There is one more element to this trade that I will keep to myself, for the most part but if you understand statistics you'll know that data in the tails represent a very small percentage of an overall data set. So, if you find yourself at a point where the data is in the tails what will happen? It reverts back to the mean. The trick is picking your start and end point to calculate the beginning and ending point to examine. These points can be determined by studying volume patterns, which is another point I strongly disagree with from the OP. Volume is VERY important!
The M.I.N.D Game
- Thread starter elite34s
- Start date
PTF. I know a chap who trades very similarly to you, he's a pretty consistent guy. He also rolls in some market stats and a bit of price action to keep him right side up.
I don't think the OP said volume was un-important just that it is not the same as order flow. I think its might be an OK proxy.
Of course now you have these new market delta type indicators that are based on volume@bid and volume@ask. Lets you judge who is buying and selling passively or aggressively. Kind of a higher level view of the tape.
Then you have the tape itself and the order book. I guess this is as 'low as you can go' looking for footprints.
My strong hunch is Custard doesn't just hit the ask with 10 million if he wants that many AMGN, or even put them out on the bid waiting for sellers to turn up.
One would guess he gives his cohorts a bunch each to do the dirty work for him. I guess we need to look for evidence of there operations on the tape and in the order book. Those 10 mill have to go across the tape afterall.
I don't think the OP said volume was un-important just that it is not the same as order flow. I think its might be an OK proxy.
Of course now you have these new market delta type indicators that are based on volume@bid and volume@ask. Lets you judge who is buying and selling passively or aggressively. Kind of a higher level view of the tape.
Then you have the tape itself and the order book. I guess this is as 'low as you can go' looking for footprints.
My strong hunch is Custard doesn't just hit the ask with 10 million if he wants that many AMGN, or even put them out on the bid waiting for sellers to turn up.
One would guess he gives his cohorts a bunch each to do the dirty work for him. I guess we need to look for evidence of there operations on the tape and in the order book. Those 10 mill have to go across the tape afterall.
Jack, Please Trade more and Post Less...
The Universe Needs Balance...
as Confucius Say - Close Mouth Catch No Fly...
I guess I know what the other thread now means when someone asked if asperger's, ADD, multiple personality disorder, schizophrenia, oppositional personality disorder, narcissicistic complex, or antisocial personality disorder is necessary to be a trader (or participate on these forums).
poor guy .. someone get him a prescription. and yes, OP I'll sit in row 3.
poor guy .. someone get him a prescription. and yes, OP I'll sit in row 3.