otc automation

[Rationalize]

Quote from macrotrader:

So PUMA is quoting 0.77$/1.77$ and NITE 0.08$/0.80$. Interesting.

Do you use passive orders then or what do you mean by range-bound trading?

Only interesting if you can hedge it, or get out of it reliably.

Any limit order that does not cross the spread is passive.

Range bound when price trades around a mean. Not range bound when trending. [And trading trending prices is reserved for morons, liars, lucky punters, and insiders .. but that's another topic].

Some combinations of instruments will always track around a mean.

And some of those have a wide spread on at least 1 side.

 

[$treet Trader]

Quote from macrotrader:

Same question here.. anyone doing it?

I'm using IB and DTN, which both cover OTC/PS.

Maintaing a list of active issues is really a trivial problem. Thereare 20'000 official OTCXB issues or so, from which at any point in time perhaps 1000 are tradeable for a sub-250k account. You don't have to trade the other 19000 from which 75% don't have a regular quote anyway.

What I noticed is that the cycles are very different from the general stock market. If a stock trades 1000 it's daily average on one day, that looks like a nice imbalance to trade. A newsletter or a recommandation can have a big effect.

Of course these strategies are not scalable at all. However there seem to be a few penny stock trades who make a few hundred k a year or more. I have never heard of an automated penny stock trader though, after a year of research, but somehow I guess there most be some selected few who are making very easy money, considering who is trading on the other side.

Ran across this forum/topic through google so I thought I would make an account and contribute to the thread.

Ive been wanting to get into this for sometime now. I have a part time set up, full time job elsewhere, that still allows me the time to use TDA linked with eSignal. Its horrible and I want to get away. Recently got an account with Trade Ideas Pro and have been watching the alerts come through each day. Deviation breakouts, unusual number of prints, moving average crossings, etc. for those who have used TI Pro they know what im talking about. In any case, I have been watching the alerts come through and have observed, not taken part in, but observed massive gains over a 2 day period, +/-100% gain in 100 minutes. The problem is: by the time I have my finger on the buy button, I have to pay a 30% premium and who wants this. Then I was on youtube and saw a greybox solution that works along with TI Pro, maybe I will give this a try. However, I need to go direct access and get setup with a platform that will work with eSignal & TI Pro (most already pair well with TI). Problem: I cant find a broker that will cooperate, either rates are too high, or IB wont give you a Pink L2 quote, or Lightspeed wont quote pinks at all though their platform. Its a problem. Stirling or REDI + TI Pro + eSignal + Cyborg sounds like it would be a killer, although not truly automated/blackbox, but you dont need that for pinks anyway due to the lack of liquidity. Developing a grey box system that could analyze the sudden movement in a pink, and make an entry point would be the key. Best of luck in your search.

If someone can fill in the blank above with a direct access broker that is good for otc/pinks I would appreciate it.

Thanks.

$treet