May trade desk steal your trading strategies?

Discussion in 'Retail Brokers' started by Option Trader, Dec 2, 2008.

  1. If someone from the trade desk sees you have a successful trading strategy, is there anything that would stop him from using the strategy himself?

    Practically speaking, would this be an advantage of IB (noting they try to automate everything) over another broker?
  2. nassau


    If you have a trading system that can generate one million on one million it really is no big deal. Good for you and or perhaps a few friends but they need to be able to use your style on 50 million plus to be worth while while generating a min. of 2-5 percent a month.
    The roi initially is 100 percent but with additional funds can it / you successfully enter and exit the market with positions that are manageable within your risk manangement parameters. Usually the answer is no.

    Based upon my experience with senior bank traders who manage 1 billion or more they use algorithums to take our money.
    (black boxes).
    believe it our not, you could be the last contract or shares that makes the difference it the sentiment of the stock or index.
    It is a known fact that if a trader uses a tangible stop loss they will over all lose.
    It's all about math plain and simple.

    I do however believe and know that brokers have many signals that get triggered daily that alert them of sentiment change, margin ie when a trader is within 10 percent of a margin call etc. that will enable them to make money.

    You will notice the wk of options expiry that always ecns going down, part fills, broker issues occur more often.

    Good luck with your trading


  3. Sorry to burst your bubbles, but my systems always use hard stops and I haven't had a losing week for eight years, except for one, but I blame a woman's distraction for that.
  4. More like a strategy that works on a small basis, someone at the trade desk notices what your doing, implements the same strategy, and hence limits the opportunities.
  5. All the top traders intersperse massive losing trades with their usual winners to discourage copycats.

    I know it works for me. :D