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I've got a good friend who trades the S&P intraday only. Into this morning
he's had thirty winners in a row.
This morning he took a loss in the first ten minutes of trading.
He runs his analysis package (not TS, by the way) off an international
Signal Cable feed.
Here's what I saw while he was taking his loss:
At 9:37 my Signal cable feed was behind my Internet Signal feed by TWENTY
FIVE SECONDS. During that time I saw a divergence of EIGHT TICKS between
the two.
So when my friend picked up the phone to close his long at a profit, he
thought the market had paused at 74.00; it was actually at 73.20 and falling.
He said, "I've never seen such bad slippage on an exit." (It wasn't a fast
market, it was the slow cable.)
For the record, an hour later the cable is behind by 2 seconds. It
normally lags four to sixteen seconds during any given session.
Also, I'm not running a T-port in the cable system. Given the speed of
the ticks on both setups at the open today, I can't imagine that was a factor.
Everyone running TS and trading on a short time frame should be looking
forward to the new iteration with the Internet feed. The downside is that
it's not a reliable connection unless you've got a dedicated line into your
Internet Service Provider. I lose the Internet connection about twice a
week and have to reconnect manually.
Of course, it won't be long before Signal and Omega have an automatic
re-connect feature... ;>)
Happy trading,
Bill Masciarelli
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