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One thing the site seems to do is keep an occasional catalog of patterns they believe to be evidence of attempts to harm price discovery in the markets through various quote-system-gaming tricks, presumably intended to set up some other strategy. Here's one, an algorithm that seems (in their opinion) designed to target a particular stock and jack up its volatility: http://www.nxcoreapi.com/aqck/3271.html



I've seen the graphs. But I have yet to see an explanation of how you actually make money that way.

The best I've heard are theories along the line of a DOS attack. I.e.:

1) Eve sends an order, receives an ack, and receives the quote. (The last two steps can be in any order.)

2) Alice receives the quote, and spends more time processing it than Eve spends on the order, ack and quote.

3) ???

4) Eve profits. (Perhaps because Alice and Eve are both HFT's, and this attack lowers Eve's latency relative to Alice?)




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