DOM games

[brownsfan019]

For future reference, anytime you direct quote someone or a website, you should really cite your source as well. At the very least, we should give credit where credit is due.

[brownsfan019]

Here's an old thread on ET that some might be interested in. Take a look at Cazza La Randa's post on page 266. Link: http://www.elitetrader.com/vb/showth...pagenumber=266

I need pictures and this makes sense to me. This would be much easier on the YM or ER2 DOM's though in my opinion. The ES is so thick that I'm not sure how many you would want to see at a level to consider it big. Seeing 600+ at ONE level on the ER2 (see ET thread) stands out big time.

I would be interested to see this is action in real-time. I've yet to find anything that explains it in real-time. Right now curiosity has the best of me. The only thing I have found from a different thread on ET, is mention of http://www.viperspeedtrader.com/. I have no desire to dive into a brand new thing, but for anyone interested, there's some stuff out there.

I have never used viperspeedtrader.com, so please do your own due diligence before purchasing anything.

[darthtrader]

Its interesting they mention Ninja on that site. I've been poking around with the demo and it really seems like it will become a powerhouse in the future. For programming they have just extended C# for trading so you have all the C# learning resources available to learn. It said on the forum they will be opening up access to the super DOM, once that happens Ninja would seem like the logical choice for this kind of analysis. Certainly would be much easier than neoticker or that crazy guy in the elite thread that rolled his own with open source java charts.

[brownsfan019]

Allow me to play devil's advocate with myself - I would also suggest that with the amount of games being played on the DOM, you do the OPPOSITE of what the dom is 'telling' you.

Again, just an idea here, so do your own homework. It just seems in the limited times that I've noticed the bids or asks heavily outweighing each other that price will move AWAY from these potential large bids/asks. Part of the reason is that many of them end up getting pulled before any possible realization of being filled.

So think about it... if you had the ability to trade large amounts of contracts and could play these little games, you could easily manipulate how people read and react to them by putting on and pulling your offers quickly.

One reason why I like this idea over trying to read the real bids/asks vs. fakes is that more often than not, when you are going off the dom and with the large bids/asks, you are going against the short term trend. Doing the opposite of these puts you in with the current intermediate trend some of the time.

Just some food for thought.

[ANDREUA]

Here is what I do on EuroStoxx to find out if there are good or fake BIDs/ASKs on depth I use Depth with Tape. I take in consideration only inside quote, I don't pay much attention beyond them, or already proved good BID/ASK a few minutes ago if the price is continue to stay in short-term box (usually 2-5 ticks on Stoxx). Lets say we want to see if it is a good 1000 bids at particular price, if there is big selling pressure (many sales with good volume) on this price, but bids are still there, didnt decrease dramatically in size, the people add new bids in place of already filled, the bids are real, and they support market very well (the tape is all red but we move nowhere) and the price could go upward a little after this, usually it takes several times to get through these bids. Fake Bid or Ask dont show up on inside quote if the pressure is in their way.

[erique7]

hey guys and gals I found this article

http://www.cbot.com/cbot/pub/cont_de...+40242,00.html

Please keep up the good work

wayne

[erique7]

and another interesting page

http://www.cbot.com/cbot/pub/cont_de...+15731,00.html

[darthtrader]

I've been looking more into the DOM stuff since this thread.
Here is an amazing thread on elitetrader about market depth patterns I found last night, still sifting through it:
http://elitetrader.com/vb/showthread...a&pagenumber=1

[brownsfan019]

Keep us posted Ravin if anything of fruition comes of this thread. I forgot about this one till you posted again.

[strtedat22]

	Quote:	hanz
	yup saw that many times too guess u just cant trust the DOM also OEC trader has iceberg feature hope they will add T&S on the next upgrade

how does the iceberg help this situation...i now have OEC