Since 0 commission trading happened, I started scalping. I’ve become exceptionally good at it, to the point where I am moving around 1 million shares or more profitably in a single ticker on any given day. Since I’ve reached that mark, however, I’ve noticed that tickers who reach a threshold of around 1-1.5 million shares traded suddenly stop filling orders. This has happened on multiple tickers. The thing is, the price action and volume on it don’t change, and I would know as Ive been trading these names day in and day out for over half a year with no hiccups. It’s like my orders are being completely ignored. In addition, I can trade those same tickers without any trouble by using other accounts. It’s only on the account that has traded it a lot that the orders seem to stop going through. The broker that is giving me issues is Tradestation. Has anyone else heard of something like this happening? Are they limiting me cause they can no longer profit off the commissions? Any help is appreciated. Edit: I should also note that once the tickers stop working, they stop working indefinitely. I can’t get filled even on the open of close of any day following the day it was traded beyond that 1-1.5 million share threshold, no matter how aggressive the volume is. For reference, on a very slow day with these stocks, I still would at least get filled for approximately 10-20k shares per go for the open and close. ***Edit 2: I also forgot that I was recently notified that I must register with the sec and obtain a “large trader ID”. I received this notification one day before the first ticker I normally traded stopped filling my orders. I’m still in the process of registering. Could this be relevant to the issue I’m having, where the broker may be trying to prevent me from exceeding a certain limit till I provide them the ID?
Tradestation sends most of their client's equity orders to Virtu. https://uploads.tradestation.com/uploads/SEC-Rule.pdf. These Market Makers consider scalpers "toxic order flow." They have shown in the past they do not like those orders.
huh..wow. Pretty earth shattering actually. i am not sure why i didnt think of that aspect with them controlling it. I have a couple questions though? 1. it really depends on how good that volume was performing. if you were losing Its doubtful they would have marked you. 2. was it total volume or market cap? stock price didnt matter these must have been smaller lower market cap stocks??
I think you need to explain the circumstances of you not getting filled because there are ways of doing exactly what your talking about.
Well, there you have it. You are a multi-million dollar account holder, not just some retail shmoe. Welcome to the big leagues!
bahahhaha yeah as a trader who holds business principles in the highest esteem I think you should register asap if you want to even think about growing.
That is interesting. As you can probably tell, I’m still sort of new to this (just over a year), so my knowledge is rather limited surrounding these sort of technical topics despite my level of trading. Should this be the case, are you aware of any market makers that don’t look down upon scalping as much? What would you recommend/hypothesize is the best route for me to take to overcome this and continue this style of trading? As a scalper, I obviously exploit the 0 commission structure quite heavily, so I feel lost trying to find a new broker if it comes to it, as you certainly get what you pay for to some degree.