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I believe you are overstating your 'fixed' cost of each flip. You should include the cost of the spread, but not double the cost of the spread. One trade (a buy at the ask, subsequently followed by a sell at the bid) will cost you a single spread. -Eric

I think you are misunderstanding Turok. He understands the value of diversification, but he is just not yet conceding that the strategy itself is profitable over the long run with a single stock under question. Certainly, if successful, then diversification will help. But, if the strategy...

Turok, I'm not sure how hard it would be, but if easy for you I would love to see the results of the following changes to your test (shown in your spreadsheet): 1) Start every initial trade with a fixed 1000 shares. 2) Use a fixed multiplier of 1.1. In other words, have the net...

Amazing that they can predict how many will have their 'benefits' expire in the first six months of this year. Hopefully, the 'beneficiaries' of these 'benefits' will get the message and find a job, like the rest of us. If this happens, the predictions will be much higher than the actual...

AT Financial was bought out by Thomson, which already owned ILX. However, Thomson also has an ownership in a direct access brokerage firm, TradePortal. I'm not 100% certain, but I think the TradePortal uses the original AT Financial charting system that you liked. They may be worth checking...

That was a real answer Don. You asked for posted rates of prop firms, right? Along with web links (and phone numbers, I believe)? Figuring you already had your own phone number, I thought all you needed was the web posted rate. So, that would still be: Bright Trading: 1.0 cents per share...

Looking for a new broker, Don? LOL I think we all realize that the best available rates for any firm will NOT be posted on any website. But, perhaps BT does not fit into this mold. Does BT post their bottom line best rates on their website, Don? Just checked your website and see that...

Pete/Seth: I'd like to join the two of you for an in-person chat, as well. I think I've talked to Pete on the phone a few times last year, and primarily do automated trading (like Pete, I believe) that might be good discussion for both of you. Although I have not finalized plans to attend...

You may already realize this, but I'll point it out for others that may not be familiar with it. On the bond and note futures, trades are reported with the cumulative total size traded at that price, until a new price is printed, in which case the size resets to only the size of the new trade...

The market won't be open until 5:30 CST... Ten more minutes. -Eric

This news seems certain to improve the confidence in the markets, especially on top of the recent DJ 10,000 milestone. I would imagine that some defense stocks might experience weakness as a result of this news, but overall, this may be just what the market needs to break out of it's recent...

Let's predict the opening gap on the S&P 500. How where do you think this index will open for trading Monday morning?

Remote refers to trading for a proprietarty trading firm remotely (i.e. from your house) versus trading at the offices of the firm. Best of luck, -Eric

You are correct. By 'locking' the bid, you are matching the bid with your offer. You are not 'hitting' the bid to execute against their purchase order. Instead, you are posting a passive offer, on the hopes that someone will come along and hit your price. As such, you are providing liquidity...

I think sharpe ratios can be very important, as well, to judge the risk adjusted return of a system. One thing that I've always wondered is what is the most common way to use a sharpe ratio: 1) Looking at the sharpe ratios of all trades 2) Looking at the sharpe ratio of daily returns 3)...

It's funny to hear that Instinet is doing anything other than laying low right now, as it was their software that initiated the problem in the first place. I guess he is trying to say "ARCA needs to shutdown their systems anytime our crappy software fails..." -Eric

I was long a large daytrade position from 56... and got stopped out at 49.25... Yikes!!! Turned a good day into a bad day... Then Nasdaq comes and breaks the exit half of the trade. => Thanks Nasdaq!!!!!! :-) News of the trade breaks had to go down as the best 'news' I can recall...

I don't have IB, but I can tell you that MCDT is now quoted at 9.86 bid and 9.90 offered. I know that MCDT/MCDTA had earnings expected after the close, so I assume that the market was disappointed with them. -Eric

Can anyone make a recommendation for the best brokerage firm for high volume (70k+ contracts/mo) options trading? Obviously, their per contract commission rates will be a key criteria. Any suggestions, links, etc. are appreciated. Also, any feedback on the reliability of the firm, if you...