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So, you are saying that gamma scalping (or reverse gamma scalping) can be done consistently well?

I think the source of data is the same but it will be delivered in a more convenient way for you. I think one thing you need to keep in mind is that the value of direct feeds, and Level2 in general, is low latency. The more delay is added (by vendor or location), the less valuable/usable it...

I don't think it's a fair comparison. Computers are great at finding repeating patterns. Humans are great being able to see a difference in what seems to be the same pattern. Both can have an edge and neither may have an edge.

@ironchef, thank you for your input ... Much appreciated. Forgive my ignorance, but what does "microstructures" mean? I've heard this term from other members here as well. You mentioned that you like the convexity of options. I looked it up and found below "unofficial" definition. Is that...

I know you are (half) joking, but I want to be clear that illegal front running involves KNOWING of an order which specialists, brokers, and MM often have access to. HFTs simply make educated guesses. There are advantages that HFTs have, but they come from the same old being in the exclusive...

Why? If you are up 100%, experiencing 15% DD does sound so bad.

Well, anyone selling/renting their systems instead of running them on their own is suspecious. My understanding of what this guy is doing is that he has a few systems which he chooses when and how agressively to trade or not at all. This makes it a bit discretionary, but in my opinion correct...

I may be mistaken but for some reason I remember from reading the book a while back that they were playing tables which were not perfectly set up, so they were able exploit that. Like for example, the table had a slight tilt (sometimes even intentional).

Are you following Tradenet? They like to short large gaps. I would think spreads, uptick rule, and hard-to-borrow would be your first concerns. The rest doesn't matter, imo, because the way the stock trades on news is not the same as it trades historically.

I didn't mean random in a pure meaning. Look what's happening around news/tweets ... It's not random, but it's still noise. So in the video, they are fading multiple day sell off on news/rumors. It is not unusual to see the stock pop 5-10% as short covering rally/squeeze or value buying. So...

I don't know, if I trade directionally, I don't think I trade against MM ... They just pair me up with some other idiot(or hedger) and take their cut no matter what. I don't get it, let's assume there are people who have an edge doing short term (up to 3 months) directional trading ... Why...

I agree, this looks very good. I like it very much that your win rate is not very high. If you confirm that your loses are small because you take them quick (vs sitting and waiting for them to come back or working rhem), you are golden.

You need to be more specific ... Exchanges offer different direct feeds. Most people who pay for direct feeds get full depth of books like Nasdaq Total View. Thanks to NYSE/SEC collusion, these feeds are now reserved to selected few. If you have to ask, you are not one of them :)

@GRULSTMRNN, it sounds like when they pulse the data, it has a smoothing effect. Most people care about trades which are not affected by pulsing, but OP cares about quotes.

Damn it, can't you people create your own threads!? I need answers :)

Maybe PM @CrashProof, he uses Fusion

I'm curious to know, if you trade Futures, would it still be better to connect to NJ? I assume IB has a "dedicated" line to Chicago, so it should be more reliable and could even be faster?

Don't you agree that if he used more tight risk management he would never post good returns in the first place? To me, it's inherent problem with shorting gamma ... You are much better off holding tight. If you blow up, oh well ...

Swing trading via options seems to me like a legit way to gain an edge. I would appreciate people's opinions on below. It's somewhat similar to my (almost brilliant) "Catching a fallen knife with iron gloves" strategy, except they are taking all their risk on the entry and hope for a bounce. One...

I'm sure you've heard of the Market Wizard books. The reason I find them so critical to read is because they discuss variety of trading styles. This is the best way, imho, to find what fits your personality. Figuring out the right fit by itself may take years! I remember when I read the...