Program Trading
- Thread starter bronks
- Start date
Okay well, I have seen this a couple hundred times
The guy calling the market has his auction voice going on and he is more concerned with that then catching the moves. As a result, not only do you have to put up with his lag, but you have to know that by the time YOU figure it out, even the biggest loser, the worst newbie in the pit is well ahead of you.
So I will just say this for the record. Wouldn't it be better to simply learn your levels (price levels) and be there waiting for the move to trade through your order, instead of chasing moves after the fact ? Just a suggestion.
The guy calling the market has his auction voice going on and he is more concerned with that then catching the moves. As a result, not only do you have to put up with his lag, but you have to know that by the time YOU figure it out, even the biggest loser, the worst newbie in the pit is well ahead of you.
So I will just say this for the record. Wouldn't it be better to simply learn your levels (price levels) and be there waiting for the move to trade through your order, instead of chasing moves after the fact ? Just a suggestion.
I've heard trades called in the headset before they were printed. The information you get from the pit and Ben is priceless.
I have a link to a video which demonstrates buy/sell programs working very well, also included you might hear who is buying or selling, and the screams from the pit. If you PM me, I might provide the link.
As far as the pit/broadcaster indicator goes, this is what I was thinking. I would focus more on what Ben says through a voice recognition system(although difficult because of the continous stream of sound) and maybe use pit noise as an exit strategy(sound intensity measurment) just after the extremes of the shouting or use a more technical indicator like ticks. For example, you could program your VRS to recognize key phrases like Morgan is buying, Paper is selling, paper is fading, paper is pushing, or key numbers like fifty bid goes to sixty bid and the VRS would recognize these, determine the speed between the recognized words and have an automated trade setup. You could setup trades based off of whether you liked to trade along with morgan or the locals, and when the VRS recognized a word like morgan is selling with a print in the direction of the sell, you could automate the system to go short with a bracket order set for a target of the average rally in price and have a trailing stop. Into all of this you could incorporate other indicators which would measure order flow and price velocity. This is all just a fantasy idea, a really expensive system to develop that would be useless when the pits are done away with and everything becomes electronic.
Remember when maria dropped the bomb on Bernanke. Checkout the video , which just so happens to be live from the CME where you get to see pit traders reacting to the news. I wish I would have known who sold first that day in reaction to the news. Am I the only one who thinks that this was a setup. Why else do they bring Maria right next to the pits, but to create more fear from the news. Honestly, who put in huge shorts that day before she popped the news. CNBC does this stuff everyday, especially with CEO appearances. I remember last year some traders started getting wise and would scan what CEO's were going to be on the show for the day. Perfect example is when NVAX CEO comes on CNBC for the first time and the stock nearly doubles(Oct 25) I watched that trade live and it went vertical for probably 8min. The second time the CEO comes on, people shorted right after the appearance was over( longs got suckered). Later on tradethenews.com started putting on CNBC's daily schedule.
Maria video (you have to use E-explorer) One of these link will work hopefully.
http://video.msn.com/v/us/v.htm?g=83584dc9-4715-49b4-84b9-764634ecae2d&f=rss34
http://video.msn.com/v/us/req.aspx?...=83584dc9-4715-49b4-84b9-764634ecae2d&f=rss34
I have a link to a video which demonstrates buy/sell programs working very well, also included you might hear who is buying or selling, and the screams from the pit. If you PM me, I might provide the link.
As far as the pit/broadcaster indicator goes, this is what I was thinking. I would focus more on what Ben says through a voice recognition system(although difficult because of the continous stream of sound) and maybe use pit noise as an exit strategy(sound intensity measurment) just after the extremes of the shouting or use a more technical indicator like ticks. For example, you could program your VRS to recognize key phrases like Morgan is buying, Paper is selling, paper is fading, paper is pushing, or key numbers like fifty bid goes to sixty bid and the VRS would recognize these, determine the speed between the recognized words and have an automated trade setup. You could setup trades based off of whether you liked to trade along with morgan or the locals, and when the VRS recognized a word like morgan is selling with a print in the direction of the sell, you could automate the system to go short with a bracket order set for a target of the average rally in price and have a trailing stop. Into all of this you could incorporate other indicators which would measure order flow and price velocity. This is all just a fantasy idea, a really expensive system to develop that would be useless when the pits are done away with and everything becomes electronic.
Remember when maria dropped the bomb on Bernanke. Checkout the video , which just so happens to be live from the CME where you get to see pit traders reacting to the news. I wish I would have known who sold first that day in reaction to the news. Am I the only one who thinks that this was a setup. Why else do they bring Maria right next to the pits, but to create more fear from the news. Honestly, who put in huge shorts that day before she popped the news. CNBC does this stuff everyday, especially with CEO appearances. I remember last year some traders started getting wise and would scan what CEO's were going to be on the show for the day. Perfect example is when NVAX CEO comes on CNBC for the first time and the stock nearly doubles(Oct 25) I watched that trade live and it went vertical for probably 8min. The second time the CEO comes on, people shorted right after the appearance was over( longs got suckered). Later on tradethenews.com started putting on CNBC's daily schedule.
Maria video (you have to use E-explorer) One of these link will work hopefully.
http://video.msn.com/v/us/v.htm?g=83584dc9-4715-49b4-84b9-764634ecae2d&f=rss34
http://video.msn.com/v/us/req.aspx?...=83584dc9-4715-49b4-84b9-764634ecae2d&f=rss34
You must be kidding. There is NOTHING like pure pit noise.
I trialed Ben's service once and couldn't find any use in it. However, a former pit trader I've become friendly with over the years uses it and let me tell you, he wouldn't trade without it and I don't blame him. He can pick up from Ben when the locals are trapped and can sort out the real paper movers from the dogs. Beauty is in the eye (or in this case, ears) of the user. I don't think I'm giving anything away here because you'd have to be an ex-local to decipher this shit, and most of them, I'd imagine, subscribe to Ben if they are now screen traders.
The deal with all of these "cues" is to be able to decipher a sustained directional move versus the usual bracketing which occurs between EVERYONE.
That can be done on the screen or via the pits. It takes awhile to coil then break up or down on all timeframes(rotation).
When all the planets line up and the tide is moving then the indexes will ALL move in synchrony. There are leaders and laggards and these too change as the market moves through its cycles. Defensive plays, tech, finance, etc.
Volatility can give you a clue with regard to magnitude of the expected move. Many people haven't done well recently as we experienced a volatility breakout. So range traders got smacked unless they adjust their ranges based on volatility. Program trades based on prem can either signal a breakout or a reversal. You have to know how to use the info.
Takes time like anything to get this stuff figured out then it changes right when you get your game on.
That can be done on the screen or via the pits. It takes awhile to coil then break up or down on all timeframes(rotation).
When all the planets line up and the tide is moving then the indexes will ALL move in synchrony. There are leaders and laggards and these too change as the market moves through its cycles. Defensive plays, tech, finance, etc.
Volatility can give you a clue with regard to magnitude of the expected move. Many people haven't done well recently as we experienced a volatility breakout. So range traders got smacked unless they adjust their ranges based on volatility. Program trades based on prem can either signal a breakout or a reversal. You have to know how to use the info.
Takes time like anything to get this stuff figured out then it changes right when you get your game on.