Introducing TPA -- Tick Preference Arbitrage. aka Tick-PIiMA

Discussion in 'Chit Chat' started by destriero, Feb 29, 2016.

  1. destriero

    destriero

    Tick - Preference Inter Market Arbitraj.

    Not that PIIMA, sickos. TPA is a little-know pure-arbitrage strategy in which you can choose 1:1 intermarket correlations for sick arbitrage profits!

    You choose the tick-preference!

    You choose the 1:1 correlated offset!!

    Here's an example:

    Short Dec 2020 CL from 47.50 (not that near-term garbage in the 30s. Take the contango!)

    COVER in UWTI spot at 1.80!

    That's a LOCK that NETS you 45.70 per contract... BUT WAIT!

    YOU CHOOSE the tick (tick preference*)! Yes, you can choose to take profits in CL ticks, not UWTI. That's $45,700 in pure profits.
     
    Visaria likes this.
  2. newwurldmn

    newwurldmn

    I think if you trade it right there's a look back where you can choose which price you print the WTI and the CL.
     
  3. destriero

    destriero

    I have it on good authority that this exact strat is how Snoop Dogg amassed $120MM in net liq.

     
  4. destriero

    destriero


    Don't tease us... lookbacks!! Can we get 'em at zero haircut as well!?1
     
  5. EPrado

    EPrado

    This is the first ever thread I have subscribed to in my many years on ET.
     
    destriero likes this.
  6. destriero

    destriero

    We need many/moar examples. This is a burgeoning space that has virtually no capacity issues! It shall never be traded flat!
     
  7. destriero

    destriero

    One of my personal favorites is Long GOOG/BRK_A.

    The best var is during reporting-period... you wait for GOOG to report AH and ***BUY*** GOOG when it's halted. THIS IS THE KEY TO THE BEST FILL.

    THEN you cover in BRK_A; not the piker-s*** class-B peasant stuff.

    BINGO! $201,857.23 in INSTANTANEOUS profits. Per lot!
     
    Last edited: Feb 29, 2016
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  8. newwurldmn

    newwurldmn

    on the GOOG, you can buy an option that you get to decide is a call or a put after the report
     
    kinggyppo, EPrado and destriero like this.
  9. OK...I have several investors who would sue my ass off if I ever made public this strategy but this is among friends.

    A year ago I noticed that when ES traded at a certain value and moved higher I could buy the front month ES and then buy the front month YM and hold until the high of the day and close both for significant profit. It worked once perfectly and then I decided to stop trading it so I would not destroy the edge.
     
    EPrado likes this.
  10. destriero

    destriero


    See guys? This is how free-discussion results in ever more bangin' arbitrageses. I would never have considered adding options to a halted-buy.
     
    #10     Feb 29, 2016