Recent content by DionysusToast

If you get a programmer that knows one of the common automation platforms already - like NinjaTrader, then he will have an interest in trading. As such, were your system to work, he'd most certainly at least keep it to trade himself and very likely sell it on to others. I have seen this...

Best answer to this is "it depends". Depends on the market - FX has no visibility of order flow (although you can anticipate it), Equities have a lot of order flow you can't see, Futures is the most transparent from an order flow perspective. Then it depends on how liquid the market is...

You could wipe out half the order book. That would impact price. It would however have no bearing on value. If the individual stock moved up but all correlated/inverse correlated instruments didn't agree, you probably just created an arb opportunity for someone...

But why? What if a swing trader decided all day traders were leeches and should be taxed for holding less than a day? What's the difference?

How much of the time can it predict a 1 tick move? Could you possibly do this to get in prior to a tick up and then use it to exit when the bids look like they are about to fail?

Very interesting. I trade primarily off the order book and I've never really bothered too much about HFTs despite the fact that they have supposedly "killed that game". The above caught my eye because it's something I do to get into a trade, hit it as it's leaving and quite often I leave it a...

I agree with this - I think the sort of behaviour outlined is fair. If you are willing to pay the $$$$ to co-locate and willing to take risk (as opposed to cheating), then I say good luck to you. This is not an easy way to make money and it's not as if there is no competition. My view...

If they did that every time, why would people keep falling for it? :)

Interesting stuff... Having more depth into the highs is the norm. At the high of the day, the offer will be thicker than the bid 9 times out of 10. Reverse for the low. Still, in your pic, we are a way off the high and that to me looks unusually stacked this far down from the high...

Well - the normal implication by 'trading noise' is that the use of lower timeframes is futile because at that level it is 'noise'. Hence the term "trying to trade the noise". Trading based on order flow is just a different beast. So anyone looking from 'on high' may well consider that...

There is no noise Howard. Unless of course, you can define the term you are using and explain why you think it exists.

I presume your commissions are almost zero right? Your average ES trader attempting to scalp 2 ticks is going to be paying 16% in commissions with retail comissions. That really puts a lot of pressure on in terms of win rate. I think it's a hard road for a retail trader to play for such...

He is much loved by T2W Management. In fact - they even featured him in an interview there: http://www.trade2win.com/section/articles/1640-interview-index-option-credit-spread-trader-howard-cohodas Any comments would be superfluous :p

Seems on T2W Howard claims he's lost 8%. Now all that remains to be seen is the discussion on what his 8% is based on. He has 20% of his pot allocated to this strategy. The strategy returns 10% per month of 'risk capital'. No simple method of returns calculation for HC. Obfuscation is the...

I'll put you down for $100 on option 1.