I siad the following:
Quote from jack hershey:
My orders are filled instantly.
If the orders going through are in the 250 range and I am holding 250, I have to do five 100 markets to reverse my 250 position. So I do since it is not possible to easily do a 500 reverse to change sides with the 250 position. I separate the partials by using a script (code) to space the orders to get immediate fills all depending on which harmonic (odd or even) is in play.
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Excellent thoughts Jack.
Do you mind expanding on 'the wall' and the manner in which you treat the DOM, some of us are struggling to keep up.
Here is my follow up. My orientation is to get my reversal at the best time so I am doing market orders twice as large as my position of holding.
The wall becomes important as you do more trades a day. At first few trades are done to simply eminate risk. (4 to & a day). Then are you trade the traverses of the ealrier leg only trading, you get to 15 or so trades a day.
The wal is appearing more than 15 times a day BUT if you are just doing turns at the end of trend traveres , you only use the wall then.
It value is about 2 tickis more at each end of a traverse. since 15 are on the able and reversing is done, this adds up to an additional 15 points a day.
Now let's bag though additional 15 points. Market orders are used.
because I sweep data sets, I use an additional picture of the DOM and it is easy to also add the Wall to the price chart.
The Wall showing on the price chart is very relaxing. Price is approaching it and your price annotations for the coming end of the traverse are there as well. It is a nice picture since you see the reversal coming up in advance.
To be precise, it is handy to also have the DOM stalactites showning. these ten values can be seen at a glance and the wall sticks out like a sore thumb. On my stalactites it is the only full length stalactite. It sets the magntude of people that are trying and planning on getting fills at specifc prices.
Think of all the people who picked a price and it is the largest set of orders at any price on the DOM. There are usually several large oredrs involved. You may be aware that some people do not get fills and then the market "goes against them" and they often do not even make a profit later on since the market has moved on.
Insert is way ahead of me on this with his supperior ways of trading and he is, of course, reading this to prove he is better. Good work insert.
The wall is caused by an overlaod of limit orders at the same place. So it is persistently there and insurpassable. At the same time, you will notice that the ratio of DOM sides is changing and the side opposite the wall total is not as large as the wall side.
Notice how the Best level opposite the wall gets eaten way.
I reverse at this time to let price walk my position away from the wall as the next traverse begins in the opposite direction.
If you are watching the Stretch/Squeeze you will see that this leading signal has occurred as well and it is showing the smart money is walking away from the wall too.
The combination of price annotations (channels on three levels), the wall on price chart, and the stalactites makes reversals fairly efficient. You also have the YM leading the ES on turns.
By adding shells of data to the core data, trading first becomes effective (making the turns on market orders), then as experience gives you skills you get to be efficient.
It is effective to do 15 trades a day on traverses by reversing with market orders. then you use S/S and Walls to become efficient by picking off 2 ticks more at the end of each traverse. 2 ticks plus 2 ticks is a point each on fifteen reversals a day.
If the contract margin is 500 dollars, then 15 points per unit of capital day means that you can double down within the day about two thirds through the day. This is a good situation since the settlement is about 1:15 everyday for Mutual funds and quant driven money which we front run. So it means that the daily value is 20 points or so a day.
The thread is about people who make the wall for those of us who use the wall to make money. FIFO, etc.,is a topic that does not occur to me in any way. Why would I want to be in a line 1 tick away from where price changes on turns? I only show on T&S taking a trade opposite the minority who are being eaten away as their limit orders on the wrong side of the market take them to the sidelines on market fills of people going my way on the right side of the market.
Long ago when rotary dials held sway, there was less info. I luckily has a bunch of coattailers following me. It feels the same today as the wall deflects the price direction on a turn. a lot of people come in as shown by the DOM being eaten after the turn from the wall.
