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This is incredibly misguided. It's clear that there is confusion between toxic HFT activity like spoofing, and liquidity providing/arbitrage. The later provides a great service to market quality and price discovery. As a side note, NANEX and its affiliates are one step away from flat out...

If we'd like to have factual and fruitful discourse, we must ensure that this data is provided with context. It would be helpful to see this data normalized by population as well as poverty. It is more likely that poverty, and not race play the largest role.

If you're active, you're best off trading at IB or a place that has low, per-share costs.

I'm not familiar with IB, but it seems reasonable to send IOC orders instead of market orders. Shoot at the price you want, and you wont risk slipping if the market moves away.

You would timestamp an outgoing message from your trading engine (which presumably logs all messages), this message is routed to your broker, who then routes the order (after risk checks etc) to the exchange gateway. When the exchange sees the order, they will provide a timestamp as well...

These comments are more general, but can be applied to this problem: - A trading strategy typically consists of the following items: Alpha Model: this model defines the edge of a trade; it can have input information that includes market data, signals, etc. the output should be a theoretical...

A few considerations: - It is clear that the strategies you are running are not latency sensitive. Therefore, colocation is not needed. - It's unlikely you will need much firepower for development. Any cheap/modern setup would do. - Your bottleneck will be the internet. - There is no way to...

What confuses me most about the question posed in this thread is the correlation between high-income and "productivity".

Noticed your post, good analysis. Just one small correction, take the 18k in 401(k) money and (roughly) subtract it from 160k first (142k). Then take 35% of 142k (49k). Subtract living expenses etc. You'll get something like 44k after tax, 401(k), and expenses. Tack on the fact that 18k was...

The two are not equivalent. With options, you will be competing against theta (time decay), and have to worry about everything from vol/skew and convexity. It can be modeled, but it's not as simple as using options as a proxy for delta.

While these trades tend to happen in high frequency, I think there may be a sort of pairs trade on vol that retail traders can take advantage of. It would involve finding a pair of correlated instruments (say for example SPY and IWM) and then computing whether the difference in normalized...

I have to respectfully disagree with this point. Some strategies do have alpha that is persistent. The problem is that alpha has capacity, and once that capacity is reached, the alpha goes to 0. This is how markets stay efficient.

I'm not sure when that book was written, but I'd bet 90%+ of professional option flow is in the following forms: - market making which is done delta neutral - volatility arbitrage: computing a vol surface and trading reversion towards the mean in volatility space. Delta hedging is done here as...

I agree with Sig here. You typically end up paying up too much for vol on your long leg. This may not be the case in a more skewed environment.

Yea that makes sense, it's just that to have any alpha when you're getting filled x% past theoretical price, you need to have alpha in excess of x% plus fees. If this is true, then you'd be best trading the underlying asset directly (because you have so much edge there).

That's interesting. It would probably be better to post there, and try to hedge on a liquid market. The pricing is so off one should get a sizable % return if they could be hedged.

Do you pay up spread or post?

I see - hows trading nadex. I know the spreads there are brutal

I work entirely algorithmically. All the trading is automated. What kind of strategies do you employ?

You (and your source) are likely correct about the correlation between sleep and performance. But the truth is, if you work in this industry professionally, you would soon realize the hours are pretty crazy and it's rare to sleep more than 6 hours a day.