Simple automated strategy
- Thread starter El OchoCinco
- Start date
I can log out in the mornings or at night daily.
UNless you have more information I think you are mistating the rule:
https://www.schiffhardin.com/Templates/media/files/Other PDFs/CMEAdvisoryRA1517-5.pdf
Pursuant to Rule 432.W. (“General Offenses”), it is an offense for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the CME Group Exchanges. For avoidance of doubt, agents include any automated trading systems (“ATSs”) operated by any party. Additionally, pursuant to Rule 433 (“Strict Liability for the Acts of Agents”), parties are strictly liable for the acts, omissions, or failures of any officials, agents or employees acting for the party within the scope of their employment or office.
Me running an automated system form my home platform that is not HFT is not in violation of the rule above. It might place 4-5 trades the whole day.
https://www.schiffhardin.com/Templates/media/files/Other PDFs/CMEAdvisoryRA1517-5.pdf
Pursuant to Rule 432.W. (“General Offenses”), it is an offense for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the CME Group Exchanges. For avoidance of doubt, agents include any automated trading systems (“ATSs”) operated by any party. Additionally, pursuant to Rule 433 (“Strict Liability for the Acts of Agents”), parties are strictly liable for the acts, omissions, or failures of any officials, agents or employees acting for the party within the scope of their employment or office.
Me running an automated system form my home platform that is not HFT is not in violation of the rule above. It might place 4-5 trades the whole day.
People have really gotten calls from CME to check on this? Even non-pros?
What am I misstating?
"it is an offense for any party to fail to diligently supervise its employees and agents"
"For avoidance of doubt, agents include any automated trading systems (“ATSs”) operated by any party"
Not supervising the agent/ ATS. The article never said anything about HFT or not.
I have run automated trading systems at 106j member firms. I can tell you what the compliance people there told me is the same that I have heard every FCM I have used.
You might get away with it for awhile, or you could run into problems. Just a friendly heads up.
So how to automate the strategy
What would you think about this arrangement. You create your strategy in TOS and I believe it let's you send alert buy and sells. Then you find someone, possibly even on ET, to enter/manage the trades for you. I think you can have IB set up so that the person has limited access to account. The pay for the person would be to shadow trade you or some minimal pay. Just curious if this is even possible to do in reality.
The alerts would need to be instantaneouly broadcast and received, the trades placed promptly and checks made to see this was so and that your agent didn't decide to frontrun the signals before your trade. But for high volume traders I had thought along the same lines, there are plenty of unemployed and talented young people who this could suit.
Well the reason I brought it up is because people think automation frees you, but I find that it actually creates multitude of new problems and uncertainties. I don't think I could trust any system without constantly looking over it. I would definitely not let it automatically put any position overnight without logging in and confirming that the size and side are correct(so defeats the purpose). Still, can I trust the broker's servers with my stops? Can I be sure Windows does not decide to reboot my pc? I understand you cannot avoid all the risks when trading, but there is a difference between taking a hit due to your own fault vs. taking a hit due to someone else's screw up.