Free Market - Not !!!!!!!!!!!!!!

Discussion in 'Trading' started by QuantBot, Nov 5, 2008.

  1. QuantBot


    For those of you still living your lives under the ruse that we exist in a free market. When small guys (or big ones) step in and provide liquidity when stocks get beat down or over bought, and then are penalized for it.....something is very, very wrong.

    Just take a look at the screen shots

    GLRE - anyone that got short on the opening prints got their trades busted.

    GOK - anyone that got long on the opening prints got their trade busted.

    Traders are simply reacting to where the stock is actually trading, these stocks were not "outside" of their mkts, these were the markets.

    I've actually seen the MM algos take a few stocks to 0 over the last few weeks, one even traded at 0 before the wiped all of that data out of the system. Good thing I snapped screenshots. I'll try and post those later. In the meantime here are the GLRE and GOK charts. Basically, the way it works now, is a MarketMaker( what a joke, they shouldnt even be allowed to call themselves that anymore) can protest and get trades cancelled at no risk to him. If you or I want to protest, The trade goes to ruling and if you loose, you pay $500.

    So now, as is, If I do my job well, it could end up hurting me for no good reason.

    The people that should be held accountable are the firms running these mickey mouse algos.

    Do you think that this type of behavior from the regulators should be tolerated by the trading community ?
  2. I advise you trade stocks over 20 where the vertical scale is in increments of over 1 dollar. My favorite stocks are in the 50+ range where scale is in 5 dollar increments.
  3. QuantBot


    Appreciate your advice.....but that's a work around to the inherent, persistent problem. They can bust a $50 or $60 stock just as easy.....................
  4. GLRE should have been busted (although there is no way they would have busted them for us).

    GOK should have stood. Not far enough away for true "erroneous" trade.

    The system is rigged against the small guy. I lost over 65k on a clearly erroneous buy back in 2000. Nasdaq backed their shady MM's (TUCK and HILL). Probably the only money those shleps made the whole year. True scum.

    Sorry about the theft from your account by the powers.
  5. QuantBot


    Yes, it is completely rigged.

    I guess its time to modify my code so that that threshold prices are barely undercut.....then they can lump it....