Paul Rotter is a Flipper, he sits at the bid ask spread moving the market for quick scalps in much the same way i mentioned in my previous posts. You are mistaken if you believe this book mentioned isnt of value unless he mentions it. You are potentially committing hi treason in the markets by such a comment, you are hanging onto the published whims of a trader who has already gone through bitter experiences learning about the markets and most importantly himself. I will guarantee you that the lesson I have given here will be the area of most significant value to your trading.. ie. the study of yourself. PS this book is "de rigeur" amongst the very best names in the industry, even James Carter who wrote Mastering the Trade and spent years at Investment Banks training Traders hands this book out as standard to ALL his trainees without question.... You are mistaken if you feel this can be ignored with such flippancy.. dont let your trading life fork down the wrong road because you missed this today
This is classic newbie trader thinking mistake. The biggest edge in the market is not actually more knowledge it is you understanding YOU. Thats is your edge, the edge is not in a system as such because the same system traded badly will still see mounting losses in an account, e.g. poor stop loss management leading to early stop outs (fear of loss), fiddling with the trade parameters once in trade (poor discipline in sticking to your plan, how can you now expect to measure the success of the plan without the discipline?)) Talk of an edge in any systems must assume that you have already mastered yourself. Disciplin is the most important factor. It is obvious that the odds are against you in roulette.. a disciplined trader would never allow himself to take the "trade" in the first place knowing that. Any edge in any system that is legal is not an overall edge it just has a higher chance of winning executions, that still isnt an edge. Lastely, you are absolutely mistaken if you believe the DOM should be incorporated in to your trading style if you are below the advanced level.. please dont kid yourself.. It is you who are always the most limiting feature of any trade, not your system. There is a simple edge in telling you to buy weakness and sell strength in channeled markets operating within support and resistance... yet even knowing that does not guarantee success because HOW you trade that is a function of your beliefs and discipline in the market. I understand your point, but I do feel this is exactly why many don't build thier accounts.. because they refuse to believe the main issue is themselves first...you are the edge not your system.. its not about accepting faults its about taking responsibility that every penny of loss is down to the WAY you traded whatever system you had... (if you even had a system you followed in the first place) Lastly, I am not a fan of the Jack Hershey methods at this stage, I would rather concentrate or making success out of simpler strategies that also allow me to focus on my own discipline first in order to overcome my own tendency to take the odd impulse trade without defining properly exit entry maximum loss, profit ratio and prior to all of that building a case for the short or the long position using technicals over several time frames FIRST. I am in no way connected with or even a subscriber to the following, but it has some interesting points to note: http://www.thetradingauthority.com/promo/E-MiniMyths.php Just my 2 ticks Paul
Yeah, whatever. I have actually taken some trouble to do some analysis of the DOM, by turning some aspects of it into time series, charting it against the volume and also against the volume at ask/volume at bid difference. And there are some very interesting things to be seen. Of course it takes time to study market microstructure, but I suggest that it may well be worth the effort. I was flippant in response to your dismissive attitude.
To make the point clear, here is a bit of the current DAX session. A constant volume chart with bars 100 contracts wide. The chart is for illustrative purposes is not a prescription for how to set up this sort of thing for trading. Second from top is a smoothed traded volume at ask minus traded volume at bid. Bottom plot is a smoothed total number of contracts at ask in the book (sum over five levels) divided by total contacts in book - both bid and ask (sum over ten levels). 0.5 means equal number of contracts on either side of the book. There is clearly some useful information here - the trick is how to make use of it.
So be it.. My apologies Of course you are right. I didnt mean to dismiss at all your view.. it was my intension to be critically emphatic about the message in order to drum this home.. All the best Paul
It depends on what you mean by "fake". If you consider any cancelled order to be a fake, I'm sure you will find quite a few. If you mean orders submitted and then cancelled with the aim of deceiving other traders, I would suggest that this is more of a sideshow than the main game. I don't doubt that it goes on, but I think one should not dismiss the potential value of the DOM on those grounds.
Increasenow.. Precisely How anyone wants to make trading judgments on unfilled orders in markets where there are Raiders and Flippers who post super high volumes that are seen by most at the DOM.. is beyond me... its a clear account killer.. its like watching Pele play football and watch him trick everyone hes going one way only to go the other... astonishing really
Maybe I'm just naive, but if something gave the impression of being "faked" or "unreliable", I'd say it should be disregarded. So what if it's "gamed". Ignore it and make decisions based upon something else. I don't find value in the DOM beyond knowing whether I'm likely to get filled at more than one price.
Quote from online source regarding Paul Rotter and his Flipping activities "For those who don't understand why people are annoyed with the conduct of Mr Rotter. People have no problem with him being there for size, if he wants to stick 10,000 up in the Schatz then bully for him. What people object to is when he flips the Bund, Bobl and Schatz together. For example yesterday morning, Schatz 81 bid on 6,000. Bobl 59 choice. Bund 71 bid on 500. He takes the bobl 59 offered on 300 and then flips the Schatz 81 offered on 5,000, Bund at 70 hard and the the Bobl 58 and 57 offered in quick succession. That is what people are annoyed about. With regard to the size i have seen him hit for 10,000 schatz. Then come back in for another 20,000 on the bid and proceed to push the bund up 4 ticks to insure he could make money on the paper order the traded against him. Paul Rotter has so much funds at his desposal that he can do what he likes, and even the biggest locals can't touch him. " So you want to put your faith in DOM prices? think again..