http://www.youtube.com/watch?v=Fwvb3ovgeRw There ya go. EDIT: I should say that it might not look like much to someone who doesn't know what's going on.
thanks, i looked at those videos although that would not be what i term scalping.. that apepars to me to just be classic swing trading with money management. it is interesting to note that the same concept would not have worked on the same chart earler as they rally was not high enough. Also, the trader talks about a good trade just starting to happen but then lowers his target to get out. if he truely believed that there was a big trade happening he would have stayed. The extent to which a trader believes in the upside dictates their behavior.
There are a number of firms who provide auto quoting software. I have never heard of anyone running a market making program in TradeStation. If you try to make markets using TradeStation chances are you will get picked off quite a bit due to latency. TS is fine and good, but to even hold a candle to the other firms making markets you need to have your server as close to the exchange as possible. I believe TS servers reside in Texas and Florida. Your order entry, although measured in seconds would be fast it would not be nearly as fast as the people your competing against whose order entry time is measured in nanoseconds. I'm not going to make a judgement on your suggested strategy, but you need to think about who your competition would be. To name a few Citadel, Timber Hill, SIG. These days there is a little more than buying bids and selling offers and hoping to capture a portion of the spread. But, if you really want to look at software with auto quoting capabilities I would start by looking at RTS and Orc. Both good companies, but I prefer one in regards to functionality and usability, but prefer the other in regards to price. Not to mention there are a number of other programs that I am not familiar with. Also, these firms offer you a solution to auto quoting, but they do not provide you with a "strategy" so to speak. It's really only a means to an end. You have to come up with the "strategy" yourself. For what it's worth somewhere on the CME site they used to have a list of about 10 different software companies that offered market making software. Sorry about the long winded answer to your question.
gm GR, You seem to have allowed yourself the luxury of closing your mind to matters that you have yet to understand. regards f9
thats is a terrific post. i am long dedicated tradestation user but have run tick models on AAPL and indicies and tradestation will not work for active markets. if you try to be very active then you are competting with Goldman and their desk with huge computers, super high speed lines. They will win that battle time and again. Strategies need to reflect the environment you trade in.
Do any of you see any difference in success scalping based on direct-access systems vrs using the deep discounted online browser-based brokers? I have had some success scalping through E-trade Pro this year just using their "AUTO" routing rather than directing the order to ARCA. This keeps the roundturn expense at less than 20 bucks including all expenses. After two years with them the reliability of the platform has deteriorated to the point where I must switch to a non browser based direct access system. I'm finding that the fees will be MUCH higher and wonder if the $100-150 I typically take out of the market on each trade will be enough. Guess my understanding is that I really am just trading with E-trade each time I sell or buy a stock and they are able to make enough on my order-flow to pay all the extra fees I never see and still make money(in other words the $16 I pay for each round trip doesn't begin to cover all the real expenses associated with the trade........) but by selling my order flow they make all those hidden fees plus more. My question then is: If I switch to a broker like Terranova where I will pay much more in all the fees(exchange data fee, exchange execution fees, trade activity fees etc.) do the better executions and data feeds enable one to be more profitable overall???