Rebate sensitive strategies in BAC

Discussion in 'Prop Firms' started by londonkid, May 26, 2012.

  1. londonkid



    assuming broker commission of 20c - 30c per 1000 shares traded do traders still think it is possible to make a living manual trading purely BAC or other similar stocks such as S, NOK, SIRI.

    Running the maths for 1000 shares round turn.

    Capturing the Spread (1c) = $10

    Capturing half the Spread (0.5c) = $5

    Commission per round turn = 40c to 60c depending on volume.

    Misc Fees = 34c (don't know if I am being scalped on misc fees lol)

    Rebates (for adding only)

    BATS $2.50 rebate
    ARCA $2.10 rebate
    EDGX $2.22 rebate
    SMARTMID -$1.50 fee
    ARCAMPLA $2.00 rebate
    BATSALIQ $2 rebate

    Rebate (for taking liquidity on inverse routes)

    CBSX $1.40 rebate
    EDGA $1.50 rebate
    NSDQBX $1.40 rebate

    All figures per 1000 shares

    If anyone can correct any of the above figures or know any other routes please suggest them

    So what has changed from 'the good old days of C' before the reverse split?

    people say pure rebate trading isnt possible anymore, are they talking about where you don't capture the spread, I can see how this would be hard.

    If you had a goal of $200 per day would this not be possible (I know it's hardly a living but a nice supplementary income).


  2. Rebate trading with Citibank was so much fun. The stock moved 3 cents all day and you could trade tens of thousands (or hundred of thousands) shares a day and make great coin.

    The problem with trying to rebate trade BAC, NOK, etc is that they moved too much. They might have a 10-30 cent range every day. Very tough to make a half penny then get stuck in a position for 10+ cents. You rarely had to worry about that in the Citi days. If you lost a bid/offer you knew it would probably come back.

    The only stock that comes close to having the characteristics of Citi is SIRI....but trading that is like watching paint dry.

    If you are really good you might be able to squeak out a few hundred dollars a day. Just start small until you got it down and then gradually add size.
  3. If something is moving more than a few ticks .. you could quote at multiple levels.. while splitting your size.
  4. londonkid


    Hey Rationalize

    Are you suggesting the following:

    say BAC is 7.14 bid 7.15ask

    are you saying post limit bids at say 7.11, 7,12, 7,13, and limit offers at 7.16,7.17, 7.18 and waiting for price to come to you so you are near the front of the queue on the big rebate payers?

    if each level is quite thick I am guessing you can should have a chance of hitting out for a 1c spread on one of the inverse ecn's.

    thanks for your contribution.

  5. Picking up pennies and losing nickels.....but good luck.
  6. londonkid


    I am ok picking up pennies and losing nickles as long as they are in the right ratio :)
  7. :D
  8. I'll PM you.