Ubot on Steroids?
- Thread starter Unarmed Gunman
- Start date
They call it "quote stuffing".
The original report from Nanex can be found here (not a dickroll): Nanex - Market Crop Circle Of The Day
The original report from Nanex can be found here (not a dickroll): Nanex - Market Crop Circle Of The Day
A modern day version of the old scam that electronic trading was supposed to eliminate.
In olden days (seventies and eighties) you would see a spread between bid and ask. So General Motors would be available to buy at 16 2/3 but you could only sell at 16 1/3. That 1/3 would be taken up by savvy brokers (in addition to commission.)
Now with the penny stocks, the spread in absolute terms would be less but as a percentage of the total trade would be much more. Like you would have options trading at 40 cents bids but 45 or 50 cents ask. So you would have 10 or even 20% vig.
Like I said before, electronic trading was supposed to remove that spread, but these algos coming out have obviously reestablished the vigorish in favour of the insiders.
Goldman Sachs trading for 90 days straight without one losing day? Who would ever have thought that the senior markets would have gotten so corrupted (again)?
This time there's a difference, there's no Joe Kennedy to flip sides and clean it up.
In olden days (seventies and eighties) you would see a spread between bid and ask. So General Motors would be available to buy at 16 2/3 but you could only sell at 16 1/3. That 1/3 would be taken up by savvy brokers (in addition to commission.)
Now with the penny stocks, the spread in absolute terms would be less but as a percentage of the total trade would be much more. Like you would have options trading at 40 cents bids but 45 or 50 cents ask. So you would have 10 or even 20% vig.
Like I said before, electronic trading was supposed to remove that spread, but these algos coming out have obviously reestablished the vigorish in favour of the insiders.
Goldman Sachs trading for 90 days straight without one losing day? Who would ever have thought that the senior markets would have gotten so corrupted (again)?
This time there's a difference, there's no Joe Kennedy to flip sides and clean it up.
If there's a bunch of high ask's pending other people will ask high thus making a stock go up.
I don't get why they don't realize or know that..
I'm completely enthralled with this concept and some of the comments made on that page. I want to learn how to do this stuff. It's amazing to me. I feel like a small child.
This is kinda how I felt when I first read about it. I remember reading something along these lines in The Economist about 8 years ago so I know the concept isn't new (I believe the article was on Game Theory and the implications it could have on developing algorithms to always guess right on the markets) but the shit is fascinating. I'm a pretty smart guy, but this is one of those things where I just acknowledge it's beyond my capabilities and look on with awe.
I'm no Ph.D physicist but I feel like it bears a strong resemblance to the mindset we employ here in internet marketing. Especially the SEO side of things where we're fighting an algorithim, the traffic, and the competitors all at once. I've been kind of brewing on it, and I think introducing entropy to the methods I'm using right now to generate niches could be mind-fucking-blowing.
