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Bookmap - Bruce Pringle (Chief Educator) - Ask Me Anything (AMA)
Question 1. Some time ago there was an entrance barrier. Currently everyone can see order flow. If everyone can see it and act upon, where is the edge?
Question 2. Huge part of liquidity is fake/spoofing. How can you make constructive decisions using visualisation of something that is mostly fake?
Question 3. Bookmap authors seem to originate from HFT world. Yet as I can see BM itself is just a heatmap, there is no HFT activity monitoring tools available. Is that on purpose and you keep that functionality for institutional users?
Question 4. Is it possible to monitor liquidity stacking/pulling on multiple price levels (ie 10 levels up, 10 levels down, how much in sum was added/deleted for all levels in given timeframe)? It's virtually impossible to see that by only watching a heatmap
Question 5. Do you plan to add proper iceberg tracking by monitoring of all of the limit orders history during all of their lifetime and monitoring how many contracts were transacted against each of it? This approach allows to track and show when iceberg was placed and more important to show if it's still there. This feature is a game changer and it's being implemented in other platforms. Do you plan to add such functionality?
Question 6. Do you plan to add MBO support to the heatmap to allow tracking of large individual resting orders? I mean a way to distinct between a level where you have 100 one lot orders (100x1) vs level where you have 1 x 100 lot order.
You mentioned in question #5 This feature is a game changer.............. my question is which platforms are currently using the functionality mentioned? TIA
Hi matzero, below are the answers to your questions.
Regards,
The Bookmap Team
--------------------------- Question 1. Some time ago there was an entrance barrier. Currently everyone can see order flow. If everyone can see it and act upon, where is the edge?
Hypothetically let’s suppose all traders had a similar product as Bookmap. Yes, at this point your edge diminishes, yet you would be at a disadvantage if you did not have this tool. It is akin to an analogy with weaponry; you would be at a disadvantage to bring a knife to a gunfight. Regardless, we continue to develop and evolve new tools that offer new edges, such as the Stop&Iceberg Indicator. Tools like the footprint charts, the DOM, and T&S don’t show both current and historical order flow data, so having the heatmap with better visualization & performance (faster updates) gives you advantage.
Question 2. Huge part of liquidity is fake/spoofing. How can you make constructive decisions using visualisation of something that is mostly fake?
Liquidity relatively close to the market can't be entirely fake as it has a risk of being executed (e.g. in a stop run). Also, many elements of liquidity are important, not just spoofing. Did the liquidity transact? Did they bid in front of the longer term liquidity, or was it behind it? Did they also pull on the offer at the same moment? What was the reaction by the aggressors? How did it relate to the market price structures? The answers to these questions and many more lends understanding of the intent of the traders within the auction. Comprehending the context between the liquidity, transactions, and price structures give traders an edge to where price might move next. In addition, note that visualization is not only around the liquidity (limit orders), but also a visualization of the traded volume and the volume delta. This provides great insights to future price movements.
Question 3. Bookmap authors seem to originate from HFT world. Yet as I can see BM itself is just a heatmap, there is no HFT activity monitoring tools available. Is that on purpose and you keep that functionality for institutional users?
Bookmap is not just a heatmap, there are the columns on the right side that enables you to analyze the activity per price and there are multiple addons created both by the Bookmap team and by 3rd party vendors. Many of those addons are unique. To learn more, I suggest you visit Bookmap marketplace
Question 4. Is it possible to monitor liquidity stacking/pulling on multiple price levels (ie 10 levels up, 10 levels down, how much in sum was added/deleted for all levels in given timeframe)? It's virtually impossible to see that by only watching a heatmap
You can use “quotes delta” column to see something similar to what you describe. Or you could use Bookmap API to write a module like that, starting from something as basic as https://bookmap.com/forum/viewtopic.php?f=3&t=55 to something complex, including column-like display with “Screen space painter” API extension (true columns aren’t yet supported, but you can render the data in the free area to the right of the timeline. Or just in a separate window)
Question 5. Do you plan to add proper iceberg tracking by monitoring of all of the limit orders history during all of their lifetime and monitoring how many contracts were transacted against each of it? This approach allows to track and show when iceberg was placed and more important to show if it's still there. This feature is a game changer and it's being implemented in other platforms. Do you plan to add such functionality?
Yes, we have it as part of the MBO bundle. This addon is called the Iceberg On-Chart indicator. It works with CME MBO data only for now. It identifies when the iceberg was first detected, when each portion of the iceberg transacted, if the iceberg was moved, and ultimately if it was canceled or fully executed. Each individual volume portion is displayed as well as the entire aggregate volume.
Question 6. Do you plan to add MBO support to the heatmap to allow tracking of large individual resting orders? I mean a way to distinct between a level where you have 100 one lot orders (100x1) vs level where you have 1 x 100 lot order.
Interesting. Yes, we’ll evaluate this. Regardless, note that this can be developed via Bookmap API, specifically you can overlay arbitrary data over the heatmap using the “Screen space painter” extension, or (although this option has more downsides) you can edit data while it’s being received using the “Data editor” module.
Need to consider how to use such information, as in many cases, big firms use many small orders, so it’ll be harder to locate them. There is another question to consider is how to visualize it.
It is my pleasure to welcome Bruce Pringle with Bookmap for our 422nd webinar event, on Thursday, April 29th @ 4:30 PM Eastern US.
Event Title: New Stops & Iceberg Indicators In Bookmap
Gain an Edge by integrating both On-Chart and Sub-Chart MBO Indicators.
- New On-Chart indicators for Stops & Icebergs
- Confirm precise areas of transactions
- See the Iceberg's entire history of detection, movement, and execution/cancellation
Bruce has been trading a variety of markets for over 10 years. He leads Bookmap's trading education department and supports traders and professional educators. Bruce has developed expertise in reading order flow and market microstructure.
About Bookmap:
Bookmap is an innovative trading platform that displays the entire market liquidity and order flow. It provides full transparency of the actions and intentions of market participants through a clear visualization of the past and present state of the order book.
With Bookmap traders follow the Order Flow & the evolution of the market liquidity with no delays or aggregated information, access precise volume data and identify which side is in control, identify market trends & hidden price patterns with high precision, and validate trading decisions with an additional suite of proprietary order flow indicators.
Gain an Edge by integrating both On-Chart and Sub-Chart MBO Indicators.
- New On-Chart indicators for Stops & Icebergs
- Confirm precise areas of transactions
- See the Iceberg's entire history of detection, movement, and execution/cancellation
#icebergorder, #bookmap, #orderflow, #mbo
Sponsored by: Bookmap
Bookmap is an innovative trading platform that displays the entire market liquidity and order flow. It provides full transparency of the actions and intentions of market participants through a clear visualization of the past and present state of the order book.
With Bookmap traders follow the Order Flow & the evolution of the market liquidity with no delays or aggregated information, access precise volume data and identify which side is in control, identify market trends & hidden price patterns with high precision, and validate trading decisions with an additional suite of proprietary order flow indicators.
Webinar Recording:
About Bruce Pringle:
Bruce has been trading a variety of markets for over 10 years. He leads Bookmap's trading education department and supports traders and professional educators. Bruce has developed expertise in reading order flow and market microstructure.
Bruce leads Bookmap's trading education department and supports traders and professional educators.
Bookmap trading platform accurately shows the entire market liquidity and trading activities.
The webinar recording is available now on in the webinar section as well as on FIO's YouTube channel.
"If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much." - Jim Rohn
One of the strongest forces in futures markets is that of options hedging. Large options transactions can often require large hedges which can lead to rapid fluctuations in markets. Join Brent Kochuba of Spotgamma and Bruce Pringle of Bookmap as they delve into the HIRO Indicator, revealing the impact of options hedging on futures in real-time.
#spotgamma, #bookmap, #options, #hedging
Sponsored by: Bookmap
Bookmap is an innovative trading platform that displays the entire market liquidity and order flow. It provides full transparency of the actions and intentions of market participants through a clear visualization of the past and present state of the order book.
With Bookmap traders follow the Order Flow & the evolution of the market liquidity with no delays or aggregated information, access precise volume data and identify which side is in control, identify market trends & hidden price patterns with high precision, and validate trading decisions with an additional suite of proprietary order flow indicators.
Webinar Recording:
About Brent Kochuba:
Brent has been in equities and derivatives for almost 20 years. He worked for BofA and Credit Suisse as an equities broker and in algorithmic sales and trading. Following that he was in Institutional Sales for Wolverine representing their electronic derivatives trading platform. In 2019, Brent founded Spotgamma.com which publishes research and analysis on the options market.
Brent Kochuba is the Founder of SpotGamma, and has been in equities and derivatives for almost 20 years
Bookmap trading platform accurately shows the entire market liquidity and trading activities.