Level 3 data: What is it & why is it hidden from retail traders?

Quote from achilles28:

Do you use level 3 in your trading? Like Hatetherisk mentioned? Identify big s&r zones using resting orders?
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Yes, i would like to know too.

Where can i subscribe for that informations ?
CME, ICE or what ?

Does it help your trading ?

Can you see really all orders ?

How can a market exist, if that is really so.

Unbelievable, my whole world crashes .........
:eek: :eek: :eek:
 
Quote from HATEtheRisk:

Yes, i would like to know too.

Where can i subscribe for that informations ?
CME, ICE or what ?

Does it help your trading ?

Can you see really all orders ?

How can a market exist, if that is really so.

Unbelievable, my whole world crashes .........
:eek: :eek: :eek:
More...

haha i know. I do it the old fashioned way. I didn't know about level#3 until now. It would make my job incredibly easy. Guess that's why traders don't talk about it much? Secret weapon? Randomcapital has me on ignore. U might want to ask him. :)
 
Quote from achilles28:

haha i know. I do it the old fashioned way. I didn't know about level#3 until now. It would make my job incredibly easy. Guess that's why traders don't talk about it much? Secret weapon? Randomcapital has me on ignore. U might want to ask him. :)
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LOL:D

I guess i am now too on ignore.

Actually Level 1 is all i need. Imagine 30 years ago, traders didnt even had a computer.

I should ask the CME and ICE, if they have such an L3 service for private persons. - Maybe next week.......

See ya:cool:
 
@ pcp198

by the way,

i have no problem to trade with a market maker who trades against me, because then he will lose.

But i prefer ECN / STP Brokers.

But on the other hand, in retail FX i cant be so picky,
so i also prefer Bank + Big Brokers with a dealing desk = market maker, before a smaller broker with ECN, STP.

You see, if you know how to make money, it doesnt matter, what the broker does, as long he executes your orders correctly and does not go broke.

The argument from people who only lose in the markets, that it would be a bad thing, if a broker trades against his clients is nonsense. If a trader wins or loses, depends on the trader.
 
Quote from HATEtheRisk:

@ pcp198

by the way,

i have no problem to trade with a market maker who trades against me, because then he will lose.

But i prefer ECN / STP Brokers.

But on the other hand, in retail FX i cant be so picky,
so i also prefer Bank + Big Brokers with a dealing desk = market maker, before a smaller broker with ECN, STP.

You see, if you know how to make money, it doesnt matter, what the broker does, as long he executes your orders correctly and does not go broke.

The argument from people who only lose in the markets, that it would be a bad thing, if a broker trades against his clients is nonsense. If a trader wins or loses, depends on the trader.
More...

This is pretty interesting - I don't trade equities or FX but theoretically both you and your b/d can both make money simultaneously?

Please let me know if this is correct (worst case scenario with b/d trading against all client orders):

Say you long X currency @ 1.00 through a bank fx desk and they take the offsetting trade. Then you take some heat as your position moves against you down to 0.97 - at this point the MM covers and collects the 0.03. Position reverses and moves up to 1.05 and you sell but the MM has been continuously trading their full book against all clients. You pocket 0.05 on the long while the MM has been taking profits along the way using the aggregated book?

Thx!

JO
 
Quote from jo0477:

This is pretty interesting - I don't trade equities or FX but theoretically both you and your b/d can both make money simultaneously?

Please let me know if this is correct (worst case scenario with b/d trading against all client orders):

Say you long X currency @ 1.00 through a bank fx desk and they take the offsetting trade. Then you take some heat as your position moves against you down to 0.97 - at this point the MM covers and collects the 0.03. Position reverses and moves up to 1.05 and you sell but the MM has been continuously trading their full book against all clients. You pocket 0.05 on the long while the MM has been taking profits along the way using the aggregated book?

Thx!

JO
More...

Yes, this is how MM scalp and flip around with their trades between the orders.

MM sees all incoming buy and sell orders, so they now which side is stronger, for example:
If they have more buy orders, they try to push the market a little bit down and buy in their sell orders, or they forward some of the selling orders to an ecn. So their market, does not show any sign of interest for going up, while they can buy as much they can, while executing all their client selling orders.

Then price finally goes up, and the MM can take in a nice profit.

Thats the usual way how they operate. They bluff with the price, because they know what supply and demand is and therefore where price will go to....

Dont ask me about this, i dont know much. Here are much smarter people around who can tell you stories about it.

I only know that the most important MM for a market is called the axe and in earlier days there was a way to shadow the axe and follow the trades of them.

But i dont know which banks are MM for which FX pairs, i only know Deutsche Bank and Barclays are the strongest FX traders.

:confused: :confused: :confused:
 
http://www.investopedia.com/articles/forex/06/ECNmarketmaker.asp#axzz1rLBuGaDR

Did you know that William D. Gann, made his broker broke, when he won the trading championship back in the days ?
Did you know that he is my hero, because he also had a 90% winrate, read for yourself, if you do not believe.
Like me, he also was a master of cycles and how to read the markets and trade them in perfect harmony. I dont care about his technical techniques about the markets, but his overall aproach is very good and correct.

I just can 100% agree with this quotes from him.
http://technical-analysis-addins.com/trading-gann-quotes.php

price & time, thats what it is all about:

Quote from W. D. Gann:
"TIME is the most important factor in determining market movements and by studying the past records of the averages or individual stocks you will be able to prove for yourself that history does repeat and that by knowing the past you can tell the future. … There is a definite relation between TIME and PRICE. … Now, by a study of the TIME PERIODS and TIME CYCLES you will learn why tops and bottoms are found at certain times and why Resistance Levels are so strong at certain times and bottoms and tops hold around them. … The most money is made when fast moves and extreme fluctuations occur at the end of major cycles."
Quote

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Now when i think about his time cycles and periods, and compare them with my strategies and time cycles techniques, i finally understand how he worked it out, in fact, there is not much difference between his techniques and mine, i think.
But back in days it was surely very much harder to figure all that stuff out, without any computer.

But one thing is clear, price is a variable, but time is fixed and the most important thing, yes you almost can say that price does not move in price cycles but in time cycles.
 
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