FORUMS BROKERS SOFTWARE
Home
 
    Forums > Main > Wall St. News > Norwegians convicted for outwitting Timber Hill (Interactive Brokers) trading system


Reply
 
Thread Tools
Old May 2nd, 2012, 03:01 PM   #13
keeptradin'
 
 
Join Date: Feb 2004
Posts: 1,419
Let me see if I understand this correctly:

A large brokerage firm develops a system to trade the markets using data that only they have access to, and effectively take money from their own customers by trading against them.

A couple of guys figure out the brokerage firm's system, and use it to trade their own accounts, and take money from the same people the brokerage firm is taking it from.

They are convicted of a crime for figuring out the system, saying that they manipulated the markets by using it, even though they were simply trading alongside the brokerage firm, and not using the proprietary data.

The brokerage house, however, is free to continue using the same system that the two guys who were convicted of manipulation were using, to continue taking money from their own customers by trading against them.

Does it sound like I got it right??

I think the judge made the right call by overturning the verdict.
    Quote
Old May 2nd, 2012, 08:41 PM   #14
Swan Noir
 
 
Join Date: Jun 2009
Location: NYC
Posts: 2,377
Doesn't almost everyone want you to believe they don't trade against? And then, somehow, almost everyone effectively trades against even if the have to interpose another MM.

Quote:
Quote from just21:

I thought ib does not trade against customer orders?
    Quote
Old May 3rd, 2012, 09:34 PM   #15
dmdunick
 
 
Join Date: Aug 2011
Posts: 20
Quote:
Quote from keeptradin':

I think the judge made the right call by overturning the verdict.
I agree, they never should have been convicted to begin with.
    Quote
Old May 17th, 2012, 09:59 PM   #16
Options12
 
 
Join Date: Sep 2011
Posts: 550
New article:

http://www.theglobeandmail.com/globe...rticle2434717/

Meanwhile Mr. Larsen - and others - continue to beat algorithms. A few months ago he says that UBS failed to set a bottom limit on one of its trading algorithms and he picked up some stock at a discount. He estimates he made $14,000 in a few minutes.
    Quote
Old May 17th, 2012, 11:13 PM   #17
stock777
 
 
Join Date: Jul 2001
Posts: 16,289
How come all you see are shmucks hawking outdated , gay, trendline, market profile, and other voodoo that only makes money for the system seller, and no one offering anti bot systems?
    Quote
Old May 18th, 2012, 04:21 AM   #18
vinc
 
 
Join Date: May 2007
Posts: 294
"He found that he could bump up the price with very small trades and then sell with much larger trades for a profit. He was not the only trader who worked out this flaw, which he called “painfully obvious”. But he still made $50,000 (U.S.) in a few months."

and some people claim edges don't exist!
that's the key - to UNDERSTAND what's really going on and if possible to take advantage of the situation.. indicators, divergences, trend lines are better left to the brainless ones / if they ever win it's because of their money management approach as the entries are more or less random imo/ ..

looking for an edge??? HERE IS AN OUTLINE OF ONE:

"John Bates, chief technical officer at Progress Software, a U.S.-based company that provides algorithmic trading software, says that every time there is a big failure of an algorithm because of a “fat finger” or programming error, behind the scenes there are always “some traders making a lot of money”."
Unfortunately for most / me included / brain work , probably lots of it is required..
    Quote
 
Reply
Thread Tools

Forum Jump



   Conduct Rules   Privacy Policy   Sitemap Copyright © 2014, Elite Trader. All rights reserved.   

WHILE YOU'RE HERE, TAKE A MINUTE TO VISIT SOME OF OUR SPONSORS:
Advantage Futures
Futures Trading & Clearing
AMP Global Clearing
Futures and FX Trading
Collective2
Automated Trading Services
CTS
Futures Trading Software
dom993trading.com
NinjaTrader Consulting
eSignal
Trading Software Provider
FXCM
Forex Trading Services
Global Futures
Futures, Options & FX Trading
Interactive Brokers
Pro Gateway to World Markets
JC Trading Group
Direct Access Trading
MB Trading
Direct Access Trading
NinjaTrader
Trading Software Provider
optionshouse
Option Trading & Education
Rithmic
Futures Trade Execution Platform
SpeedTrader
Direct Access Trading
SpreadProfessor
Spread Trading Instruction
thenut-trader.com
FX, Gold, & Stock Signals
TradersStudio
System Building & Backtesting
Tradier
Equity and Options Trading
Trading Technologies
Trading Software Provider