«No more», «Beat the Banker».
This is what the dealers are yelling at the gaming tables of, much in vogue lately, online casinos.
Market makers are those that generate Broker, during the time when some markets are closed (at certain times, at night, on holidays or weekends), a fictional developments quote so we can continue doing avoiding trading devote to other social work as less important as caring for the family, go for a walk, meet friends, hygiene and personal care, … etc.
In the absence of market counterparties in transactions we make with the broker must think that we are effectively «betting against the broker.»
In this case, we can be guided by the proverb that says «who shared part and gets the best part.»
It is not unreasonable to think that the market maker broker «push» the quotation in the direction that suits you because it is «part» and also «shared».
Such companies have the resources and suitably qualified personnel (mathematicians, economists … etc..) To devise the necessary algorithms for creating a fictitious market and price developments. Usually base their calculations on the evolution of other markets such as indexes that remain open, exchange rates of the currencies of different countries (forex), the evolution of the price of gold, oil … etc.
It’s easy to think that these companies will be very easy to «push» at a given time and in a «justified» the market price of its upward or downward, depending on the interests of the broker, generating huge profits for the company and great losses for traders. So that when there is a large backlog of open positions up, generate a downward trend and vice versa. Also, when there are many stops on the price point, the graph will be a large spike volatile and the head of the company renewed its yacht broker.
So, avoid these markets?
Instead, whenever we find a pattern, in one way or another we must analyze and study it carefully because it may be a gap through which to extract easy money.
What would be the strategy?
In this case we want to do the opposite of what most would in a context of clear and obvious signs.
If we believe that everyone buy long means that most of the money will go up, and the broker will wait for the right time to shout «wins the Banker» sweeping all open upward, and vice versa.
Maybe then we get in the truck broker in its accumulation of profits while the majority continue to suffer again and again their relentless sweeps.
… you know «the bank wins.»
Rafa.