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The 5 minute rule referred to SOES, but not the ecn's.
Stepping in front of size is passe. I'm sure it worked well back in the
SOES bandit years before decimalization, the roaring late 90s, and the
flood of daytraders and ecns.
Anyway, be weary of any specific trading strategy sold to the public.
Chances are that it worked well for the author, who published it when it
began to not work as well. You can back test most of Cooper's ideas to
see how they held up statistically, but stepping in front of size is an
exception, unless you have a level II database and your own software to
back-test it.
On Sunday, May 19, 2002, at 07:23 PM, Kent Rollins wrote:
> Isn't there a 5 minute rule on trading in the same direction on the same
> stock on the NASDAQ?
>
> Kent
>
>
> ----- Original Message -----
> From: <Sigstroker@xxxxxxx>
> To: <omega-list@xxxxxxxxxx>
> Sent: Sunday, May 19, 2002 5:54 PM
> Subject: Re: stepping in front of size
>
>
> It's no longer relevant, imo. It may have been, several years ago when
> Cooper
> wrote that book. But these days, most big orders you see are "spoofed".
> They
> vanish when prices get near, or a few thousand are filled. When somebody
> does
> want a lot of stock, they usually hide it. Would you tell the whole
> world
> that you wanted to buy 20,000 shares of something? It's easy to hide big
> bids
> now with Island, Redi, Arca, etc. You just set it to show 1000 and then
> auto-refresh every time you're filled until your whole amount is filled.
>
> In a message dated 5/15/02 7:53:48 PM Pacific Daylight Time,
> mr_bond@xxxxxxxxx writes:
>
> << List,
>
> I am curious to know if anybody trades that Jeff Cooper idea of
> "stepping
> in
> front of size"? How much success have you had? The idea is one of the
> only
> daytrading strategies I've seen that makes good sense to me. My
> brother-in-law is a fund manager and he says that when his firm is
> trying
> to
> accumulate a large position in an illiquid stock that it can often take
> days
> or weeks and that yes, big orders will move the market like Cooper
> says.
> Any comments?
>
> Thanks,
>
> David
>>>
>
>
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