|
PureBytes Links
Trading Reference Links
|
Hello Matt,
It's called front-running and has existed since the beginning of time.
If anything, there may be some dishonest computer nerds working in the
back offices of brokerages/exchanges snooping around for their own
benefit.
It's possible that the advent of computers and the internet, and the
apparent loss of trader anonymity may have tempted some institutions to
develop automated methods to shake out weak hands in real time, to
supplement their regular commissions income, since trading has become
more accessible and popular and because most traders slowly bleed to
losses.
But institutional front-running of the best traders can't work because
the best traders will know instantly as their slippage increases and
performance fades. They'll change their tactics and cloak themselves.
-F
Monday, May 10, 2004, 5:44:08 PM, you wrote:
MP> Seem easier to just find the most consistently successful traders and then
MP> mimic their trades as they come through. I can't imagine this is limited to
MP> TS. Gotta think that all brokerages do this to some extent. If your orders
MP> are coming through the brokerage and you are really good, it's really easy
MP> to come up with a system that says "When customer X buys - we buy. When he
MP> sells, we sell."
MP> Matt
|