Odds on Open Ex–Goldman and DRW Trader on Trading Before Algorithms Took Over
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Nov 20, 2025 John Knorring, a former Goldman Sachs natural gas trader, shares insights from his extensive trading career and his role in founding Green Tiger Markets. He discusses how the transition from pit trading to electronic markets transformed risk management and liquidity. Highlighting the importance of human judgment amidst algorithmic advancements, John explains the evolution of trading strategies and the impact of regulatory changes like Dodd-Frank. He also dives into opportunities in the Philippines’ electricity market, showcasing how transparent contracts can drive investment.
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Pit Trading Gave Emotional Market Signals
- John describes trading from a physical pit with a phone runner and handwritten tickets providing emotional and market context.
- He contrasts that with modern electronic markets where you can't see or feel who's on the other side of the trade.
Electronic Markets Expanded Opportunity Despite Tighter Spreads
- Electronic trading compressed bid-ask spreads dramatically and increased liquidity across markets.
- Narrower spreads enabled larger positions and ultimately increased trading revenue despite lower per-unit margins.
Automate Routine Pricing To Preserve Trader Focus
- Automate small, routine price tasks so senior traders stay focused on large positions and high-value decisions.
- Use machines to handle trivial fills as long as prices stay close to the market to preserve trader attention.