I am done with Futures... going back to Forex

bone said:
Let’s just cut to the chase here. We are thirty years into electronic trading exchanges - they’re not going away and Algos and automation aren’t going away. It is a waste of emotional energy to piss and moan about it. There are some hard truths that need to be taken to heart:

1. Trading OTC forex with $5K might might not be a particularly wise choice.

2. Sitting in front of a monitor, mouse in hand, and trying to scalp fast moving markets like forex, gold, crude oil - where you know for a fact Algos and automation are participating might not be a wise choice.

3. My suggestion would be for the retail trader to only look for 1, 2, possibly 3 really high quality entry setups per day and to give it each a chance to develop. That way, you’re taking the bots and the spoofing and the games out of it. It’s also going to force you to have some self reflective accountability for your choices and trade management - which is a good thing. If you step away from the microstructure of the market order flows, good things are more likely to happen.

I wish everyone good fortune.
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All it took was one solid post with some meat on the bone like yours to bring back the faith of this Board! thanks and i think kyou are correct.
 
REDP1800 said:
All it took was one solid post with some meat on the bone like yours to bring back the faith of this Board! thanks and i think kyou are correct.
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But, hft could very likely end up being regulated notout of existence but jsut to he point where they are not as profitable. the merc should have just designated them as mkt makers to begin with then everyonewould understand, but since the CME EXCHANGE IS PUBLIC which should be illegal it is motivated by extremem profit so having 30 hft colcoated on racks competing is good for business.
 
To be fair - anyone, including an independent individual trader, can lease collocated server rack space at the CME.

Wishing automation to go away is akin to wishing that Silicon Valley didn’t have a monopoly on technology development. That horse left the barn decades ago.

In terms of automated trading systems, those have to first be registered with then approved by the exchange. Those systems are monitored for ECN messaging overload and spoofing. The CME has levied millions of dollars in fines, suspensions, outright banned some firms and individuals- and even sent a guy to jail over spoofing the past several years.

https://www.cmegroup.com/trading/colocation/co-location-services.html

REDP1800 said:
But, hft could very likely end up being regulated notout of existence but jsut to he point where they are not as profitable. the merc should have just designated them as mkt makers to begin with then everyonewould understand, but since the CME EXCHANGE IS PUBLIC which should be illegal it is motivated by extremem profit so having 30 hft colcoated on racks competing is good for business.
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bone said:
3. My suggestion would be for the retail trader to only look for 1, 2, possibly 3 really high quality entry setups per day and to give it each a chance to develop. That way, you’re taking the bots and the spoofing and the games out of it. It’s also going to force you to have some self reflective accountability for your choices and trade management - which is a good thing. If you step away from the microstructure of the market order flows, good things are more likely to happen.
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:thumbsup:
I have LT average 2-3 trades a day. HFT, bots or anything else is not disturbing my trading.
 
Oh yeah, they’ve been going after banks and prop firms HARD. One big bank a couple years ago paid a big fine and was told if they did it again they’d be banned from the CME. (Which is huge because every customer they have and broker trades for uses CME products)

Geneva Trading, which is a Chicago Prop Firm, was fined $1.5M and told if they did it again they’d be banned.

Deutsche Bank, UBS, Bank of Nova Scotia - they’ve all been pinched.

https://www.justice.gov/opa/pr/form...lty-commodities-fraud-and-spoofing-conspiracy

https://www.cftc.gov/PressRoom/PressReleases/7818-18

https://www.chicagobusiness.com/finance-banking/chicago-trading-firm-fined-15-million-spoofing

https://www.google.com/amp/s/www.ch...poofing-plea-0603-biz-20170601-story,amp.html
 
Overnight said:
You also can have a colo trading machine near the exchange. I know my broker offers it. Does yours?
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yes but uts also not just being faster. you need raw data 12k month plus other fees a staff of quants the cloud a dwave computer 15 million. its not just speed at all. colocation is free with a 500k account
 
Any experienced serious currency trader is likely to be active in both spot & futures. In the U.S. you have regulated Fx brokers, some with access into the interbank. Outside of the U.S. there are some good brokers, and plenty of bucket shops - so be very critical.

On another subject - novice retail traders often think they will find a technology edge, good luck with that. Most of the long standing operations that once had a decade + of being profitable on their technology & PHDs from the best universities, they are now getting beat by the larger operators that spent a huge fortune on technology & exchange/regulatory relations to ensure they stay on top.

Trading with a lower frequency and a larger profit target keeps me out of harms way with the super computer trickery: herding, layering, spoofing, quote flashing/stuffing, etc.
 
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