Front Running Large Nasdaq market makers

Discussion in 'Strategy Building' started by master718, Oct 14, 2005.

  1. I am pretty sure that that there are traders who trade by recognizing which of the large brokerages is the biggest market maker in a particular NASDAQ stock and front running them. Is there anyone here that does that and would like to post more information. Also if anyone knows of any ways in figuring out which market maker has the biggest effect on a particular stock that would also be nice. Preferably there should be some algorithmic way of deducing this, if there isn’t one already there probably is room for one.

    The only way I that I figured of figuring out who really controls the stock is to see who the original underwriter was. This might work on thin stocks. Any thoughts?
     
  2. Check this out
    http://www.trade-ideas.com/Help.html#SD
     
  3. Exactly what I was wondering.

    I'm not able to find any research on this topic.. but I can't imagine it being too difficult to gather statistics on market maker quotes and and analyze the statistics to see which quote patterns from which MMs are most indicative of movement.

     
  4. well at nasdaq.com you can see a list of daily market participants, where all the market makers involved in a stock are listed...

    The problem is that they might only deal the stock in 100 share blocks, to stay ou of it, one day and then decide to buy 1 million shares... only showing 100 at the time.

    The other thing is that you never know if the MM buying 1Million shares is liquidating a short he had before, going in for a six month position, or going in for an intraday position... so its not so usefull to follow them... no matter how big they are, as they might make a ton of money going in at the same position where you lose a ton of money. Simply cause they know their game plan and stick to it. While you're just guessing what their game plan is and mixing it up iwith your's on the fly... that's usually a very expensive idea...
     
  5. =============
    DIA-t
    Dont know if that service is any good;
    but the ad for it is perhaps one of the most complete,
    that i have ever seen for a TA screener.:cool:

    You may want to repost that one from time to time;
    even though i found the ''1 minute breakout'' somewhat amusing
     
  6. That algorithm tries to figure out who is sending market short orders.

    "I am pretty sure that that there are traders who trade by recognizing which of the large brokerages is the biggest market maker in a particular NASDAQ stock and front running them. "

    The idea being you may be able to get into that momentum for a scalp.