Playing the Buy on the Bid sell on the ask game

Discussion in 'Automated Trading' started by WhiteOut56, Aug 3, 2010.

  1. If you are playing this game...

    Is this possible without a co located server just running from a standard cable internet connection to expect to produce a profit?
  2. don't even bother. most colo servers are even too slow compared to some of the nano second programs out there.

  3. Can I ask you this... not to be a jerk. But have you had any success doing this type of strategy?
  4. yes but just in a low frequency context (up to 10 trades per day).

    it is impossible to do it in hi frequency (100s or 1000s of trades per day), as the evil machines control order book in a vicious way.
  5. bone

    bone ET Sponsor

    The problem with the strategy is that you can't turn on the market fast enough to scratch it once the offer goes bid or the bid goes sellers. Size orders not only take everything out, but the balance they are showing knocks you back in the queue.

    And yes, I've done it on the floor and on the screen.
  6. Surprise


    I am looking into this strategy , maybe with a wide spread markets like gasoline or heating oil ...
  7. bone

    bone ET Sponsor

    With HO or RBOB it would be impossible - nothing to lean on, too thin to scratch, and you will get burned by the exchange supported implieds.
  8. The bid-ask spread is more "valuable" in less volatile markets. The energies don't qualify. :eek: :(
  9. Surprise


    Thanks for your input but i didnt understand this : " exchange supported implieds " ...
  10. Surprise


    sadly this cant be done with ZN either , i want wide spread market with some volatility and some volume , i am planing to play this with a one side limit order for the entry ( not 2 ways orders ) ...
    #10     Sep 6, 2010