Quote from Dackster:
Jack, firstly, let me say i really do enjoy your posts, and i mean that.
Let's break away from the norm, the noobs, the wanabees.
Two traders are separated by order entry strats around a given price or prices. The actual action and exchanges are for everyone to see, surely a profficient use of orders is key in the trading game?
Bog standard works, but can bog standard move size?
Yes it is all there to see.
Most look at two time segments: The present (as you mention) and the near past (see the PA pseudo "elegant" impression ving.. has).
I prefer to look at two time segments as well: the present and the near future.
You raise the use of orders as a purposeful effort to attain an advantageous result. I am VERY focused on watching those who do this.
There are four basic strategies that they use. For that I am thankful.
I especially watch the image of smart money on the indexes as it relates to the cash market. Collectively I use 13 leading indicators of price. By stating this you can see the emphasis I place on the near term future and especially how it comes into the present.
The market is multidimensional and as the futre comes closer and closer to the present, there is a period of certainty about what will happen in the Present next.
I do not need to look at a price chart to trade it turns out.
I was given a gift by a person a while back. I was in an inquisition of great depth and purpose. The gift was being able to, sensitively, look at myself in my mind. Before this I was instructed vis a vis all aspects of health to be able to examine my body and its goings on. Adding the mind in the way of the gift completed a lot for me in dealing with transference.
It is extremely improtant that as many people as possible become wealthy so that they can use wealth to solve problems of others.
I long ago had figured out the aspect of certainty occuring in the very near future. In any multidimensional system that is dynamic, and especially in human and human built control systems (in any combo or sequencing of their active presence), the "movement" is a consequence of a non intuitive effect.
There are many possibilites of what can happen before it happens. as a person learns to steer and focus on the pertinent combinations, he also eliminates from view what is NOT a possibility.
We operate at a 100 millisecond cycle rate. Doing the cycle as always, allows one to be effective and efficient. I trade with sports memory so it is all unconscious like reading or driving a car would be for others.
It was vetoed to put me through the inquisition supported by the usual machinery used by Madison Avenue to evaluate TV ads through analysis of eye movement. (Used machines are about 25K so they are cheap).
The limiting case for alternatives is one alternative. The circumstance, situation and condition of one alternative occurs in the very near future just before the present if you have the ability to display what is in the picture. I do. There are two display locations: the screens and the mind.
So creating an ATS is just a labor process with coders after the schematics are drawn out.
The drilling down into the opportunity, comes down to, as you say, to dealing with orders. As the Marines at EOP used to say to me about fixes being put in: "it is unf*ckingbelievable".
What is at hand is a time in the very near future where the next movement is certain and HAS NOT OCCURRED. This is the definition of control and opportunity.
So there are about 70 degrees of freedom and the focus gradually comes down to a subset (5 to 7 binary elements) within the power of the observer to do 100 milliscond sweeps (a computer operating at a rep rate of ten times that is "sufficient" to prove "certainty").
By trading in certainty habitually or by ATS, a lot of other issues fade away.
Now the caveats. They are green today.
I slipped in a few already.
vingxx misdefines PA. Watch what is important in the caveats and see his definition disappear.
To have a way of seeing anything, a person must look in a binary way only so must an ATS. It is like saying only breath through your nose to maintain C0-2 proper balance. People think it is optional and use their mouths (collectively speaking). WTF.
The binary must also be stated in a vector manner as that affords the opportunity to bring time into the picture. there is some marginal stuff about S and R in PA and the left and right boundaries are omitted. Using a binary vector brings four boundaries into view.
You may only view markets as dynamic and in a binary vector to be able to operate in the two required time zones: the Present and the near term future.
The boundaries of the near term future are set by Present market multivarient operating point.
A person can only code according to non probabilitistic information theory. No exceptions.
Lets look at making money using orders very pragmatically.
Look at the obvious stuff coming down the pike from the future into the present. Look from the right side of the screen into the middle like you are rafting into the present with your future like minded buddies. Most orders are not filled. Dummies put in orders to be hit. People actually do this kind of thinking. Insane (look up the humorous definition).
At some point, just before the Present it is obvious that one or the other BBid or BAsk is going to be eaten by a MARKET order and price moves to the next group value on the DOM list.
Can anyone see which side of the sum of five limit orders sets is smaller? No they can't they are looking at history and what they call humorously PA. Can anyone see within that list of five on each side where there is a "wall" that can't be gotten past? No they can't they are looking at history.
The DOM has four games being played on it. the most frequently done thing is pulling orders. The next most frequently done thing is adding orders that are not near the BBid or BAsk.
There are four sizes of orders on the DOM. units, tens hundreds and thousands. The important ones you brought up. The big orders. BUT what size orders are used to play the four games?
Who isn't playing the games? The guys who show on the T&S as taders or guys who are getting blown out.
Lets say you want to make a killing on a VERY BAD DAY. A day where 40 contracts makes you 100,000 dollars. WELL STEP IN FRONT OF THE CASCADE AND TRADE 5 TIMES THE CAPACITY USING AN ODD HARMONIC EXIT. You are using more than 40 contracts to hlep move the market. Going up to 5 times the T&S hits is done with 5 orders at twice the hits. Twice the hits is in the same placeholder range usually.
So to move markets with orders you play the four games and you trade at market to leave PA traders holding the bag. You always are riding in the boat in the direction of the minority, meaning to are parasitic and you frontrun the smart money.
I like to monitor the drift of Premium since the bots are mostly controlled by the regression of the drift ONCE IT GETS TO BE STATISTICALLY SIGNIFICANT. SO I COUNT DRIFT IN POINTS and be sure to front run the expected bot entries on the round numbers. I don't know why but the bots are very crude in their use of small whole numbers and not scaling on the next lower sig fig.
Looks like we have interrupted the usual palaver.
here's a sketch of how crudely to look at doing a reversal that would nail the current channel or range expansion on a day to pick up the ATR of the day in one trade. we showed a print in the past that nailed $40,000 with 40 contracts in one action; it was 20 or 30 minutes long.
