Don't get me started on mid point trades. We don't even get a...

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rocketrog

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20/06/24

19:23

Post #: 74413926
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Originally posted by 2ic ↑

This is just bigger players milking pips on a daily basis over lots of stocks that usually add up to a relatively large profit. The algos are usually momentum following and thus try to buy or sell (depending on the direction they are travelling) either side of the buy-ask spread so they can bank that small spread profit.

This is especially easy and lucrative on average during the open and close auctions, because their computers adjust their bids and asks (usually both at the same time which retail are not allowed to do) in nano-seconds up until the auction cross. The algorithm makes sure that only one share is left over at the bid or ask price so that is the price all trades are priced at. eg, if they are playing a 10c stock long, the algo will be sure to have one share more being sold at 10c than bought at 10.5c so they can scoop up whoever is closing out their positions at 10c not 10.5c. They will then flip whatever shares they bought back out at 10.5c first opportunity and bank ~5% for the effort. Done over many stocks every day on average they steadily accumulate relatively low risk profits...

Sometimes you see two algo's going at it and the price flicking quickly between the buy and ask prices as each bot adjusts their orders in response to the other. ASX will just pocket more fees from more action and tell you it's just 'market makers' adding liquidity for you're own good... no point filing a complaint. Like those invisible 'mid-point' orders only brokers can arrange to jump the queue and get in/out ahead of retail of those not in a hurry. If your ASX trading strategy relies on pips and being quick in and out, I suggest trying a different game because retail won;t do any good bring a knife to a gun fight!

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Don't get me started on mid point trades. We don't even get a look in the action half the day.
Yes, Algo's are permitted because they are said to add liquidity to the market, then the Bot's take the liquidity off market trading mid pips over .
Asx has become a casino for retail investors, controlled by the institutions Algorythms.

DRE Price at posting: 2.4¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 1.0¢		Change -0.001(5.00%)		Mkt cap ! $48.25M

Open	High	Low	Value	Volume
1.0¢	1.0¢	1.0¢	$1.165K	120.7K

Buyers (Bids)

No.	Vol.	Price($)
54	18573015	0.9¢

Sellers (Offers)

Price($)	Vol.	No.
1.0¢	9249427	19

View Market Depth

No.	Vol.	Price($)
54	18573015	0.009
23	11459958	0.008
10	8029959	0.007
6	9434000	0.006
3	360000	0.005

Price($)	Vol.	No.
0.010	9249427	19
0.011	9001023	14
0.012	3158338	11
0.013	4356664	15
0.014	5738864	21

Last trade - 10.39am 27/06/2025 (20 minute delay)

DRE (ASX) Chart

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