Credible "flash crash" analysis

[Adamus]

no it means posting bid offer rather than hitting/lifting

Posting bid / offer must mean you have different buttons to press when you trade then? No boring old BUY and SELL?

Sounds like a completely different trading strategy, but you don't call yourself a market maker?

 

[Dommo]

Posting bid / offer must mean you have different buttons to press when you trade then? No boring old BUY and SELL?

Sounds like a completely different trading strategy, but you don't call yourself a market maker?

This means making the market ie limit orders to sell at the Ask and buy at the Bid (and waiting to get hit), rather than taking the market with market orders ie buying at current ask and selling at current bid. With sufficient noise you would capture the spread.

 

[Adamus]

This means making the market ie limit orders to sell at the Ask and buy at the Bid (and waiting to get hit), rather than taking the market with market orders ie buying at current ask and selling at current bid. With sufficient noise you would capture the spread.

That's a bit like trying to hit a moving target, isn't it? Maybe even like trying to hit a moving target that shoots back!

 

[Dommo]

That's a bit like trying to hit a moving target, isn't it? Maybe even like trying to hit a moving target that shoots back!

Well, this (and variants) are basically what I understand as scalping. I wouldn't suggest it's easy - but if I possessed the right insight this is what I would be doing.

 

[Adamus]

So are all these HFT systems just scalping?

I know if I had commissions half the size of IB's, I would be able to run about 100 systems profitably that just don't cover IB's comm&slippage.

 

[squall321]

i heard it was the government taking profits