Sterling Pro in Demo mode

M

marwanco

Hi All,

Just installed Sterling Pro platform in DEMO mode,
I can see lvlII real time, can make simulated trades for few tickers like QQQQ.

Configuered the Hot keys so I Buy on BID, and Sell on ASK.
Routing NSDQ.

My question is :

If I buy 1000 QQQQ for 40.12 and sell immidiately for 40.13,
How much money I make (or loose) taking into considertion
commision (minimum possible) and all the fees.

When pressing both hot-keys F1 (Sell on ASK) F3 (Buy on BID)
I always have a fill and it shows 10$ profit.It looks too easy for me.

Also I understand that adding liquidity to market will earn some money, is it siqnificant? what is the proper way to benefit from that, and how to sell without paying for removing liquidity?


I'll appritiate your answers on any pert of this post.

Regards

Marwanco
 
Most of your questions (commissions, ECN fee/rebate passthroughs...or not) are determined by your broker, not by Sterling, which is just the platform. You should ask your broker, and then you may need to look up the exchange-specific fees/rebates at nasdaqtrader.com, ARCA's site, etc.

As for the accuracy of the simulation, in addition to the transaction cost issues you've already raised, simulators cannot, in general, be assumed to be accurate, at least not 100%. Checking simulations against other quote sources can help to verify the results, but still doesn't guarantee the simulation is 100% right. Be especially careful in this regard with very short-term trades.
 
Thank you for your reply,

Lets take an example:

Commission = 0.001 / Share

Buy 1000 of QQQQ at ASk, sell 1000 QQQQ At Bid with 1cent profit.

So in this case I'm taking liquidity from the market 2 Time? please correct me if I'm wrong.

So Roughly I make 10$ from the trade then -1$ Commission then
-(3 + 3) for taking liquidity out.

Left with 3$, Any other fees I have to pay.

Thank you.
 
Quote from marwanco:

Thank you for your reply,

Lets take an example:

Commission = 0.001 / Share

Buy 1000 of QQQQ at ASk, sell 1000 QQQQ At Bid with 1cent profit.

So in this case I'm taking liquidity from the market 2 Time? please correct me if I'm wrong.

So Roughly I make 10$ from the trade then -1$ Commission then
-(3 + 3) for taking liquidity out.

Left with 3$, Any other fees I have to pay.

Thank you.
More...

If commission is .001/share, it would cost $2 because you have to buy 1000 shares AND sell 1000 shares for a total of 2000.

So that would mean a $2 profit off 1000 shares. What would your risk return be? Your stop? Let's say you have 25 winners in a row, for a $50 profit. Then on your next trade the market turns on you by $.05. You would lose all your profits that you made.

It might sound like I'm discouraging you, but I'm just trying to save you some time. I once had a similar trading plan and learned the hard way. Scalping for a penny is nearly impossible to make money off of. The risk reward is too low, and having one trade wipe out the previous 25 creates a huge physiological barrier.
 
Thank you for your reply,

What about the liquidity credit, do they add up, or its unrealistic aslo.

If I sell on the Ask price price , do I remove liquidity?

Thanks you again.
 
where'd you get the demo from? I've used a demo of 'instaquote' this week that i really like. Wouldn't mind tring sterlin tho. thx
 
The Sterling demo is not real at all. Any limit order you put in at any price is instantly filled. Only stop orders are triggered by the price movement. It’s only good for trying things out like hot keys or the API. Of course with the api you have to change all your limits to stops to figure out how to cancel orders or do other things where you need a limit order placed. It’s actually kinda ridiculous considering what they charge. Also the demo is only good for 2 weeks, you have to call them to renew it. Hope this helps.
 
Thank you for your reply.

It look so easy, and unrealistic.

That explain why.

In real version if I press too function key at the same time, Buy at Bid and sell at Ask, what are the chance both order excecuted?
Assume stock is very liquid like C (City Group)

Thanks
 
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