CL Redux

Quote from tstones:

Hey LGS1 could you expand a bit on this? when was this ban? I've been looking for a reason behind this behavior change in CL.
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Sure. Investment Banks were forced to get rid of their proporietary commodity trading desks, thus an enormous amount of the "real" volume/big players have been forced out. This was the best case scenerio for HFT's/Algos because now they are not competing with flow, they are merely sweeping the book back and forth and collecting liquidity rebates. You basically have a handful of major HFT shops picking eachother off all day. The exchange won't do anything about it because they would rather have a machine trading 50,000 RT's a day than a human trading 1,000.

That is the name of the game these days. Not trying to say it is impossible to make money trading, just saying that you need to modify your approach.
 
Quote from Visaria:

The brent/wti spread went from around 2100 yesterday to 1830 today.

That's like crude going from 99 to 90 in one day!
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maybe is a warning shot across the bow. If the indexes have a small correction next week crude could make new lows
 
Quote from LGS1:

Sure. Investment Banks were forced to get rid of their proporietary commodity trading desks, thus an enormous amount of the "real" volume/big players have been forced out. This was the best case scenerio for HFT's/Algos because now they are not competing with flow, they are merely sweeping the book back and forth and collecting liquidity rebates. You basically have a handful of major HFT shops picking eachother off all day. The exchange won't do anything about it because they would rather have a machine trading 50,000 RT's a day than a human trading 1,000.

That is the name of the game these days. Not trying to say it is impossible to make money trading, just saying that you need to modify your approach.
More...


http://www.reuters.com/article/2013...rbssFinancialServicesAndRealEstateNews&rpc=43
 
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