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Maybe it has nothing to do with Goldman

The precise obligations of the market makers depend on the exchange. However, I'm sure that most have to provide a bid and offer at all times.

The market maker is there to provide liquidity, ie. when you want to make a trade, you are guaranteed to be able to trade because of the market maker. They are obligated to have limit buy and sell orders in the market always. They make money from the bid-ask spread and the benefit of low...

No disrespect to you personally, but I find this to be complete bull5hit. We understand these obvious phenomenon, but Zeno just went and twisted it all up with words. Anyone can do what he did.

Ask them to close your extra accounts while they're at it.

Because someone else exposed you before I could.

I guess you mean Ernest Chan, but I'd like to know what is your criticism of him? He is by no means my role model, but I have referred to his ideas in another post.

asiaprop just got shutdown. good job.

I would say easily JSystemTrader and JBookTrader. http://groups.google.com/group/jsystemtrader http://code.google.com/p/jbooktrader/ They are written in Java. There is a group for each platform.

Good call. I would also add that he is in denial.

60 minutes experienced by a person on a moving plane is not the same as 60 minutes experienced by someone standing stationary on the ground. However, I don't know if this is the inconstant nature of time that he was referring to.

A lot of people seem to be focused on speculative strategies in this thread, but I believe Ernest Chan is referring to arbitrage opportunity when he talks about the advantages of trading low-volume markets. http://www.traders.com/Documentation/FEEDbk_Docs/2009/07/Interview.html I think its...

He claimed "better odds of predicting whether the market will be higher or lower one year from now", not where we land 1 year out. This is turning into a play on words.

They would make more money on the bid-ask spread, but they cant make a killing because volume is low thus they don't make enough trades.

According to Ernest Chan, there is an advantage in trading thinly traded stocks: you dont have to compete with the big funds. http://www.traders.com/Documentation/FEEDbk_Docs/2009/07/Interview.html He also thinks there are opportunities in trading low-priced stocks.

Hi lolatency, I think you are writing a great thread, I will be following it with interest. Just one thing, you said "there's no such thing as a good paycheck" but I bet you haven't refused one. All paychecks are good, its the "job" we have to get right. Keep up the good work and good luck!

Thanks for your response. From that I suppose that most retail traders should stick to slower strategies where (1) we don't have to compete with the big guys and (2) latency has less effect.

You mentioned that you run millisecond algorithmic strategies. I think lolatency has answered my question, but if you didn't have to make trades so rapidly, would you be able to use slower infrastructure and save cost? I guess that there is no edge in doing what you do on a longer time-scale...

If you used slower strategies, would your infrastructure costs go down?