I do trade at a prop firm, and although at this point I have very few rules placed upon me. I can trade any stock as long as its liquid and believe I can be profitable. I just need to stick with it for awhile and figure out what is driving the trading. Ole timers like to talk about out the rhythm of the markets. These days the rhythm is getting a feel for the algo driving the programs. Creates inneffiencies as someone else has priorly said.
Excellent example. I work for a prop firm . I take scalps in QQQQ in premarket 8:30 to 9:30. I also find myself profitable in exploiting inefficiencies in QCOM, particularly at time of data release.
Program trading has speed as its advantage but a program will never come close to the discretion of a pro scalper. Incognito
Great post NYOB, thank you. Could you clarify your example with numbers - Program A sits on the inside bid, eg $100 for 30 sec then if not filled go to $100.10 etc, and then program B is selling where? $.10 below the inside ask?
Programs are predictable, so you can exploit that predictability. For example you can use bids/offers to fake the program into front-running you, then whack their bid/offer - hey presto, instant liquidity & price improvement.