there are various edges available in equities that do not exist in futures-- hence the interest. surfer
marketsurfer wrote: I know that's the argument -- the bigger question is this: Are those edges still valid; and will they remain valid much longer. And has Bob, sensing the change, figured out an edge in the eminis?
Stereo pretty much nailed it with the "Bob sensing..." statement Look at the course outline and read white papers on Reg NMS you will find that a majority of the course will be irrelevant in at most 6 months unless Hybrid gets full implementation sooner.
yes, there are still valid edges. no idea about the bright brothers edge--if its still working or if they figured out another way yet. surf
I am not flaming or anything...but the kind of leverage and a prop shop and newbies is one scary combination... I have said far too much in this thread.... Bye Michael B.
Actually, I don't think any Class A member of prop shops can sense anything that would make them migrate to another venue of trading. THEY CAN SEE. If I had the $1M or so to start a JBO, I would run it at cost (ok maybe take a little vig for myself) since in doing so, I would be able to see strategies of tens or hundreds of traders ( in the case of the Brihgts, Echos) . Thru trade patterns one could classify traders and discern which strategies are working presently and be able to adapt without the requisite learning curve of trial and error. Priceless....
Edges are achievable in index futures; diversification, corr, beta are well defined... my point wasn't to imply that futures offer > edge, but rather that futures are a no-no at Bright.