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From what I und from what I understand, Rentech isn't trading HFT (they could but apparently don't). It's clear that HFT margins and capacity are ill suited for their size. I doubt that there are non HFT players that partake in spoofing.

1000 shares of what? Most liquid books sit several 10k shares thick all day.

Insider trading occurs most eith individual public companies. Market makers typically have exposure to many different companies/sectors at once. This creates a smoothing effect which limits pain when a price moves unexpected due to insider trading. However, there is certainly a negative effect...

You should make a point not to trade with HFTs then. Enjoy your inflated spreads and higher transaction cost. The cost to you is well worth expressing anger over something you clearly don't understand.

While completely illegal/unethical, it's certainly not risk free. Imagine how much size you'd have to show to move SPY or ES. If someone decided to take you out, the party with deeper pockets and risk tolerance would win.

Agreed! My background is in HFT so it's upsetting to see when the tech is used like that and gives all HFTs a bad name. I'll definitely check it out. Might have to make a few scalps in my PA.

Suppose that stock X has a bid of 10.00 by 100 and offer at 10.02 by 150. This current state of the order book has more sellers than buyers. Knowing this, buyers will typically bid lower knowing that the sellers will have to drop their offers to compete with other sellers. Suppose a spoofer...

The most consistent and large options profits likely come from those making markets in volatility. Shops like optiver probably have many deals with return profiles that are large and consistent both in time and sharpe.

Do you have some concept of price for one future relative to the other? For example, July = 3*December + 1 (completely arbitrary), because you can then set July-3*December-1=0. Then it is clear whether your fill is good or not relative to 0.

Soes is right. You have bad adverse selection during the post. When you get filled, it's almost guaranteed to be a bad price. Unless you're trading a hard arb then there's no such thing as a right price

Compared to active participants idea of fair value. It's unlikely that your idea of price is equivalent to that of a market maker or someone trading arbs. And by active I mean several 10s of percent of market share.

I should add that if trade profits tend to be more volatile, then it might be better to stick with an at home office. Most of the market making/HFT shops with 1-5 people that I know keep small offices but the cost is a fraction of their monthly infrastructure costs.

I lean towards renting a space (or coworking space). Separation between work and home tends to carry great benefits. Also, if a trade is scalable, then there is a possibility that you'll need to speak with banks, service providers, and eventually interview employees. The home is not ideal for...

Why can't you use today's closing price? Suppose you are using P = 21. Then for a given stock X(t) at closing time t, the MA is defined as, 1/21*(X(t-20)+X(t-20)+...+X(t-1)+X(t)) Now todays closing print X(t) will only be worth 1/21th of the average. Moreover, if X(t) is approximately equal to...

What the original poster has described is exactly mean reversion. The mean being defined by the moving average and the thesis being that the prices will revert towards there means (MAs). What you describe is betting on mean reversion of a spread. For example, if you believe that SPY is to high...

Based on prices of other securities.

Agreed, as long as you are aware of it! You are likely trading over much longer time horizons than the people trying to pick off resting orders. And yes, you would likely want to keep updating the bid and hoping to get priority/filled. This is largely the idea of a high frequency market making...

I'm not saying you are trying to predict what the market will do, but consider this scenario. SPY is 239.10 bid 239.15 offer. You have a resting order to buy at 239.05. Ten minutes later the liquidity moves to 239.00 bid 239.05 offer. You now get filled at the offer. You just paid the spread of...

I'd strongly suggest that you don't want to leave resting orders, especially in the after-hours. Just because you want the price you left the order resting at does not mean it's a good price relative to the market. This is what is called getting "picked off".

I'm actually a quant though. Like I do research and trade professionally for a living. I'm on this forum because I have had productive discourse with some members. I will now shift attention to what is truly of interest: what bits of information do we know about Rentech? I wonder if that hold...