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here it is (omega listen up ).
dedicated or on-line trading ( typical L2 outfit ) is not a new
concept and has been out as early as 6-7 years ago. ( we all
know that ) lots of them started to pop up around 95-97.
it was clear even at that time that THIS is the way to go i.e:
- data on demand ( most important of all ) so that you
don't have to maintain your own database
- client type software with direct access to the exe system.
this you cannot pirate!
- commission based business - not software sale business
due to explosion of on-line trading.
- discretionary type trading and not system based ( systems
mostly "don't work" for an average Joe. it's too complicated )
omega was shortsighted then and was working hard on 2000i
instead of jumping on the wagon at that time...
as a result. sales dropped off partly due to rampant pirating
( 2000i pirated version was released ahead! of prosuite itself )
partly due to lack of interest in system trading which in turn is
caused by "wait, see and can still use 4.0 attitude" and market
was going up and nobody cared about systems. it was so easy
to make money without them and systems are very hard to design
you gotta be a programmer or sucker if you buy from crooked vendors
( main reason ).
so what's in it for omega now. they are chasing the trend.
there main pitch now will be:
-data on demand
- executions
- no need to buy or maintain the software
- system design capability
well here is how they are gonna shoot themselves in the foot if
they don't do the right thing because they are up against
the market that has already been divided and they are too late
to squeeze in. during the time they were concentrating on the
system capability ( all over cnbc remember ) the rest of the
crowd were busy collecting commissions on millions of trades.
they better come up with something better then what they flash
at their presentation...
- data on demand - it's definitely a major plus but if they
orient themselves to stocks only, they will lose futures traders...
( xpress feed has problems like late charts in the morning and
bad ticks. how are you gonna run your
system on that? reload chart every time bad tick comes in? )
they have many competitors on that issue. some already
provide free L2.
also if they ask to pay the exchange fees - "foget bout it"
who wants to pay the exchange fees now when RT data
is available on the web...
- executions - it's the main thing!!!
here we got open market and they got hundreds
of competitors. they better come up with something good
their intelli route is same as the rest of what's out there... and!
- commissions - with their $25 a pop how are they gonna compete
i simply don't know. these days you gotta do $10 a pop or less
compete or .02 a share...
- system capability - traders are smart now and already heard
about tradestation enough they don't care about system capability
( only small % of us programmers and tweakers do and
mostly futures traders. equity guys have "lower grades in education" no
offense ).
most know by now that system are just as or less reliable then discretionary
trading,
why bother... so this system capability in the worst case can backfire or at
best can
be just a small time pitch.
- institutional clientele - my ass, that's the last thing a money manager
wants to do...
sit there all day, tweak the system like we do and play with the toy we
call tradestation...
so overall omega needs to look ahead and may be hire me to tell them what
and how it should be done otherwise they will not be able to pull it off...
even by looking at their presentation and some new stuff they came up with
like
montage screen, they don't know what they are doing... they are not going to
be able to compete with the e-trades and schwabs of the world or with
bloombergs and redis and cybercorps of the world or cqgs and free L2 / free
charts and $5 commissions...
their business plan has "despair" written all over it. it's a salvage
operation.
if i had a little money i'd buy em out right now at $1-2 a share...
as far as On-Line Trading, inc. it's just another on-line trading inc with
ok website and their intelli route pitch for $25 a pop...
bilo.
ps. i still like omega and wouldn't know what to do without it
i still believe in them and hate to see them like this.
they better get it right this time...
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