Adapting to the Hybrid

Discussion in 'Order Execution' started by JGTrader, Dec 10, 2006.

  1. JGTrader

    JGTrader

    After getting my @$$ handed to me this morning trying to scalp CAL and HOG I started doing much better trading a little longer time frame with S/R, such as the Res at 00 on CAL and then the break out from there. I've only been trading a couple of months so I am still experimenting. Because of this I wasnt too worried about getting the best fill.
    Just brain storming...
     
    #51     Dec 14, 2006
  2. Never really have been IMO. Once again...we're "parking" on ARCA to collect payment for providing liquidity, and "taking" on NYSE with limit orders to avoid paying on ARCA. The rebates have really added up, much more than I would have guessed.

    The programs that detect sweeps seem to be working so far... I will know more after my guys are done beta testing. Again, the pairs guys are very happy with the hybrid (more quant involved, they like the "parking part").

    It's taking some behavior modification on my part, but I'm getting used to it (old dog, etc.)...

    Don
     
    #52     Dec 14, 2006
  3. Yeah getting even a few rebates in arca can really help reduce your gateway fees...
     
    #53     Dec 14, 2006
  4. tradethetrade

    tradethetrade Vendor

    I see a lot of people panicking over the hybrids lately because everyone including us daytraders, goldman's black boxes, specialists and everyone in between are adapting to the hybrids. Being so, charts look untradable, the open book could look like a mess at times, the specs might hold and rape you but if you pick the very first hybrid stocks, you will notice that they are trading much better now and consistent hence I firmly believe everyone will be okay once the smoke settles down.

    We'll have to adapt, things will be faster but as far as I can see, tape reading will be around, size will be there to whack it, shorts will be there to drive it down, bids will be there to get out and the best part of all stocks will move a lot faster so don't get discouraged, instead find a way to trade these stocks and biz will be biz as usual.
     
    #54     Dec 14, 2006
  5. ive noticed a lot more refreshing ARCA's since hybrid took over....
    makes me belive more limit size will go off on ECNS to capture rebates....so heavy players wont be sending limits to the floor anymore
     
    #55     Dec 14, 2006
  6. JGTrader

    JGTrader

    I've noticed a lot more block trades (clean up prints at tops or bottoms) going off on "THRD" on esignal, instead of the NYS which I am used to seeing. Is THRD another part of NYS order routing or is it an ECN? If so it looks like there is more liquidity elsewhere.
     
    #56     Dec 14, 2006
  7. kwancy

    kwancy

    Another thing I notice is some hybrid stocks just have crazy New York prints at the open and close. The specialist (or the hybrid algorithm) seems can fill whatever he feels like and out of the money, more severe than that of previously before the hybrid.
    anyone want an example please check out the tape of C.
     
    #57     Dec 15, 2006
  8. THRD on Esignal stands for the third market. It is usually Nasdaq or Instinet that you are seeing.

     
    #58     Dec 15, 2006
  9. Can you post the file of that tape or a link to it.?
     
    #59     Dec 15, 2006
  10. JGTrader

    JGTrader

    This is not the one I had in mind but it shows the volume spike at 7:30PST and a print going off on THRD for 150k at 77.55.

    If I can find the particular one I had in mind I'll post it. I have been seeing lots of block prints going off like this on THRD. If it was something that wasn't traded on the exchange would it still show up in the volume on a chart?
     
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    #60     Dec 15, 2006