ATAS-Order flow/Tape reading

Discussion in 'Trading Software' started by antares66, Dec 10, 2018.

  1. Hello,
    is ATAS only for futures or can i use it for stocktrading?
     
  2. REDP1800

    REDP1800

    I have no idea,, but if someone could explain to me how a human can read and understand transaction matches that are taking place at millisecond time frames and using it to your advantage then this would be of interest? Obviously what is on the tape is on the chart.
     
  3. Disagree with REDP1800. Chart delays information and never paint a full picture. For example what happened inside a 5 min candle can never be explained by the chart. While watching tape one can understand what size of order was executed and at which side.Who is buying and how much can not be explained by the chart. However like chart, tape reading also has its drawbacks. You almost always forget what happened a few hours/days ago which can be a useful info to make trading decisions. But by using Tape as primary and chart as confirmatory source of decision making one can greatly increase the Odds.
     
    qlai likes this.
  4. REDP1800

    REDP1800

    lol a few hours or days ago on a tape?
     
  5. REDP1800

    REDP1800

    have you ever heard of a tick chart?
     
  6. No. what is it? Do you have a chart to explain? Does your tick chart tell you which ECN was buying all day and refreshing BID ? Does it also tell you that there was a huge sell order on a price which got refilled?. That's what a tape tell you.
     
  7. REDP1800

    REDP1800

    and how much time do you have to undertand that and react to it? I am not putting down tape reading i am saying that it is in the chart
     
  8. REDP1800

    REDP1800

    but so far no one has been able to tell mem how in human hell anyone can make sense of a tape these days
     
  9. REDP1800

    REDP1800

    Key to any discussion of high-frequency trading is the tape, which records the price, time, size and order of trades. It’s the day’s financial narrative, and its availability is held up as a major reason why the U.S. equity markets are trusted for their transparency and fairness.

    The tape is also highly prized by traders, who base their computer instructions, called algorithms, on this data. The Nasdaq Stock Market produces about 50 gigabytes of information every day, which is measured in nanoseconds — or a billionth of a second.

    Lotus Capital Management LP of New York earlier this year realized that a competitor was beating it to a trade it had programed by exactly 3 microseconds, day after day. The loss meant Lotus was forfeiting about $1,000 in daily revenue on that particular trading strategy.

    Lotus, a quantitative trading firm that uses high-frequency strategies, invested and tinkered, eventually shaving five microseconds from the router and two microseconds from the execution server.
     
  10. REDP1800

    REDP1800

    Tape reading probably worked back in the 1930s and maybe even into the 60s, but then again even the abacus had it's day in the sun!
     
    #10     Dec 10, 2018