The two most active parts of the markets are adding and pulling orders from the order books. Next would be the trading of orders which are shown in the market flow. You strongly advocate people to carve ftt turns on every 2-bar forming translating tape near the REAL walls shown in an order book. To you, the walls are obvious to locate. I have a few questions pertaining to the walls which, to my understanding, could be REAL (not movable) or "FAKED" (movable) formed by big-sized "add and pull" players who play games to confuse inexperienced traders or pave ways to execute their trading strategies. Are there walls on the left boundaries (pt 2, ve etc) of every 2-bar forming translating tape whenever price moves to it, except true ftt? If so, are they real or faked kind of walls, or no wall at all? Similarly, on the right boundaries? Real or faked walls, or no wall at all? May be an overlapping question. When heavy scalpers exit early for profits, hitch and stalls are formed in a tape. Do they form the walls on the boundaries of the formations? Real or faked walls, or no wall at all? Thanks. Please expand if necessary. (Sorry if this is OT.)
It`s off top,but more so,your asking a person who never gives the straight answers.Why bother the space?
Paddler and I go back quite a ways. And there are a lot of people who keep notebooks, topically filed, on various aspects of the market. As you become more familiar with trading and the markets, you may develop a vocabulary for discussing markets and/or the spectrum of knowledge and skills associated with various levels of trading. The topic you just read about relates to the most active data dynamics found in the flow of market information. You may want to consider how improving your personal effectiveness at specific times when the money velocity of markets reaches turning points where the smartest of smart money is involved. I am going to be reviewing just how the equivalent of multiple derivatives in continuous functions can be simulated be using sophisticated statistical analysis. Carving turns at extreme market values where smart money is being anticipated is something you have never "seen" because you have no inference to match the potential of sensing. In normal grammar, you may want to switch from using your to using the contraction you're. As a beginner overview for you consider why market's move from one price to another; it is the minority controlling the supply/demand. Also consider why market's become range bound: it is because the plethora of the majority contracts compared to the velocity of contracts creating the liquidity context. Where do both of these parameters get measured? the answer is on the DOM and the T&S. Add both of these to your platform so you can begin the experience of building some inference in this part of the trader's spectrum. your posts all sum up to the fact that your inference is not forming in any way so far. for whatever reason you need to deal with "straight answers" we don't know. It is very very good idea for you to consider putting me on ignore permanently. from my point of view there are many many people like you on ET. Those who see your class of people, probably pass on adding any substantive content your posts could have to their spectrum of inference. The principle of avoiding putting misinformation in one's inference is an important one. during anyone's sleep processes, the mind would probably avoid merging anything from you into the inference automatically. Please consider putting me on ignore permanently.
All of you comments are correct AND none of them are off topic regarding Automating Trading. A trader's performance largely depends upon his effectiveness and efficiency in carving turns on extremes of market segments. Smart money determines these extremes so tracking smart money is a very good idea. Fortunately it appears that smart money does not follow smart money's doings. Thus surpluses pile up at specific well chosen extremes. A lot of smart money trading is done by picking values rather than picking timing. Thus the "strategic" trader uses anticipation. Keynes gave us "paradigm theory". It involves HS's and the complete HS set yields the PM. the PM measure of the markets are the velocity of the variables. Because the market variables are granular rather than continuous, the logic of Carnap steps in to supersede the calculus applied to continuous functions of base 10 Algebra. By using TF's, the independent variable is expressed as velocity bars. Arithmetic applied to adjacent bars yields positive acceleration and negative deceleration. Logically adds and deletes on market limit orders tell us whether or not a wall is being built or torn down. The market range has walls built at either side. A trader can recognize this and it was always part of "tape reading by skilled wealthy traders. So profit segments are taken "between" walls by front running smart money. The SEC loved to cite me for front-running and they concluded always that I knew someone on the "inside". they also found all of my trade were front-running and no one (me included) could "know" that many insiders. This post is a "straight answer" that confirms the comments of another person who uses the DOM and the T&S in the same way I do. Thus, you can refer to the complete HS, its PM and "the Pattern" to see and understand the system of operation of the market. The trader monitors using MADA instead of the betting routine of the CW's OODA. Why bet when you can anticipate the profit segments. So for automating, the market dictates the use of databases built by using ANSI rules and applying a command system in DBMS language. There are just 6 command sets to learn and under 30 database tables to operate. About 25 of the tables are never commanded to do anything after they are coded in an Access format. A day is simply 81 records of bar velocities and 15 to 20 records of profit segments. Two tables are constructed daily; one is bar by bar and the other is profit segment by profit segment. The fields of these two tables are predefined and the records are largely based on an defined order of events of most of the fields. Six types of actions are possible in the profit taking field for each record. The specific action is found as a lookup in a table that is fixed and never altered, added to or dropped. There are many coding implementation systems for using SQL. You select and load one. This makes you part of the group of practitioners using the most used system of software in the world. Anyone can watch the two most active activities of the market. They show on the DOM and T&S. To take the full offer of the market daily, you implement SQL and complete the records of two tables using look ups already set in stone.
The logic and the data should be independent, specially for machine learning systems. The logic and rules that the system applies should be able to continue working fine when the dataset changes. Otherwise it points to overfitting of the system. This is addressed during the system's design, as the data is separated into training data which is used to set the paramethers and test data which is used to ensure that the data is not overfiting.
Hi Jack, I am very much aware of the fractal nature of market data, and the relative information contained in the order book and tape vs the chart. thnx. how about we stick to the threads subject and narrow down the conversation around automated trading systems?