for those that don't know, rotter is a guy who has harnessed recent tech and developed an algorithm to own the spread, he hangs around mostly in the debt and interest rate markets and is most noticable by looking at the spread(watch the 10yr, hes not there everyday, but you will know when he is), you will see the bid balloon up and up whilst the offer getting very light, and in a milli-second it switches to vice-versa, he accumulates on both sides and offloads constantly capturing the spread and he is not afraid to take on some delta, he has balls of steel. now, how is he affecting the markets? how is he affecting you? i know some of my b.o. systems in the bund and other eurex products have gone limp, and vola has lost some of its cyclic nature. with 8000 hedge funds and i dont think there are 8000 different strategies; everyone is playing the same hand with not much to feed off, as evidenced by some top players experiencing first time damp patches, i mean theres still money too be made, but mostly through inovation now. is something gonna give? is he eyeing of the forex markets? are the big boys lining him up? whats everyones thoughts? p.s. im not saying this is trading doomsday, im saying the competition is getting very, very tight. survial of the fittest i guess.
Just like any other strategy I believe his is starting to diminish or will begin to soon. The reason is because other traders either are adapting to the new characteristics of the market, copying his strategy or moving into other markets. He will either create a new strategy (if he hasn't already), spread out to other markets where his style of trading is feasable or milk it as long as possible and then bail out of the market. So if you can hang in there I don't think you have much to worry about, it can't be a permanent thing. And I highly doubt other successfull traders are out to get any revenge on him, they have better things to do. -Neo
i agree with you on most part neo, but wouldnt it be nice to see a group of guys each with 10,000 contract buying power get together and smoke his ass in 1 day?