Ok Ok what edge

Hi Nitro

When I was imploying this strategy, my brokers quotes were not crossed or locked. Got fills every time. It was just an anomoly that I found between my brokers quotes and Island and I took advantage of it. For me it was my holy grail. It worked so well that the market maker for qqq banned me from trading it, i.e, he would no longer accept my trades. Might sound strange but it actually happened. Could you provide some more information about how you can make money with crossed or locked orders.
Regards
 
Quote from USAtrader:

For many successful traders, their edge is their "FEEL".
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I am really hopeful that more and more of those people get a trading account as soon as possible and add some liquidity.

nitro
 
Quote from nitro:

I am really hopeful that more and more of those people get a trading account as soon as possible and add some liquidity.

nitro
More...

Lol

A personal definition (I don't care if others agree or not)

An edge is:

A method (discretionary, systematic, hybrid) which allows the trader/speculator/operator to be consistently profitable on a monthly, weekly, and even daily basis, irrespective of the market environment (chop, test, trend). It follows that this method would be grounded in market microstructure and not temporary/inferior mispricings which are subject to immediate correction through arbitrage or improved electronic efficiency.

I see the other things people have mentioned on this board (trading platform, right hardware, commissions) as aids to an edge, but not as an edge in and of themselves. In other words, the latter are advantages which are necessary but not sufficient to qualify as a real edge.
 
Quote from nitro:

And a great edge it is, especially in SPX options where you have a huge spread between the B/A. Equity option market making is much harder, although I guess the back months or OTM options offer some juicy spreads too.

Of course, you/your firm pay a pretty penny to make two sided markets, but don't have cancel fees and pay close to nothing on comissions. Plus, you have access to firm capital and can lay off risk by hedging and/or locking in profits almost instantly and extremely cheaply. All those put together is the "edge."

nitro
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yeah, and all they have to do is make the market. such a deal.
 
Quote from nitro:

And a great edge it is, especially in SPX options where you have a huge spread between the B/A. Equity option market making is much harder, although I guess the back months or OTM options offer some juicy spreads too.

Of course, you/your firm pay a pretty penny to make two sided markets, but don't have cancel fees and pay close to nothing on comissions. Plus, you have access to firm capital and can lay off risk by hedging and/or locking in profits almost instantly and extremely cheaply. All those put together is the "edge."

nitro
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yeah, and all they have to do is make the market. such a deal. and where do they lay off the volatility risk?
 
Quote from aPismoClam:

yeah, and all they have to do is make the market. such a deal.
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It's not so simple. Most of these people that are in pits have to be very quick on their feet and be able to make decisions fast.

I was in the SPX pit being shown around by an ex MM, and they handed me the sheets these guys look at for their models on fv. _EVEN_ with my glasses on, I could not make out the numbers they were so dense and tiny!!!! What is more, there are huge electronic boards that are also filled with current b/a spreads on different strike/months that you have to locate quickly, do some mental calculations fast, and then decide to take the trade or not.

Then there are long periods where you are standing around doing nothing shooting the breeze with the guy next to you.

It is not a glamourous job for sure.

nitro
 
Quote from aPismoClam:

uh-hunh. i guess the gods have spoken.
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...and don't you forget it ! :D

PS. Me thinks I could say the same about yourself :eek: - but I won't :p
 
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