Search results

Customer Testimonials " I've been using the new TradeVec charting for over 5 months and I Love it! I am able to place trades much faster than I ever thought possible using the new Execution Zones display." Mark Brown, professional trader, Dallas, USA http://www.tradevec.com

In terms of the Chicago options prop firm business model, it is primarily in market-making. The market is very efficient, competition is fierce, and the bid/ask spreads are very tight. If you are making markets in exchange-traded electronic options markets and hedging your delta risk on...

Make your money in a hurry, because the counterparties will not allow you to pick them off indefinitely. It would be rather simple for an ATS manager to see that he's getting gamed in lower volume names and to adjust accordingly. In fact, if they were feeling frisky and vindictive they...

"If you don't know how to manually scalp and/or never did, I'd say designing an automated scalping indeed a pipedream." Yep, +1. Among other things you would have to have a very good order queue management system and a very fast ECN ($$$: co-located server, dedicated lines).

Ten years ago an acquaintance/occasional golfing-drinking buddy/hang-around-dude at a prop firm I was at blew his brains out with a handgun. A DAX scalper who hit a rough patch with his trading, and he was in his 40's. Ultimately, it was a very cowardly and despicable act since he had a...

Don't quit your cash-flow job until it makes absolutely no sense at all to keep it - which means that after taxes you should be liquid enough to the point that you could withstand a few serious drawdowns in addition to servicing several months worth of bills and living expenses. Trading is...

The other possibility to explore is the use of a scanner with audible/visual alarms. Once you get a trading model set-up alert from the scanner, you can then pull up the appropriate chart and investigate further.

Nope, you will get flipped. I personally know two traders with co-located servers and dedicated lines ($$$) who quit that trade. As was so profoundly mentioned earlier, what you see as a possibility on the screen and what you can indeed execute are two very entirely different things.

It seems like the TT AutoSpreader and the CQG IC tools are very good - I have clients using both, but they aren't cheap at about $2K per month. I have worked with some funds and prop groups who have developed their own spread legging/stat arb software programs. Of course, there is no free...

Great advice - seeds or a hooker, or plant your seed in a hooker.

Update appears to be some measure of ET member scepticism about the genuine efficacy of said OP's circumstance.

Proximo, the bottom line is in fact the bottom line. It is all about the money. I can make X dollars scalping for 60 tics, or I can make that same X dollars leveraging a spread position for 6 tics. I can promise you that that spread will model and trade much smoother than that outright flat...

I know all about the pro-rata, I quit trading Euribor when they moved from FIFO to Pro-Rata - why should I make markets for Liffe and show size when it becomes a silly quote stuffing game? When I quit trading Liffe, it was first 200 FIFO before Pro-Rata kicked in (I used to spread Euribor...

You may also have contracted a disease that will stay with you forever, not to mention the terrible emotional scars that would come with having to actually look at what a $90 trick actually looks like.

If you are trading an exchange-supported spread, the exchange legs the spread automatically for you with their internal order-matching engine; what the trader sees is one price DOM ladder but the execution fill window displays two leg fills - one buy and one sell with a quantity and price tag...

United States Department of the Treasury, Division of Internal Revenue. Or most any other Federal government job it seems.

Not when the market is under periods of severe stress. Most of us have seen markets when initiating order flow (liquidity takers) completely overwhelms the buy or sell bias - it would be difficult to label a market 'efficient' when there are few liquidity providers stepping into the market to...

Yes. Careful about the legging risk/slippage - IMO it is almost always better to stay with the exchange supported spread if it is available and work a bid or offer if you want to capture a bit more. Turning spread risk into outright risk doesn't make much sense, and in fact defeats the purpose...

"Because the banks are holding many of these distressed assets and if the Fed lets the price fall the bank's balance sheet blows up" Bingo. If the mortgage holders have no choice but to flood the markets with many thousands of listings at 'sell at any price' or something like it, then the...

"What if the science behing spread trading was only valid as long as C. worked...?" Easy - look at any weighted yield curve spread trade over the past few years ( post 2006); unbelievably great trend trade (taken on divergence in the spread).