Dan (and the thread in general):
I have used Real Tick for nearly a year. The "hot keys" or macros are glitchy at best. I tried them and quit using them because sometimes they work and sometimes they don't. And yes, I have the latest version of RT3. For some reason, the order entry system (completely) is fully dependent on the server connection. The software does not work independently on your computer and just send order instruction but rather there is some kind of 2-way communication between your computer and your broker's servers which constantly monitors account balance (buying power), shortability of stock, etc.
The whole thing (in my humble opinion) is about as efficient as government operation. Of the four servers connected to my computer just for RT3, the one that goes down the most is the order entry server (which has the least traffic). I believe, although I can't get a straight answer out of anybody in this business, that their servers are in turn connected (via duct tape and bailing wire) to another network of ECN's, SOES, regular Nasdaq order book, and who knows what else. And all it takes is a blip in any one of these fragile links to screw up your system. Most brokerages have very little redundancy, and the Nasdaq regs are set up so that members are protected and we lose any dispute. It really makes me wonder how I ever considered short term scalp trading.
I said all of that to say this: I believe that it IS NOT A MATTER OF EQUIPMENT. Any trading style that is dependent on the fragile and poorly interfaced internet speed execution will cost the trader money. If a trader mistakenly thinks that he can compete on a level field with the big houses while using RT3 or any other internet based execution system, he is living in a fantasy. The fact that some of us sucessfully make a living trading is a testimony to the skills of the traders, and a good deal of luck. Competing with the large houses who are directly connected and using Level 3 for execution is much like bringing a knife to a gunfight. If you win, it is because you are much, much better. And I believe that there are professionals on this thread that are much, much better.
In my opinion, the average trader needs to look for strategies that are not dependent on equipment (he should still get the best equipment he can afford if this is his livelihood) and attempt to trade in a way that his success is not contingent on speed of execution. Speed of execution should be the icing on the cake but not the cake itself.
For some reason, traders seem very willing to share ideas regarding hardware and software for the "mechanics" of trading, but less willing to freely discuss strategy ideas. I think that maybe it is because strategies are our "creations" and so our pride is on the line whereas equipment and systems are not personal, and so therefore less threatening to share openly. I, for one, would like to discuss some trading ideas and strategies since I am the first to admit that I don't know everything there is to know about this business. You guys (and ladies) have a lot of experience and are very sharp. I have a hard time believing that the few dozen trading books out there (which all pretty much tout the same techniques) are the extent of the collective wisdom in this new industry. I would like very much to discuss some strategies that have been successful to various ones of you in the hopes of furthering my knowledge and profitability. Thank you in advance for your sharing.
Matt |
