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"All you really need though is a signal/technique that is right about 33% - 50% of the time and really good money/risk management. The key ingredient being the money/risk management part." Bingo. Everybody pays lip service/homage to it but the practical application of it is really lacking...

"YOU QUOTED MY POSTS ALMOST VERBATIM WITHOUT ATTRIBUTION." You think an awful lot of yourself. Delusional. I do my own work, bud.

"the race for speed which is all about being able to get first in line when the price moves, taking liquidity prior to a price move, and cancelling prior to an adverse price move. " It now appears to me that other than access to white papers and other academic references, you have no applied...

I have read your papers in detail, and I now realize that we are each talking about two completely seperate topics in the HFT realm. And the literature you cite has no bearing on order queue management, but rather high speed 'lead-lag' strategies where the system participates in bids or offers...

I know exactly what you're talking about, and personally know traders at TMG and AF here in Chicago who use the order queue position automation strategies (much more so a few years ago than recently; the TMG guys are long gone and the AF group got hurt badly in 2007 and 08). I've also seen them...

I've always claimed hardware and software expenses, line costs, that type of thing. Never an issue because my only income has been trading income by and large; it might get bounced if you are getting W-2 income by another means. No harm if they did, they would just re-calculate your taxes and...

"Actually, he did a lot of arbitrage-style trading early in his career" And arbitrage is the ultimate spread trading play in the purest and most literal form.

"Berkshire Hathaway 13-F? BH Financial buys and sells quite a bit of stock, another directional bet, too" Yes I have. Their investment and derivatives gains/losses represents about 6% of their earnings for 2010 as of the third quarter. If you look at the nature of their other businesses...

"I doubt Buffett built the majority of his fortune by betting spreads." True, but he didn't do it trading either - at least in the sense that you and I do it (unless you are a big investment banker or OTC securities attorney). He bought companies through private negotiations and did alot of...

"I believe he was referring to position in these newly-forming queues" True, but they never completely clear ahead of you in any FIFO market that trades substantial volume to the point where you are really up front in the queue - in fact, the queues will always remain SUBSTANTIALLY populated...

"and sell 20 Puts on ES @ 1210 in the premarket" Personally, I've never been a big believer in the 'Texas Hedge' at extreme deltas from the original price level, so IMO the puts would be a distant second choice to covering half the position at the open. If you cover half the position at the...

"Low latency strategies are able to process changes in price levels faster than others and so are able to send orders that are first in line and thus highest priority" Completely untrue for any FIFO market where there are already price limit GTC orders resting with an earlier timestamp at...

If you leave a standing price limit GTC order at every price in the order book as part of your "Automated Trading System" and never cancel it until it gets filled, then I cede your point. You win. But what automated trading system does that? Please elaborate. And that is the entire point...

In fact, nobody's traded a mortgage in two years. Let's talk about what works right here, right now.

"Really? So why are we bailing out the banks in that case?" Maybe a point for you to make in the Economics section. I don't trade Mortgage Backed Swaps.

"I don't know what Chillax means, but in my mind "interesting levels" are really mechanical/calculated/automated. I don't know why you want every mechanical trader to have an excessive message/fill ratio." But the entire thread, and everything I have been referring to, regards an ATS...

The perception here on ET about how things really get done on a fund or IB desk or an institutional level (mutual funds) is amazing. Completely naive. And really seperated from reality. In fact, delusional. Again, Jack Schwaeger has ruined the world and bankrupted many with his tales of...

"Yes, still at it. Maybe one day you'll tell me how the big boys like you play the game" The big boys are short NQ and long ES on a weighted relative value basis. For size. Taking flat price directional risk is a sucker bet.

"and more importantly repopulate the interesting levels with limits after it traded, and faster than manual traders?" Chillax. You are answering your own questions. If you are using human discretion and intervention to choose 'interesting levels' to populate, then it is not much of an...