What is the name of the following strategy...

Discussion in 'Strategy Building' started by cohvi, Jun 17, 2006.

  1. cohvi

    cohvi

    Is there a name for the following scalping strategy,
    I'm asking because I want to look for more information on the subject:

    Buying & selling with just one tick profit.

    Thanx.
     
  2. Market making!
     
  3. If you add liquidity on both sides it could be rebate trading...
     
  4. cohvi

    cohvi

    I think that is the one, although I cant find any good information on the subject (google...).
     
  5. No, you wont find much about it anywhere. I wrote a threat about it last year trying to get some ppl to share their knowledge, I ended up answering everyone´s questions.

    Is the kind of money you make at SUNW, JDSU, SIRI and CIEN... move real big volume add liquidity every time, and try to exit your positions with minimun profit... from 0 to 2 cents gross... {though 2 cent moves are quite rare}, you can also do something similar at LU, though there are no rebates there... so it´s a gross game.
     
  6. cohvi

    cohvi


    Thanx,

    Actually, as I understand it now, rebate is more getting in and out at the same price when trading ECN's.
    What I'm talking about is buying and selling at a 1 tick difference.
     
  7. same shit, rebaters are after 1c otherwise they have to leverage they butt off to make decent money and the r/r goes underwurdle; of course u can go after 1tick per trade and make countless transaction a day with maybe lesser size than a typical rebate trade but how lame is that.
     
  8. cohvi

    cohvi

    The term I was looking for is - Spread:
    Simultaneously posting a bid and an offer...
     
  9. In the futures market that is HFT - high frequency trading.

    This is usually an automated and fully mechanical system that does not use any indicators/signals while "on" - the system is turned on by the users for market conditions determined from extensive backtesting.
     
  10. Yeah, there are different strategies for rebates. Getting in and out at the same price is one, but getting one cent profit is also a valid approach.
     
    #10     Jun 18, 2006