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You need an unfair advantage and a large account. You also have to know a bunch of dirty tricks. Advanced hedging techniques are great for controlling risk. You have to control the risk! (size of profit and loss) Trade management is one of the most important things. You need to be able to...

This stuff is actually kind of easy if you start to think like he is saying. The funds use strategies with multi-level risk controls. So they are spreading related instruments (controls the vol distribution), allocating across many products/spreads (to reduce the PnL correlation) and...

Not sure if this will resonate with you but I will fire this off anyway. An iron condor options trade (from Investopedia): When you own an iron condor, it's your hope that the underlying index or security remains in a relatively narrow trading range from the time you open the position until...

The reality is that order flow across assets has been made more efficient by automated trading/algorithmic trading. They are using order pacing (randomization/dynamic execution) and liquidity adaptive algorithms to minimize sub-optimal trade execution(s). They have programs to manage and...

This quote is badass. From this guy pitching his read on the PREM "...you can front run the PREM instead of just sitting and waiting and watching [price]" What he is saying actually works, but it is so hard that retail will never know how to do it. Even the guys on this forum don't know about...

This is totally idiotic. A trend is any directional movement with respect to time, whether that is in the quotes, or for any estimator of the average price transacted. Every day of the week Bonds, Bills, and Notes are trending all day long. Trends lure in market participants. They are...

Not a book, but these are the best things I have read on trading lately. This is a pro traders story about trading rate futures In the pit, at least, you got the edge on the least liquid or deferred contract, and attempted to get the edge in the front, and either leg the spread on the bid, or...

You could create the synthetic pair using synthetic long and short options positions. Using a 2:1 ABX/NEM position, this would be Buy 2 calls / sell 2 puts ABX at the money Sell 1 call / buy 1 put NEM at the money Anything you do with options could relate back to this synthetic construction...

Uhhh, OK. Guys, I just said that a desk trading FX options, EM, and rates sounded like investment banking. Also, I said they like to hire guys like Sal Khan, guys that have hardcore qualifications (not just a CFA and no name school). I never said Sal worked in banking or was even a trader...

Have to keep an eye on the book when trading stuff that is less liquid. UB, RTY, or YM for example.

No. I watch Booktrader just to make sure I know how liquid the instruments are.

Actually I am trying to get some help with the code for that. Here is the stackoverflow thread. https://stackoverflow.com/questions/58369968/excel-vba-macro-edit Maybe you can help me expand the thing. I need to take the macro and make it do more than one data series. If you can help me do...

ZIRP and NIRP are here to stay. As rates become less responsive to monetary policy the FOMC will just end up buying assets, equities included. The Wealth Tax is a wildcard. If enacted, the consequences would be extreme. Global economy would never be the same.

I think a real edge is gonna be where you are taking profits when (a subset of) market participants are taking losses. You said 3 lots so $21 dollars profit? This seems awfully low for this kind of notional contract value. A good edge should be where you get exposure, the market moves...

Prop trading firms train traders on sim. Depending on the type of trading, and the background of the trader, some strategies (very active trading, unique styles, specialized techniques, niche edges) would have to be practiced. Not doing so would be reckless. Everybody has a different thing in...

If you apply a linear regression channel to the data it will estimate the standard deviation for the entire data in the channel. This can be compared to the bollinger or keltner style estimates.

The thing that I wish I had known about years ago is the buybacks. This changes everything. The guys on the street are saying $900 billion in share buybacks per year, and growing. It seems like the companies are just going to manufacture shareholder value. If the big banks can't hit...

Cool setup. That's interesting. You're saying that you data process options chains and then investigate trading opportunities from that? So, you're trading vol on names your systems flag? That's cool. I'm starting to learn more about the advanced option trades, but I don't know how to...

This sounds like investment banking. This is the top-tier of competition in terms of academic and professional credentials. Salman Khan is the type of guy they hire. From his Wikipedia Khan attended the Massachusetts Institute of Technology (MIT), graduating with Bachelor of Science and...

I had some pretty ambitious goals in mind when I started building a trading setup. 1) Three monitors with charting and analytics. 2) Real-time charting in EXCEL using API data 3) Execution that is easy and included HOT KEYS, BASKETS, and GET FLAT orders. 4) As cheap as possible. Current...