Liquidity provider high frequency idea...

ok so MB trading allows retail traders to get paid a premium for limit orders when hit.

basically any non marketable orders will receive a premium.

for example:

eurusd bid/ask is 1.5000/1.5500

you place a limit buy at 1.50001, limit offer at 1.50002, if hit you net liquidity premium +profit in pips.

0.00001 *100 000 = 1$

so if you are hit you net 2.95$ on the trade.

if the price drops, you still enter a limit order to sell.

bid/ask falls to 1.49999/1.50039

you place your ask at 1.50000, and if hit your net profit is 0.95$ ($1.00 loss (0.00001 pip) +1.95$ premium).

as price is almost always moving, you can do this several hundred times a day. Need to take into account that you may not be hit, which could result in a much larger loss...so testing needs to be done.


anyone good at programming?? :)

in the process of going live with an FX account via mbtrading.

just thought id give a little update.


Calculus test in 2 hours, and i need to learn trig by then...ughghhhh

$

why is it so hard to make a buck in this world?

error

sorry, was long usdjpy 81.518 not 82.51.

updates/Sudan

Pretty much worked 60 hour weeks in December so haven't really had time to do much. Started back at Carleton University here in Ottawa taking my first year Calc/linear algebra. Should be enough math to get through basic econometric books.

I need to get a summer job lined up, going to start working on resume and a cover letter. Serving/bar tending is pretty much just trying to organize Chaos. Although trading/finance is technically chaos, they tend to get paid more than 8.90/hr, which by the way is under minimum wage (yet Canada still makes me claim my tips)

started a new workout, trying to gain size before I cut down for beach/summer body build. (doing animal Pak intermed. #3 workout, and power eating diet from amazon)


Haven't really been doing much in the markets, been thinking about political ideas lately. I do have a usdjpy long from 82.51 that has been open for a week or so.


Sudan!

so here is my idea/debate I had about this whole Sudan geopolitical thinger (ya thinger is an educated word)

from what I have read in Globe and Mail, they want to create a boarder between the north and south along whatever oil field is in Sudan. Now I disagree with this because as we have seen in the past, one country will take the oil (probably the south). The north, not having anything to export will be forced to devalue its dollar to help make payments. This devaluation will create hyperinflation, which as we learned from Niger (or Zimbabwe, I don't remember) hyper inflation causes riots, which in turn spark civil war. The south, being an oil rich nation, will step up to the plate and help end the north's civil war. The South will then create a de-militarized zone in the north, essentially re-uniting the country under one name, and giving the power to the rich.

not really significant debate, just an idea of what I think could happen.



Sorry for the lack of grammar, spelling, etc, but its 1am, been at school all day then gym.


-Patrick
fxopttrdr at gmail.com



ps: new blackberry (9780 bold), and apparently the Bloomberg app. gives me anything I could ever want for free. I am quite happy.