well the chickens finally came home to roost last week for the exchanges. on eurex and liffe a lot if not all of the algos switched off. to put it midly the algos and black box systems could not cope with the volatility and the tick slippage that is currently in these markets. i have quite enjoyed the last few weeks and especially the last week. a proper and real life like market with genuine orders and flow to it. not the nonsense of the past with bids and offers continually not trading, being spoofed one way and the other. well where the fuck are they now. according to some sources they wont be turned on for a long while as they cannot get access to the huge margin and funding they require to run. oh dear. well done exchanges for bending over backwards to these pricks and letting them drive down the exchange fees on you only for them to pull out when most traders and investors needed liquidity. well i was there still quoting. what do i get. full fees and no respect. not even a thank you. well all came home to roost last week. maybe a period of reflection is in order by the exchange management and a big thank you to all the locals, prop traders and human traders out there they actually turned up and quoted or traded. we maybe an insignificant percentage compared to the size of the algos and black box trading systems but last week we were the majority. come on eurex come on liffe how about a fee rebate and some respect. you wont be sucking off these algos guys at the next xmas party will you.
Well said Beaker. I think we regular traders (although i dabble in automated systems) are alot bigger than anyone thinks. I know i set personal volume records last week along with the exchanges. Everyday that the monster heat seaking blackboxes are turned off is a day I know has a great chance of being a huge black day for me. I pray they keep those boxes off for many months to come.
Glad to see you back on form beaker, and I agree it looks like black boxes all around the world have been thrown into the skip - even Renaissance the "unbeatable" black box runners did their arse in the past few weeks, nothing like the human touch, happy days
I think you guys are forgetting how much those black boxes have been making over the last few years and without doubt will again I am glad you guys are making cash though and i hope it continues
This is a good thread - how comes volumes are pretty much the same even though bund is bid/offered in 200 instead of 2000? Have human traders been allowed to get involved and are simply doing the volume they genuinely want to do whereas the algos advertise huge volume that doesn't trade but do enough to screw over all the locals,basically steal their trades?It makes you think. People used to say pit-locals were scum but the people who run these algos are real vermin,the pits of the earth,walking trash. Let's hope their funding does dry up and the investors lose faith in this method of trading,they say everything has a lifespan,with a bit of luck their's is over.
you hit the nail on the head. the volumes are the same. all that happened was through execution , backhanders and speed they stole the trades from the human traders. now they dont have the funding , liquidity , and tick slippage they dont want to play. now its a level playing field again.
I think you are dreraming if you think the black box days are over they will be back better than ever unfortuantely for many a spreader
Oh hell and darn it now I just wish the earth would open and swallow me up cause I'm so embarrassed, look how red i've gone... oh no hang on a minute I don't give a flying **** They had to break the law to make money anyway... " Volfbeyn said that he was instructed by his superiors to devise a way to ``defraud investors trading through the Portfolio System for Institutional Trading, or POSIT,'' an electronic order-matching system operated by Investment Technology Group Inc. Volfbeyn said that he was asked to create an algorithm, or set of computer instructions, to ``reveal information that POSIT intended to keep confidential.'' Volfbeyn told superiors at Renaissance that he believed the POSIT strategy violated securities laws and refused to build the algorithm, according to the court document. The project was reassigned to another employee and eventually Renaissance implemented the POSIT strategy, according to the document. Volfbeyn said that he also was asked to develop an algorithm for a second strategy involving limit orders, which are instructions to buy or sell a security at the best price available, up to a maximum or minimum set by the trader. Standing limit orders are compiled in files called limit order books on the New York Stock Exchange and Nasdaq and can be viewed by anyone. Volfbeyn refused to participate in the strategy because he believed it would violate securities laws. Volfbeyn and Belopolsky said that Renaissance was involved in a third strategy, involving swap transactions, which they describe as ``a massive scam'' in the court document. While they didn't disclose what type of swaps were involved, they said that Renaissance violated U.S. Securities and Exchange Commission and National Association of Securities Dealers rules governing short sales. "
Why do you quote Volfbeyn and the lawsuit? This concerns events and trading techniques that date back three years and have absolutely nothing to do with Medaillon's August 2007 and YTD performance. So, let's get back to the facts. What's Medaillon's return for 2007 and what's the Aug. return though Aug 17th? Oh you have no idea? Yes, you're that embarrassing.