Thanks Piezoe. I will do the following things, anything small that leads me to the right path helps. The learning process of Financial Markets is never ending.
I understand what you're saying but it's not relevant to my question. The whole industry runs on algorithms. They have a certain behaviour in my opinion and from how I've been trading the last years.
Exactly. That's what I'm trying to find out. Any hints, besides understanding the fundamental structure? Analysing data for example?
Global banks and institutions have a network terminal for Forex. Pretty much most of global banks and institutions are trading there. I have seen Citibank, J.P. Morgan, Mizuho Bank(Japan), Bank of China, UBS, Deutsche Bank, HSBC, Saudi Investment Bank, Bank Negara Indonesia, Myanma Foreign Trade Bank and pretty much most of the big banks from all nations traded there. The terminal shows their ID and names and the price when they trade. It is amazing to see how they move the price when they buy or sell. Some positions they took are ridiculous. They do it maybe for unknown reasons. Maybe they do it for hedging or they get order from their government or their clients like Samsung to protect their price level from fluctuation or simply do a multiple international money transaction. I don't think they really care about losing money at all.
bone, doesn't this imply that algos could know each other after CME approved them since they have their own identifier tags and they have access to others tags?
It's entirely relevant to your original post. Large spec accounts don't execute orders the way you have pictured in your mind that they do; what you perceive to be a spec order from a bank desk is much more likely to be a customer fill or a hedge, and most importantly large spec order identifier tags (like those attached to a Hedge Fund) are not made known to those outside the exchange Compliance Department.
First, mine was an hypothetical question, not an affirmation. Second, you are correct: Is the Tag 50 ID submitted on a message visible to other market participants? No. Trading on Globex is anonymous. Thank you and sorry for the misunderstanding.
For those of you following at home, CME regulations state that Tag 50 ID's are anonymous to counter parties and other market participants. In other words, US Regulated Futures Exchanges do not make any counter party information available on trade confirmations or market data messages.