Just started trading again , with bad results first 2 days, only using Level 1. Should I bother getting level 2? I feel like with the speed of today's automated computers changing prices. Maybe the price and sizes are real anyways? Or that people dont' display true sizes? I'm trading in a time frame of 15-30 minutes Using 1 minute charts.
simple but very useful suggestion use at least 5 min bars, better if you use it in conjunction with 1 hr bar, and increasing the holding period of trade from minutes (I am assuming that your holding period would be in minutes since you trading using 1 min chart) to hours. Trust me your profitability will go up.
as far as usefulness of level2, i think its still useful but god dammit who knows really i for myself have not done any testing yet to know whether it is useful or not. A big reason is all the retail junk software out there like MC, NT, Amibroker etc. fail miserably when anything with level 2 and whole order book is concerned. You need custom software to do such analysis and people who write such custom software generally work for big banks and hedge funds and keep the information for themselves and their firms and don't share on ET.
Thanks I'll keep that in mind. I've thought about the 5 min bars. Your post will help me implement it.
how do you know this? what is your source of information? Do you personally know anyone. Please note I am not saying you are wrong, I rather will guess the same, but just want to know your source of info.
You should use Level II in conjunction with Time & Sales window. Comparing Level I with Level II is like comparing Hyundai Elantra to Bugatti Veyron in speed, Level II gives you alot more information.