Paul Rotter and the Order book
- Thread starter trader56
- Start date
Paul Rotter "owned" the eurex order book for a couple of years and killed off a lot of locals.
He was big enough to bully the market for a few ticks either way when every local was a scalper and looked to take 1 or 2 ticks out the market continuously throughout the day.
But with the explosion of technolody in the past couple of years there are so many algo systems flipping the order book it has made it relatively meaningless and Paul Rotters usual prey are no longer in there its just algo systems fighting it out between each other.
I've been trader in london for 3 years and in that time its gone from every single trader pretty much scalping european bonds to only a very small handful. The majority of the rest ended up going broke and a lot of that was down to Paul Rotter. Legendary trader. Ended a lot of people's careers... but thats the game we play
He was big enough to bully the market for a few ticks either way when every local was a scalper and looked to take 1 or 2 ticks out the market continuously throughout the day.
But with the explosion of technolody in the past couple of years there are so many algo systems flipping the order book it has made it relatively meaningless and Paul Rotters usual prey are no longer in there its just algo systems fighting it out between each other.
I've been trader in london for 3 years and in that time its gone from every single trader pretty much scalping european bonds to only a very small handful. The majority of the rest ended up going broke and a lot of that was down to Paul Rotter. Legendary trader. Ended a lot of people's careers... but thats the game we play
hes now in asia trading the markets like the hang seng
smart move.
thats where all the punters and scalpers are.
especially the koreans and japs.
they wouldnt know a spread trade if it bit them on the arse.
he is probably cleaning up the locals and punters out there big time.
after travelling thru asia and knowing the culture a bit he is probably gonna end up with a slit throat.
they wont tolerate his bullshit out there.
Please forgive my ignorance, but I don't understand how what Paul Rotter did or is doing can be viewed as wrong or unethical. Isn't he just doing the same thing as market markers?? Or instead, is he creating large "fake" orders to drive the market in a particular direction, as would be revealed on the Level II info? If that's the case, aren't large hedge & mutual funds doing the same thing.
I'm sorry, but perhaps if someone can enlighten me about Paul's strategy, then I'll have a better understanding of his misconducts.
thanks,
Walt
I'm sorry, but perhaps if someone can enlighten me about Paul's strategy, then I'll have a better understanding of his misconducts.
thanks,
Walt
He isn't doing anything wrong as far as the exchanges are concerned, however calling it morally right to trade that way is another story. Every electronic market has an asshole who pulls this kind of shit.
Every since the dawn of electronic trading markets are getting more and more manipulated. I mean just take a look at the size in the front month corn and wheat spreads. Its like 40-80k bid/offer. I mean how can locals compete with that? I would have to bid or offer for WAY more contracts than what I really want which puts me at added risk for only 1/4 cent!!!! Its ridiculous!
Also CME Group thought it would be really great to bring back a 10 deep orderbook again for the grains. All this does is now attract and promote more manipulation with the bids/offers. In my opinion the markets should go back to being quoted the same way it was in the pit, just a best bid and best offer. That would take out 99.99% of the games in these markets.
Every since the dawn of electronic trading markets are getting more and more manipulated. I mean just take a look at the size in the front month corn and wheat spreads. Its like 40-80k bid/offer. I mean how can locals compete with that? I would have to bid or offer for WAY more contracts than what I really want which puts me at added risk for only 1/4 cent!!!! Its ridiculous!
Also CME Group thought it would be really great to bring back a 10 deep orderbook again for the grains. All this does is now attract and promote more manipulation with the bids/offers. In my opinion the markets should go back to being quoted the same way it was in the pit, just a best bid and best offer. That would take out 99.99% of the games in these markets.