My question is WHY only some positions are visible???? We all see the 5 down and 4 up and additionally there are visible positions above and below those 5up and 5down. However, according to you there are invisible positions that do not appear on the DOM - my question is why??????
Not to beat a dead horse but... I just found an interesting article. The full version can be viewed here: http://i-found-my-holygrail.blogspot.com/2005/09/worlds-most-successful-trader-paul.html In 2003 I received an email from a former Man Financial broker in London who said, "One of our private customers has been the highest volume trader on Eurex for the last 8 years. He trades approx 3 million lots a month and makes himself â¬50 million a year, which he has apparently been doing for the last 10 years." In 2004 I learned that it is Paul Rotter. He is notoriously called "the flipper". and .... this is how he makes his $$$$$$$: Q: you are known as the orderbook-scalper, could you please explain to our readers what you are doing and what your strategies look like? what is your tactic? A: it's some kind of market making where you place buy and sell orders simultaneously, making very short-term trading decisions b/c of certain events in the orderbook (level2). for example, i usually have lots of orders in different markets at the same time, pretty close to the last traded price. the resulting trades are usually a zero sum game, but i get a pretty good feeling for what is going on and then ultimately can make a decision for a larger trade. Q: how long are you usually in a positon? A: since i do trend plays very seldom and actually scalp the market, i constantly get fills in different markets on both sides which can cause constantly changing positions for hours. sometimes i change my opinion several times within a couple of minutes, which is not pretty hard for me, since i'm only looking for the next 3-5 ticks. I wonder what the big heads on ET have to say to this??????
Assume 2 ticks in the sim and not 1. Then record it as a 1 tick gain. If that works, you are good to go. Anek
<i>"I wonder what the big heads on ET have to say to this??????"</i> #1: How many retail traders are emotionally capable of executing this hyper-frequency trading approach?
I do not know how many retail traders are emotionally capable of such a feat, but I would like to stress that it has been done successfully by this fella for 10 years straight and since he is 32 now, he must have started when he was 22 which did not make him a senior trader with years of experience. All I am trying to convey is that sometimes what looks like a sure way to lose one's shirt might have a quiet surprising end result. This trader is doing it very successfully and has been for a long time.
You apparently did not devour the whole piece. This trader is making millions and has been for past 10 years. If generating this kind of numbers is "crumbs" to you, then I bow down and will repeat 100 times "I am not worthy master."
So Guys, anybody care to comment on this trader's experience? I guess scalping for 3 to 4 ticks CAN pay off handsomely and made my original quest for the holy grail a little bit more validated. I guess it goes to show that there is more than one way to skin the market lady.