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I am a firm believer that humans will always be able to figure out ways to overcome "intelligent" machines. If the machines start to dominate the markets, there will always be ways of profiting.

I don't understand why people don't adapt to a spoofer by: 1. Ignoring his huge quotes because they provide no new information to the market or 2. Play along with the spoofer by letting him do the work and then following his footsteps or 3. When possible, tag the spoofer by taking big...

I totally disagree with this statement. Spoofing hurts HFTs and should be allowed.

This statement is absolutely hilarious since in my 15 years of active trading, neither organization has done anything to protect the individual investor, and has instead made it much easier for the big players to exploit market structure. In fact, the SEC should change its stated goal to...

But no HFTs get stopped. Double standard. Either the regulators should let all behavior be valid (and let the market sort it out), or change the market structure so that it is not possible to do "illegal" behavior. Unfortunately, the current situation is that the regulators enforce the rules on...

I've read the filings. If Sarao is guilty of the charges, then HFT firms are just as (if not more) guilty. There would be an easy way to get rid of this type of behavior, but the problem is that it would regulate away HFTs. So instead the regulators try to crack down on people who are...

Statistically speaking there is no difference. If an HFT cancels a large percentage of its orders, it should be prosecuted just like Sarao.

If Sarao is being prosecuted because a large percentage of his orders were never meant to be filled, then all HFT operators should be jailed for 1000x lifetime sentences. Clearly there is a double standard for Sarao vs. HFTs.

My biggest leverage trade was 0% leverage.

The powers that be could make spoofing effectively illegal by charging cancel fees or by requiring a minimum live time for each order, yet that doesn't happen. If they aren't going to make spoofing illegal via market structure, then they should make it fully legal. This middle gray area is...

Man I'm so glad that the market is so robust that one individual can cause a flash crash. Now that they've finally arrested the perpetrator, I can rest easy at night. I can also rest easy that HFTs are providing so much liquidity and are so great for the markets and for my trading. Nothing to...

Whatever dude. Reread your post and say that again with a straight face. By the way, "in the future" we will have genetically modified babies anyway so even if you don't have "good genetics" it won't matter. Just use some "money" to get better genes.

There are probably some pretty good genetics that get wasted due to malnutrition and lack of material wealth in all parts of the world. So I don't agree. It takes both (and luck).

Actually if I'm a broker, why would I want to keep a client who has a negative balance and can't afford to pay it?

This post is from awhile ago, but possibly it could help you? I don't have TurboTax so I can't check. But maybe there is a part in the interview process where you have to clarify that you are not a dealer. Just make sure your 1256 contract income is not transferred to your self-employment...

On Form 8949, you would report a transaction that matches your brokerage 1099-B exactly. Then you would add another transaction that solely deals with the cost basis adjustment and attach a note to the IRS explaining it. Or do you mean, what if your broker reports your cost basis correctly...

Instructions for Form 6781 that deal with Section 1256 contracts states: Is there any reason why TurboTax would be classifying you as an options or commodities dealer?

Just curious, what does your Current Year Increase say on your 2014 K-1?

If I make the following assumption: You did not hold a position from 2013 to 2014 or from 2014 to 2015 on UVXY then: As your K-1 should say in the fine print, you have to report 11C somewhere on your tax return involving Section 1256 contracts (your tax package should handle this). But...

Well, even if you went through the lengthy process of understanding all the values on the form, most likely you would end up with the same tax liability that you have right now. If it were me I would just ignore it, but I'm not a tax expert and you'll probably go to jail if you follow my advice.