' thing off the table?

Goooo Tigers


He should be required reading for the site (CM did interview him as well) right after the crash course.

HFT algos are neutered by 233 minute charts, limit orders, event awareness and market neutrality.  Anything else is your fault.

Our resident Genius (my feelings) said:
"I will stick with my hypothesis that The Beast is at large. The evidence is overwhelming."

I agree.

Arthur, I want on your boat, my Lady too. She can administer first aid with the best of them, and is a great cook.

Dog comes too and is great protection. At 150 pounds of pure loyalty he requires only a good rub, kind words, food and water. His skill set is to protect those he loves, and he does that well. He is well trained, and will move on command. He has great strength, and can carry out his assigned tasks without complaint. Pulling carts or carrying things are a non issue. If we can carry them he can too. Frankly, he loves working as he is a working breed.

 I will work for food. My skill set: Anything lumber and building. I can do all electrical and plumbing. I am a Great painter, and have endless energy when I am not physically tired (what!?). I am a sharp shooter with rifle and Colt .45 cal. I love pump action shot guns. I am extremely loyal too, and require very little maintenance. Surprisingly, I am very quiet most of the day. I love to read and are a good listener. I am a yes sir, no ma'am kinda person, especially to elders. 

Forgot, I can bring radio for Tigers game (a must) and my own gear. I am really excited so get back ASAP!