4. smart money
blah blah
5, parasitic frontrunners (high velocity traders)
blah blah
1, 2 and 3 as described are myth laden and that's how it goes.
All have bots or ATS's nowadays and they do their thing and the results are well known.
How to leapfrog from 1 to 5 as a retail trader is the opportunity. So do it.
In Harris you see about 30 plus numbers to add to the list of five. Page 199.
Lets say paysense, who's mind is cross wired considerably wanted to learn to differentiate al little regarding the relationship of cash and indexes.
Daily indexarb.com publishes a number before the open. THIS IS THE DAY'S RELATIONSHIP BETWEEN THE CASH AND THE RELATED INDEX.
Moses, of course, wrote the formula and carried it down the mountain to the tribes who were travelling at the time.
As a parasite (5), I recognize I NEED TO HAVE ITS MEANING AND USE down cold and by rote if necessary[. Reading about it is NADA.
Next I ned to use it in an excellent way by INCORPORATING IT INTO A LEADING INDICATOR of the very leveraged indexes I am trading.
This concoction MUST include what smart money (the guys who watch the calvary from the nearby hillside surrounded by pretty chicks, mint julips and race horses AND WHO GAMBLE ON THE OUTCOMES using super and terrific data feeds of price and volume derivatives out of Crays).
Next I deal with the non-stationary window and continually assure it is properly landmarked for using exclusively and only the data that is in PLAY.
Since THE NUMBER (out of Moses calulator) is a carrier upon which things ride, I count the distortion by points and show this drift. It serves to tell me specifically when the 3's and 2's come in to PLAY. I set it with an n-1 bias so I have a leading indicator of the algo's and bot's.
Finally, I like to display how far 3 and 4 ar leaning forward in their saddles and how much dust they will be generating when they apply the whips and spurs. I use an air quality indicator for this and it is tied to the commander's horse's balls as a go no-go gauge. The distance from the first horse to the last horse in these clumps of ordinance followers is also known to me with my field glasses (volatility surges).
So what is it all like? Knowing what is going on with leading indicators of index price is the best game in town. The tells all come from the 30 some players on the list.
In order of importance:
4, 3, 2, 1.
Paysense you are screwed because you have gotten so cross wired. You chose...you have beliefs......you got the consequences. Sell your saddle.