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So why can’t other players detect this behavior and trade with JS, removing their edge?
by Horffupolde 1y ago
So why can’t other players detect this behavior and trade with JS, removing their edge?
- cwmoore 1y agoPoint taken, but maybe gov’s a player too?
- steveBK123 1y agoThe other firms compliance departments
- Horffupolde 1y agoThe other firms are not manipulating the market. They are just riding along the manipulator.
- anticensor 1y agoIt is a crime to assist a crime.
- Horffupolde 1y agoYou are not assisting. If anything you are making it less profitable.
- posnet 1y agoMost exchanges do not reveal counter-party information smaller than the broker level. So you wouldn't know just from looking at market activity the same person causing the large futures move was also taking large options positions.
- londons_explore 1y agoDoesn't matter - see a pattern, exploit it - and in doing so, make profit yourself whilst reducing the pattern.
- efavdb 1y agoYes claim is price is high at open low at close. Seems pretty straightforward.
- jayd16 1y agoSimply look at the market patterns and make a profit, duh! Why doesn't everyone do that?!
- yorwba 1y agoUsually, everyone does do that, which is why only hard-to-detect patterns remain profitable. Not something obvious like "buy options in the morning and sell in the evening" as in this example. But maybe Jane Street only traded like this on some days, so you would need to know whether they had done so before you could hope to exploit them.
- ExoticPearTree 1y ago> Simply look at the market patterns and make a profit, duh! Why doesn't everyone do that?! I know your question was sarcastic, but not everyone is able to see patterns. And not every trader is as good as the other. Hence winners and losers.
- SpicyLemonZest 1y agoThe pattern was exploitable only on the specific days that Jane Street was allegedly manipulating. How would you have figured out, without counterparty information and before noisy sales start dragging down the index, that day X is a manipulation day? How would you have identified that there's even such a thing as a manipulation day? Do you have a model that tells you the objectively correct number of days a non-manipulated index should be lower at close?
- 0xDEAFBEAD 1y agoWhy not reveal counter-party info?