Prop firms piggybacking

Quote from Don Bright:

FWIW.....this comes up every couple of years. All I can say is that I have traders who make millions and that we have no desire nor time to attempt to either figure out exactly what they're doing or how to "piggyback" - ....

That being said, if I were just a trader and found out that a Firm was doing something like this....I would head straight for the regulators and a lawyer.

And, even if you sat right next to one of my most successful traders, I doubt that anyone could reallyduplicate their thought process.

As far as "systems" go....most tend to have a short shelf life ... meaning that they must be constantly tweaked to stay effective.

All the bsst,

Don
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Mr. Bright,

You are right that this issue comes up every couple of years, I had read a book which also raised this concern.

As knowledgeable and respected person in this field, can you make a general statement that nowaday no prop firm are piggy-backing their traders' strategy? or you can only say that Bright LLC never does that?

Thanks.
 
Quote from jily:

Mr. Bright,

You are right that this issue comes up every couple of years, I had read a book which also raised this concern.

As knowledgeable and respected person in this field, can you make a general statement that nowaday no prop firm are piggy-backing their traders' strategy? or you can only say that Bright LLC never does that?

Thanks.
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Well, I can certainly say that Bright Trading does not do this. I can also say that there are so many algo's out there that track, trade by trade, the NYOB, baskets, and other inter-market stuff, that what some may see as possible front running, could very well be those multitude of programs. "Could" it happen, sure I suppose it could...but is "may" just be that some traders strategies are being adapted to by the overall marketplace.

In any event, if what you're doing is making money...keep doing it, and stay ahead of the curve.


Don
 
Quote from Don Bright:

Well, I can certainly say that Bright Trading does not do this. I can also say that there are so many algo's out there that track, trade by trade, the NYOB, baskets, and other inter-market stuff, that what some may see as possible front running, could very well be those multitude of programs. "Could" it happen, sure I suppose it could...but is "may" just be that some traders strategies are being adapted to by the overall marketplace.

In any event, if what you're doing is making money...keep doing it, and stay ahead of the curve.


Don
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Thanks for the insights. I took it as a warning that, yes there could be some "spy" activities and/or "spyware" in the market place.

The task I am facing is to scale-up my current operation. I must find a reputable prop firm who has all the tools and platforms to help me to grow the trading scale, and also respect and pretect my strategy.

JILY
 
you guys think ONLY the prop firms do it ...your wrong.... as the big boys look at flow as well. These huge firms do exactly this yet you would never know it...I think the big prop firms dont do it as they have guys making millions and why would they risk it, but i do feel that the big boys are all mostly seeing whats making money and while maybe they wont copy it exactly they will come close and fine tune it.
 
Quote from proptrader12345:

you guys think ONLY the prop firms do it ...your wrong.... as the big boys look at flow as well. These huge firms do exactly this yet you would never know it...I think the big prop firms dont do it as they have guys making millions and why would they risk it, but i do feel that the big boys are all mostly seeing whats making money and while maybe they wont copy it exactly they will come close and fine tune it.
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This reminds me of an article about Knight Trimark from quite a while back...might be of interest.


Role as Big Nasdaq Market Maker Helps Knight/Trimark's Portfolio

By GREG IP
Staff Reporter of THE WALL STREET JOURNAL

When egghead.com Inc. released good news early one morning in December, before the Nasdaq Stock Market opened, many online investors thought its stock would open higher. Kenneth Pasternak knew it would.

Mr. Pasternak sat before a screen at Knight/Trimark Group Inc., a market maker whose job it is to execute trades. His screen showed that orders to buy Egghead exceeded orders to sell by 100,000 shares. Because it would be Knight's job to fill those orders, Mr. Pasternak quickly went to work, buying up 50,000 shares in informal trading before the market opened. When it did open -- with Egghead sharply higher -- he sold them to online buyers, nailing a quick $15,000 profit.

Complete article:
http://www.stocktrading.com/wsjknight1.shtml

Don
 
if this is happening to you
get a gps so that you can out of the woods and find your way to civalization and ask an officer to check your vitals to make sure your healthy

and never go camping without a gps
you need technology that works
 
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