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Strategies & Market Trends : Daytrading Psychology -- Ignore unavailable to you. Want to Upgrade?

To: Threei who wrote (39)	12/1/2000 11:37:48 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 104

Threei, A bit of further clarification on my part is in order. But lack of preferencing makes SNet almost useless and leads to situation where your order doesn;t create any liability. This is not the case. It is not that IB does not have SelectNet preferencing. What is different, and arguably limiting compared to other direct access brokers is that IB makes the decision about which MM to preference based on who is at the best price. Instead of clicking on a specific MM to direct an order, the user enters a generic SelectNet order that IB sends SelecNet preference to the MM they think, based on their proprietary algorithm, is most likely to fill you. What you cannot do that can be done on other systems is to pick an MM that may be a level or two off the inside to try to get ahead of the crowd. Given the number of ECNs you can hit away from the inside market, this is not a serious limitation unless you are trying to move a big order. significant disadvantage vs interface where you can sent PREF by just doubleclicking on MM ID on Level 2... or set ARCA buy best ask so it monitors price changing and all you have to do is to click Send button when the moment is right. With IB you can set up your page so that you have a quote/order entry line for every possible execution path. This includes "Best Execution" where IB picks the path for you, a line they call "Nasdaq" which is the SelectNet line, SOES line (which needs to be modified to make price entry more efficient, a detail I won't go into here), and separate lines for each ECN. You can if you wish preload an order on every one of these lines and send any one of them with a mouse click. The full functionality of ARCA and REDI order routing is available via the direct ECN links. They are not just paths to the order books. REDI's features can be very useful for shorting since they will walk an order down to whatever limit you set offering one tick above every downtick bid until you are filled. An order directed to ARCA invokes the ARCA routing algorithm. As for fills on stocks like CMGI, the point I wanted to make is that the IB system is not the limiting factor. If you can get 1000 shares filled with your skills using MBT or Cyber or Castle, you can do it with IB too. Trading skill makes a difference. Knowing where to go for a fill, when to post a limit order, when to SNET, all comes into play, but the paths are all available and easily accessible. In some ways I wont go into here, the IB scheme is superior to the "doubleclick the MM" interface most platforms use. In other ways, those other systems are better. On balance, there is not much advantage either way once you learn to use the system. The new interface rolled out on schedule today but was limited to a few users based on user name. From what I hear, not that much has changed functionally. I really cannot comment until I get to use it. Dan