Anatomy of a Day in the ES

IB states it's policy on the web site. It doesn't look at stock order flow. The prop side doesn't see orders from the customer side. Orders go direct to the exchanges based upon price. Auditors attest to this on the web site. And yes, it does make a difference. From time to time you get price improvement just by the nature of how the markets work. With IB's systems it could take advantage of this but chooses not to.

the thread inferred that IB uses the flow in some shape or form which is a reason for lower commissions. this is incorrect.
 
THIS IS NOT ANOTHER IB THREAD THAT YOU HAVE SOMEHOW GRAVITATED TOWARDS. START ONE ON AUTOMATED TRADING OR ROBOT TRADING. THE NAME OF THE THREAD IS "ANATOMY OF A DAY IN ES" KEEP IT ON THIS SUBJECT
 
hello all

this idea (automated trading) is something I stumbled across when I first started learning to trade and got interested in daytrading.

Couple of thoughts have crossed my mind and actually almost made me quit. If its so cool, why couldnt we all design a system (buy one from some experienced trader willing to sell), hire a programmer and make the darn' thing?

Turn on the PC, hire a 20 year old kid from college watch after it and go to the beacjh or something... wheres the trading in that? Wheres the magic that has always been there? WHEREAS THE MONEY? If enough people start doing it, wouldnt it eliminate innefficiencies in the market and bring us to a certain standstill?

This reminds me to a post I read here some time ago "...so hurry up, cos market inefficiencies will soon be smaller and smaller..." thus less money to be made. All it will come down to is who has the more reliable telephone line to the net, who has the faster broker (h** we may all get us a direct connection to the ECNs and open our private small brokerages)...

Just my rambling but it makes one wonder... I guess I really stand SMALL chances competing with guys like tntneo, tymjr, candletrader etc etc etc .... and I use simple Quicken Quotes Live and dont even know how to interpret BBs correctly.

Alex

P.S. I also use Ensign (free EOD data) but this ESPL is probably the hardest thing to learn. WHAT DOES IT ACTUALLY DO ( In English please:D and how do I put it to use?)
 
Originally posted by neo_hr
If its so cool, why couldnt we all design a system (buy one from some experienced trader willing to sell), hire a programmer and make the darn' thing?
More...
because the research and development associated with producing a working system is expensive.

the system we trade has a price tag of about $200k in terms of man-hours spent, and we are far from being done. therefore, although our system is profitable, i often wonder whether our usual contract work would have been more profitable in the end. so it's not that simple, really.

- jaan
 
What's up with this huge thrust at 1pm setting a new high after this morning collapse I was writing an email to some chick I really got upset when I saw the move I missed so I decided I was done for today and then now back down !
 
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