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Earl wrote.....
<because when the systems do work, the
playing field is more level in execution time with large lot traders who are
provided direct floor phone access. There are also psychological reasons
for trading electronically.>
I agree with Earl regarding the general lack of computer interaction of the
futures industry.......I will, also, agree about the psychological
reasons......but will disagree regarding execution time and direct floor
access...a profitable methodology needs to be able to survive both negative
and positive slippage.
Those who have been trading the SP for awhile come to the realization that
positive and negative slippage....due to time of order placement or
liquidity...pretty much are a wash.............
The quotes you are receiving on your machine can be 10-20 seconds behind
the floor....Go to the pit sometime....especially during a period like
yesterday's last 30 minutes.........faster than you can wave your hand for a
sell....the number could have easily dropped 3.00.................
I find many traders so consumed and upset over getting filled at the exact
tick on their screen that they completely ignore whether their methodology
is compatible with extracting money out of the market..........If the
profitability of your methodology is completely dependent on getting filled
at the exact price....not allowing for negative or positive slippage....you
might need to adjust your methodology to match the execution capabilities of
the market you are trading..........
Tom Stein
comfut@xxxxxxx
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