what you must understand before you continue to read my 2 ceents. 1. the limit order book is always levelled and full of synthetic market makers (HFT) looking to capture the spread by any means necessary and tradign algo's who just want a timem price priority. THey ahve deep pockets os they layer the limit order book. NOW when you have enough money to $ to layer the book initially then everything that happens to that book afterwards you can have an understanding of it. So do not think computers are not MAPPING all trades, all cancels, and all participants. ALGO's can and will chased your limit orders to a large magnitude. So here is how you should start trading. The computers rely on data from the limit order book. SO STOP PLACING RESTING OR STATIC ORDERS that you want filled. instead constantly palce limits and move them .. which adds DATA to the book that is virtually random. this is leegal as long as you have intent to trade. so if htey want ot slow down our quotes. we need to constantly as we watch the market place limtis and move them around in the first 10 levels. This added data will be noise to them and they will act on it. Use makrket orders to enter and exit trades with the click of a mouse. free up your time cuz you are out and allows you t obe one with the market. alos buying at mkt moves price in your direction. over and over again. a LIMIT order brings price against the direction yu want it to go!. You can use stop orders to enter or exit of course because they are mkt orders.. well mkt with protection orders. RECAP. use stops or mkt orders only to enter and exit trades. and put limit orders on the book that you intend to trade but most likely won't but make sure you move them every 5 to 10 seconds to keep the data stream flowing. You will notice that the algos will constantly try and come to your limit to fill you. ALGO's SEEK LIQUIDITY. ALWAYS. they want to make the spread. Good luck and have fun with it. why can hft and algo screw with the limit order book.. YOU ARE A participant you pay good money to sit at the table. have some fun with it. Cancel orders are free and move markets. if you cancel a level of the book.. then you can move the market this is how most stops are run.. a couple sells and tons of limit cancels.
sorry my spelling and typing is terrible. I lost a finger in teh pits of chicago when a fellow trader bit it off. the called me 4 lot for years. ..jk but i am not kidding about trading this way. DO NTO BE AFRAID of the mkt order. or the buy stop to enter. constantly shuffle the deck by moving limit orders on the book. this way they cannot "GAME" us as easily. we retail need to get way way more sophisticated and stop using such old order types like the LIMIT. use MIT, stops, and mkt orders. watch the mkt move when you buy on mkt over and over again.. you can and will move the market and qite possibly can trigger some stops along the way. all it takes is a 1 lot to trigger!! let the algo follow you and be quick because he will get you sometimes. just click mkt sell if he does .. then continue. THE LIMIT ORDER BOOK is all they ahve to go on to game the system.. stop using it to think you are not payng the spread. you are still entering on a down tick instead of creating an UPTICK
That is illegal at the CME, which is where the ES is traded. Stop trying to promote illegal activity here.
if the market is trending up and you want to buy it then why would you place a counter-trend order like a limit? this forces the mkt to come back and thru your price. where as a market order will fill at the top of the spread and push the price higher. this is why retail traders who cluster around moving averages etc. always get stopped out.. because we never mover the market higher or lower with our resting orders..so trading with the trend means trading with a market order to buy. if 10 retail tradieres buy on market at teh same time.. it will move the book and the market higher or lower. Yes it can be pushed back down but if that is going to happen anyway then why not push it in your direction. ALSO it gives the element of surprise. you can literally do a market order and watch the algo.. us a limit to get out if you want.. that mighht even make them push the mkt higher.. ha. traders don't realize it is full on WAR> they want your MONEY they will get it if yu let them.. besmart!! be quick.. add data and do nto let them see what you are about. yes sometimes you will get a 2 tick fill which is sad because the mkts shouldn't allow it.. but that is trading and the deck is stacked severely against us.
LOL.. it isn't illegal at the CME that is what you think.. have you ever traded.. obvioulsy you know nothing about legalities. are you talking about rule 575.. duh.. it isn't illegal so stop spreading misinformation
mkt orders are not illegal and neither are limit orders and neither is cancelling an order an neither is cancellingn and replacing an order. call the merc. ther is aratio of cancels to fills and no one here will ever reach it. but if you do it is a $1,000 dollar fine and you can just keep on cancelling until you start a flash crash..hmmmmm there is soem knowledge on this site afterall.
keep playing your losing game of searching for the right indicator and watching the tape and palceing those LIMIT orders on a book that is made up of 90% members of the exchange and no the investing public like you think. watch the orders cancel and the markeets falls and cascades into your stops.. and you go.. how did they know? here is how.. they know you probably use a stoploss and a tight one since they know you are a retail trader and they know you are human. The imessage at the merc CLOB central limit order book designatees algo from human as well as where the order originated. so.. they can for very little cancel orders in the book which are all theirs anyway and let the marekt fall until they find you. THEN of course they buy and the market rallies right in your face.. rinse and repeat. when you are a member you pay 12 cents a side and you get lots of good information. start trading with mkt orders and use limits and cancels on the book.. no one said to SPOOF.,,however teh hft spoof all day and night that is how they never have a losing day.
https://www.cmegroup.com/confluence/display/EPICSANDBOX/Order+Cancel-Replace+Request The key thing to understand about the cancel replace at the CME is that .. you can REDUCE your size and your order maintains it's priority on the book! so if you sell limit 100 lot at 2600 .. you can cancel 99 of them and the 1 lot stays in its FIFO priority. and when it triggers then you were filled and the market due to to mkt orders or stops will then drop against you. The hft at the merc are not mkt makers.. they act like MM. bu they are allowed to plce passive and aggressive orders..i.e. limits and stops. This is why so many retail lose. it isn't just speed. speed is to beat the other professionals not you and me. stacking the book is what the HFT's do best!!
The reason it is legal to change your mind about your ordrs limit mkt stop is because this is sort of a free market and crazy things happen in the market especially with money there to be picked up. like this algo.. i have been trading against. now.. if i wasn't allowed to move my limit orderes then how could I ever trade. I use limit orders ONLY when trying to catch this algo. and I am constantly adjusting it very 5 seconds. otherwise i would miss this lucrative trade. also.. do not trade right at the beginnign or end of a minute or 2 minute or whatever chart you use. they know you do that.!!