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"In actuality, your entry is likely to be much worse using a broker, than
electronic entry. You call the broker, he calls the floor, they signal
to the pit, the trade occurs, and then the return trip. Versus
electronic where you have your fill in 2-8 seconds versus 30 sec-2 min
with a broker. "
Could you, please, follow up with some statistics that verify that a 2-8
second fill makes you more money in the long run than a 2 minute fill? I
realize it depends on the type of trading you do, but any short term system
that I have seen back-tested as to time of fill
show that once you get your signal, any fill over the next 5 minutes has
about the same dollar profit outcome over a large sampling. The explanation
being that you get as much dollar profit as dollar loss by getting filled
randomly over the next 5 minutes.
Again, I don't know what your time parameters are, but my guess is that
anyone who is in a trade for over 30 minutes will find that the fills, even
themselves out, over time.
If true and I think it is, it means you can cross off speed of execution on
your anxiety list.
Tom
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