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Predictor

Market Wizard
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Posts posted by Predictor

  7. Posted · Edited by Predictor

    I have no experience with them. Why do you say "let's hope not"? The reality is that active traders today need better technology to be competitive. I've always felt that anything to level the playing field is a plus. I will say that the market as a whole needs to adopt the fair centralized model that the futures markets already have.

     

    BTW, I would also like to learn more about this application. Is it fully automated? It sounds like a cross market spread making application, of some sort. Maybe we can get the vendor here to answer questions.

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    Curtis

    Home - OrderFlowDashPro

     

    Is this the start of a new trend amongst vendors for pushing HFT and algorithmic trading?

     

    Algorithmic Trading, Futures Trading, Emini

     

    Let's hope not.

     

    Anyone who has any experience with this firm please feel free to share . . .

     

    BlueHorseshoe

  13. Posted · Edited by Predictor

    Many successful day traders come to the conclusion that adding to positions underwater doesn't work well. In fact, it has long been my preference that I only add to profitable positions. I recently revised this guideline to "I only add when more confident" and can add when above or under water. Yet, it seems counter intuitive that improving entry cost wouldn't work well because most day traders only make a few ticks profit per trade. It begs the question thus: why do most successful day traders find that it doesn't work well?

     

    First, most day traders are highly leveraged and thus they can't withstand much of an adverse movement against their position. Adding extra size just makes the movement that one can withstand that much less. The second reason is that the time required for a position to mean revert is often longer then a day session. It is thus that day traders are double disadvantaged to attempt this trading style.

     

    However, there are some large futures speculators who trade in just this manner. At any rate, the important factor to consider before adding to a loser is whether or not the trade is likely to work out within your time and risk horizons. The answer for many day traders won't be favorable but other traders with different time and risk horizons may find such techniques work better.

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    http://orderflowdashpro.com

  16. Posted · Edited by Predictor

    Highly encourage everyone who tries our platform to watch the intro Q-Tracker TM video on our blog. This is very, very powerful stuff and this is one of the few features in our software that isn't immediately obvious. I will share how it works.

     

    The Q Tracker was originally developed to estimate a trader's virtual/hypothetical position in Q. This quickly progressed to let's track all positions. And then we found that tracking the pulls (minimum depth) and net change was very powerful because it showed us order flow patterns that otherwise could not be seen nor understood. This information can be used in so many powerful ways because it leads both price and order flow. In my opinion, and I've said this a few times, this feature alone makes all 1st generation order flow software obsolete. If anyone tries this and learns how to use it (like I have), I can't help but think they'll agree.

     

    What can be inferred from this information?

     

    1. The market often moves due liquidity that is pulled above or below the market. Maybe, these are non primary LQ providers (such as institutions). We can see this activity ahead of time. Most programs are programmed to buy on downtick and sell on uptick. Often the market will move higher after an institutional sell program completes. It is impossible to read this activity from market orders but our limit order analysis makes this very possible.

    2. By tracking net change field, we can see where traders are adding orders. This shows the sentiment of short term traders. So we can see where traders targets are. We can target the same location or decide to move our order in front (and achieve a slightly worse price but higher probability of fill).

    3. We can use it as a tape reading tool -- as I do --to understand what the market flow means

    4. We can use it to make more precise limit order entries and use market orders with intelligence that wouldn't be possible. This intelligence is huge sense most day traders can only make a few ticks profits. If you were just to save 2 ticks on average it could be enough to turn a losing trader to profitable.

     

    So, as you can see I'm a huge fan of this feature. It really works well when watching the summary imbalances in the Volume Tracking Accumulator. The Q-tracker is rather advanced but well worth the time to learn.

     

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    http://www.orderflowdashpro.com

  17. Posted

    When offering liquidity sometimes I will add under water (against position) but I only add when MORE CONFIDENT... Never when less!

     

    I've met profit target for today, shutting down for day, and thus will not give back those profits. The Q-Tracker in AlphaReveal really helped me today. I have my own proprietary methodology but it really makes a big difference in my ability to read tape at the micro level.

  24. Posted · Edited by Predictor

    11ish looks like a reasonable area to rebid

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    I'm out for the day. In case anyone is curious (and to make it clear), I use OrderFlowDashPro's AlphaReveal software which I developed. I wouldn't be able to trade at the precision level I demonstrated today without my tape reading program. It doesn't provide signals but provides critical information for the discretionary tape reader.

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    http://orderflowdashpro.com

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