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Does the position in the dom queue indicate how right you are when entering a trade?


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  #1 (permalink)
 anubis 
Montevideo Uruguay
 
Experience: Beginner
Platform: Sierra Chart / Jigsaw
Trading: futures
Posts: 56 since Jul 2020
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So I enter a limit order on the DOM at X price.

If my order stays at the last position in the queue, no one else comes after me, and as time passes and price reaches my order, am I right to assume that I'm entering a shitty trade?

If no one else wants that price it's because of something?

Also, I noticed that when I enter an order and lots of orders come after me (at the same price), price reaches my order but it doesn't get filled and is usually a good trade.


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  #2 (permalink)
 SpeculatorSeth   is a Vendor
 
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If you truly have an edge for entering into that trade in the first place you shouldn't care what others think. However, you do have it right that it's not a good thing to be at the back of the queue and get filled on a sweep. If price ticks through you on the fill then you've lost a lot of the advantage of getting filled with a limit order. It's much better that by the time you get filled a ton of orders have lined up behind you that you can hit back into for break even if you need to.

I think this dynamic is a large part of why informed traders using some sort of news as the basis of their trade prefer to be the aggressors.


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Last Updated on April 19, 2021


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