The Sexiest Customizable Algo!

ARCA pays it for providing liquidity.

http://www.nyse.com/equities/nysear...n=/internal_ads/callouts/nysearcaequitiesfees

No. I don't trade retail. But I'm pretty sure IB gives rebates, but someone like Ameritrade, or Etrade? Forget it.

 

thanks!

 

In order to make money from this your commission rate must be lower then the rates paid by the ecn for adding liquidity.

So if ARCA pays .0025 your commission rate is .0015 you theoretically will make .001

Correct ?

 

You're incredibly wrong... it's not about credit trading - getting rebates is just a positive effect of running the program. It's about mitigating risk. I trade levels (basically S&R) but I'm not always where you think I am with my bids/offers, nor am I always filling up at one spot. This allows you to absorb the price action, to run multiple shakes and to add or subtract program trades and discretionary trades all on the same stock. I run it everyday and I've only scratched the surface. Cyborg is ridiculously fast and lets me compete with the other algo's. No, I don't need to co-load with something like this as you are always on the bid or offer. I think the online video could be improved as it doesn't show the true strength of the program. I'll try and save a jpeg and send it to their site for uploading.
B
p.s. I am not employee nor have am I compensated by them... actually, I pay a monthly fee to run the system.

 

Bid deal, I used to pay 2k in ECN fee's... now those come to me... With a prop rate of around 20c per k, the fees become negligible. Rebate trading is great for doing 400k of SUN, but those days are gone. You need to be all over the NBBO at all times.

 

Yes. At that commission rate you would be net positive on your fees if you always provided liquidity. Not a bad deal.

But regardless of your base comm rate, it's an ECN rebate which is normally credited to your account at the end of the month.

 

I don't know about you, but shake was something I used to smoke when I was 15...

 

What am I missing?

I'm long 1000 ABC @ 10 with a target at 10.50

My comm rate is .0035

Stock goes to 10.50 I make $500 less my $8 (aprox) commission + ecn fee's.

If I "shake" my way to 10.50 don't I end up paying a lot more commissions regardless of the rebates

 

Thanks for the laugh.

 

Not a good idea under your current fee structure. If it costs you $3.50 to move 1000 shares and you only get paid $2.50 at best to provide liquidity you are screwed. You need a prop rate.