Top all-time · #7219
Mechanical Markets
Personal blog · mechanicalmarkets.wordpress.combusinesseconomics
Mechanical Markets is a personal blog at mechanicalmarkets.wordpress.com about business and economics. Since 2015, 11 different Hacker News readers have linked it 18 times, most often “If Ethereum Isn’t a Security Then Nothing Is”. The last post was in 2023, but the archive is still widely read.
Too few sampled comments (6) to say how often HN recommends it.?
Why HN links it
HN readers link this blog for writing on market structure, high-frequency trading and algorithmic trading, including how order types and dark pools affect execution. Commenters recommend it as a source.
Summarised by Claude from a sample of 6 HN comments that link here. Each comment is marked recommending, critical or neutral (citing without judging); how this works.
Most-linked posts?
- If Ethereum Isn’t a Security Then Nothing Is3 people · 3 mentions · first linked 2018-03-13
- /2015/04/30/market-data-patterns-order-anticipation-and-an-example-trading-strategy/2 people · 2 mentions · first linked 2015-06-23
What Hacker News says?
Depends how you mean exploit. Not a lawyer, but to a first approximation, doing anything in markets to elicit a response from others rather than for bona fide economic reasons is illegal market manipulation so active exploitation is rarely done at serious firms. It's usually individual day traders or offshore boiler room type groups. Passive exploitation, as in detecting predictable future actions, is probably commo…
Comment linking /2015/04/30/market-data-patterns-order-anticipation-and-an-example-trading-strategy/
on “Coders who trade: Wall Street designs its staff for the future”Submitted Do Bitcoin Markets Have a Conversion Tort Problem? as a story · 91 points
HN discussionSimplish order types (limit/market, good till cancel, immediate or cancel, etc.) can only do so much. When you place a limit order on a continuous-time market, you'll pay exactly your limit price; but on a batch market you'll pay the clearing price (which may be less than your limit price). The complicated types (hide-n-slide, NBBO pegs, and conditional pegs[1]) may help some players at the expense of others. The on…
Comment linking /2015/10/05/iex-peg-orders-last-look-for-equity-markets/
on “Nanex Gets $700k Whistleblower Award from SEC”Submitted If Ethereum Isn’t a Security Then Nothing Is as a story · 25 points
HN discussionThis blog is the best public description I've seen: https://mechanicalmarkets.wordpress.com/2015/01/13/trader-ty...
Comment linking /2015/01/13/trader-type-and-order-age/
on “Algorithmic Trading: The Play-at-Home Version”Submitted IEX, Ideology, and the Role of an Exchange as a story · 23 points
HN discussionI've found this blog to be really excellent: https://mechanicalmarkets.wordpress.com . Example: https://mechanicalmarkets.wordpress.com/2015/04/30/market-da...
Comment linking /2015/04/30/market-data-patterns-order-anticipation-and-an-example-trading-strategy/
on “Interview with James Simons, Billionaire Mathematician [video]”Submitted Protecting Client Interests: Anonymity in US Equities as a story · 5 points
HN discussionThis one is relatively new, but it's the most insightful (and candid) that I have come across: https://mechanicalmarkets.wordpress.com
Comment linking /
on “High Frequency Trading Strategies”Submitted Order Size in the HFT Era: Identifying Trader Type as a story · 5 points
HN discussionThere are a couple of complaints I have seen. 1) That orders that are "pegged" to the NBBO at dark pools may execute at inferior prices relative to the true NBBO. If the market moves from 20.23 x 20.24 to 20.24 x 20.25, you can in theory try to quickly buy in the dark pool at 20.235 and lay off by selling at 20.24 in the lit market. The theoretical per-share profit would be 0.005 before fees and probably zero after.…
Comment linking /2015/03/03/should-iex-become-a-full-exchange-incentives-for-exchanges-to-compete-by-increasing-delays/
on “Flash Boys a Year Later”Submitted Creating an HFT Strategy: Identifying Trader Type as a story · 5 points
HN discussionSubmitted If ETH Isn’t a Security Then Nothing Is as a story · 4 points
HN discussion- wj · 2016-10-15
Submitted High-Speed Trading Networks and Societal Value as a story · 4 points
HN discussion Submitted Related Party Transactions in ETH? as a story · 3 points
HN discussionSubmitted If ETH Isn’t a Security Then Nothing Is as a story · 2 points
HN discussionSubmitted A Few Notes about HFT as a Business and the Virtu IPO as a story · 2 points
HN discussion