solution to avoid Profitable Strategies Copied by a Broker?

I

inPeace

if i repeat a successful strategy everyday and profits piling up quickly, my broker will eventually duplicate and thus destroying it.

but it's also unrealistic, in terms of capital utilization and risk management, to split one position into two accounts. this way you spend huge capital to make much smaller profit.

you need at least 5 to 10 times margin to trade one contract. still no guarantee that your bleeding side of the position's safe from liquidation. and then the commission would probably be doubled because you need to flat two accounts everytime..

options strategies could be even more difficult because you have to hide your cover contracts elsewhere..

any good idea?
 
in order for a broker to duplicated your technique, he/she would need to know:

1. how many charts you look at
2. what time frames per chart
3. which indicator/s
4. if you use pivots and if so, which method do you use to calculate pivot points.
5. if you look at OHLC and if so, do you consider overnight HL or not?
6. the steps you take (checklist) before you enter/exit a trade.
7. if you use brackets on your platform.

in short, it would be impossible for a broker to clone if your technique and if by a miracle, your trading plan is out in the open, the broker would have to mirror your personality and attitude.

if you are really paranoid, open 5 accounts, and randomly trade with only one account per week .
 
This is the kind of paranoia one sees in young traders...
That have some early success...
And then worry that their methodology will be ripped off.

I worried about this for a few years.

(1) Unless you are doing something ** very unusual **...
Or are in a prop shop environment...
No one will ever care...
It doesn't matter how much money for are making.

(2) "Brokers" do not make money from trading...
They are nothing more than salesman for a bookmaking operation...
Just sell, sell, sell you any "financial product"...
And skim, skim, skim profits.

That's why the brokerage industry is called the "Sell Side"...
Because that is the ONLY thing they do.

(3) This is the BIG one.

Only the top 5% of talented traders make money...
Because they play Zero Sum Games at a genius level.

It does not matter what information you give the other 95%...
They will never succeed when pitted against the genius 5%.

I have a very profitable trading firm for 15 years.
If I posted a detailed 10 page description of EXACTLY how I make money...
Only 5% of the traders here would have any chance of duplicating what I do.
Even if the other 95% tried...
Someone like me would just slowly take their money...
Just like at a poker table.

So relax.
 
you are not being paranoid when you are shaked out when you are long or short in a big position.

it's the market makers job to shake out weak hands. traders are weak hands.


Quote from QuantPlus:

This is the kind of paranoia one sees in young traders...
That have some early success...
And then worry that their methodology will be ripped off.

I worried about this for a few years.

(1) Unless you are doing something ** very unusual **...
Or are in a prop shop environment...
No one will ever care...
It doesn't matter how much money for are making.

(2) "Brokers" do not make money from trading...
They are nothing more than salesman for a bookmaking operation...
Just sell, sell, sell you any "financial product"...
And skim, skim, skim profits.

That's why the brokerage industry is called the "Sell Side"...
Because that is the ONLY thing they do.

(3) This is the BIG one.

Only the top 5% of talented traders make money...
Because they play Zero Sum Games at a genius level.

It does not matter what information you give the other 95%...
They will never succeed when pitted against the genius 5%.

I have a very profitable trading firm for 15 years.
If I posted a detailed 10 page description of EXACTLY how I make money...
Only 5% of the traders here would have any chance of duplicating what I do.
Even if the other 95% tried...
Someone like me would just slowly take their money...
Just like at a poker table.

So relax.
More...
 
boy are you stupid, of course brokers make money from trading
(commissions) and spread.... trading against clients .don't be naive and believe everything that broker tells you.

the brokers lobbying are the reason for the min. $25,000 to daytrade stocks. to get people to deposit $30,000 into their account. most people don't even have $10,000 in their bank accounts. i suspect some even use their credit cards to get the $25,000 to deposit so they can daytrade paying 20% interests.



(1) Unless you are doing something ** very unusual **...
Or are in a prop shop environment...
No one will ever care...
It doesn't matter how much money for are making.

(2) "Brokers" do not make money from trading...
They are nothing more than salesman for a bookmaking operation...
Just sell, sell, sell you any "financial product"...
And skim, skim, skim profits.

That's why the brokerage industry is called the "Sell Side"...
Because that is the ONLY thing they do.

(3) This is the BIG one.

Only the top 5% of talented traders make money...
Because they play Zero Sum Games at a genius level.

It does not matter what information you give the other 95%...
They will never succeed when pitted against the genius 5%.

I have a very profitable trading firm for 15 years.
If I posted a detailed 10 page description of EXACTLY how I make money...
Only 5% of the traders here would have any chance of duplicating what I do.
Even if the other 95% tried...
Someone like me would just slowly take their money...
Just like at a poker table.

So relax. [/B][/QUOTE]
 
the brokers look at everytrade and if you make too much money they see if you are insider trading.

all you trades are recorded.




(1) Unless you are doing something ** very unusual **...
Or are in a prop shop environment...
No one will ever care...
It doesn't matter how much money for are making.

(2) "Brokers" do not make money from trading...
They are nothing more than salesman for a bookmaking operation...
Just sell, sell, sell you any "financial product"...
And skim, skim, skim profits.

That's why the brokerage industry is called the "Sell Side"...
Because that is the ONLY thing they do.

(3) This is the BIG one.

Only the top 5% of talented traders make money...
Because they play Zero Sum Games at a genius level.

It does not matter what information you give the other 95%...
They will never succeed when pitted against the genius 5%.

I have a very profitable trading firm for 15 years.
If I posted a detailed 10 page description of EXACTLY how I make money...
Only 5% of the traders here would have any chance of duplicating what I do.
Even if the other 95% tried...
Someone like me would just slowly take their money...
Just like at a poker table.

So relax. [/B][/QUOTE] [/B][/QUOTE]
 
Quote from vectors101:

you are not being paranoid when you are shaked out when you are long or short in a big position.

it's the market makers job to shake out weak hands. traders are weak hands.
More...

Wow, you are ignorant...

How long have you been trading? I'd suspect less than 6 months. That being the case - its best to keep your mouth shut at this point and try to learn something.
 
Learn that it's a all a game and bullshit more than 6 months and that's what I learned it's all bullshit.


Quote from Mike805:

Wow, you are ignorant...

How long have you been trading? I'd suspect less than 6 months. That being the case - its best to keep your mouth shut at this point and try to learn something.
More...
 
In todays electronic markets its simple for a broker to clone your electronic orders.

However it would be obvious from the time and sales if they are doing this.

In new market wizards one of traders says that front running is legal in the FX market and the banks front run big orders all the time.
 
The question, why should it be illegal. it' s not ilegal in any marketplace.

it's illegal in stock to protect the market makers.

Quote from Businessman:

In todays electronic markets its simple for a broker to clone your electronic orders.

However it would be obvious from the time and sales if they are doing this.

In new market wizards one of traders says that front running is legal in the FX market and the banks front run big orders all the time.
More...
 
You must log in or register to reply here.
Back
Top