What good is the DOM?

M

macattack

I trade using the DOM to place orders, but why should I care if it shows only 5 levels or 10 levels or 20 levels?

Would a person trade differently if the DOM showed 20 levels instead of only 5? It's all faked & manipulated now; it would probably be more manipulated the more that was shown.

Is there any value to it?
 
Would it change your mind if you had a tool that can show you the evolution of the order book over time? Having a historic display of the order book can help you identify the behavior of other market participants including manipulative patterns
 
Quote from VeloxPro:

Would it change your mind if you had a tool that can show you the evolution of the order book over time? Having a historic display of the order book can help you identify the behavior of other market participants including manipulative patterns
More...

I'm not sure if this exactly what you mean, but I've been toying around with Footprint charts next to my Trading DOM and I find it helps quite a bit. In fact, I hardly ever look at my regular candle-stick charts anymore because of it. Just to get a general sense at the end of the day maybe for instruments I don't trade.

But back to the original question, I think more information is always better when it comes to trading, even though many times the order book is showing manipulation anyway. You never know what kind of market inefficiencies you can locate until you have the data to analyze.
 
Quote from VeloxPro:

Would it change your mind if you had a tool that can show you the evolution of the order book over time? Having a historic display of the order book can help you identify the behavior of other market participants including manipulative patterns
More...

Where would you find this?
 
Quote from VeloxPro:

Would it change your mind if you had a tool that can show you the evolution of the order book over time? Having a historic display of the order book can help you identify the behavior of other market participants including manipulative patterns
More...

this type of info (posted just above) has little value for making money.

One of the neatest aspects of the DOM is how it shows in advance where the price turns will occur. Thus "anticipation" is what is provided by the DOM.

Most expert traders use their own systems and add the "leading" information from the DOM to "carve" turns as the turn is signalled by their trading system.

I estimate that on a DOM supported reversal a trader can add at least a point of profit to each reversal he does.

Big money will probably never learn to use the DOM in their trading. I have never seen any change in the DOM games over the years. The big money keeps making the same mistake over and over.

I checked out a couple of big money firms by going on site. None of their traders were close to seeing why they missed trades.
 
Quote from Kevin Schmit:

Just add www. and .com to his handle.

The guy is a stealth vendor. Low post count and username the same as the product he is selling.
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Is the other guy just his shill?
 
if so, who is behind the "gaming" happen at major turning points? Judged by the sizes of the orders, I can't believe it is the small traders, throwing in hundreds of contracts both bid and ask in a matter of seconds



Quote from jack hershey:

this type of info (posted just above) has little value for making money.

One of the neatest aspects of the DOM is how it shows in advance where the price turns will occur. Thus "anticipation" is what is provided by the DOM.

Most expert traders use their own systems and add the "leading" information from the DOM to "carve" turns as the turn is signalled by their trading system.

I estimate that on a DOM supported reversal a trader can add at least a point of profit to each reversal he does.

Big money will probably never learn to use the DOM in their trading. I have never seen any change in the DOM games over the years. The big money keeps making the same mistake over and over.

I checked out a couple of big money firms by going on site. None of their traders were close to seeing why they missed trades.
More...
 
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