any tips about earning the spread ?

hello I am new to this and I am looking for information about how a bot can earn the spread between bid and ask

thank you in advance

I suppose only if it's on the broker (liquidity provider) side? So it buys at the bid price, and sells at the ask price, earning the spread.

The spread is cost to us retail traders and I think there's nothing we can do about it. That's just how things work.

yes

so any tips ?

You establish a new brokerage, and then you're earning the spread of your clients. You don't even need a bot to do that.

can i get a real reply and not trolling ?

That is as close an answer that you can. To earn the spread you have to have a brokerage firm where the spread will constitute a fee of a sort for the services you are providing.

i see some bots doing it so i am asking because 100-150 pip spread from bid to ask can be something

sounds like spread betting, is that what you mean?

no just placing bid on front of the best bid and then sell on front of the best ask

You seem to have totally lost me here. Maybe some more knowledgeable can chip in at the right time and help.

Maybe you mean high frequency trading? If that is what you mean, it's not possible through a retail broker. The broker's spread is higher than any bid-ask difference you could earn this way.

jcl is right. I don't think a retail trader stands any chance with commissions we have to pay and speed (read: slowness) of our executions. Trading against all professionals and HFT out there, no way!

firesell, if you're really serious about all this you would need a very large capital (to negotiate much lower commissions), a broker like LMAX or faster, a fast, collocated server near exchange, and a very good algorithm. And I think you would still lose, because you can't really compete with Goliath in their own game.

You certainly have heard that recently they clock their algorithms not in microseconds, but in nanoseconds? 'Nuf said.

no there is no need to do hft since on average is a trade every 1/2 minute and bid-ask difference on average is 1 usd

Re: Earning the spread...

On very rare occasions, when LP's get out of sync, you will get a positive spread (Ask dipping below Bid), but there's no way that any retail trader is going to earn enough to make a living from it.

Re: On average there is a trade every 1/2 minute...

You might want to have a squizz at this...
http://www.youtube.com/watch?v=B_k_elbBz8c