That was an interesting read. Thanks for posting. I agree with the paper and those who've said it before. The whole internalization thing has to go. In my eyes, that is so much worse than all of this hate for the run of the mill HF trader/shop. As for Market Makers, I'm not quite sure what should be done. I dont think every HFT needs to be a market maker and be bound by their rules. But, I do understand why a true Market Maker should get preferential treatment. That letter makes a good case for one way to go about it (slight time advantage). I just don't know what the ramifications of such a thing would be. One idea that just came to mind. And maybe it has been proposed already. But those that are willing to be market makers should be able to receive rebates. But if you aren't a MM and bound by the rules that go along with it, you don't get the rebates and have to make your pennies another way. I'm sure that would piss off a lot of people. But maybe it would serve its purpose of making sure we don't end up with a system w/o MMs.
Read waht I said. IF THEY ARE PRIVY TO ORDERFLOW.. its happening more and more often, countless times per day. Just happened to me 3x in CRM. Every time I tried to whack the bid at 31 cents, I was put on the offer there instead because someone whacked it out front running me when I pressed the button. 3x. Today it has happened in total of around 15x. I cant compete with front running bullshit. They see your order coming through, take out the bid or offer you are trying to hit and f*ck you. No risk. Its complete bullshit. Im sorry its giving all the HFT a bad name but this unfair practice needs to end.
I think Rodney thinks you're stock777, who makes a habit of not answering simple direct questions like the broker one.
I remember when day traders in general were thought of as parasites. Now a subset of day traders are being called parasites. Just ironic, that's all.
I don't know anything about Echo. But, what you are describing sounds like what I've seen with some other brokers who were selling off their flow. Maybe Echo does that too? If so, I'd go somewhere else. I saw similar shenanigans when doing discretionary trading at my old broker. I took my money and went elsewhere.
One day, when all trading is algorithmic and happens in some continuum akin to Gibson's matrix, hotshot console jockeys who find ways to beat the machines will be termed "parasites". Or maybe I've been reading too much Neuromancer...