Can a HF manager do this?

Discussion in 'Trading' started by Pekelo, Oct 8, 2017.

  1. JackRab

    JackRab

    I think it definitely still happens...

    For instance, at expiry... stocks (and also the index-level) can be pushed on a certain strike where there's large interest. There's a bit of manipulation going on there...
     
    #51     Oct 9, 2017
  2. JackRab

    JackRab

    Said like a true Troll! tsktsk... I see your profile is limited as well... no need to say more... bye...
     
    #52     Oct 9, 2017
  3. Pekelo

    Pekelo

    This is a different study, done by Finnish professors, and it also includes an advice for retail traders:

    https://www.wsj.com/articles/how-funds-distort-the-stock-market-with-month-end-trading-1428375831

    "Because the pattern is so ingrained, investors can profit with this recipe: Buy shares three days before the end of the month and sell them three days into the new month, he says."

    "The patterns described in the paper aren’t a secret among fund managers, and some try to time fund purchases and sales to take advantage of it, including Source Morgan Stanley Europe MEMO Plus UCITS ETF."
     
    Last edited: Oct 10, 2017
    #53     Oct 10, 2017
    JackRab likes this.