What a specialist knows about YOU

[trendo]

Quote from urep:





Would any casino player play 21 (blackjack) if the dealer's knowledge of all the cards on the table was a rule of the house?

The dealer doesn't play his hand according to what the player has. No discretion is involved on the dealer's part. His play is strictly mechanical. But your overall point is worth thinking about.

 

[urep]

Quote from trendo:

The dealer doesn't play his hand according to what the player has. No discretion is involved on the dealer's part. His play is strictly mechanical. But your overall point is worth thinking about.

If your a dealer and you have 18 and you know all the players have 19 or above, but the mechanical rules say hold and call. Does it make a difference now? You know there is nothing to lose by gambling for a 3 card. If you didn't know the hands you're up against you've no chance at all (i.e. no edge).

 

[Hydroblunt]

Quote from Option Trader:

To be a successful trader you must know the rules of the game. You must also know if information about you is "leaking" to your likely counterparty (i.e. the specialist).

I know the specialist is able to identify YOU as a retail trader and knows which broker you are trading with, and can minimally get a good hunch "it is you again" if you trade the same stock frequently.

What else does he know or not know? E.g. is he able to tell 2 customers apart from the same brokerage, or not?

You're over 3 years late with your concern. The specialists have not been significant in years. Do you even realize that they no longer get to see the majority of the order flow.

When it mattered, they usually identified the daytraders by the clearing firm. When most prop NYSE firms used to focus on tapereading & bullets, it was not hard for the specialist to notice which orders are daytrader orders. Basically, anyone with a common prop firm clearing ID got sh*t fills.

Specialists are greedy sharks who would screw over their own mother for a nickel. It's not that they targeted daytraders, it's just that daytraders are the easiest prey. Their complaints fell on deaf ears and they are very fragmented.

 

[spidey]

Try trading on Globex, same crap. The ES is becoming such bullshit, they run stops over and over on the SAME move. Don't believe there aren't any MM's in futures, they just call them "Liquidity providers" but it's the same bunch, GSCO & the gang lol.

 

[kickboxers]

Huge bank and brokes by eliminating their smaller firms/brokers and small competitors. now that bear stearns is no longer in the business have the potential to create a MONOPOLY that has even more power to manipulate the markets.

Competition is bad for 'business'

Quote from urep:

This is from a resume at the following link "http://www.datashaping.com/resumes16200r.shtml"

--* An in-depth knowledge of Mantas product Architecture to thoroughly understand the interaction between the data mart and other system components.

* Sound understanding of Mantas scenarios and business problems addressed at various stages of TSD writing, scenario development, scenario tuning, scenario customization and involvement of multiple threshold sets, jobs and templates configuration for clients at the client site with the responsibilities of data analyst/data miner as per requirement.

*Detailed knowledge of behavior detection as it applies to the financial services domain in the following areas: trading and market making, money laundering within banking and brokerage firms, and retail brokerage customer surveillance.--

Most brokers have trading desks and/or do market making, and clearing firms. At one of these stages they know who you are, your positions, and what percentage you have at risk on a position. It's your broker that trades against you.

Only guy to date that's said so in public is Bill Cara
{(Humungous Bank & Broker's) H B & B trades against the order flow of its clients, including the hedge funds. It's basically a no-risk business because the broker-dealers hold the collateral, analyze the holdings and the strategies, and use this all-important info for their own gains. And, in the futures business, for every gain there is a loss.

Would any casino player play 21 (blackjack) if the dealer's knowledge of all the cards on the table was a rule of the house? Would anybody play poker if one of the players knew in advance everybody's cards and how they would play them (and was the banker)?

I have been saying this for years but too few people listen. ... ... HB&B is the player that is keeping government regulation out of "their" capital market, and that's because they are the winner and everybody else the loser. But, except for the fact it is the People's capital market, they get away with it because the People have stopped thinking -- they've been brainwashed into believing that "our" market needs to be under the control of HB&B.}

This is from his Bio on the Blog:
{Bill Cara has extensive experience in the Canadian securities industry. He was the co-founder/CEO of Qtrade Investor (Canada’s leading online broker), founder and President of Security Traders International (offshore trading broker), President of William Cara Investment Bancorp (registered Ontario securities dealer), founder/CEO Canaccord Capital’s Eastern Canada Operations (Canada’s largest full-service independently-owned broker-dealer) and broker and portfolio manager with Dominion Securities and Dominion Securities Investment Management (now RBC).}

 

[trendo]

Quote from urep:

If your a dealer and you have 18 and you know all the players have 19 or above, but the mechanical rules say hold and call. Does it make a difference now? You know there is nothing to lose by gambling for a 3 card. If you didn't know the hands you're up against you've no chance at all (i.e. no edge).

What casino requires the dealers to hit dealer's 18? I'll book a flight there first thing tomorrow.

 

[robbie380]

Quote from Option Trader:

Very correct & very well said!
The same applies from the opening bell if let's say you open a trade for even just 1k shares on a low liquidity stock, in situationis where your counterparty is a MM or specialist, you can almost expect the stock price to "artificially" turn against you for a period of time before a recovery. Unbelievable that the algorithms are designed this way. About averaging down, that happened to me recently with KRY, exactly what you said; by holding the position overnight I was able to pull out the next day without a loss.

lol you sound like a great trader. i never knew stevie cohen was a member of elitetrader!

 

[urep]

Quote from trendo:

What casino requires the dealers to hit dealer's 18? I'll book a flight there first thing tomorrow.

Casino's do not know all the hands at the table, if they did, they'd have an Algorithm to let the dealer know when it was OK or not to hit 18.

Here's a complimentary cocktail token just for showing interest! :}

 

[trendo]

Quote from urep:

Casino's do not know all the hands at the table, if they did, they'd have an Algorithm to let the dealer know when it was OK or not to hit 18.

Here's a complimentary cocktail token just for showing interest! :}

Players have 19-21. Dealer makes 18. Isn't that the situation you described? The hand is over and the players get paid. Period. End of story.

 

[xflat2186]

The dealer never ever needs to hit at 18 even if he was allowed to. The dealers job is to keep people at the table and playing.

The statistical edge is already with the dealer. Some people here show exactly how much they know each time they post and its scary how little it is at times.