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Index arbitrage - program buys and program sells on the NYSE

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Uploaded by on Jun 10, 2009

Video on how to use program buying and program selling to improve entry and exits of your existing strategies

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Uploader Comments (KurtosisT)

  • Thank you for commenting. I am fascinated by these levels. I have found a strong correlation in the 3 days I have used them in my day trading, just as a filtering mechanism. Sorry if I double posted, my first time.

    I have heard a few traders say that there are patterns when it comes to using these levels. Is there anything you could share on that?

    I would really appreciate it if you would do more videos on this subject as there is very little info available to the retail trader. Thnx

  • danielsaun, I will look to do some more videos on the topic as its a very interesting subject that gets little coverage but plays a big role in the dynamic of the markets. KT

  • I am curious why you didn't comment on all instances where the buy/sell levels where hit? Why did those instances move in the opposite direction?

  • Index arb is something that is very quick (Simultaneously in 2 Mkts, cash and futures. Buy Programs = Buying Stocks vs Selling Futures and vice versa on Sell Programs) and will move markets back into inline. On the first instance there is a Buy program becomes a sell program in 2 candles on the chart (approx 11:40am CST ). There is a selling tail (from the buy program) which becomes a buying tail (from the sell program). Mkts do overshoot. Other times mkts can be muted as liquidity is thick.

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  • This video was very helpful. Thank you very much for sharing.

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