Trade strategy “zero”

Authorship of the article belongs to Alexander (Night), for which he would like to thank!

I want to tell about the method, which is used only to narrow the number of market participants, those in which there are no brokerage commissions. Go tell that zero commission is available only to members of NYSE ie brokers, etc. It’s no secret that the market than SPECA (NYSE, NYB) there are many ECN (NASDAQ, ARCA, ISE, BATS and others), that’s just using them you can earn.

The question will be only about the way that I used to say we are on BATS.

Theory

Let’s start with the theory – what do you think trade in “zero”.

With a glass with the price at 1.00 and 1.01 on the bidet Ofer we wait, when will the transition level, no matter in what direction, in our example, let’s consider that the level goes up (by the way if he went down and the stock would subdollar, then everything below the following guidelines would be futile because of the change of tariff ECN). Thus we see that excitement on offere increases, applications become less, comes into play: to beat the market offer 1.01 to obtain the position of minus 1 and then substituted in the Ofer 1.01 themselves into the very empty and certainly the liquidity ECN, to close ” to zero, and we acted in a moment. Done so many times at the transition level, how much will a glass (I receive no more than 5-7 times).

Now practice

I beat BATS’om market because of its very interesting features postonly + hidden, it is possible to beat the Ofer market and to receive a commission from the fact that I substituted for fact in bid only if a glass of 1.01-1.02, but the price There was 1.00-1.01, ie, in fact, all those with a price 1.00-1.01 tried to substitute by BATS to offer – poured me as if they beat the market (although they were not beaten but it was simply placed at Ofer application). I closed through BOSX – a Boston ECN or EDGA and she and the one at the time of my use was free (ie, hit them on the market almost did not take the board and thus they were very attractive) – now a little changed but the Commission still it would not have to earn in this way today. Less closing took place in the paid ECN, since it made it less likely to repeat the same price level several times this scheme.

Mathematics (commissions not relevant – they are changed at the moment)

“Beat” on the market by BATS gave me a profit of 0.22 cents and closing at EDGA or BOSX together with the Commission SEC took away my 0.02 cents, I have with each successful transaction was a profit of 0.20 cents. Given the amount of each transaction, the order of 10000-30000 Securities get 20-60 bucks every time the other side of this trade is a trade does not “zero” and the “minus 1″ Sometimes it happens when you beat the market but the price stops and falls into another side. Counting all, I can say that the day turns out not less than the Net 800-1000, has a maximum in the boundary area 2000-3000.

Hunting Places

Stocks with high volume per day (20-300 multi) it is desirable to lower cost (SEC takes less money if the share price is less)

Well, that BATS there was popular on the tape it was easy to determine.

P.S. This is a seasonal trading style, sometimes it disappears, sometimes back, but he has always been, and will have on the market, so do not be surprised if you see a glass of huge volumes of the transition level and do not ask themselves “what an idiot is substituted with such EDGA glass, it would be better in the ARCA stood up, money would have earned … “

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nyse    Trading strategy     alexander, arca, authorship, bats, bidet, boston, brokerage commissions, edga, excitement, liquidity, market participants, NASDAQ, nyb, nyse, speca, stock, tariff, transition level, zero commission

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