Don Miller Good Video

What is a "wholesale liquidity provider"? He keeps referring himself to that.

Best I can tell, he enters staggered limit orders outside the market against the immediate direction of price looking to fade the mini "panics" for a few ticks. I think the market rationale behind that is, "it always comes back." LOL.

Any retail liquidity takers out there? I pity the fool.
 
He basically plays for mean reversion, averaging in on limit orders to capture the spread and a good price. He exits the same way. The problem with strategies like these is that you tend to get hit on the bad orders only. So, this is why I think his mentality helps. He's not trying to catch the exact bottom but just average in where he likes the price based on his read.

I ran a backtest on a very simple proxy strategy that I thought would be similar to what he did. It was hugely profitable before expenses and assuming you got filled on the limits. Assuming the price had to pass the limit order then it always lost. The truth is somewhere probably between the two. What is clear though, it will be hard to beat your expenses with this strategy.

I'll have a new post up on my blog about limit vs market. I've thought about these a ton and know professionals who swear by market and by limit. The truth is that neither order type is superior.
They both serve different purposes.

Neither order type implies that one is a superior market player either.

Quote from icarus618:

What is a "wholesale liquidity provider"? He keeps referring himself to that.

Best I can tell, he enters staggered limit orders outside the market against the immediate direction of price looking to fade the mini "panics" for a few ticks. I think the market rationale behind that is, "it always comes back." LOL.

Any retail liquidity takers out there? I pity the fool.
More...
 
Quote from Lucias:

He basically plays for mean reversion, averaging in on limit orders to capture the spread and a good price. He exits the same way. The problem with strategies like these is that you tend to get hit on the bad orders only. So, this is why I think his mentality helps. He's not trying to catch the exact bottom but just average in where he likes the price based on his read.

I ran a backtest on a very simple proxy strategy that I thought would be similar to what he did. It was hugely profitable before expenses and assuming you got filled on the limits. Assuming the price had to pass the limit order then it always lost. The truth is somewhere probably between the two. What is clear though, it will be hard to beat your expenses with this strategy.

I'll have a new post up on my blog about limit vs market. I've thought about these a ton and know professionals who swear by market and by limit. The truth is that neither order type is superior.
They both serve different purposes.

Neither order type implies that one is a superior market player either.
More...

My question was rhetorical, but thanks anyway, bro.

BTW, in another of his vids (7-30-2011) he says he's looking to back someone with capital to trade, in a mini-prop model, and the person need not be a "jellie." This could be your chance. Seriously, you should apply.
 
I just watch Trading After Dark Episode #2. It was very disappointing that he went over the trade in H-I-N-D-S-I-G-H-T!

Seriously would this guy do a hindsight video if he lost 300k on a trade such as another guru?
 
cherry-picking_large.jpg
 
you really think he's trading this crap well?

if he gets lucky, he'll post a vid, if not, he wont

my bet is his jellies are getting killed
 
He's right about Engineers. They are not like him, they do not want to be told to "jump in and learn how to swim"... I do believe that, in this day of screen traders, that Engineers will study for extraordinarily long times before they start trading but when they do they will go great.
 
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