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Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,388
Thanks Received: 10,207
We are talking about regulated futures here, not bucket shop FX or CFDs. Obviously not all data feeds are the same, but isn't the idea that your broker is manipulating your data feed a little far fetched? Brokers make money from you trading more, not from you losing money. In the regulated futures world brokers generally want you to be successful and make money. My broker does everything in their power to help me. They arrange my NYMEX seat, they have an IT department I can use. The better I do and the more I trade, the more they make.
I've been staring at the DOM for years now. I have noticed that the two or three ticks above the high of the day or below the low of the day are always hot spots for stops. When the price hits a new high of day for example, volume will have a mini explosion to the upside where I believe stop orders have been triggered. And I think a lot of these stop orders are orders to open new positions as well as close positions.
Furthermore, in an uptrend for example, there will be 20% or 30% more limit orders on the offer than on the bid. One can safely say that these orders are to close out existing longs established earlier in the uptrend.
Alright so you want some answers and you want guidance. No problem. I will answer a couple questions but you need to be way more concise and just state your questions clearly.
You were all over the board but I'm glad you posted.
CLOB. Central limit order book= cme brain the trade match engine with its own rules and pipelines. Yes there are backdoors for the wealthy and helpful agreements between synthetic mkt makers and the exchange. Cme has some bonafide MM for options and other cuts but in the sp or es.. they are not bonafide or categorized by the exchange so they are synthetics
The market is made up limit orders that you can see and market orders that you cannot see. You also have iceberg orders that show up on the book as a 1 lot limit but it could be a 1000 lot limit order.
You also have limit orders and stop orders that are resting on a server that's colocated at the exchange but those orders don't show up either. The only orders that show up on your screen are limit orders sitting on the CLOB ok. Iceburg limits are on the clob and so are stops but you won't see these. You also may have contingent order sitting on your computer at home or on your phone that will be sent only when something happens like price or volume or time etc. So those are hidden orders also.
Where are stops? All over the place and everywhere because you have 7000 to 30,000 participants or entities logged into the cme and connected every day. At night it avg 5 to 7k and during the day it's closer to 30k connections. Cme has this number in real time and so do most large traders fcms etc.
All of this participants and you make up the market.
We are an ecosystem with everyone doing their part like a living organism. Stops tend to be in obvious spots on charts... below and above support resist and also below and above consolidations and trend lines. They are also around whole large numbers . 4500 ..4550 4560 etc.
Your opposition is at your price not a few ticks away. When you buy it someone else sold it at the same price. You can exit in a few ticks also if u wanted to.
If you buy one most likely they will sell enough to move the price a few levels against you thus securing themselves a decent profit quickly. They already have limit orders on the book way before you arrived as a gtc order. So they know if they can get price to move they are 1st in line to exit. This is done with gtc orders that may be taken down overnight as to not get hit but sadly they get to keep priority!!! The next day when they out them back in play.
Trapped. No one is ever trapped. You click the mousr or keyboard or phone or set a stop and you are not trapped. Ur out. Trapped usually means novice traders are losing and bigger players are pressing the mkt against them as they continue to hold losses and even add to their positions all the whole they feel trapped but it is just their mind and ego that keep them from untapping themselves!
Just sit back and watch the charts second by second for an hour every day and learn to not fear it and learn how it ebbs and flows. Then start scalping and do as many trades a day as you possibly can. Literally try different things . Stoos no stops etc indicators .. literally know your going to lose 1000 but trade trade trade. The money is gone anyway. Trade a lot and often based on some simple criteria so you can gain a comfort level with the mkts.
So many watch the mkt and make 1 to 5 trades a day trying to learn
.that's just dumb imo. You going to be a pro basketball player and shoot 5 shots a day and call that practice? Or learning...heck no. Trade trade trade trade. The feelings and emotions need have you in the market so you can understand yourself better.
Well hope that helps. Just come up with your own ideas and trade. Don't worry so much about hft or mkt makers etc. Just stay small and have fun but also pay attention to what ur doing ok.
Sure because the whole idea behind special privileges is to allow everyone to know about them.
When you have professional traders doing shit tons of volume daily and they realize the cme has special relationship with citadel and penny Kenny then sure . You kinda scratch your head and say...what's a few thousand wash trades a day...or what's wrong with using the do not match my orders algorithm at the cme clob to game priority.
But more than anything it's the gtc orders that are allowed to come on and off and maintain priority that chaps my ass.. because the next day they are still numero uno or they just cancel them if not needed anymore.
If you search around enough you can find lots of lawsuits with cme from professional traders and they all end up the same way....can't prove it.
However seeing that penny Kenny is an enormous share holder of cme and does massive volumes has its privileges and being grandfathered into deals that would be illegal now is probably not illegal! But you can still make money in the mkts.
This isn't about fairness. I was stating what I know and believe to be true from research I have done. You can do it also and start with cme wash trade lawsuits.
Think if you put a 30 lot on both sides of the market and use Do Not Match then you maintain que priority but you can buy and sell over your orders as new ones come into play and you fill other people orders first because you are top of the book always in que and this is how and why the es can just sit there over and over as you try and fill and ur scratching your head going how is this happening?
Sell 50 at 34
Buy 50 at 34
Do not machy own orders! Hmmm.. imagine that
Or even sell 50 @34
But 50 @ 33
Do not match. Well then you can still trade different qty above and below but you won't trade with yourself so fill all other orders etc. But not with yourself.
Like most business there are reason way more than genius that make them successful l. There are loop holes in every business. I'm happy citadel creates liquidity on a massive scale it allows me to sit here and make trades all day every day. Yes I pay more in slippage in a year than most even make as a salary but that is the cost of doing business.
Hope that helps a little bit you can dig into the cme no match algo. Some used it in this way.. I think it was called eights or something and got fined for it but my cell phone bill is only 25 a month unlimited everything and the plan no longer exists but I'm grandfathered into an old plan...not illegal.
Link to the CME match prevention along with rule changes in 2020 to try and curb the abusive practices but it's all just a slap on the wrist and if you read between the lines this is where most of the ultra short term advantage comes into play for the big synthetic players. Read the entire thing 3 x then have a drink and really think about what it is saying.
It states legitimate business purposes and some of this is ok etc. That's why I find it funny that so many whine about the markets when they truly don't understand how it all really works.
I got a late start today but it would only be prudent to out my money where my mouth or ideas are so.. here some trades I did today in the NASDAQ futures. I call it Nasdaq I'm done with the mico mini nomenclature.
This is an ok day and I have lost 30k in a day also so don't go thinking I know what I'm doing but my point about trading more is really what I am trying to show you with my chart and executions.
I will post a 1 minute granularity and a 5 minute.
What you want to see in broad strokes would be buying low and selling high which is the same as selling high and buying low so on my charts you have blue as buys and red as sells.
This will show you what I did today so far in the last 3 hours and if you really pay attention you can understand where I averaged down and where I just scalped.
Overall though you want to see blue color below red color or red..sells above blue ..buys.
Have a great day and trade as much as you can. I don't mean big size. I mean over and over and over. The more liquidity the better for me and the more you will learn.
I tried uploading a couple charts with execution but the attachment screen just freezes and has a black bar running down the left side of my screen. Not sure why.
Don't like this new format of the site at all. Is there a way to go back to the old style?
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,388
Thanks Received: 10,207
Do you have anything to substantiate a statement like that?
So basically no. Just unsubstantiated conspiracy theories.
Nothing stopping you doing exactly the same thing. Oldest order in my order book is 31-Dec-21.
Can’t really comment on your wash trading comments, because I’m not really sure what you are saying. Wash trading is obviously illegal and if you were to monitor the CME disciplinary actions you would see they are fining people for it all the time. I would also point out that the sentence “where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk” definitely has some ambiguity. Very easy to argue that two automated systems could trade with each other, or two traders working for the same firm but in different locations could, and that nobody would reasonably think the purpose was to avoid taking market risk. In reality I know software like TT and Stellar, have their own internal self-trade prevention functionality. Even to the point that it will create offsetting internal trades if its different Algo’s or Trader's trading against each other. This way everybody's position is correct and in the case of Algo’s, it prevents them having issues due to cancelled orders/trades etc.
