Arbitrage back-testing charting package

Well... You gotta admit that this is a pretty dumb argument right? His systems must work because he makes referrals? First of all how much do you know he makes from referrals if anything, other than what he says he does? How do you know? Secondly, he can refer nonclients as well and the prop shops will be happy. Don't have to be customers of his. 7500 for questionable content is well... It is the typical ET sales story... fishing for low hanging fruits. At the very least it is a snake oil type of promotion, by posting opinions of his business by people who posted on ET. Really? For what it's worth he could as well have created 10 aliases, post for 12 months on ET to up the page count and likes here and there, and then self generate some testimonials about his business. It smells to say the least



gaussian said:
Well...to be fair if his system didn't work he wouldn't make referral money to props because they'd stop taking his references. Yet here you are, a guy who can't even figure out how to plot the linear regression of a response variable and its predictors in Excel criticizing a guy who makes money in exactly this field.
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GRULSTMRNN said:
Well... You gotta admit that this is a pretty dumb argument right? His systems must work because he makes referrals? First of all how much do you know he makes from referrals if anything, other than what he says he does? How do you know? Secondly, he can refer nonclients as well and the prop shops will be happy. Don't have to be customers of his. 7500 for questionable content is well... It is the typical ET sales story... fishing for low hanging fruits.
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I don't know, and I don't want to be mistaken for a shill here. He obviously prices it because it's what the market will bear. The only reason I used referrals as an example because, assuming he does refer highly qualified clients like he says he does, he would lose his referral ability if he constantly sent bad traders to prop shops. It's similar to a headhunter, the only reason a headhunter has a job is because they send qualified clients to an employer. If his value add to his system is the chance to get into a prop, $7,500 seems not bad considering the popular props advertised here will fleece you for thousands in their "gauntlet" and only give you the most trivial introduction to the most questionable bits of technical analysis.

Anyway, this topic isn't for discussing the merits of Bone. I just wanted to reply. Let's focus on OP and his inability to figure out how to use Excel instead.
 
gaussian said:
I'm not an expert in this field (you are) but the books I've read don't seem to imply HFT for something like ETFs going uncorrelated due to market madness.
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I've consulted for two very well known names in proprietary trading that do exactly that with ETF's using HFT. (NDA's prevents me from naming names) And they take them all. They do not allow spreads on very highly correlated products to widen.

When it comes to ETF's I think that the really wise percentage play for the retail type trader is to buy a star(s) or sell a dog(s) against the underlying ETF as a swing trade. Avoid the speed games entirely.

I take PM's and emails practically every week from ET Members who have tried to mix it up on the HFT arbitrage scene and it's always bloody. Had an email and follow-up phone call last week from an independent trader; he had about all the advantage he could assemble for an independent retail client - clearing Rosenthal Collins using their colocated ICE and CME servers, AT&T business class 100x100 fiber internet, and TT AutoSpreader. It was about the best he could do as an independent without spending really big money on a custom dedicated line. He was trying to arb ICE WBS against CME CL and was getting picked off constantly.

My only real point is that from what I've seen - retail type traders cannot win speed games. And legit arbitrage with exchange cleared products is a speed game. That's been my experience working with clients and getting quite a bit of private feedback from ET Members who have tried in earnest.

I wish everyone good fortune !
 
Because he said so? And FYI, prop are the shops on the lowest level of the ladder, you are aware of that right? Pretty much anyone with a few dollars in his pockets gets a seat. And most walk out a few months later with empty pockets.

Re OP, I think you misunderstood. He looks for real time charting of ratios and spreads of custom nature.

gaussian said:
I don't know, and I don't want to be mistaken for a shill here. He obviously prices it because it's what the market will bear. The only reason I used referrals as an example because, assuming he does refer highly qualified clients like he says he does, he would lose his referral ability if he constantly sent bad traders to prop shops. It's similar to a headhunter, the only reason a headhunter has a job is because they send qualified clients to an employer. If his value add to his system is the chance to get into a prop, $7,500 seems not bad considering the popular props advertised here will fleece you for thousands in their "gauntlet" and only give you the most trivial introduction to the most questionable bits of technical analysis.

Anyway, this topic isn't for discussing the merits of Bone. I just wanted to reply. Let's focus on OP and his inability to figure out how to use Excel instead.
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When colocating at exchanges one does not need any lines at all, what are you even talking about? When running algorithmic strategies that are colocated then the entire network infrastructure is provided. You have rack space assigned and connectivity is provided. Almost all exchanges soon move to actually provide the exact same latency to the matching engine regardless of where the rack inside the collocation center is located at (its called equidistant cross connect). And for discretionary order submission, collocation is the last thing that is needed. Your comment on this makes zero sense.

bone said:
I've consulted for two very well known names in proprietary trading that do exactly that with ETF's using HFT. (NDA's prevents me from naming names) And they take them all. They do not allow spreads on very highly correlated products to widen.

When it comes to ETF's I think that the really wise percentage play for the retail type trader is to buy a star(s) or sell a dog(s) against the underlying ETF as a swing trade. Avoid the speed games entirely.

I take PM's and emails practically every week from ET Members who have tried to mix it up on the HFT arbitrage scene and it's always bloody. Had an email and follow-up phone call last week from an independent trader; he had about all the advantage he could assemble for an independent retail client - clearing Rosenthal Collins using their colocated ICE and CME servers, AT&T business class 100x100 fiber internet, and TT AutoSpreader. It was about the best he could do as an independent without spending really big money on a custom dedicated line. He was trying to arb ICE WBS against CME CL and was getting picked off constantly.

My only real point is that from what I've seen - retail type traders cannot win speed games. And legit arbitrage with exchange cleared products is a speed game. That's been my experience working with clients and getting quite a bit of private feedback from ET Members who have tried in earnest.

I wish everyone good fortune !
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GRULSTMRNN said:
Because he said so? And FYI, prop are the shows on the lowest level of the ladder, you are aware of that right? Pretty much anyone with a few dollars in his pockets gets a seat. And most walk out a few months later with empty pockets.
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Which shows you know nothing about CME and Euronext/ICE member proprietary futures trading firms. They aren't allowed to risk employee capital - only firm capital. And they don't allow "pretty much anyone" to risk firm capital. Quite the opposite in fact.
 
I talked about general prop firms I don't know which prop firms you have deals with and which not. All I know is you talk a lot and never showed proof of anything. All NDA gibberish how you cannot ever disclose names and funny testimonials on your page that you could have written yourself. I simply encouraged another user to not take everyone's mere words for facts.

Fact remains you clearly know nothing or very little about low latency trading and hf market making yet make all sorts of factually incorrect claims. Your story about your secret customer who could not compete is clearly bogus for everyone who knows a thing or two about collocation.

bone said:
Which shows you know nothing about CME and Euronext/ICE member proprietary futures trading firms. They aren't allowed to risk employee capital - only firm capital. And they don't allow "pretty much anyone" to risk firm capital. Quite the opposite in fact.
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GRULSTMRNN said:
Your story about your secret customer who could not compete is clearly bogus for everyone who knows a thing or two about collocation.
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That person I mentioned was not a client - he is an ET Member who was looking for advice. And I am quite familiar with re-quote latency issues for hedge orders.
 
gaussian said:
While I agree with you that if they're trying to make an actual risk free profit they're boned (no pun intended) - there's also the possibility of a pairs trading arbitrage strategy which can be executed for a profit at a significantly slower timeframe (vs something like index arbitrage). Though this doesn't disagree with your statement that they will need a better ECN than a normal retail one to get good pricing. I'm not an expert in this field (you are) but the books I've read don't seem to imply HFT for something like ETFs going uncorrelated due to market madness.




Well...to be fair if his system didn't work he wouldn't make referral money to props because they'd stop taking his references. Yet here you are, a guy who can't even figure out how to plot the linear regression of a response variable and its predictors in Excel criticizing a guy who makes money in exactly this field.
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Who said anything about regressions? I am just looking
for a yahoo finance sort of chart with more modularity....

As for your "my dick is bigger than yours attitude"... feel free to refrain from contributing if that's what you are here to proove.

P.s. I have a PhD in econometics and did a post doc in financial eng., so buy yourself a massive strapon :)
 
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