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This is a good point. In this context, however, the OP (RIP) said that the market was moving directionally opposite his position, so maybe in his case it would have been more straightforward to do the opposite.
Can you help answer these questions from other members on NexusFi?
What I can personally confirm from my own experience is SOMETIMES when you submit a market order - even 1 contract - on a thin instrument like NQ, it MAY trigger algos to rip the opposite direction.
How the algos work, especially when the price reverses, is that they entice people into long positions, hoover up their shorts, and then stop them out.
You are giving the algos their liquidity for a move against you but if you get out quickly, someone else gets smashed instead of you, remember if you are going long, someone else is going short, and when the price ultimately runs short - thats where the big money is, they can afford to be offside if they collect up liquidity to make their move.
They all do exactly the same thing, the difference is how much liquidity is available when needed if not much, you will see longer moves ahead of the real move, watch the london open fakes they are generally pretty tight, thats because they can entice a lot of traders to sell/buy to them before moving off in the other direction, but in Asia, it will take a bit more time to scoop up what they need.
If you wanted to buy 100,000,000 microsoft shares at the NZ open, you are going to struggle to get people to sell you that volume, so you will move the price around until you have what you want and then bosh, do that at the NY open and its all over much quicker.
Things haven't changed much from when all this happened in the pit, its just now it happens in massive size and very very quickly.
You are trading against machines almost exclusively these days. Very few dealers actually manage orders themselves these days. The good thing, however, is that they are quite predictable. The bad thing is they are very efficient and very fast - if you look for patterns, you will work how what they are doing though
Think about how you are taught to trade in most online material they are using that against you.
They know what you will do, because its in every book and online tutorial, imagine being a pit trader, and knowing every one else in the pit had read the same book, pin bars, h&s, pivot levels, blah blah blah, you would clean up right?