The hidden, dirty truth about market makers and manipulators

MrMuppet · Sep 26, 2024

Ates said:
I truly wish for you to succeed. However, it’s been a long time since I realized that we don’t stand much of a chance against algorithms nowadays. I hope you don’t actually believe that everyone here is as successful as they claim to be. Of course, my goal isn’t to create a pessimistic atmosphere.
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No no, here you're wrong:

YOU don't stand a chance. Big difference.

SimpleMeLike · Sep 26, 2024

Ates said:
I’m revealing the hidden, dirty truth about market makers and manipulators: They claim to be "regulated," but the reality is much more complicated.

Here’s how BIG GUYS get away without getting caught by the SEC or NFA while trading directly against you and making millions, if not billions.

If you're a day trader living in the U.S., you're lucky because you're not really on their radar. Traders from some other countries are similarly under the radar, but not everyone is that fortunate. Let’s say you're a trader from Turkiye (like me). While your exact identity may not be shared, you’re tagged with a random identifier, like user_123. This tag might change occasionally, but the system knows that it should be trading against you.

There’s a central algorithm that all the other algorithms take signals from. For example, user_123 opens a long position on the $NQ. The main algorithm immediately opens a short position and, at regular intervals, sends short signals to the sub-algorithms. Meanwhile, market makers pull their buy orders from the book, causing poor user_123 to get trapped in a losing position. Even if the price comes back to the entry point, it will reverse just before user_123 can exit profitably. As soon as user_123 closes the position, the market immediately turns. But when user_123 thinks they’ve caught the reversal and enters another trade, what do you think happens? That’s right—market makers immediately take it the other way again. And we, the poor retail traders, even gave this a name: Trading against trapped traders. As if we actually know who’s trapped and where.

In fact, this explains quite clearly why, for example, when the $ES rockets up, the $NQ and $YM might be falling.

Of course, the question might come up: "Why would they take the risk against a small position?" Think about it—who benefits from user_123’s loss? Do you really think the size of the position matters? And do you honestly believe that all those algorithms throwing out signals all over social media and Telegram are being run by ordinary individuals? That’s quite naive

Oh, I mentioned earlier that if you're living in the U.S., you're lucky, right? Well, not always. If you happen to take the same position as user_123, you're at risk too—and the chances of this happening are not insignificant, around 50%.

So why don’t they get caught? Because the traders they’re trapping aren’t based in the U.S. The IP addresses are different and harder to track, among other reasons. And perhaps, they don’t even want to catch them, who knows?

This is how they play this fricking game. And they are playing it damn good!

What do you think?
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Hello Ates,

Thank you for the write up. I believe you.

Question please:

1. How do I make $1million trading the ES or NQ market in 1 year?

Thank you,

SimpleMeLike · Sep 26, 2024

Sekiyo said:
The whole market (trillions of dollars daily) conspire against user_123 to blow up his 1,234$ account ?

Okayyy
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LMFAO HAHAHAHAHAHAHHA hahahahah hahah

SimpleMeLike · Sep 26, 2024

I can tell everyone this for sure:

The ES futures market do not care about my black ass and the trades I am doing. They have bigger fish to fry.

MarkBrown · Sep 26, 2024

SimpleMeLike said:
I can tell everyone this for sure:

The ES futures market do not care about my black ass and the trades I am doing. They have bigger fish to fry.
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it's the white guys with ties their after!

Coin Flip · Sep 26, 2024

Ates said:
There’s a central algorithm that all the other algorithms take signals from.
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Actually my friend has a futures algo, he does not take signals from a "central algorithm."

Thus your statement that "all the other algorithms take signals" is categorically false.

Wide Tailz · Sep 26, 2024

Not gonna lie, I'm tempted to believe the reason they let us trade for free is because our position info is valuable enough to make it worth their while, like in a bucket shop.

However, it goes without saying that outsiders are usually wrong anyways unless they go for the long wave which is obvious, even to grandma!

SimpleMeLike · Sep 26, 2024

MarkBrown said:
it's the white guys with ties their after!
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Hello MarkBrown,

LOL, you got that right Mark. They going to let my black ass make a few millions in peace and label me a model citizen.

I do not have any affiliation or connection to the wrongdoers in the market, so I am all good. And I will happily pay my taxes

Much respect to the white guys with ties making all that Millions and Billions of dollar. They have an Edge, good for them

SimpleMeLike · Sep 26, 2024

Ates said:
I’m revealing the hidden, dirty truth about market makers and manipulators: They claim to be "regulated," but the reality is much more complicated.

Here’s how BIG GUYS get away without getting caught by the SEC or NFA while trading directly against you and making millions, if not billions.

If you're a day trader living in the U.S., you're lucky because you're not really on their radar. Traders from some other countries are similarly under the radar, but not everyone is that fortunate. Let’s say you're a trader from Turkiye (like me). While your exact identity may not be shared, you’re tagged with a random identifier, like user_123. This tag might change occasionally, but the system knows that it should be trading against you.

There’s a central algorithm that all the other algorithms take signals from. For example, user_123 opens a long position on the $NQ. The main algorithm immediately opens a short position and, at regular intervals, sends short signals to the sub-algorithms. Meanwhile, market makers pull their buy orders from the book, causing poor user_123 to get trapped in a losing position. Even if the price comes back to the entry point, it will reverse just before user_123 can exit profitably. As soon as user_123 closes the position, the market immediately turns. But when user_123 thinks they’ve caught the reversal and enters another trade, what do you think happens? That’s right—market makers immediately take it the other way again. And we, the poor retail traders, even gave this a name: Trading against trapped traders. As if we actually know who’s trapped and where.

In fact, this explains quite clearly why, for example, when the $ES rockets up, the $NQ and $YM might be falling.

Of course, the question might come up: "Why would they take the risk against a small position?" Think about it—who benefits from user_123’s loss? Do you really think the size of the position matters? And do you honestly believe that all those algorithms throwing out signals all over social media and Telegram are being run by ordinary individuals? That’s quite naive

Oh, I mentioned earlier that if you're living in the U.S., you're lucky, right? Well, not always. If you happen to take the same position as user_123, you're at risk too—and the chances of this happening are not insignificant, around 50%.

So why don’t they get caught? Because the traders they’re trapping aren’t based in the U.S. The IP addresses are different and harder to track, among other reasons. And perhaps, they don’t even want to catch them, who knows?

This is how they play this fricking game. And they are playing it damn good!

What do you think?
More...

Hello Ates,

As my grandfather would tell me when I use to complain about the world unfairness.

"Boy, you in the wrong world looking for fairness. Get your ass busy making money or get your ass busy being poor"

The same applies to you.

SunTrader · Sep 26, 2024

Ates said:
I don't lose money because i am not trading.
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That explains ALL.

Also do you think no one loses investing as well?