Sharing code – A good thing or a bad thing?

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Viewing 15 posts - 16 through 30 (of 31 total)
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  • 11/26/2017 at 9:28 AM #53984
    robertogozzi

    Sharing code is not duplicating a Holy Grail, if any, it’s a great way to stimulate other trades to enhance ideas, improve their skills and help a community, in my opinion.

    1 user thanked author for this post.
    avatar Derek
    11/26/2017 at 9:40 AM #53985
    Vonasi
    robertogozzi wrote:

    10,000 traders running the same strategy would all buy at the same time and price, thus making liquidity insufficient and pushing prices up.

    The bit highlighted in bold is the important bit. Our order hits the market at the open of a new candle at the precise price that it opens at. Once price has moved then we are no longer at the precise time or price when our identical strategies are saying to buy. A sudden demand on a market at a certain price could mean that there is insufficient supply to fill all the orders. The orders not filled are not suddenly filled at a higher price. Those who were lucky enough to get filled get to see price move up to the next level of supply.

    In reality 10000 people placing orders on the main markets will be a drop in the ocean – like a fly on an elephants back. Especially if some of those orders never actually see the market because they are bets against a bookmaker – i.e. a spread betting company.

    11/26/2017 at 9:56 AM #53987
    robertogozzi

    The first traders to enter the market could, not sure they would, be lucky and price goes up. The next traders will buy at higher prices while the first ones begin to sell to cash gains, thus their SL is hit!

    I truly do not know the exact timing of strategies, placing and exiting orders and liquidity flow, but I don’t love the idea!

    11/26/2017 at 10:51 AM #53989
    Derek

    I am sorry if the first sentence didn’t get down so well and I should be more nice the next time.

    Still, trading edges will be traded away. It is a matter of a sudden supply-demand imbalance and a good example for how markets work. If you want to hear it from a different source, I’ll post a link at the bottom.

    The major point is what Roberto said: sharing code is for sharing knowledge and not for giving away easy ways to make money. That’s why I think at least the frame of your question does not really fit your discussion points.

    Link to better system trader with bob pardo. Interesting part starts at about 9:45

    https://m.youtube.com/watch?v=6s9ofUT0GJo

     

    11/26/2017 at 12:39 PM #53998
    Derek

    I have to correct myself. The link leads to an interview episode with howard bandy.

    11/26/2017 at 5:50 PM #54028
    Vonasi

    I asked the question over three months ago really just to make people think about the whole sharing thing and to be honest had forgotten what I actually asked – so I just had to go back and re-read my own original post. I had assumed that this was a dead discussion!  Nicolas quickly answered the question just after I asked it. Sharing is good and will be on such a small scale that it can never move markets (only in our dreams do we have that much money to be able to move markets!) So the discussion about sudden supply and demand moving markets is a bit pointless and mainly hypothetical. I still say that sudden demand will move markets and movement is what we need to make money. If my hypothetical strategy used by 100000 users says BUY and I do and other users also have a BUY signal then price will move up as BUY demand out strips SELL demand. Surely this is what we wanted when we all put in a BUY order in the first place? Only those who do not get filled and decide to buy later will be more likely disappointed as the supply/demand ratio balances out.

    11/30/2017 at 12:16 AM #54393
    Abz

    from what i know you never bet against IG when byuing and selling , the only instrument you bet against IG is when you trade these sprints orders (binary).  IG only recive the spread , they do not profitt from your loss.

    11/30/2017 at 10:52 AM #54412
    Vonasi

    IG Spread Betting is what it says in the name – betting. IG like all bookies can decide to balance their books however they feel. They may have to bet against you to balance the books or maybe create a price that helps them. They do not have to go to the market at all with your ‘bet’. If they have a balanced book the spread will be their profit. CFD’s are however not betting as they are what it says in the name – a contract – so IG has to go to the market to fulfil the contract.

    11/30/2017 at 12:14 PM #54421
    Eric
    Vonasi wrote:

    IG Spread Betting is what it says in the name – betting. IG like all bookies can decide to balance their books however they feel. They may have to bet against you to balance the books or maybe create a price that helps them. They do not have to go to the market at all with your ‘bet’. If they have a balanced book the spread will be their profit. CFD’s are however not betting as they are what it says in the name – a contract – so IG has to go to the market to fulfil the contract.

    are you sure about that? 

    i always thought that SB was a another name for CFDs to get the taxfree benefits in uk?

     

     

     

    11/30/2017 at 1:00 PM #54425
    Eric

    https://www.ig.com/uk/spread-betting/spread-betting-vs-cfds

    this is only for CFDs? 

    • Direct market access (DMA) on forex and shares

     

     

    11/30/2017 at 2:34 PM #54430
    Despair

    I think nothing you can trade via IG (CFD, spread betting or whatever) is actually trade at a stockmarket. This is all OTC, dealing desk. Or to put it differently, we are trading in a market-simulation run by IG (what gives IG of course a lot of theoretical possibilities of manipulation). Using FX direct or DMA one should instead trade at an exchange but this is not possible with proorder (automatic trading).

    If you instead have an account with for example interactive brokers you orders are really transmitted to an exchange. This is at least how I understood it.

    11/30/2017 at 11:21 PM #54453
    Vonasi

    From the link Eric posted above:

    What are the technical differences?

     

    A financial spread bet allows you to speculate on the financial markets; you are not trading the markets, you’re betting on a range of potential outcomes based on the underlying data. All spread bets have a fixed expiry date.

     

    A CFD is a financial derivative: you trade a contract based on prices derived from the underlying market. Via DMA, you trade a CFD and we place a parallel trade in the market. CFDs don’t expire, excluding futures, digital 100s and options.

    12/01/2017 at 10:26 AM #54463
    Despair

    But this is only true if you trade CFDs and have DMA activated AND you are trading manually. ProOrder (automated trading) is ALWAYS dealing desk – our orders are never send to an exchange.

    It is possible to go automated with DMA but not with PRT, then you will have to go via IG’s API (which can be quite a hassle).

    12/01/2017 at 12:27 PM #54467
    Vonasi
    Despair wrote:

    But this is only true if you trade CFDs and have DMA activated AND you are trading manually. ProOrder (automated trading) is ALWAYS dealing desk – our orders are never send to an exchange. It is possible to go automated with DMA but not with PRT, then you will have to go via IG’s API (which can be quite a hassle).

    If this is true then the IG website does not make this very clear. Their statement….

    ‘A CFD is a financial derivative: you trade a contract based on prices derived from the underlying market. Via DMA, you trade a CFD and we place a parallel trade in the market. CFDs don’t expire, excluding futures, digital 100s and options.’

    ….implies to me that a CFD position is a contract placed via DMA on the market. If this is not the case and there are two types of CFD then it is not very clearly described. There is a big difference between a bet with a bookie and an actual order on the market!

    12/01/2017 at 12:42 PM #54469
    Despair

    I’m 100% sure about this. IG trades CFDs both OTC and at the exchange. But if you want to use automation it is ALWAYS  OTC and NEVER at an exchange. If you want to use ProOrder there is no possibility to place your orders at an exchange.

    I think this is also the reason why you can’t use ProOrder with Interactive Brokers. They route all their orders to an exchange and this is not supported by Proorder.

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