Brokers forward your identity to the market with each trade.

This hugely unethical privacy violation exposes investors to a number of dangers.

What can we do to stop it?

 

What instrument are you referring to? Who does the broker forward your identity to?

 

??????? Can you expand on that?

 

Well yes & no. They have to share your identity with CME (Tag50). If CME is trading, then they can trade against you as they already know if you are still in the market or not.

I know how it feels like. You are like playing poker and showing your hands all the time. And you are right. It's not fair if they are using this data...

For more information:
https://www.cmegroup.com/tools-information/webhelp/cme-customer-center/Content/tag50.html

 

Trade CFDs on CME futures then if you're worried about Tag50.

 

That's worse as CFD brokers can trade against you easily.

The best thing to do is to buy or sell at the correct price. That's the only way they will not be able to trade against you.

 

I don't understand this "broker trades against me". Ok, let's say you bought gold at 1878, I don't care if broker will trade against me. What it will move the market down to 1800 and once I am out it will go straight back to 1900? Nonsense. If you bought at that level and expect it to go up - stay in the trade or manage it. Broker alone won't push you out of it.

In short: manage your risk.

 

Well if you know how AI works, you can understand. It's not about you and me, it's all about algo's decision making process.

If an algo knows your unique ID somehow, it will be easy to train and make amazing profits. This is the most important data and the only feature for an algo. You don't need anything else.

Let's say algo knows Traders as 1, 2, 3, 4 ... etc. This algo can come up with an idea "if I trade against trader #X, i will win 52% of my trades at least 1.0 risk to reward ratio after commissions and spreads and the accuracy of this is more than 95%". Such an outcome is the holy grail.

And of course this is going to work until it doesn't or until algo finds better outcomes. Or maybe until that trader stops losing.

 

In Futures algos will see your orders in order book anyways. And there are plenty of them, if you'll start worrying or caring about them chasing your trades - it won't do any good for you. If you manage your trades and risk correctly, use algos in your favor. They provide liquidity.

 

They provide liquidity and they love trapping your orders!