What's 10% between friends?
lol
Are We Truly Aware of the Potential of Algorithmic Trading?
- Thread starter daanipd
- Start date
lol
And how do you know what percentage of that order flow is made of retail orders?
Is there something you are not telling us?
You are talking about institutional trading using payment for order flow. Quite far away from the thread topic, don't you think so?
No. That is one of the best, if not the best, application of Algo trading. Trading mean reversion or some other anomaly inside of large datasets is ok, but when you have the order flow in real time you see all of the other players cards.
What drawdown percent will you tolerate before deactivating the system?
Ok Captain obvious, and do you have that order flow at hand. Are you a market maker?
I costarted an algorithmic market making desk and was in that world for about 4 years.
The goal is to get tiny orders from thousands of uninformed retail traders who are crossing the bid offer. This way you can capture the bid offer and run a statistically flat book. You first goal is to run a flat book (in aggregate risk). After you get good at that you can attempt to run statistical arb by skewing your quoting and not hedging risk as you acquire it.
but that’s only secondary. First step is to just trade the flow and not get whacked by a million people buying calls in GME.
The goal is to get tiny orders from thousands of uninformed retail traders who are crossing the bid offer. This way you can capture the bid offer and run a statistically flat book. You first goal is to run a flat book (in aggregate risk). After you get good at that you can attempt to run statistical arb by skewing your quoting and not hedging risk as you acquire it.
but that’s only secondary. First step is to just trade the flow and not get whacked by a million people buying calls in GME.
Those are names.
I asked which "market/instruments"?
As in exchanges and symbols. CME & NQU23 perhaps?
When I see someone say SP500 I'm thinking they are talking about those shifty CFD'S Europeans are fond of, or all they can get their hands on to trade. Yes?