solution to avoid Profitable Strategies Copied by a Broker?

market makers have to on the bid and ask and is automated by computers.

Quote from vectors101:

The question, why should it be illegal. it' s not ilegal in any marketplace.

it's illegal in stock to protect the market makers.
More...
 
Quote from 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?
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the broker makes money off of you whether you win or lose so they truly do not care a crap about your strategy. The more money you make the more you trade the more commissions they make. If you are trading with a retail broker, they only care that you churn your account and have no margin calls.

You are not the only successful client your broker has and at a retail broker even a 7 figure account is a blip on their radar.

Look up your brokers assets under management or dollar value of accounts.
 
if your broker is also an market maker of that option, they care if you making money out of their game. just like dealer at casino. they let you win sometimes but if you win a lot they'll know.


Quote from optioncoach:

the broker makes money off of you whether you win or lose so they truly do not care a crap about your strategy. The more money you make the more you trade the more commissions they make. If you are trading with a retail broker, they only care that you churn your account and have no margin calls.

You are not the only successful client your broker has and at a retail broker even a 7 figure account is a blip on their radar.

Look up your brokers assets under management or dollar value of accounts.
More...
 
you r right.
although i'm mainly concerned with small local brokers, big brokers dont really care about how much their clients make.

i feel not so worried now. Thanks :)



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...
 
also Thanks loanfinder, Vector101, Mike805 and others who give helpful replies.



Quote from loanfinder:

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 .
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Quote from vectors101:

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.
More...
[/B][/QUOTE] [/B][/QUOTE]

Obviously you have never worked at a quality broking house on my desk we spoke to just about every major eurpoean and Us funds and if you think we had the

1) Time
2) interest

in ripping off a strategy you are mad besides with our comms we were earning it didnt make one bit of sense so get a grip mate in the real world you are a tiny fly. Go do your 2 lots no one cares
 
To give you a clue our desk would execute 100-250k lots of futures/options a day (5 of us) on average more if we got a big option trade away grow up you noob only people maybe interested in your strategy is if you are at a low vol bucket shop then you deserve what you get
 
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...

Ah yes more Internet delusions of grandeur.
This is the type stuff that keeps me coming back to this site time and time again. :p
 
Quote from vectors101:

if your broker is also an market maker of that option, they care if you making money out of their game. just like dealer at casino. they let you win sometimes but if you win a lot they'll know.
More...

If the broker is a market maker they could care less how you do cause they are not making a market just for one little account. They are making a huge market hopefully and want to make money on the spread and not take directional risks really.

You think Goldman Sachs market making side in options cares if a retail account is making money or not???????
 
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...

How about the possiblity of tipping off your hand at a poker table, possibly to other geniuses?
 
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