Is my broker's favorite market maker looking at my keystrokes?

synthetic....i rest my case in dealing with dim wits on this site. I will keep my journal here until doubles but wont sprinkle actual knowledge on anymore posts which is clearly just a waste
 
rb7 said:
Btw, there are no MMs on the ES market.
Unless you are mixing different market participant types.
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key word by the way is synthetic MM or aka an HFT.
 

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to take it a step further there actually are designated market makers at the cme in the es options but the word synthetic as i used it in my more than ample statements implies that the cme does not give "exchange mkt maker" status to es futs but they do for the options however soon all of this will change because hft needs to continue because most of the cme large share holders administration and board members are parrt owners of hft firms
 
tradeking007yahoo said:
Um...The more responses i read on this thread the more I realize anyone worried about MM is taking trading seriously and trying to find an edge and most likely trading.

while those making statements they arent after your 50 cents or 1 dollar or 100 have most likely never traded live and done battle with the bots.

MM make their living their profits their entire purpose of existing is to take 50 cents 5 cents a dollar a tick. at the end of the day a synthetic market maker at the cme might take a fourth of an emini tick x all trades matched!

also your 100 dollars as someone put it would be huge and is exactly what they are after over time...trade after trade. It matters when you need to get filled and they wont fill you or when they do fill you then spank it lower immediately to lock in ticks.

MM and brokers and exchanges are not your friends. they dont facilitate in anything really needed in these electronic mkts especially with so much volume being done. before hft the mkts electronically worked just fine and you had actual prices and orders on the book that were more real and values were more real because in order to get filled you would have a real match at value not an infintestimally small time period of inefficiency that a bot or algo can exploit at numerous price levels in order to cost you more.

until you start to do real size you wont care or notice it. However when trying to place large orders that are time sensitive either contractually or defensively then you will be forced to just pay them to get filled.

Here is a plan. make them come to you! if they tick your price and dont fill and you have time then lower your bid and raise your ask. they are constantly assessing the order book in pico seconds. nano was 5 years ago!

raise up and reduce orders to force them to come to you because they are holding trades they need to exit always! thats called mm inventory. they look for stale orders. move your limits a lot. keeo jostling your limits and like a shiny lure to a fish they will come up and bite on it wondering could this be a bigger order than i realize.

the only true way to not worry about this too much is to stay very small and increase your time frame. Here is a simple example in the ES
which is 12.50 dollars a tick.

e.g.
short term trade. trying to capture 1 point or 50 dollars.

mkt order in mkt order out.
1 lot in 1 lot out you
made
50 dollars gross - 12.50 tick to enter. -12.50 to exit.
net gain 25 dollars. no fees or commission for example purposes

you paid 50% in slippage! to the MM synthetic hft

same idea but your exit is 10 points or 500 dollars

1 buy mkt 1 sell mkt you still pay 12.50 in and 12.50 out. so 25 dollars.

25/500 gain= 5%!! you are still paying out 5% of your gains on a 500 dollar trade to the MM.

Sure well you can use limit orders but then what is the cost if you miss your trade due to priority because you will always be at the back of the que!! ALWAYS.
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It's funny, 20-25 years ago (when a 500 share trade of GE could cost $50-90 in fees), I use to trade this way. I think I will go back to this style much more. If I am trading a large volume stock (QQQ), sit and wait. I can wait hours/days on this...I really can.

The problems occurs when I trade thinly traded stock. I wish to buy the stock, then sell a covered call within minutes...Trying to lock in a given profit, if it were to get called away. If the stock is dropping, I want to grab that "sell to open" to secure 'some' income while it wait. But many times (since I believe in the stock to begin with), I should just wait and hold. I need to be prepared to ride it out through a recession.

Just talking out loud...Take Coke. I can buy it (at the right price). It has a fair dividend. Do a covered call (on my terms). If the price drops...I do not think the company is going away...Ride it out. As the stock rises...Do the covered call and enjoy the profits (covered call money, dividend, compounding interest). Thank you for the idea of patience (bid/ask). For a small trader it can be a virtue.
 
Cabin111 said:
No, I am not a conspiracy theorists. Just wondering if the MM is allowed access to my keystrokes, when I am at the broker's website.
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you just need a better entry. one that has a lower chance of getting stopped out. otherwise trade options or dont use a stop which is not a good idea. therefore, find better trade entry.
 
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