Adapting to the Hybrid

Quote from bigvolume:

If we try to think from the other side, may be it will benefit to daytrader who watch level II: less "fake bid offer",and make l2 more useful.
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if it doesn't kill you it makes you stronger.
 
Quote from Hydroblunt:

The computers that flocked to the NYSE once Hybrid went into effect, who else? They don't need a seat, a computer, a mouse, a coffee machine, a bathroom an office, just a programmer and a backer. That's where Goldman Sachs comes in.

Daytraders are not needed for liquidity, the computers are more than ready to provide it. NYSE volume has been rising due to an excess of daytraders, HFT hedgies, black boxes, etc. Most of this daytrading population is just excess, consider that NYSE has been around for over 100 years with minimal "daytrader" involvement. In mid 1990s, the daytrader population was miniscule in comparison to now.
A certain fraction of daytraders are not going anywhere, like you. Also, there is no sense in eliminating every single daytrader, gotta keep the new hopefuls coming to keep the leverage wheel turning and the commissions churning.

It happened with Nasdaq and there was no liquidity crisis so why
would it be different for NYSE? They took the cash cow and sent it to the butcher.
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hydro do you still trade? i saw a while back you seemed to be doing ok and posting to the PNL thread.

sure the bots also provide a bunch but so do us day traders.

I am starting to make the coin i was before stage 3 hybrid. although I feel like I am taking additional risk. .

there have been some pretty wild moves.... recently, MO was offered at .21- swept straight up to 50ish hit a lrp and next print was 90. I had bot 5k at .21 at the time when dn 2500 on the day.

so far ive been on the right side of some of this fast stuff but can see a day or a week vanishing like a fart in the wind

all in all its tougher but i hope most guys who are working hard will adapt just fine
 
Personally I like hybrid...lets me trade larger size more easily...which is what I wanted to do...just took some adjusting.

Yes, the sweeps are a pain...if one can get big enough...one can be the sweeper...and thus reap the benefits.

Adapt by growing larger...

Now the Island fees becoming like Arca..that's another story...makes one increase patience more...still workin' on that one...
 
The thing with computers is that they dont adapt too fast to change... when something doesnt make sense to them... they frezee, or worse, they start sending millions of orders trying to make everything make sense...

The traders at the NASDAQ had been beating the crap out of algorithms for years...
 
Quote from Don Bright:

Yeah, by having orders generated at the end of a sweep, or having bids/offers in place, they tend to fade the sweep. I've noticed that at times I may have a .66 bid on, with a .75 x .78 market, without changing the market, it goes "hybrid brown" and fills me, and then right back to normal pricing.

And, yes, the guys who always make money are still making money...although adapting once again.

Don
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Can this type of scalp be automated?
 
Quote from kwancy:

Phase IV now...is day-trading going to be over?

opinions...
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Yes, Day Trading was ruled obsolete by the Decider at 12:15am PST... the PDT minimum is now at $500,000...

thank you for your contributions...

:D
 
As in any change in the market...
there will be those who will fail...
But the stong will survive!!!
Keep ya head up boys (and girls), its just a matter of time, weathering out this market, while we modify existing strategies....
Its gotten harder, but a lot of it has to do with readjusting our
P & L expectations while we learn how to trade a new market...
We are all in the same boat... I personally, am long on day trading, im doubling down at this point :) (even though i try to avoid averaging down :)...lol)
this is nothing but another squeeze on the industry.....
 
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