Es Dom

Discussion in 'Index Futures' started by Neoxx, Aug 24, 2008.

  1. Neoxx

    Neoxx

    Any tips on reading this?...
     
  2. Use a bot.
     
  3. Neoxx

    Neoxx

    Come again?...
     
  4. The Globex can execute a trade every 13.7 milliseconds (as of May 2008 see news release at http://www.reuters.com/article/pressRelease/idUS258268+13-May-2008+PRN20080513 ) and can update the DOM even faster (since no price matching logic is involved).

    Can you process up to 100 DOM updates a minute? No, you can't. Thus you should use an automated trading robot AKA a bot to be able to take full advantage of the DOM.
     
  5. Error Correction: That question should be "Can you process up to 100 DOM updates a SECOND?"
     
  6. Neoxx

    Neoxx

    Thanks for the clarification, Jeb. Interesting article to boot.

    The natural follow-on question would be do you really need to process every individual update in order to utilize the DOM as a trade-assist tool?

    My analogy would be a pitched medieval battle, 10,000 strong. At any one moment, there would be thousands of individual reactions and counter-reactions. However, from an aerial vantage, one could observe the ebb and flow, the tide of battle and, every so often, notice recurring patterns
     
  7. Neoxx

    Neoxx

    I'm sure it takes a long time to get to grips with the DOM, and that there are no shortcuts.

    Saying that, does anyone have any useful advice for novice DOM/tape readers?
     
  8. bbqbbq

    bbqbbq

    i heard reading not the supply and demand, but reading the last trade is helpful. for example if last trade is 1000 sold, then you know a big buyer sold.

    by the way, does anybody know how you can figure out if those big orders are buy or sell orders?
     
  9. www.marketdelta.com
    www.traderfeed.blogspot.com/
     
  10. Neoxx

    Neoxx

    Thanks for the link, Sarvise. There’s a lot of interesting stuff on Steenbarger’s blog.
     
    #10     Aug 25, 2008