davevandenheuvel said:
Alan,
would you mind explaining why U prefer self routing instead of smart routing?
-Dave
Hi Dave
In answer to your question and this is just from my own trading point of view and does not necessary suit everyone.In fact on T2W i will probably be in a minority on this point.In regard to smart order routing i'm only talking about a route specifically designated by a broker and not one set up by the trader himself within his software.
I think many that use smart order routing spend to much time looking at a chart and take their decisions based on what they see there.Where as someone who self routes has to watch the level 2 screen a lot more because thats where they will have to make the decision about executing their trade.
This means by self routing your order you not only are able to time your entries and exits with more precision but you can spot potential pitfalls that would stop you taking a trade that the chart could never point out.
Some smart order routings can give an indecision that holds a trader back on the fast moves because of the sub conscious worry about where they get filled.If they limit their trade to tight then they miss the move, to far away and they might get a bad fill.Self route and you have total control over things and a sub conscious confidence i believe helps you trade better.
So when it comes to the fast earnings announcement plays then for the self router its just another quick move and they'll relish the speed.
Like the GOOG earnings move from last week.
However smart route or self route are only very small technical things that traders will just chat about amicably in the whole scheme of Nasdaq trading, they are very small differences.Whose to say i'm right anyway.Sometimes when things are trundling along and i'm feeling lazy i could quite enjoy using a smart order.
The best smart orders though are the ones that a trader is allowed to build himself within his/her own trading platform.Making a number of routing options and hot keying them is a very good idea.I had over 20 at one time,to suit every eventuality,but then thats another story.
Alan