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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (4206)	4/16/2002 10:34:11 AM
From: DMaA	Read Replies (2) \| Respond to of 24758

That sounds like classic Richard Ney to me. If the institutions slow in the number of small lot selling they're doing, prices will rise. That's when the public will start and gradually increase their buying. As prices rise the institutions then will reverse the above process and will be distributors of stock into the public buying.

To: ahhaha who wrote (4206)	4/16/2002 2:44:49 PM
From: stephen wall	Read Replies (2) \| Respond to of 24758

Ever heard of these guys? 2002 - First 100+ million share day (April 10) Fully automated expert system accounts for about 90% of volume What We Do Automated Trading Desk, Inc. was founded in 1988 to develop the "ATD™" expert system for fully automated limit order trading of listed stocks through Instinet and the NYSE's DOT system. In November 1990, ATD began trading for a large investment bank in a proprietary trading style we call ATD e-marketmaking®. Our expert system scans all available information feeds, then uses its algorithm to price and enter very competitively-priced buy and sell limit orders in the electronic marketplaces to earn small "market maker profits" on our trades. In 1994, we extended the algorithm, founded a broker-dealer, Mount Pleasant Brokerage Services, L.P.("MPBS"), and developed a trading system for Nasdaq stocks.2 Our Nasdaq trading grew to 54 million shares/day (over 192,000 transactions/day in the 1st quarter 2001). We are averaging 50 million shares/day (over 150,000 transactions/day) through the end of the January 2002. Like all market participants we felt the impact of decimalization combined with lower daily market activity and volume. We do most of our trading by entering small and very-finely-priced limit orders on various ECNs, principally Instinet and Island. Roughly 90% of our trades are executed on a fully-automated basis by ATD's expert system; the remaining 10% (mostly position-closing trades) require human trader intervention. Our proprietary trade-assistance system automates every step in the process, except the human trader's judgment, enabling a very small number of traders to execute an enormous number of order entries and transactions. Advanced Trading Styles ATD uses our ATD e-marketmaking® trading style and knowledge of the fragmented Nasdaq/ECN market to effect Nasdaq trades for institutional customers. We do not seek to compete directly with conventional institutional brokers in executing million-share trades "immediately if not sooner". We concentrate on working the Nasdaq market for small trades. When an institution has many relatively small orders (50,000 shares and fewer) to execute quickly, or larger orders (up to 500,000 shares of an active stock) which it is willing to take up to a day to execute, ATD e-marketmaking® can radically cut execution costs and enable institutional trading desks to concentrate their energies on difficult trades. Our "crumbs from the table™" service focuses on executing trades that most sales traders would consider a nuisance (and would probably dispense without much regard for execution cost). For example, we have been executing "crumbs from the table™" trades for a proprietary trading group within a large investment banking/brokerage firm since June, 1999. We have expanded both the size of trades (to 100,000 shares per stock per fifteen minute "window") and the number of stocks we handle. We save the client several cents per share in execution costs relative to their own trading desk. Achieving Low Market Impact There are several factors that enable us to achieve such low market impact in our trades: Extremely rapid computer interfaces to multiple ECNs and to Nasdaq's electronic order entry systems allow us to find liquidity or post limit orders in every niche of the Nasdaq market Real-time quotation and trade execution data from every possible source is displayed to traders and processed through our price prediction algorithms, resulting in better very-short-run market direction information than that available to other traders To reduce market impact, our system breaks up orders of 5,000-50,000 shares into much smaller trades which are parsed out by our system and algorithm Both our automated trading systems and our human traders take very small orders seriously, rather than dismissing them to focus on larger trades Our only business is developing and optimizing rapid trading systems. We thrive by adjusting our system very quickly to changes in the Nasdaq marketplace. We intend to stay ahead of the curve in designing and implementing trading systems atdesk.com