So if I have a strategy that is being driven by my live IB account as a trade leader, wouldn’t that be considered front running the subscribers and how is this ok? I thought front running was a big ‘no no’.
Thanks
Ben
the signals from IB sent back to C2 are within seconds so it’s probably ok. Plus most systems are trading high volume stuff not penny stock scams. I don’t see a problem with it. I would say front runner is not ok if it’s not disclosed but when people sign up and see it’s a live system they assume the risk.
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Hi Ben, “front running” is something different. It’s based on non-public/insider information. So lets say you work for a brokerage firm and you know they are about to release a strong buy recommendation on a stock and you buy that stock for yourself ahead of that non-public news. That’s one example.
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Hi:
Front running is the practice of stepping in front of orders placed or about to be placed by others to gain a price advantage.
In this case (C2 Trade Leaders), the others are simply your subscribers.
However, it could only work on thinly-traded financial instruments, like penny stocks or Palladium futures contracts for example, assuming the Trade Leader has hundreds and hundreds of subscribers to begin with.
And since most C2 trading systems trade very liquid markets, there is no way to profit from this unethical practice.
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