Penny Scalping/Liquidity/Rebate Traders - What Now?

[Hydroblunt]

Quote from nugundam:

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Well, i think its obvious don't you think? All these credit traders would be momentum traders as it would make sense to always enter the market with FOK. I mean if we didnt get the rebates then I'd always enter the market at just the exact moment I feel the level would break. That simple.

And for all those saying its impossible to do this type of trading thats total BS. If you look at SUNW, JDSU, SIRI, ADCT, CIEN, CNXT, etc. you'd notice that 90% of the time these stocks have a trading range. So if you think TA would help think again.

I think what one must realize is that even momentum stocks can act like credit stocks during certain days. ORCL is a perfect example today, a mere .12 spread.

LOL yeah ok.

You would not be doing credit trading if you had any skills in momentum so stop fooling yourself. Credit trading is rough tiring work, noone would be doing it unless they simply could not handle the risk and challenge of momentum trading or even simple scalping.
In reality almost all the credit traders would churn themselves into a deep hole very quickly if the rebates were gone.

 

[Marc to Market]

Wow, almost 7 years later and a lot of HFTs such as myself find themselves in the same boat now that C is doing a reverse split. It's amazing how much has changed in 7 years -- new regulations, the advent of dark pools and ATS', mid point orders, different platforms and routes, etc. but the same general premise remains the same: buy the bid and sell the offer as much as you can over and over and over again...