5 ms·

Ran an ML model years ago had a number of great months then out of no where no trade I or the ML would make, would work. Looked like someone was front running m

Ran an ML model years ago had a number of great months then out of no where no trade I or the ML would make, would work. Looked like someone was front running my orders and messing with my trades. Weird delays, trades would take to long to go through all, and all sorts of odd events on Level 2. Ended up shutting it down took a good 2 months before my manual trades started going through at a normal rate again. This is why the whole $0 trading fee and robinhood concern me. I'm paying for the trades and someone is still messing with me.

turk73 7y ago
Take it from me, they are fucking with you. There are algos out there that detect "real" traders like you and me and endlessly fuck with you on equities long/short and all options. I assume also on commodities and Forex, but have no direct knowledge. No clue about cryptos or any of that trash, but you're swimming in shark-infested waters with cryptos anyways. That stuff is all completely manipulated trash. My suggestion if you want to beat the "market" is to develop some kind of algo that can trip up other algos and cause them to show their ass and then buy that dip.
smeeth 7y ago
I think, though I'm not sure, that RH makes their money by investing in treasury bills with the cash balances of people's portfolios. You're (most likely) not getting secretly screwed.
- imeron 7y ago
  A great article on the subject: https://www.kalzumeus.com/2019/6/26/how-brokerages-make-money/ https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone...
- kmangutov 7y ago
  Robinhood sells order flow https://www.cnbc.com/2019/04/18/a-controversial-part-of-robinhoods-business-tripled-in-sales-thanks-to-high-frequency-trading-firms.html https://www.cnbc.com/2019/04/18/a-controversial-part-of-robi...
- elamje 7y ago
  Contrary to popular belief robinhood makes a good bit of money from selling order data, more than most brokerages. This is due to the fact that most robinhood users are inexperienced, and thus, their trades are less likely to indicate big movements of institutional money. I.e. HFTs pay more for data that is less risky. Edit: Fun fact, the founders of Robinhood worked at an HFT before starting robinhood, which used to be shown on their LinkedIn until several years ago. Bad optics I suppose.
- anthony_barker 7y ago
  Pretty much everyone sells part or all of their flow to Citadel or Citi.
- webninja 7y ago
  Why invest in treasury bills at 1.8% yield when you can invest in margin lending at 5%?

turk73 7y ago

Take it from me, they are fucking with you. There are algos out there that detect "real" traders like you and me and endlessly fuck with you on equities long/short and all options. I assume also on commodities and Forex, but have no direct knowledge. No clue about cryptos or any of that trash, but you're swimming in shark-infested waters with cryptos anyways. That stuff is all completely manipulated trash. My suggestion if you want to beat the "market" is to develop some kind of algo that can trip up other algos and cause them to show their ass and then buy that dip.

smeeth 7y ago

I think, though I'm not sure, that RH makes their money by investing in treasury bills with the cash balances of people's portfolios. You're (most likely) not getting secretly screwed.

imeron 7y ago
A great article on the subject: https://www.kalzumeus.com/2019/6/26/how-brokerages-make-money/ https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone...
kmangutov 7y ago
Robinhood sells order flow https://www.cnbc.com/2019/04/18/a-controversial-part-of-robinhoods-business-tripled-in-sales-thanks-to-high-frequency-trading-firms.html https://www.cnbc.com/2019/04/18/a-controversial-part-of-robi...
elamje 7y ago
Contrary to popular belief robinhood makes a good bit of money from selling order data, more than most brokerages. This is due to the fact that most robinhood users are inexperienced, and thus, their trades are less likely to indicate big movements of institutional money. I.e. HFTs pay more for data that is less risky. Edit: Fun fact, the founders of Robinhood worked at an HFT before starting robinhood, which used to be shown on their LinkedIn until several years ago. Bad optics I suppose.
anthony_barker 7y ago
Pretty much everyone sells part or all of their flow to Citadel or Citi.
webninja 7y ago
Why invest in treasury bills at 1.8% yield when you can invest in margin lending at 5%?