Any one following program trading?

manz66 · Jul 1, 2003

What is program trading? Accordingly, I got this definition from certain website-

'Program trading is a generic term used to describe a type of trading in securities, usually consisting of stocks traded on the New York Stock Exchange and their corresponding options traded on the Chicago Board Options Exchange and/or the American Stock Exchange; and, the Standard & Poor's 500 Index commodity contract traded on the Chicago Mercantile Exchange. The trading of these items is based purely on their price in relation to each other on a predetermined basis; and not, on any fundamental reason such as an individual company's earnings, dividends, or growth prospects; or, on any overall economic reasons such as interest rate movements, currency fluctuations, or governmental or political actions'.

'According to the New York Stock Exchange, program trading accounts for about 30% of the trading volume on that exchange every day'.

So, anyone here tried to follow program trading to make money?
What was the result?

I shall be obliged by the answer. As, I try to follow what the instituions are doing in the mkt in certain period of the time.

inandlong · Jul 1, 2003

There have been many excellent discussions about program trading that you can read using the SEARCH option in the upper right hand corner of this webste. You will find everything from premium and its uses to trading individual issues.

Also this site will give you a good background:

www.programtrading.com

Good luck and good trading!

manz66 · Jul 2, 2003

I am aware of this link, thanks. But, my question was anybody successful doing it.

inandlong · Jul 2, 2003

Quote from manz66:

What is program trading? Accordingly, I got this definition from certain website-

'Program trading is a generic term used to describe a type of trading in securities, usually consisting of stocks traded on the New York Stock Exchange and their corresponding options traded on the Chicago Board Options Exchange and/or the American Stock Exchange; and, the Standard & Poor's 500 Index commodity contract traded on the Chicago Mercantile Exchange. The trading of these items is based purely on their price in relation to each other on a predetermined basis; and not, on any fundamental reason such as an individual company's earnings, dividends, or growth prospects; or, on any overall economic reasons such as interest rate movements, currency fluctuations, or governmental or political actions'.

'According to the New York Stock Exchange, program trading accounts for about 30% of the trading volume on that exchange every day'.

So, anyone here tried to follow program trading to make money?
What was the result?

I shall be obliged by the answer. As, I try to follow what the instituions are doing in the mkt in certain period of the time.
More...

My bad, I thought you were also still looking for an answer to the question asked in the first sentence of your post.

Camaguey · Jul 2, 2003

Go to ET: Training, Computer-Based Trading, Using Fair Value.

Looks like "picking up nickles in front of a bull dozer" :eek: . Better know what you're doing. Those dozer drivers know you are out there and are programmed to run you over.

hwaxen · Jul 2, 2003

Program Trading is for Member Firms and professional trading firms, it is not for individuals. Program trading works off of the spread between a basket of stocks and a derivative.

Hedged transactions require minimal capital requirements for Member firms and that is a great edge. Firms can borrow stocks easier and at better rates than individuals and their transaction costs are minimal.

Finally Member Firms often have the other side of the trade, an institution who wants to buy or sell a basket of stocks. Again this is an edge that an individual does not have.

Howard
http://www.tapetactics.com

SocalTrader · Jul 2, 2003

Quote from manz66:

What is program trading? Accordingly, I got this definition from certain website-

'Program trading is a generic term used to describe a type of trading in securities, usually consisting of stocks traded on the New York Stock Exchange and their corresponding options traded on the Chicago Board Options Exchange and/or the American Stock Exchange; and, the Standard & Poor's 500 Index commodity contract traded on the Chicago Mercantile Exchange. The trading of these items is based purely on their price in relation to each other on a predetermined basis; and not, on any fundamental reason such as an individual company's earnings, dividends, or growth prospects; or, on any overall economic reasons such as interest rate movements, currency fluctuations, or governmental or political actions'.

'According to the New York Stock Exchange, program trading accounts for about 30% of the trading volume on that exchange every day'.

So, anyone here tried to follow program trading to make money?
What was the result?

I shall be obliged by the answer. As, I try to follow what the instituions are doing in the mkt in certain period of the time.
More...

We follow it.
http://www.trade-ideas.com/View.php...Vol=1000000&MinRV=1.5&WN=Program+Trade+Finder

Here are the settings.
http://www.trade-ideas.com/Config.p...Vol=1000000&MinRV=1.5&WN=Program+Trade+Finder

inandlong · Jul 2, 2003

Based on the answers you are getting manz66, perhaps we should delete the first part of your thread intro, or start a new one without the "What is program trading?" lead-in, since what you want to know is if anyone is making money following it.

Ron In-a-sauna · Jul 3, 2003

Quote from manz66:

I am aware of this link, thanks. But, my question was anybody successful doing it.
More...

yes.

manz66 · Jul 3, 2003

Thanks for all the replies.

How much investment needed to be successful in this program trading. I am trying to create a pool (closed hedge fund for tax purpose) with my friends and relatives, so amount of investment is important.