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I think the reason people call trading courses BS is because most of such courses lack real time trading examples. In other words, it’s all talk/theory. How can one practice a concept when it may be completely invalidated by current context? This makes all educators both teachers and scammers...

Spot on! It’s always some pikers with foreign sounding names lol

Excellent point, but probably will confuse the hell out of people, especially being part of the options thread :)

I don’t see how they are exploiting it. Let’s say you run two different strategies: one which is taking liquidity and one that provides it. Why wouldn’t you run the one that takes liquidity at zero commissions broker(assuming fill quality is the same)? And it’s my understanding that even with...

The good old days:) I wish they would let Joe speak freely.

Thanks for that. Have you tried?

Not saying that good news is not valuable, but in your use-case it would it help? As @MrMuppet mentioned, news triggered moves are too fast for manual traders to react to (well at least the initial jerks)

Why go long if ask sizes greater than bid sizes? What is the logic of it?

I have a suspicion that they were manipulating the option prices, something like creating fake UOA signals, but it was easier/better for the SEC to convict them of wash sales. Something like when Mobsters go to jail for mail fraud instead of the real bad stuff they do but is harder to prove...

Zero commissions and zero exchange fees? So the broker ate 600k worth of fees in that case?

Which option broker does not charge for taking liquidity in options? I think we all would want to trade there :)

Well that’s what HFTs/MMs do right? That’s not illegal. But to cross with yourself is illegal. So I am trying to figure out which broker would allow you to take liquidity and charge you less in fees and commissions than the rebates. I thought that is not possible with the way options trade, but...

I mean I don’t understand what the rebates he earned have to do with this? I assume he triggered other retail traders to take liquidity from him by trading against himself. In that case he should have made more than just rebates. How does one make money purely on rebates with wash sales?

The guy makes 600k via rebates with wash sales? Does this make any sense? https://finance.yahoo.com/news/u-sec-charges-individuals-meme-142955637.html

What @2rosy said. I can give you an example that may make it easier to comprehend: Let’s say best bid is 100 shares @ 9.99. Then you see shares increased to 1100, so someone sent an order to buy 1000 shares at that price. The next thing you see is shares are back at 100, so what happened? You...

Well, that’s what I was thinking: Let’s say you publish (electronically) the signals to client and the client decides how much to allocate etc. That process can be automated as well. Think of it as you provide the edge(s) and the client takes care of risk/position management. But, I don’t like...

I am a bit confused: if you are 98% automated, what’s exhausting assuming you don’t have to re-calibrate everything all the time? You said you don’t want to make this into a signal service, why not?

T3/Mark Melnik

@Sun Light, why can’t you run at smaller share sizes, so instead of buying 100 shares, buy 10 shares? Obviously the transaction costs will be too much but at least you can claim verifiable real money performance.