Rebate sensitive strategies in BAC

L

londonkid

Hey

assuming broker commission of 20c - 30c per 1000 shares traded do traders still think it is possible to make a living manual trading purely BAC or other similar stocks such as S, NOK, SIRI.

Running the maths for 1000 shares round turn.

Capturing the Spread (1c) = $10

Capturing half the Spread (0.5c) = $5

Commission per round turn = 40c to 60c depending on volume.

Misc Fees = 34c (don't know if I am being scalped on misc fees lol)

Rebates (for adding only)

BATS $2.50 rebate
ARCA $2.10 rebate
EDGX $2.22 rebate
SMARTMID -$1.50 fee
ARCAMPLA $2.00 rebate
BATSALIQ $2 rebate


Rebate (for taking liquidity on inverse routes)

CBSX $1.40 rebate
EDGA $1.50 rebate
NSDQBX $1.40 rebate

All figures per 1000 shares

If anyone can correct any of the above figures or know any other routes please suggest them

So what has changed from 'the good old days of C' before the reverse split?

people say pure rebate trading isnt possible anymore, are they talking about where you don't capture the spread, I can see how this would be hard.

If you had a goal of $200 per day would this not be possible (I know it's hardly a living but a nice supplementary income).

thanks

london
 
Rebate trading with Citibank was so much fun. The stock moved 3 cents all day and you could trade tens of thousands (or hundred of thousands) shares a day and make great coin.

The problem with trying to rebate trade BAC, NOK, etc is that they moved too much. They might have a 10-30 cent range every day. Very tough to make a half penny then get stuck in a position for 10+ cents. You rarely had to worry about that in the Citi days. If you lost a bid/offer you knew it would probably come back.

The only stock that comes close to having the characteristics of Citi is SIRI....but trading that is like watching paint dry.

If you are really good you might be able to squeak out a few hundred dollars a day. Just start small until you got it down and then gradually add size.
 
Hey Rationalize

Are you suggesting the following:

say BAC is 7.14 bid 7.15ask

are you saying post limit bids at say 7.11, 7,12, 7,13, and limit offers at 7.16,7.17, 7.18 and waiting for price to come to you so you are near the front of the queue on the big rebate payers?

if each level is quite thick I am guessing you can should have a chance of hitting out for a 1c spread on one of the inverse ecn's.

thanks for your contribution.

london
 
Quote from londonkid:

Hey Rationalize

Are you suggesting the following:

say BAC is 7.14 bid 7.15ask

are you saying post limit bids at say 7.11, 7,12, 7,13, and limit offers at 7.16,7.17, 7.18 and waiting for price to come to you so you are near the front of the queue on the big rebate payers?

if each level is quite thick I am guessing you can should have a chance of hitting out for a 1c spread on one of the inverse ecn's.

thanks for your contribution.

london
More...
I'll PM you.
 
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