How did you know your edge was gone? The edge of an option market maker back them was from our knowledge of options, quick access to the order book, single listing and BD margin. When other started to understand put call parity and option pricing, we still had an edge. When some options became multiple listed, we lost a big part of our edge because as order flow came in, you might not have access to it. Then when order flow became all electronic with FIX connections, we could no long wait to trade with order on the book as we might miss them. Then portoflio margin came around and we had few edges left. What wa left during the financial crisis was that we did not need a locate to short hard to borrow stocks. By 2010, there was no edge left for an independant local MM and the prime brokers, my was GSEC, warned that all accounts will soon need $5mm+. What did you do to define your path? I had very limited capital at first and throughout my career vs those around me. I learn at first to leg into reversals and conversion taking very little risk and make a good profit. Other with more money, would do little hedging and focus on selling "fat" options. That caught up to them in 1987. I had a great year up to October, made back my losses from the crash in 2 weeks and moved on. Many left with little or no money that had been making millions before that. I was never a risk taker and was content with my income taking less risk.
Thank you for the response. I am am developing and back testing automated trading strategies. I have not started running these strategies with live money yet. You have alot of experience in the markets. May I please have your personal opinion, experiences, other's experience, or recommendations for me producing consistent profit returns with me trading automated systems? Thanks for your time and effort.
Not is a public forum. If you email me your contact information we can go over what you are doing on wednesday.