Front Running, Flash Orders, or Blackbox/Algorithmic Manipulation?

Discussion in 'Trading' started by pacific7, Aug 2, 2009.

  1. tradethetrade

    tradethetrade Vendor

    Pacific, is this happening with all your stocks? I know what you are describing and the way I get around it is to trade a different stock and leave that one to someone else. If the stock is fucking with you then it is no good for you just replace it.
     
    #31     Aug 4, 2009
  2. Not a problem here. I only trade high volume highly liquid stock.

    ie: GE for example.
     
    #32     Aug 4, 2009
  3. pacific7

    pacific7

    Thanks, i have been a little more selective lately. Some stocks are just plain outright blatant cheats. They are run/traded either by a few big market makers, a rip-off specialist, or very sophisticated algo's. Whatever the con artist, they make the stock impossible to trade for even the best traders.

    What's very worrisome to me is that cheat's are in cahoots with with some of the exchanges and ECN's. THEY SELL OUR (PROFESSIONAL TRADERS') ORDER INFORMATION TO THE CHEATS SO THEY CAN USE IT AGAINST US TO THRASH OUT OUR POSITIONS!!! WE ACTUALLY PAY THEM A FEE WHEN WE TAKE LIQUIDITY USING THEIR EXCHANGE/ECN ROUTE. THESE ARE AMERICAN STOCK EXCHANGES. THIS SEEMS ALMOST CRIMINAL "BERNIE MADOFF"-LIKE BEHAVIOR.

    Anyway, i'm glad that we are finally seeing this sham unfolding. I've been catching a lot of segments on CNBC on the issue. Some joker from one ECN/exchange (maybe Edge?) actually came on to try to defend or justify the activity. It looked like he started to get a little rattled and uncomfortable towards the end of the segment when the hosts really started laying into him... little sweat on his forehead and started talking real fast with some BS terminology. It was almost laughable!
     
    #33     Aug 4, 2009
  4. pacific7

    pacific7

     
    #34     Aug 4, 2009
  5. pacific7

    pacific7

  6. dude, how can they 'sell' your information if you keep your trade to yourself until you want to execute?

    your 100 shares of SIRI is not of interest to the pros.
     
    #36     Aug 6, 2009
  7. yeah, they cant manipulate GE, too high a volume. too liquid,
     
    #37     Aug 6, 2009
  8. You really have no clue, do you?
     
    #38     Aug 6, 2009
  9. I have a feeling all this flash order bs came into the news because somebody at NYSE or others associated with them wanted to screw the other "exchanges/ecn's" & they figured this was the best way to do it...make them look bad.

    Who knows, maybe NYSE secretely "flashes" orders to their #1 patron, GS!
     
    #39     Aug 6, 2009
  10. The real question is who Schumer is going to bat for. They know there'll be a huge shift in volume if the order mechanisms change is my guess.
     
    #40     Aug 6, 2009