Is a trading strategy using an order book still useful?

[qwB]

I wonder if order book trading is still a strong strategy in the current market with Ai and HFT?

 

[Sekiyo]

Paul Rotter was the last one I’ve heard about making money off the DOM as a discretionary trader.

Since then (~2010 on Eurex) he went for longer time frames, holding periods.

Unless you create an algorithmic trading strategy around the book then I don’t think it’s that valuable anymore.

 

[Quanto]

But is HFT not the #1 orderbook strategy?
So, it still is useful & makes sense, and this will always be the case, IMO.

 

[Sekiyo]

But is HFT not the #1 orderbook strategy?
So, it still is useful & makes sense, and this will always be the case, IMO.

I agree, on an high frequency basis.
Market making & manipulation is here to stay.

 

[traider]

Not very useful need a lot more context with other data sources

 

[trade_canada]

It entirely depends on what market you're in and when you're trading. It seems like everyone is glued to ES/NQ/CL/ZN/ZB. Think outside of the box and venture to some less popular but still active contracts, or isolate your trading to unexpected and outsized moves in the popular ones.

 

[dasnidbucinah]

Explore diverse markets beyond ES/NQ/CL/ZN/ZB. Consider less popular but active contracts or focus on unexpected moves in popular ones. Flexibility and creativity enhance trading opportunities and mitigate market saturation risks.

 

[dasnidbucinah]

It entirely depends on what market you're in and when you're trading. It seems like everyone is glued to ES/NQ/CL/ZN/ZB. Think outside of the box and venture to some less popular but still active contracts, or isolate your trading to unexpected and outsized moves in the popular ones. If you're interested in learning more about stablecoins and their potential impact on trading strategies, I recommend checking out this informative link: https://stakingy.com/stablecoins. It provides valuable insights for traders looking to navigate the ever-changing financial ecosystem.

While it's true that traditional methods like order book analysis still hold value in certain trading contexts, the landscape is constantly evolving. Incorporating stablecoins into your portfolio can offer stability and diversification, especially in volatile markets.

 

[Perilace]

Nowadays it's quite difficult to base the whole strategy on the order book only. Earlier, it was possible, just checking the orders cluster and waiting for the breakthrough or pull back. Today it makes sense to base the strategy on other things, but include order book checking if needed. At least it won't be an extra thing, as I think.
Order book perfectly depicts the situation in the market, like DOM instrument. Use it, but not rely on it fully.