AFAIK he is trading crypto-currencies at an exchange he has not named. There is no cental limit order book or even common clearing among crypto exchanges, each is self contained. It is quite possible that there are neither competing auto-traders nor prevalent algo execution at his chosen exchange. In my experience, such isolated LOB's stll encapsulate a good bit of information. Ditto isolated position books.
Anyone using indicators successfully for day trading?
- Thread starter Howard
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Unless they are designed to do mis-information leakage
Actually FULL order book (some call it L3), not the crippled L2 some people use. Contains tons of information. For example when someone want to buy tons of shares or contracts they won't post it at once, but you will definitively see it, if you know what to look for. Say there's 400 contracts bid sitting at price 100. But in last minute 5000 was sold at 100 and your T&S is all red but price is not going down. That tells you someone is moving large order and it's not a good time to go short. My software automatically detects this kind of resistance and will trade accordingly. I calculate around 50 different variables around order book. It's a plethora of hidden games between scalpers and algos going on there that most "chart" traders don't know about.
Please...Enlighten us.
Well, it's illegal and there was a guy doing that and he's going to jailUnless they are designed to do mis-information leakage
I don't mean outright dumbass spoofing. I think there are smart ways to show/execute orders in a way to signal certain intent. The tough part is to figure out if that is the true intent or a misleading one. In your example, the refreshing iceberg order is by now easily identifiable by algos and by eye. So is he bidding to accumulate or is he bidding to signal for you to front run him and push price up? Do you go short when he disappears? Do you cover if he re-appears? After how many ticks? The problem is that you don't know the size of the order being worked. So what looks to be significant to you at the time, may be just a small part of the coordinated effort to accomplish something. Now multiply that by many traders/algos trying accomplish different objectives. I'm not saying you can't find an edge, just that there's no Holy Grail anywhere - charts or books or AI. Not to mention the infrastructure required to monetize that.
what is your definition of Holy Gail?
You don't need a Holy Grail to become a billionaire.
As there is no Holy Grail, how do you know what infrastructure is required to monetize that non existing system?
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Yes, but its not a prediction+ may not work often enough for much day trading. $275 area is , OCT NOV 200 dma average area. Day trade off that?? NOT very often