secret setup worries - frontrunning illegal?

i recently asked about frontrunning... i think i worded the question wrong but basically i have knowledge of a setup in stocks , it's secret, and large price moves often (not always) occur off them, and i'm sure many large traders use them.

is this illegal/frontrunning?
i do not know the traders taking the setup, i just know the setup

You on about secret little codes and patterns, orders that appear then disapear and other forms of inter fund communication which is technically illegal ?? They happen all the time, but unless you've got the latest code book cause they change your kinda screwed, I've made money off this in the past, then they change the code and the same code kills you as a lot of retail traders likely catch onto it.

You'll generally see, stealth buying or selling right before news then the market will move that way, cheats the lot of them, but it's exploitable if you know what to watch out for

this one has stayed the same for 30 years

not interfund communications lol, it's just a setup which is secret and many large traders use to enter stocks; is it illegal to use it as a retail trader?

Frontrunning as the name implies to a certain extent, is trading before other people. Usually such a strategy, would only be available to entities that can act as dealers (trading for their own account), and brokers (trading for their clients) at the same time. This dealer-broker duality, obviously brings a conflict of interest, because both - the dealer and their clients - want to trade first, in order to benefit from better prices and the impact that the others party orders, would have on the market. However, since the fact that both of them would like to trade, is only known to the dealer, he is the one who can benefit, by frontrunning their clients orders. The dealer's orders get filled first, and they benefit from better prices, then they fill their clients order, and benefit from the price impact that those orders would have on the market. For the dealer, the way this strategy would be used, would depend on the size of the orders involved and their knowledge of how informed/uninformed their clients are, plus of course market conditions. HTH

If it's a market pattern then no feel free to trade interpret any way you like and trade as you like.

If your getting insider info then this is illegal to act on, ofcourse if they can't prove this then your just have a coincidental run of good luck or above.

Make sure you receive it over a unregistered pay as you talk sim card and dispose of the card and phone after so there is no trace, if such a thing is still available in your country.

what i need to know is, is knowledge of such a setup insider trading, or illegal in any way

No, if it's just a Setup and your not getting a e-mail from someone with insider info I presume.

You still don't know for certain, there is still a element of risk so PLAY IT!!


Ofcourse it's likely not wise to post about this on a forum, so shhhhhh, delete the thread and hope you make stacks

yeh i've yeh but no answers, don't want to dont anything illegal

It depends on the country you live in. In the US this is regulated depending on the particular market you trade in. If you are wandering about doing this in the forex market, then I can tell you that this would be impossible, unless you have some good friends at some major banks around the world. Without that kind of information, frontrunning is impossible, so you don't need to worry whether its legal or not.

to be on the safe side i'm just going to wait until after the block trade occurs, that way im not front running , and the stocks tend to trade in the other direction off the dailies after it