How I beat my broker, so they can't front run me.

Discussion in 'Trading' started by naked, Jan 26, 2008.

  1. naked


    I trade with IB mainly, they are not bad for most part but only a fool does not know how things run behind the scenes in a typical brokerage.

    when you are new you will lose your ass and brokerage takes 10-30 % of losers like you and fades the crap out of you, Now what happens when you become god...err I mean good, well let me explain, First you need to know that being good and being great are very very different. A guy who makes 30 % a year is good, A guy that pulls of 100% a year (definitely a day trader) is still good. But a guy that pulls 500-800% a year for 4 years straight is GREAT, that account is flagged in even legit brokerage house like IB, and some smart asses decide to front run you when you reach half a million or so.

    How they front run you is based on LIMIT orders, they see what you want to do when price gets there and BAM the rest is history,

    So how do I beat them, simple, I use two accounts from two different houses and shuffle money between them

    (people start clapping in ovation, clapping gets violent
    and someone throws a moltov cocktail in my direction)

    I catch it and throw it back only to burn an innocent bystander sigh
  2. Wow, alert the media about this news flash. Bumper stickers should be issued immediately if not sooner.
  3. How about you stop sending stop orders and using these silly limit orders.
  4. selecto

    selecto Guest

    I don't understand why they would risk front running you, unless you were taking over Bershire or something. If you are consistantly Mr. Wonderful, they can "back-run" you at the speed of light.
  5. This logic assumes that the broker front running you knows you don't have accounts at other firms with offsetting hedges which give you a net loss. I happened to do this with IB for 3 straight years where most of the losses were at IB and the much larger gains elsewhere.
  6. How often, would you all say, this front running or brokers going against the average retail trader happens?
  7. And what logic is that?
  8. def

    def Sponsor

    Given IB is direct access and your orders are immediately sent to an exchange and if marketable receive instant fills, your fear is groundless. If you are sending limit orders those exact prices are routed to an exchange in milliseconds.

    Accounts aren't flagged, front run, etc. Before making such a grossly false claim, how about providing a shred of evidence. Of course you won't find any because there is none.
  9. The paranoia is entertaining. IB does not care haow much you make and they dont front run orders. You get NBBO regardless.
  10. patoo


    Easily explained. Its not IB, its the way the computers process your limit order.

    Go read how the CME computer processes orders on the CME website.

    Its based on the size (number of contracts). Orders for a specific price are processed highest to lowest size.

    If you have bid one contract at a set limit price, you are at the back of the line to get your order filled at that price. Everybody with an order of more than one contract with a limit order at the same price is in front of you. Your order is processed after all the larger orders.

    The situation you are talking about happens when the price touches your limit price for a short time, but does not fill all the orders at that price before backing away from your limit price.

    Read time and sales, that will prove it out.
    #10     Jan 27, 2008