Just FYI, he didn't make $194K in an hour. He was up around $99K net after two hours of trading when video #6 ends. The YouTube description states the $194K profit was for the whole day's worth of work. That may or may not be the true net profit as Sterling doesn't automatically factor in regulatory fees (SEC and FINRA) into their net profit calculation. Either way, not too shabby for a day's worth of work.
For some reason, I just have this image of a "George-Plimpton" looking butler entering with a glass of Chardonnay, glancing at the screen and saying: "Well played, sir...the McClaren has just arrived. Shall I put it in the D wing of the garage with the other collectables?"
how meaningful is something like this with a guy trading massive size for a penny or two? very cherry picked. I know , money WAS made doing this, but wasnt it mostly rebates buying and selling at the same level? this kind of trading could get you bankrupt with a single event or halt.
yeah, but think about it...what are the chances of that occurring. And the guy did this successfully for 10 years. I do remember that distinctive cover of Trader Magazine and he was photographed with that GFE-like model.....sizzling. I still have that copy.
Negative. His ECN fees were actually considerably higher than his rebates. That's why his realized profit was a lot less than his net profit.
As far as I know, the only wrong question is the one that has never been done. Have another one? Ask it .
Now my thoughts are: if this Level 2 "spoofing" is going on, are the HFT boys taking advantage of it ? And moreover, is it "working" ? Example system logic: A 200% increase in ASK Size over the past 1000 ticks triggers a Buy stop order 4 ticks above the last print....and vise-versa. What's cool about this is the use of ACTIVITY (ticks) verses TIME (10 second bars) as the dimension over which the measurement is taken.
The only problem with using BS's is factoring in potential slippage in a backtest. As you probably know a half tick in slippage incorrectly accounted for either way can turn any system like this upside down.