Spread trading with Rithmic

heispark

heispark

Hello,

Anyone trade with Rithmic? Last Monday, they messed up my spread positions again blaming a 'bad tick' happened (again!). I had multiple simple /NG calendar spread positions (NGK3-NGM3, NGX3-NGZ3, NGX4-NGZ4 and QGH3-QGJ3) holding for weeks and it looks Rithmic doesn't have ability to handle this. They say a bad tick issue liquidated NGK3-NGZ4 position which I never had. Should I move to CQG or TT?

Thanks
 
heispark said:
Hello,

Anyone trade with Rithmic? Last Monday, they messed up my spread positions again blaming a 'bad tick' happened (again!). I had multiple simple /NG calendar spread positions (NGK3-NGM3, NGX3-NGZ3, NGX4-NGZ4 and QGH3-QGJ3) holding for weeks and it looks Rithmic doesn't have ability to handle this. Should I move to CQG or TT?

Thanks
More...

@bone
 
In Futures trading world, holding positions overnight is dangerous not only due to market volatility but also various technical issues. That's why brokers and data providers prefer day traders....
 
My guess is trading far away illiquid months can be dangerous due to arbitrary risk systems from brokers or data feeders......
 
heispark said:
In Futures trading world, holding positions overnight is dangerous not only due to market volatility but also various technical issues. That's why brokers and data providers prefer day traders....
More...
Listening to @Overnight is probably more dangerous.

I am not familiar with Rithmic but trade and hold spreads including NG with TT and have never had any issues with the platform accounting for spread positions. I've been on the current TT platform since 2019 and was using TT's X Trader before that.

Did your broker actually liquidate you in the market or does your platform not know what spread positions you have on because you are holding NG positions in multiple months?

In regards to your comments above, yeah we've seen some crazy volatility in the last few years but with spreads on it can be manageable outside of the front months. I did try out a new broker in 2020 and switched back after a couple months to my original broker because of how they calculated risk in farther out contracts. I was trading spreads that the later leg was 2-3 years away from expiration and the risk system calculated the risk based on the outright prices. The spread may have been 5-10 ticks wide and they saw that I had a position on in something that was 50-100 ticks wide. They wanted to micromanage which contract months I could trade so I switched back.
 
abc1234 said:
Listening to @Overnight is probably more dangerous.

I am not familiar with Rithmic but trade and hold spreads including NG with TT and have never had any issues with the platform accounting for spread positions. I've been on the current TT platform since 2019 and was using TT's X Trader before that.

Did your broker actually liquidate you in the market or does your platform not know what spread positions you have on because you are holding NG positions in multiple months?

In regards to your comments above, yeah we've seen some crazy volatility in the last few years but with spreads on it can be manageable outside of the front months. I did try out a new broker in 2020 and switched back after a couple months to my original broker because of how they calculated risk in farther out contracts. I was trading spreads that the later leg was 2-3 years away from expiration and the risk system calculated the risk based on the outright prices. The spread may have been 5-10 ticks wide and they saw that I had a position on in something that was 50-100 ticks wide. They wanted to micromanage which contract months I could trade so I switched back.
More...
Thank you for your feedback. My broker indeed liquidated one of my spread positions and I had to reopen it again using a market order to continue this trading. I don't know whom to blame... It can be my broker (AMP) or Rithmic, or my trading platform (MotiveWave). Or, all of them altogether are culprits. Actually, none of them is specialized in spread trading. Anyway, now it's clear to me that I cannot continue doing this. I am thinking I try more professional broker with TT. I may also need more professional platform such as X Trader you use. I had to listen to Bone. Retail discount brokers don't handle spread tradings properly.
 
abc1234 said:
Listening to @Overnight is probably more dangerous.

I am not familiar with Rithmic but trade and hold spreads including NG with TT and have never had any issues with the platform accounting for spread positions. I've been on the current TT platform since 2019 and was using TT's X Trader before that.

Did your broker actually liquidate you in the market or does your platform not know what spread positions you have on because you are holding NG positions in multiple months?

In regards to your comments above, yeah we've seen some crazy volatility in the last few years but with spreads on it can be manageable outside of the front months. I did try out a new broker in 2020 and switched back after a couple months to my original broker because of how they calculated risk in farther out contracts. I was trading spreads that the later leg was 2-3 years away from expiration and the risk system calculated the risk based on the outright prices. The spread may have been 5-10 ticks wide and they saw that I had a position on in something that was 50-100 ticks wide. They wanted to micromanage which contract months I could trade so I switched back.
More...
If you don't mind, could you please tell what broker you use? You may send a private message if you prefer.... Thanks.
 
Last edited:
heispark said:
Hello,

Anyone trade with Rithmic? Last Monday, they messed up my spread positions again blaming a 'bad tick' happened (again!). I had multiple simple /NG calendar spread positions (NGK3-NGM3, NGX3-NGZ3, NGX4-NGZ4 and QGH3-QGJ3) holding for weeks and it looks Rithmic doesn't have ability to handle this. They say a bad tick issue liquidated NGK3-NGZ4 position which I never had. Should I move to CQG or TT?

Thanks
More...
My positions mentioned above has been changed to NGK3-NGZ4, NGM23-NGX23 and NGZ3-NGX4. Rithmic just has totally messed it up! :vomit:
 
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