Do you need more proof than that?

Nah, you’re celebrating too early. I still need to take a look at how the system handles options trades. I don’t fully agree with you that the algorithm stinks, but I can be convinced to modify it. I’ll try to study how things are working currently. That requires that I go step by step through the calculations. Then I’ll see what needs to be fixed. It’s something I will try to work on when I have some time, perhaps this weekend.


I’m almost positive that if you use the KISS method, you’ll certainly save yourself a lot of time and trouble. Too much rocket science sometimes can be hazardous to the brain. I have to go now, but I’ll continue this conversation later tonight and give you some good pointers of how simple this can be accomplished. You’ll be surprised of how creative I can be sometimes. Have a good day Matthew.


As I’ve stated elsewhere in this forum, my experience as a subscriber to several different systems is that the RF is very darn close to describing what you will experience, by my estimation within +/- 5% (if RF can be likened to a “reality %”). It seems to me that the people who don’t like this accurate reflection are those system providers whose systems are portrayed negatively.

Also, I having trouble understanding why daily volume is being used to justify your point of the RF algorithm being flawed. Daily volume clearly has zilch to do with the market’s volume at the time you are attempting to fill a limit order. For example, on ES futures, the market generally trades < 1000 contracts in any given 3 minute span in the afternoon. Volume spikes normally aren’t more than 10,000. With enough C2 subscribers, in what is supposedly one of (if not) the most liquid futures markets, we could (collectively) easily move the market by exceeding more than a few % of volume.

Yes, that’s the whole point Karl. It’s what’s on that limit that matters the most at the moment of execution, not what just happened (or not happened at all).

Let me give you an example; suppose in the last 4.5 hours of today, there has been 0 volume traded on a stock like GCI. In fact, average daily option volume on GCI is a paltry 650 or so for the last 3 months (according to IVolatility). Yet you wanted to trade its options. The size on the bid is 455 contracts, with another 355 contracts on the ask. If you decide to sell 250 at the market, or at the limit (not just touched), should you receive a 23% RF when you’re entitled for 100% since the market was liquid enough to absorb your entire order (and then some)???

The point being is that history is totally irrelevant when it comes to order execution. So just because the majority of traders in a stock like GCI prefer to trade the actual stock rather than its derivative (because of dividends, semi large spreads on the options, or for investing only), does not mean that there’s no support for it’s derivative at the time you are ready to execute. Don’t take my word for it though, tomorrow, why don’t you take a look at the size the MM’s are standing behind and you tell me what your eyes are seeing.