mrchicity

23 ms·

151.
by mrchicity 11y ago
Everybody wants to trade with no price impact. If you asked me if anyone else should be allowed to colocate their servers, I'd say no, just give me a monopoly please. One participant's desires don't make a good market. Fair a
152.
by mrchicity 11y ago
Do you think it should be illegal to look at the order book for a stock (public info), formulate a prediction, and trade on that prediction? Seems much different than a broker trading ahead of his client. Large informed traders and intermed
153.
by mrchicity 11y ago
Advertising 101: Fear monger. Sell solution to the fear.
154.
by mrchicity 11y ago
The spread is tight for small orders, but if you keep hitting them in one direction, market makers quickly get wise to this and start pulling back. The cost to trade for large funds isn't just the bid-offer spread, but also how quickly
155.
by mrchicity 11y ago
That's a huge difference though. A broker owes a duty to his client not to screw him over. He's supposed to be helping the client. A prop trader has no duty to others in the market. He's their adversary. They're both com
156.
by mrchicity 11y ago
I guess in modern terms "front running" really just means getting arbed. If someone fast sees prices move in one market, they can buy at a relatively unfair price elsewhere, even sometimes outrunning the person who moved prices in
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by mrchicity 11y ago
Even if you can MOC, your own order can influence the closing price to move unfavorably vs. the backtest where you were absent. This is a huge issue on illiquid stocks or if you're trying to pick up a small edge even in liquid ones. Kn
158.
by mrchicity 11y ago
I trade in stocks that aren't constrained by the tick size. Latency still matters a lot. I agree the rule isn't sensible though. Much of the fragmentation in the US is driven by exchanges with inverted rebate structures (maker pay
159.
by mrchicity 11y ago
Aside from firms that have payment for order flow relationships, the US stock markets are basically the pure capitalism you read about in an economics textbook: Low barriers to entry, undifferentiated product (my quote is as good as anyone
160.
by mrchicity 11y ago
More likely their money comes from impatient traders who pay the spread to them. They compete for that spread with other firms like them. The impatient spread-crosser is happy to be filled and move on to doing whatever it is they do for a l
161.
by mrchicity 11y ago
I think you are misconstruing holding period or predictive horizon with latency sensitivity. Many HFTs are looking at statistical relationships like the ones you mention to compute a fair price for making markets. The only trades where HFTs
162.
by mrchicity 11y ago
> the perception of constant "war". It's not a perception though. Short-term trading opportunities are zero-sum. To win trades you either must undercut your competitor by trading for less edge, or beat him to realizing the
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by mrchicity 11y ago
Is Haskell really that much more productive for a team? What are some large-scale projects written in it? It may make recruiting harder and take new joiners longer to get up to speed. You may not have easy access to as many libraries. A lot
164.
by mrchicity 11y ago
You are spot-on with your point on pay for value. If you want proof of this, look no further than the leaked Sony emails doing a search for "salary" or "compensation." Reviews, metrics, etc. are used only as justificatio
165.
by mrchicity 12y ago
Thanks for the correction. You're right. If one of these guys provided a more traditional fix/itch/ouch setup, they might get more traction with traders who are already active in other currencies/products.
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by mrchicity 12y ago
Yes that's how things work on itch/ouch. Downside with that is you can see your order hit the feed before you know it's yours. For people who want to exclude their orders from their view of the market, they have to build heur
167.
by mrchicity 12y ago
I would never trade under my own name in a pre- or post-trade transparent market that included broker ID. Competitors are great at working with lots of data. You don't think they'd take a crack at reverse engineering my models giv
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by mrchicity 12y ago
Polling is an awful API for market data, especially when the poll rate is limited. People end up gaming the system with multiple accounts and getting additional "peeks" into the order book. Maybe it doesn't matter for Bitcoin
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by mrchicity 12y ago
Also if they're charging 25 bps to be a taker vs. 0 to make, people will want a post-only order. I actually like the idea of putting ClOrdIDs on the feed, maybe encrypted with some key only the sender has? Would make excluding one&#x27
170.
by mrchicity 12y ago
Traders don't want to hire job hoppers because it's a negative signal about their abilities and ethics. First, if this guy is really so great, why has he flamed out of 3 firms in 5 years? Either he's lying or has some serious
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by mrchicity 12y ago
To add to that, finance in Chicago is very different than finance at big banks. Many of the big players are tech companies first and foremost. Engineers are often on the "money side" of the business and respected/rewarded as
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by mrchicity 12y ago
Are you implying that's a bad thing? Maybe if you want to go public with some insane P/E ratio selling the dream, but B2B tech businesses serve the economy, provide useful jobs, and have staying power.
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by mrchicity 12y ago
I think this will change as prop trading firms wane & consolidate. They attract the top STEM talent in Chicago and can pay them extremely well through profit sharing. There are a lot of engineers and "Xs who program" (where X