The hidden, dirty truth about market makers and manipulators

HawaiianIceberg · 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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Aloha Ates,

Maybe try to tell user_123 to trade sim and see if the algorithm keeps going after them; I bet they even know where user_123's sim stops are

SunTrader · Sep 26, 2024

I like my Turkey deep-fried.

Darc · Sep 26, 2024

Explains why Padu and Overnight can't turn a Profit.

MrMuppet · Sep 26, 2024

Case closed, OPs other (scam) thread has been deleted. I doubt that he will ever post here again

S2007S · Sep 26, 2024

MrMuppet said:
Jesus Christ...the lack of understanding of general market structure in this post is stunning. How does one get ideas like that? Why do you even asume that you are getting played? Just because you lose money?

At least give us some context
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Try to have someone explain the breakdown of a wash sale, an actual CPA can't even explain what they are so inagine trying to understand general market structure as a whole.

MichalTr · Sep 26, 2024

Ehh, it's a pity, it was hilarious. A decent troll

s trader · 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.
More...

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.
More...

It's perfectly legal. Once you are targeted take care not to dollar cost average unless your account is deep pocket. The more you buy the more they can sell. Think back to the 2008 flash crash.

maxinger · Sep 26, 2024

MrMuppet said:
Case closed, OPs other (scam) thread has been deleted. I doubt that he will ever post here again
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huh?
This thread is still open?

tony.m · Sep 26, 2024

Coin Flip said:
THus, there is 100% chance we have at least one winning trader hanging out here.
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This winning trader is @padutrader

triplicity · Sep 26, 2024

There are a thousand Hamlets for a thousand people。Just for fun to make this thread for #50 .