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Trading for a living with a Market Maker

  • #21
  • Edited 5:17am May 28, 2009 4:48am | Edited 5:17am
Quoting Jhig

Yes, it's possible to trade full-time with a Market Maker Broker. You just need an honest broker

There is NO PERFECT broker.
It's easier to list the things I actually agree with in your post! I agree, there is no perfect broker for everyone as everyone needs different things from their broker, and I also agree it's perfectly possible to trade profitably using a bucketshop.

But come on, no compounding, no scalping, no news trading, trade under 1-3 lots.....what kind of a broker is that, not one I've ever heard of apart from the rogue brokers from Russia or Greece or somewhere (no offence to any Russians or Greeks here by the way!) and certainly not any of the mainstream shops, and most certainly not a broker I would want to trade with!

Granted some of these shops don't make it easy for the trader with their wide spreads and slow quotes, and they understandibly get upset if you're exploiting latency or something, but generally I think they're ok to trade with if you've got a relatively small account.

If a trader is paranoid that bucketshops are out to 'get' them by stop-hunting or other questionable tactics then the obvious choice would be to trade the futures market. Only one problem, then who are they going to blame their losses on
  • #22
  • May 28, 2009 5:02pm May 28, 2009 5:02pm
Quoting pipmutt
But come on, no compounding, no scalping, no news trading, trade under 1-3 lots.....what kind of a broker is that, not one I've ever heard of
Exactly. As I said, absurd.
  • #23
  • Edited 7:18pm May 28, 2009 6:01pm | Edited 7:18pm
I have been trading 2 years with only modest success. It seems to me that when scalping and intra-day that it is easier for your broker to screw with you. I found that every good trading system I have had success with in short term trading eventually goes sour due to lagging spreads and order fills that seem CONVENIENTLY slow. Isn't it funny that when your trade is winning that your order close is filled quicker when you are on the losing side of a trade, than when you are winning against the broker?

I PROMISE! I AM NOT BLAMING THE BROKER FOR MY MISTAKES. I MAKE PLENTY OF THOSE MYSELF!

BUt I know what I see.

Anyway, enough bitching. My question for you guys, is:

It is easy for me to understand how a broker can shaft a scalper or intra-day. How can a broker shaft you in long term trades with targets and stops so much larger?

I have been trading longer time frames (4hr, daily, monthly) only for the last couple of months with much improved success.

Thanks for the information and discussion. I am new to Forex Factory. Great site, great contributions from very nice intelligent people

  • #24
  • May 28, 2009 6:08pm May 28, 2009 6:08pm
in my previous post, I stated that all short term strategy eventually go sour due to lagging spreads and slow order fill. THis was a poor choice of words, since it sounds like I am blaming the broker for my mistakes.

I really mean; that profits seem reduced due to lagging spreads and slow order fills.
  • #25
  • May 28, 2009 7:15pm May 28, 2009 7:15pm
I double clicked my FXCM no sign of the order, 20mins later still no sign then all of a sudden it appeared with a 20min old time then 30seconds later hit the stop, coulda taken 30pips from it to.

STRANGE!!!

I refreshed the Open Orders 60seconds in to check for just a error
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #26
  • May 28, 2009 7:52pm May 28, 2009 7:52pm
Quoting Jhig
Yes, it's possible to trade full-time with a Market Maker Broker. You just need an honest broker (and I use the word "honest" very loosely). I know a few traders that trade with FXCM, GFT, and Forex.com (Gain Capital) full-time, professionally, and have been doing it for a few years now.

The key to trading with a market maker broker is to know the limits. To know your limits and their limits on just how much money you can take from the "house" (in poker terms).[list][*]Never let your account "build up". *A lot of traders win monies and...
how would they put a stop on you? what if your dealing with an nfa member broker same case???
  • #27
  • May 28, 2009 8:28pm May 28, 2009 8:28pm
Guys, take it easy on me!
All I am saying is, follow your broker's (bucket shop) trading rules and you can trade professionally using a market maker. Thanks to those who acknowledge their mistakes and not take it out on the broker. I call the trading shots and if I make a mistake, I'm taking full resposibility for it and will not put it out on my broker. Now, if my broker makes a mistake, I'll expect the same courtesy. I have been fortunate enough to have chosen a broker that will (and have) taken responsibility for their mistakes and fixed them in a timely manner. Most of the time, without me intervening.

///
For the question above, any broker can screw up a scalpers strategy by placing them on Manual Execution. Those two words can make any scalper cringe!
  • #28
  • May 29, 2009 7:28am May 29, 2009 7:28am
Quoting pipmutt
Only one problem, then who are they going to blame their losses on

Perhaps they'd find their gains outweigh their losses and they don't really need to concern themselves about bucketshop malpractices anymore

Bet u did'nt think of that !! Ha
  • #29
  • Last Post: Jun 5, 2009 7:25am Jun 5, 2009 7:25am
Quoting fxtrader42
Here's the interesting part of my trading as of late. I have been a manual trader for years; like 25+ years and last year I built an algo which I use along with my manual trading. Basic summary, my algo is based on some very simple forms of parity models and simple forms of triangular arbitrage for price discovery. My model is much more active than I could ever be but trade sizes are kept below 3M per order. I have been asked to leave from several ECNs because the banks dont like my algo.
Kudos for having an algo kicked out of an ECN. I know others who had same experience (a few years ago though).

When we approached several Currenex brokers some time back and asked them where the servers were placed, some of them immediately started to questioning the type of trading we were going to do (like there is something wrong in wanting low latency access...). Also, Currenex has a "last look" feature enabling the banks to withhold execution of an order by 300-500 ms (I was informed about this by a competing ECN so please don't take the numbers for granted).

Now, may I ask which ECN's you were told to leave from? (you can PM me, and I do fully understand if you consider this information to sensitive to be given away)

Lastly, did you try to run your algo on CME? While the futures market has other problems (like lack of liquidity) there is at least no funny games played (AFAIK).
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