I would like to say a word or two on behalf of the freaks and deviants who I have worked with in the past. First, it is apparent that I am a charter member of your club..Sorry about that. Second, I am pretty sure that I will never have to worry about whether I can make a living in the markets. Now if you will excuse me I have to put on my costume and attend a strange ritual in my backyard. Thanks. Steve
Sooo. What about it? What are you saying? The NYSE is banning Program trading? What is the purpose of the post? Is there a link that is suppose to go with it explaining about the NYSE and SEC ban on program trading?
I suggest the important question is whether or not there is useful information to be derived from the occurrence of program, particularly index arbitrage, trading. If you see a program hit the market, is it likely there will be other programs in the same direction? If you come in with a short bias and see a couple of buy programs early, should you change your bias?
I don't know dude, but the weirdest thing happened to me today. My poop floated today in the toilet. Just like a log floating ontop of a river. Usually it sinks to the bottom. But today it floated. Very weird day.
My bias is program trading is bad. I think it creates congestion. One program hits a 50 or greater lot on the ES the other sells a 80 lot, back and forth, a battle of the bots. Not much progress is made unless major support or resistance is broken, just chop back and forth making the brokers rich that's it.
I thought they were talking about "program trading" as in the PREM between the SPX and spot price. I don't think they are talking about the "program trading" you are talking about, as in "mechanical program trading" and programmed software strategies. They are two different things. No? What "program trading" are they talking about?
dandxg, Use it to your advantage. If there is chop, then it means there is a range, and what do you do in a range? You short the resistance and buy the support. Easy as that... ok, maybe it isn't that easy, but you have just stated that there is in fact a pattern and if a pattern exists then there is a way to exploit it. Grow and learn... -Neo