Tape Reading Large Orders CL

Quote from jsmooth:

For those that trade CL using the tape….What type of size do you look for on the DOM during the trading day and how do you react to that? ...I watch T&S, but it seems like that cant give you the real picture because large orders will get broken up into a lot of small trades on execution, so watching T&S really doesn’t tell the whole story…

Actually finished an automated method of doing what you are inquiring. It seeks percentage changes from one price level to those around it. Most of the changes occur but just a "flash" and taken off. Most of these "flashes" happens so quickly up/down the DOM, almost impossible of seeing them, especially during the day session, but my program keeps memory of where they happened, as price gets closer to these areas, at certain level it will buy/sell into or towards these areas going for a handful of ticks. They are most powerful when price is headed to S/R.

But if you are going to day trade it manually, day session is almost impossible unless you trading in direction of trend, it is much easier to do in the middle of the nite when you see volume double of areas around it and can easily snap up 1-6 ticks. But luckily most are sleeping. This occurence doesn't just happen in Crude oil but in several markets but certainly not the currencies.

Trading off the DOM for me is easiest during last 35 minutes of day session in ES, but having a one minute chart helps to show me where trend is.
 
Quote from ChkitOut:

i'd be willing to bet there is some super duper program that can make something of the order book.

i'd also be willing to bet there is no chance in hell any human watching it can make anything of it.

:cool:
everything(majority) trades electronically,every single acct is computed for risk ,recorded long or short,stops,amount in the acct,all that data is somewhere...now imagine we are all lab rats and that gs,jpm,jeffries,morgan are the scientists..archipelago started tje electronic trading apparatus and was bought out ,those that bought have those stats,so yes ,there is a super duper somewhere
 
Quote from traderchi128:

I don't want to come across as harsh....but that's an insane way to tell if it's an iceberg order. Maybe it worked 10 years ago, but no way it works now.

Even so doing it that way you still have zero idea of how much is on the iceberg order. Do you really want to be buying an offer if that iceberg behind only has 50 lots in it? No way in hell. Sure if it had 500 that might be a decent trade. But doing it the way you mention gives one no idea of what's behind it.

ok. I dont know if the "chi" in your name means Chicago but it is/was a common startegy around here. maybe you are a market wizard
 
Quote from 2rosy:

ok. I dont know if the "chi" in your name means Chicago but it is/was a common startegy around here. maybe you are a market wizard
chi means you know a little something about pizza and hot dogs. At one time it also meant you a knew a little something about trading. But then those kids out there in California invented computers.
 
Quote from 2rosy:

ok. I dont know if the "chi" in your name means Chicago but it is/was a common startegy around here. maybe you are a market wizard

I traded there for 10 yrs. I was in a very big trading firm that had plenty of guys that used that strategy. Worked best in the Bunds and Eurostoxx.

I am willing to bet you 5 rounds of pitchers of Old Milwaukee at Cactus that nobody manually does that anymore with any kind of success.

Trust me....I wish it still worked. Would mean more people in the biz...more volume. I'm not a market wizard by any means....just been in the business a long time. Seen a lot.
 
Quote from oldtime:

chi means you know a little something about pizza and hot dogs. At one time it also meant you a knew a little something about trading. But then those kids out there in California invented computers.

Chicago Pizza is horrible. That deep dish disaster they serve is known to the rest of the world as lasagna.

The Hot Dogs....second to none. Nothing better than a Wiener's Circle dog at 2 a.m. after 8 hours of drinking. I think everyone at some point in their life should experience that whole thing. Hilarious shit goes on there from midnight to 3 a.m.
 
Quote from traderchi128:

Hilarious shit goes on there from midnight to 3 a.m.
wasn't sure if you said "Hilarious" or "Hazerdous", I guess it just depends on where you're at in life.
 
Took a while today before I found a trade into CL downtrend after I closed other trades in euro. Two trades in CL with short trade to first profit and second trade was a scratch for a few ticks positive.
 

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