Technicals of Paul Rotter (The Flipper)'s strategy?

Quote from doublechin:

He places massive size to run the market like 6000 bids and offers in the bund. Sell 100 into his 6000 bid and all of a sudden it's 6000 offered. Buy another 100 into that offer and hey presto back bid 6000. Occasionaly he gets rumbled like last week when the hedge funds came into the bund on the back of GM and ford and took out 7 prices of these ridiculous orders in one trade. All of a sudden the orders were down to 2/300 lots in the whole book. Whoever got taken got a shock. This type of trading only works in quiet markets when paper isn't about. The flipper is no longer much of an issue as plenty of people match him in size and clip him in one go but a few months back he had the market in the palm of his hand.
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That is one dangerous strategy. To get filled on 6000+ contracts when all you really want is to do flip 100 contracts. I don't know why some traders feel like they have to manipulate the market in order to make money.
 
Quote from gotmessner:

Hey,

Could someone (or a bunch of people) please explain what the flipper does exactly? - (on the technical side of his strategy)

Thanks!
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Basically he used to make money by showing massive bids and then reversing catching longs who went with it, reverse for short.

In the book Day One Trader http://www.amazon.co.uk/Day-One-Trader-Liffe-Story/dp/0470741732 , the author claims that flipper has actually received quite a few death threats from the floor locals whom he used to flip.This was after Rotter's identity was made public and he attended some function at LIFFE.

Cheers.
 
Quote from max_skinner:

Basically he used to make money by showing massive bids and then reversing catching longs who went with it, reverse for short.

In the book Day One Trader http://www.amazon.co.uk/Day-One-Trader-Liffe-Story/dp/0470741732 , the author claims that flipper has actually received quite a few death threats from the floor locals whom he used to flip.This was after Rotter's identity was made public and he attended some function at LIFFE.

Cheers.
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I knew there were many who vilified him, but really that's pretty clearly a case of blatant jealousy that he found a way to beat the market, and it was totally legal. I respect him like I respect the math wizards who figured out a way to beat the casinos. I salute him for his success. He always came across like a good guy from any firsthand account or interview I'd read.
 
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