FX sell side sodomy and trader larpers

Continuation of pol/thread/172627146

Share your insights on brokerages.
Prove you're not a larper.

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Other urls found in this thread:

swissquote.ch/index/index_quote_d.html
investireoggi.it/forums/.../the_misbehavior_of_markets-pdf.282433/
quora.com/In-high-frequency-trading-why-is-higher-volatility-a-good-thing-for-market-makers
mega.nz/#!zeIGHLQA!_QyR44hKUGFMjx6RHMqr0Qh-IfcjEfM7MtjqLvdWel0
bloomberg.com/view/articles/2017-12-03/bond-investors-are-worried-about-bond-market-liquidity
en.wikipedia.org/wiki/Volume-weighted_average_price
investopedia.com/articles/active-trading/091514/essential-strategies-trading-volume.asp
amazon.com/Amazon-Kindle-Paperwhite-6-Inch-4GB-eReader/dp/B00OQVZDJM
twitter.com/NSFWRedditImage

Would love to get kikeanon's opinion on my broker swissquote.
swissquote.ch/index/index_quote_d.html

Sell side always wins in the long run, even at the institutional level. Too many tricks up their sleeve. Last look is only the tip of the iceberg.

They win because they're parasites. Being another sell-side drone won't net you a comfortable unless you know someone (read: jewish nepotism).

Ultimately winning means beating the markets.

bumping thread with book recommendations

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SELL OR BUY FUCKING EURO?????????????

BITCH WHY U NO TELLIN ME?? IS IT GONNA DROP HARDER?? I AM 1:50 BALLS DEEP IN THAT SHIT

I take it by the statement 'Sell side always wins' that customers eventually give back their earnings?

I want to expand on this because it's quite interesting.

If you take a look at the profits of HFT market making firms, which are kind of analogous to Sell side, their profits rise dramatically during periods of volatility in the stock markets.

There profits aren't quite as high when markets are not as volatile.

In order for any market maker to make money, through the spread, the counter party they enter into a trade with must not have the market direction move immediately in their favor.

When applying this to HFT market making firms' profits, it's clear that when the stock market is in low volatility (in which case it's generally trending), HFT market makers find it more difficult to make the spread, because price is more likely to move quickly in the counter party's direction. But, when markets approach randomness during volatile periods, where they tend to lack overall direction, HFT market makers are more likely to make the spread because price immediately going in a counter party's direction decreases in likelihood.

Relating back to 'Sell side always wins', the wider implication of this seems to me to be that market participants make a lot of money during trending periods of the market, but then struggle to adjust to changes in market conditions, and end giving back much of what they had made during periods of low volatility.

And to go even further, this is why most people struggle to beat a benchmark, like an index's return. They would've absolutely thrashed an index's return during trending conditions, but greed/ lack of experience/ lack of strategy in differing conditions/ or just not knowing when to stop, are what prevent people from keeping the immense amounts of money they can make during trending/ low volatility markets.

Most people just aren't good at trading markets which are not trending. They give it all back in volatility

To consistently outperform, most traders should find markets which are trending, and avoid markets which lack clear direction, particularly on higher time frames.

>If you take a look at the profits of HFT market making firms,

There are no HFT in retail fx spot.
Do you actually know how HFT make money user? Because I dont think you do.

If you my comment more closely, it relates to the stock market (and the futures market), HFT market makers are present throughout those markets. You don't have to believe a word say, simply run a trial period on some futures trading platform (like ninjatrader or jigsaw), and you'll see them posting bids and offers. The implications of HFT market makers in those markets, during different market conditions, were then applied in a generalized statement as to what traders could do in any market. Trends occur everywhere.

predicting markets really comes down to predicting volatility anyways
that bookies rely on price swinging wide to empty their books with a profit just goes to show they're incompetent
HFT's a dead meme already
glad these parasites are just sitting on a leveraged nasdaq position now

>The implications of HFT market makers in those markets, during different market conditions

*HFT market makers' PROFITS, during different market conditions

HFT firms operate in securities specifically in equities. They make their money through analyzing VWAP and buying what other people are buying quicker than anybody else and selling it to them at 0.1% more than the asking price originally quoted.

There are no HFT in retail fx spot why the fuck are you talking about them retard??

>To consistently outperform, most traders should find markets which are trending,
No traders should avoid speculative derivatives like retail spot fx and invest in value producing assets like equities that pay well on dividends, since price action is directly correlated with earnings growth and new investors pumping money into the stock. Oh and companies buying back their shares.

What kind of fucking thread is this shit???

>predicting markets really comes down to predicting volatility
No preidcting markets comes down to VOLUME not volatility.

>HFT's a dead meme already
HFT firms are minted, JP morgan HFT hasnt lost a single trade in what 5 years now? They arent playing the game they are playing the system. Which why ex RBC Brad Katsuyama, set up ILEX to provide a level playing field on speed.

I'm still real sore about SEC banning "retail"(regulations defined as less than $10m) from FCM BD and stuck us with two RFEDs. I've tried bringing this up on biz over and over and over again so I know these words are too big for biz, but Im just so pissed at government regulations to keep us from getting access to prime of prime like its a conspiracy against us.
And theres no escape, not even incorporating an offshore company because they pierce the corporate veil. But consider how if you form a company you cant even represent it in court yourself because you need to pass the bar to be able to represent a separate distinct legal person other than yourself but somehow regulations on forex pierce the corporations separate legal personhood.

Again, my comment referred to what HFT market makers make during differing stock market conditions. I should also add that spreads increase during higher volatility periods of markets, allowing Market Makers to make more money.

>HFT firms operate in securities specifically in equities. They make their money through analyzing VWAP and buying what other people are buying quicker than anybody else and selling it to them at 0.1% more than the asking price originally quoted

HFT's are involved in market making, I'm unaware of them using a VWAP, but it could be possible. Their focus is based mainly on orderflow and the order book.

Sorry English isnt my first language, are you talking about instruments being banned if they are not traded over a US exchange? If so, that is a very very good thing, and something the SEC has got right.

t. glorified bookie boomer
dividends have been priced out of existence, it's just a risk premium at this point
same reason commercial paper yields near negative now
yield that isn't purely cost of capital doesn't exist anymore
>ILEX
you mean IEX, which I'm certain will just compensate with wider spreads

im working in an israeli fx broker ama

>dividends have been priced out of existence
If so, (and no im Gen Y) then the whole equities market is a Ponzi scheme with price action being correlatedwith speculation from earnings report as fresh investors plunge in.

Yes I meant IEX, no their spreads arent too onerous.They also have a big chunk of the market now.

I dont understand how companies can sit on billions in cash, and yet not pay dividends, it's a joke.

Is this book by the Mandelbrot, i.e. Mandelbrot set guy? If so I need to find a PDF

Wow I forgot how slow Jow Forums can be, especially when you're on Jow Forums often.

capital is free, so now you outperform your sector by blowing it on buybacks and ramping up spending on anything investors might think is a good idea or to imitate industry outperformers
it's like another mergers&acqs mania but money's worthless and you ride the trend until you run out marginal buyers

investireoggi.it/forums/.../the_misbehavior_of_markets-pdf.282433/
best book written on markets ever

Lets restrict the plebs to two bucket shop brokers that we've caught many times screwing over their customers and make sure they can never trade through prime brokerage in the real IB market like us.

Thanks for reply. Link didnt work, yeah Mandlebrot is a legend and one of the smartest men to live (Im sad now I just realized he died in 2010). I need this book in my life though. Great suggestion.

>trade desk manager for structured products, mainly public and private MBS, CMBS.

Market was a complete shitshow, was basically run by 40 different people at 20 different firms.

The sell side likes you if you know people on the Buy side who will buy their crap paper.

The Buy side likes you if you can find unreasonably cheaply priced paper, which you basically cant unless someone is stupid and doesnt know how to price his own shit or they have to sell to raise money, which they dont.

So bond trading is so fucking boring. All that happens is the big banks buy structured products to satisfy their risk based capital or their CRA credits. They route these orders through anyone they want, so trading/brokerage is literally a dick sucking contest for whoever wants it hardest. If you try really hard the old guys will break you off a trade or two, but ultimately you need to know someone powerful/rich to make it as a trader long run.

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>Lets restrict the plebs to two bucket shop brokers

Who are the those? You have TD Ameritrade have ThinkOrSwim what's the other one? Im not in US and Im europe.

chuck schwab, Etrade are the best known. They all sell ur order data to HFTs and their dark pools.

Expanding here quora.com/In-high-frequency-trading-why-is-higher-volatility-a-good-thing-for-market-makers

I liked this subsection of an answer:
>Given that market makers have an edge, raising volatility just means they get to apply that edge more often in a given time period. It is the same reason that a blackjack card counter makes more money when the dealer deals faster. The profit per hand doesn't change. He just gets to play more hands.

this is essentially what I'm getting at. When markets lack overall direction, this provides more "surface area" for HFT market makers to achieve the spread on.

>brokers are rigged
>by the SEC
sing me something new
I admit though I don't how how they're rigged, could you list what fuckups are to be expected from the rf dealers retail depends on?

mega.nz/#!zeIGHLQA!_QyR44hKUGFMjx6RHMqr0Qh-IfcjEfM7MtjqLvdWel0

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do you actually sit at screen for 12 hours and read pdf's?

the absolute state

you have to ask though, why is there so much volatility?

If there was more liquidity in the primary dealer trade desks, spreads would be tighter and prices wouldnt be as volatile. Fuck it used to be the that Primary Dealers had like hundreds of billions of bonds/stocks in their inventory at all times. They held that inventory for the entire bond bull market of 1981-2013, and pocketed the capital gains from the lower rates on that entire inventory. Now all the articles are about "liquidity in the bond market" since the big market makers have backed off of carrying huge inventories of securities, especially cuz they know its suicide in a rising rate environment. This explains the volatility.

It makes even more sense that w the less actual volatility, you have to be faster and faster to react to survive.... ie enter HFT.

heres an old article, but still relevant. There is like no liquidity at all in this mkt. Thats y its so volatile.

bloomberg.com/view/articles/2017-12-03/bond-investors-are-worried-about-bond-market-liquidity

theyre not an ecn broker so thats already a red flag. my inside knowledge will advice you to use forexpeacearmy for forex reviews since they cant be bought.

>mega.nz/#!zeIGHLQA!_QyR44hKUGFMjx6RHMqr0Qh-IfcjEfM7MtjqLvdWel0
You little star user, thanks for that. It means alot.
uumm yes, well not 12hrs straight but 4hrs straight maybe. Why is that weird or something?Dont other people?

Anyone here investing in emerging market equities?

If I can't comfortably put in in eInk, I won't read it, good for you mang!

>VOLUME not volatility
could you expand on what you meant by that
you expect cryptokiddies to have a CFA? even I barely understand the nature of the fraud
>mocking users for reading
good job