Sunday, July 15, 2012
10-JUL-12 - WIND and OBS ( Order Book Swept ) - How To Trade - Indicator...
If you trade the S&P 500 Emini Futures, or trade the Nasdaq, Dow Jones, Rusell mini futures, or if you trade Forex and Crude Oil you need to check out www.sceeto.com for one of the worlds most advanced indicators. A no obligation Free Trial is availible.www.sceeto.com
10-JUL-12 - WIND and OBS order Book Swept - How To Trade - Indicators - Sceeto
Here's a quick tutorial on how WIND and Order Book Swept can be used in tandem to smack 'em during trending days.
This example is to the short side...and is a solid example of a recurring phenomenon where the trading bots are aligned with each other.
Hope this helps...
How To Trade.Real Alerts Time Spread Betting Signals.Please make sure to sign up for free signals by taking a trial at http://www.sceeto.com/ Please also check out http://www.binaryforecast.com/ for monitoring Emini trend free. Sceeto is a set of real time indicators that monitor the order flow or buy sell flow orders coming in and out of the markets meaning you get a real time signal or alert as to the way the big companies, trading houses and banks are trading before the price and momentum change so you can jump on moves a lot earlier than other day traders giving you a distinct adavantage over every one else. You have to trade with the bots....i.e the trading robots or HFT sysyems (high frequency trading) and program trading computers these huge companies and trading houses have. Sceeto helps you do this by telling you when it's happening and giving you alerts to tell you what way to expect the market to move.Once you trade with it you'll wonder how you did without it. We have Sceeto indicators for Crude Oil Futures, S&P E- Mini Futures , Euro, US Dollar Futures as well as The Russell Futures.....get the free signals sign up for a free no obligation trial at http://www.sceeto.com/ you'll be glad you did.
Text Courtesy of Wikipedia From Wikipedia, the free encyclopedia
Algorithmic trading, also known as automated trading, algo trading, black-box trading, whitebox trading or robo trading, is the use of electronic platforms for entering trading orders with an algorithm deciding on aspects of the order such as the timing, price, or quantity of the order, or in many cases initiating the order without human intervention.
Algorithmic trading is widely used by pension funds, mutual funds, and other buy side (investor driven) institutional traders, to divide large trades into several smaller trades to manage market impact, and risk.[1][2] Sell side traders, such as market makers and some hedge funds, provide liquidity to the market, generating and executing orders automatically.
A special class of algorithmic trading is "high-frequency trading" (HFT), in which computers make elaborate decisions to initiate orders based on information that is received electronically, before human traders are capable of processing the information they observe. This has resulted in a dramatic change of the market microstructure, particularly in the way liquidity is provided.[3]
Algorithmic trading may be used in any investment strategy, including market making, inter-market spreading, arbitrage, or pure speculation (including trend following). The investment decision and implementation may be augmented at any stage with algorithmic support or may operate completely automatically.
A third of all European Union and United States stock trades in 2006 were driven by automatic programs, or algorithms, according to Boston-based financial services industry research and consulting firm Aite Group.[4] As of 2009, HFT firms account for 73% of all US equity trading volume.[5]
In 2006 at the London Stock Exchange, over 40% of all orders were entered by algo traders, with 60% predicted for 2007. American markets and European markets generally have a higher proportion of algo trades than other markets, and estimates for 2008 range as high as an 80% proportion in some markets. Foreign exchange markets also have active algo trading (about 25% of orders in 2006).[6] Futures and options markets are considered fairly easy to integrated into algorithmic trading,[7] with about 20% of options volume expected to be computer-generated by 2010.[dated info][8] Bond markets are moving toward more access to algorithmic traders.[9]
One of the main issues regarding HFT is the difficulty in determining just how profitable it is. A report released in August 2009 by the TABB Group, a financial services industry research firm, estimated that the 300 securities firms and hedge funds that specialize in this type of trading took in roughly US$21 billion in profits in 2008.[10]
Algorithmic and HFT have been the subject of much public debate since the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission said they contributed to some of the volatility during the 2010 Flash Crashwhen the Dow Jones Industrial Average suffered its second largest intraday point swing ever to that date, though prices quickly recovered.
11-JUL-12 - MacDaddy - Inisght 5 - Steady Buying with OFM - Bids Repleni...
If you trade the S&P 500 Emini Futures, or trade the Nasdaq, Dow Jones, Rusell mini futures, or if you trade Forex and Crude Oil you need to check out www.sceeto.com for one of the worlds most advanced indicators. A no obligation Free Trial is availible.www.sceeto.com
11-JUL-12 - MacDaddy - Inisght 5 - Steady Buying with OFM ( Order Flow Monitor )- Bids Replenished and HFT Buying How To Trade Using Sceeto.
Here's a quick tutorial on MacDaddy Insight #5 - Pre-Indication of a Substantive Move.
It also layers in insights gleaned from Order Flow Monitor
How To Trade.Real Alerts Time Spread Betting Signals.Please make sure to sign up for free signals by taking a trial at http://www.sceeto.com/ Please also check out http://www.binaryforecast.com/ for monitoring Emini trend free. Sceeto is a set of real time indicators that monitor the order flow or buy sell flow orders coming in and out of the markets meaning you get a real time signal or alert as to the way the big companies, trading houses and banks are trading before the price and momentum change so you can jump on moves a lot earlier than other day traders giving you a distinct adavantage over every one else. You have to trade with the bots....i.e the trading robots or HFT sysyems (high frequency trading) and program trading computers these huge companies and trading houses have. Sceeto helps you do this by telling you when it's happening and giving you alerts to tell you what way to expect the market to move.Once you trade with it you'll wonder how you did without it. We have Sceeto indicators for Crude Oil Futures, S&P E- Mini Futures , Euro, US Dollar Futures as well as The Russell Futures.....get the free signals sign up for a free no obligation trial at http://www.sceeto.com/ you'll be glad you did.
Text Courtesy of Wikipedia From Wikipedia, the free encyclopedia
High-frequency tradingMain article: High-frequency trading
In the U.S., high-frequency trading (HFT) firms represent 2% of the approximately 20,000 firms operating today, but account for 73% of all equity trading volume.[34] As of the first quarter in 2009, total assets under management for hedge funds with HFT strategies were US$141 billion, down about 21% from their high.[35] The HFT strategy was first made successful by Renaissance Technologies.[36] High-frequency funds started to become especially popular in 2007 and 2008.[35] Many HFT firms are market makers and provide liquidity to the market, which has lowered volatility and helped narrow Bid-offer spreads making trading and investing cheaper for other market participants.[35][37][38] HFT has been a subject of intense public focus since the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission stated that both algorithmic and HFT contributed to volatility in the May 6, 2010 Flash Crash. Major players in HFT include GETCO LLC, Jump Trading LLC, Tower Research Capital, Hudson River Trading as well as Citadel Investment Group, Goldman Sachs, DE Shaw, RenTech.[11][12][13][14]
High-frequency trading is quantitative trading that is characterized by short portfolio holding periods (see Wilmott (2008), Aldridge (2009)). There are four key categories of HFT strategies: market-making based on order flow, market-making based on tick data information, event arbitrage and statistical arbitrage. All portfolio-allocation decisions are made by computerized quantitative models. The success of HFT strategies is largely driven by their ability to simultaneously process volumes of information, something ordinary human traders cannot do.
[edit] Market makingMarket making is a set of HFT strategies that involves placing a limit order to sell (or offer) above the current market price or a buy limit order (or bid) below the current price to benefit from the bid-ask spread. Automated Trading Desk, which was bought by Citigroup in July 2007, has been an active market maker, accounting for about 6% of total volume on both NASDAQ and the New York Stock Exchange.[39]
[edit] Statistical arbitrageAnother set of HFT strategies is classical arbitrage strategy might involve several securities such as covered interest rate parity in the foreign exchange market which gives a relation between the prices of a domestic bond, a bond denominated in a foreign currency, the spot price of the currency, and the price of a forward contract on the currency. If the market prices are sufficiently different from those implied in the model to cover transaction cost then four transactions can be made to guarantee a risk-free profit. HFT allows similar arbitrages using models of greater complexity involving many more than 4 securities. The TABB Group estimates that annual aggregate profits of low latency arbitrage strategies currently exceed US$21 billion.[5]
A wide range of statistical arbitrage strategies have been developed whereby trading decisions are made on the basis of deviations from statistically significant relationships. Like market-making strategies, statistical arbitrage can be applied in all asset classes.
12th July Daily Report Russell TF Futures - How To Trade
If you trade the S&P 500 Emini Futures, or trade the Nasdaq, Dow Jones, Rusell mini futures, or if you trade Forex and Crude Oil you need to check out www.sceeto.com for one of the worlds most advanced indicators. A no obligation Free Trial is availible.www.sceeto.com
12th July Daily Report Russell TF Futures - How To Trade.Real Alerts Time Spread Betting Signals.Please make sure to sign up for free signals by taking a trial at http://www.sceeto.com/ Please also check out http://www.binaryforecast.com/ for monitoring Emini trend free. Sceeto is a set of real time indicators that monitor the order flow or buy sell flow orders coming in and out of the markets meaning you get a real time signal or alert as to the way the big companies, trading houses and banks are trading before the price and momentum change so you can jump on moves a lot earlier than other day traders giving you a distinct adavantage over every one else. You have to trade with the bots....i.e the trading robots or HFT sysyems (high frequency trading) and program trading computers these huge companies and trading houses have. Sceeto helps you do this by telling you when it's happening and giving you alerts to tell you what way to expect the market to move.Once you trade with it you'll wonder how you did without it. We have Sceeto indicators for Crude Oil Futures, S&P E- Mini Futures , Euro, US Dollar Futures as well as The Russell Futures.....get the free signals sign up for a free no obligation trial at http://www.sceeto.com/ you'll be glad you did.
Text Courtesy of Wikipedia From Wikipedia, the free encyclopedia
One key observation of price action traders is that the market often revisits price levels where it reversed or consolidated. If the market reverses at a certain level, then on returning to that level, the trader expects the market to either carry on past the reversal point or to reverse again. The trader takes no action until the market has done one or the other.
It is considered to bring higher probability trade entries, once this point has passed and the market is either continuing or reversing again. The traders do not take the first opportunity but rather wait for a second entry to make their trade. For instance the second attempt by bears to force the market down to new lows represents, if it fails, a double bottom and the point at which many bears will abandon their bearish opinions and start buying, joining the bulls and generating a strong move upwards.[14]
Also as an example, after a break-out of a trading range or a trend line, the market may return to the level of the break-out and then instead of rejoining the trading range or the trend, will reverse and continue the break-out. This is also known as 'confirmation'.
[edit] Trapped traders"Trapped traders" is a common price action term referring to traders who have entered the market on weak signals, or before signals were triggered, or without waiting for confirmation and who find themselves in losing positions because the market turns against them. Any price action pattern that the traders used for a signal to enter the market is considered 'failed' and that failure becomes a signal in itself to price action traders, e.g. failed breakout, failed trend line break, failed reversal. It is assumed that the trapped traders will be forced to exit the market and if in sufficient numbers, this will cause the market to accelerate away from them, thus providing an opportunity for the more patient traders to benefit from their duress.[14]
Since many traders place protective stop orders to exit from positions that go wrong, all the stop orders placed by trapped traders will provide the orders that boost the market in the direction that the more patient traders bet on. The phrase "the stops were run" refers to the execution of these stop orders.
[edit] Trend and range definition
A 'bear' trend where the market is continually falling, interrupted by only weak rises.The concept of a trend is one of the primary concepts in technical analysis. A trend is either up or down and for the complete neophyte observing a market, an upwards trend can be described simply as a period of time over which the price has moved up. An upwards trend is also known as a bull trend, or a rally. A bear trend or downwards trend or sell-off (or crash) is where the market moves downwards. The definition is as simple as the analysis is varied and complex. The assumption is of serial correlation, i.e. once in a trend, the market is likely to continue in that direction.[15]
On any particular time frame, whether it's a yearly chart or a 1 minute chart, the price action trader will almost without exception first check to see whether the market is trending up or down or whether it's confined to a trading range.
A trading range where the market turns around at the ceiling and the floor to stay within an explicit price band.A range is not so easily defined, but is in most cases what exists when there is no discernable trend. It is defined by its floor and its ceiling, which are always subject to debate. A range can also be referred to as a horizontal channel.
12th July Daily Report S&P 500 Emini Futures - How To Trade
If you trade the S&P 500 Emini Futures, or trade the Nasdaq, Dow Jones, Rusell mini futures, or if you trade Forex and Crude Oil you need to check out www.sceeto.com for one of the worlds most advanced indicators. A no obligation Free Trial is availible.www.sceeto.com
12th July Daily Report S&P 500 Emini Futures - How To Trade.This Is The Daily Report
For The Signals Generated By Sceeto For The S&P 500 Emini Futures For The 12th Of July Please Visit http://www.sceeto.com/ for a free trial also go to http://www.binaryforecast.com/
for a free preview Of Wind our real time trend indicator Our Trial Is A No Obligation Free Trial we have versions for Ninja Trader Tradestation as well as Sierra Charts Everyone Wants To Know How To Trade Binary Options How to trade the futures markets or how to spread bet it's an easy answer get the best trading system or trading software out there that software is sceeto you can see how to trade the emini s&p 500 the russell tf the euro usd forex markets as well as crude oil markets very easy using sceeto not only that their is a free trial so you can get free real time alerts and signals for trading using sceeto and also by watching our real time trend indicator on binary forecast.com
sign up now you won't be dissapointed.
Text Courtesy of Wikipedia From Wikipedia, the free encyclopedia.A price action trader's analysis may start with classical technical analysis, e.g. Edwards and Magee patterns including trend lines, break-outs, and pull-backs,[12] which are broken down further and supplemented with extra bar-by-bar analysis, sometimes including volume. This observed price action gives the trader clues about the current and likely future behaviour of other market participants. The trader can explain why a particular pattern is predictive, in terms of bulls (buyers in the market), bears (sellers), the crowd mentality of other traders, change in volume and other factors. A good knowledge of the market's make-up is required. The resulting picture that a trader builds up will not only seek to predict market direction, but also speed of movement, duration and intensity, all of which is based on the trader's assessment and prediction of the actions and reactions of other market participants.
Price action patterns occur with every bar and the trader watches for multiple patterns to coincide or occur in a particular order, creating a 'set-up'/'setup' which results in a signal to buy or sell. Individual traders can have widely varying preferences for the type of setup that they concentrate on in their trading.
candlestick chart of the Euro against the USD, marked up by a price action trader.This annotated chart shows the typical frequency, syntax and terminology for price action patterns implemented by a trader.
One published price action trader[8] is capable of giving a name and a rational explanation for the observed market movement for every single bar on a bar chart, regularly publishing such charts with descriptions and explanations covering 50 or 100 bars. This trader freely admits that his explanations may be wrong, however the explanations serve a purpose, allowing the trader to build a mental scenario around the current 'price action' as it unfolds, and for experienced traders, this is often attributed as the reason for their profitable trading.
[edit] Implementation of tradesThe price action trader will use setups to determine entries and exits for positions. Each setup has its optimal entry point. Some traders also use price action signals to exit, simply entering at one setup and then exiting the whole position on the appearance of a negative setup. Alternatively, the trader might simply exit instead at a profit target of a specific cash amount or at a predetermined level of loss. A more experienced trader will have their own well-defined entry and exit criteria, built from experience.[8]
An experienced price action trader will be well trained at spotting multiple bars, patterns, formations and setups during real-time market observation. The trader will have a subjective opinion on the strength of each of these and how strong a setup they can build them into. A simple setup on its own is rarely enough to signal a trade. There should be several favourable bars, patterns, formations and setups in combination, along with a clear absence of opposing signals.
At that point when the trader is satisfied that the price action signals are strong enough, the trader will still wait for the appropriate entry point or exit point at which the signal is considered 'triggered'. During real-time trading, signals can be observed frequently while still building, and they are not considered triggered until the bar on the chart closes at the end of the chart's given period.
Entering a trade based on signals that have not triggered is known as entering early and is considered to be higher risk since the possibility still exists that the market will not behave as predicted and will act so as to not trigger any signal.
12th July Daily Report Crude Oil Futures - How To Trade
If you trade the S&P 500 Emini Futures, or trade the Nasdaq, Dow Jones, Rusell mini futures, or if you trade Forex and Crude Oil you need to check out www.sceeto.com for one of the worlds most advanced indicators. A no obligation Free Trial is availible.www.sceeto.com
Real Alerts Time Spread Betting Signals.Please make sure to sign up for free signals by taking a trial at http://www.sceeto.com/ Please also check out http://www.binaryforecast.com/ for monitoring Emini trend free. Sceeto is a set of real time indicators that monitor the order flow or buy sell flow orders coming in and out of the markets meaning you get a real time signal or alert as to the way the big companies, trading houses and banks are trading before the price and momentum change so you can jump on moves a lot earlier than other day traders giving you a distinct adavantage over every one else. You have to trade with the bots....i.e the trading robots or HFT sysyems (high frequency trading) and program trading computers these huge companies and trading houses have. Sceeto helps you do this by telling you when it's happening and giving you alerts to tell you what way to expect the market to move.Once you trade with it you'll wonder how you did without it. We have Sceeto indicators for Crude Oil Futures, S&P E- Mini Futures , Euro, US Dollar Futures as well as The Russell Futures.....get the free signals sign up for a free no obligation trial at http://www.sceeto.com/ you'll be glad you did.Everyone Wants To Know How To
Trade Binary Options How to trade the futures markets or how to spread bet it's an easy answer get the best trading system or trading software out there that software is sceeto you can see how to trade the emini s&p 500 the russell tf the euro usd forex markets as well as crude oil markets very easy using sceeto not only that their is a free trial so you can get free real time alerts and signals for trading using sceeto and also by
watching our real time trend indicator on binary forecast.com sign up now you won't be dissapointed
Scalping (trading) is a method of arbitrage of small price gaps created by the bid-ask spread. Scalpers attempt to act like traditional market makers or specialists. To make the spread means to buy at the bid price and sell at the ask price, to gain the bid/ask difference. This procedure allows for profit even when the bid and ask do not move at all, as long as there are traders who are willing to take market prices. It normally involves establishing and liquidating a position quickly, usually within minutes or even seconds.
The role of a scalper is actually the role of market makers or specialists who are to maintain the liquidity and order flow of a product of a market. A market maker is basically a specialized scalper. The volume a market maker trades are many times more than the average individual scalpers. A market maker has a sophisticated trading system to monitor trading activity. However, a market maker is bound by strict exchange rules while the individual trader is not. For instance, NASDAQ requires each market maker to post at least one bid and one ask at some price level, so as to maintain a two-sided market for each stock represented.
The concept of price action trading embodies the analysis of basic price movement as a methodology for financial speculation, as used by many retail traders and often institutionally where algorithmic trading is not employed, and at its most simplistic, it attempts to describe the human thought processes invoked by experienced, non-disciplinary traders as they observe and trade their markets.[1][2][3][4] Price action is simply how prices change - the action of price. It is readily observed in markets where liquidity and price volatility are highest, but anything that is bought or sold freely in a market will per se demonstrate price action. Price action trading can be included under the umbrella of technical analysis but is covered here in a separate article because it incorporates the behavioural analysis of market participants as a crowd from evidence displayed in price action - a type of analysis whose academic coverage isn't focused in any one area, rather is widely described and commented on in the literature on trading, speculation, gambling and competition generally. It includes a large part of the methodology employed by floor traders[5] and tape readers.[6] It can also optionally include analysis of volume and level 2 quotes.
The trader observes the relative size, shape, position, growth (when watching the current real-time price) and volume (optionally) of the bars on an OHLC bar or candlestick chart, starting as simple as a single bar, most often combined with chart formations found in broader technical analysis such as moving averages, trend lines or trading ranges.[7][8] The use of price action analysis for financial speculation doesn't exclude the simultaneous use of other techniques of analysis, and on the other hand, a minimalist price action trader can rely completely on the behavioural interpretation of
12th July Daily Report Euro USD Futures - How To Trade Forex
If you trade the S&P 500 Emini Futures, or trade the Nasdaq, Dow Jones, Rusell mini futures, or if you trade Forex and Crude Oil you need to check out www.sceeto.com for one of the worlds most advanced indicators. A no obligation Free Trial is availible.www.sceeto.com
12th July Daily Report Euro USD Futures - How To Trade Forex.Real Alerts Time Spread Betting Signals.Please make sure to sign up for free signals by taking a trial at http://www.sceeto.com/ Please also check out http://www.binaryforecast.com/ for monitoring Emini trend free. Sceeto is a set of real time indicators that monitor the order flow or buy sell flow orders coming in and out of the markets meaning you get a real time signal or alert as to the way the big companies, trading houses and banks are trading before the price and momentum change so you can jump on moves a lot earlier than other day traders giving you a distinct adavantage over every one else. You have to trade with the bots....i.e the trading robots or HFT sysyems (high frequency trading) and program trading computers these huge companies and trading houses have. Sceeto helps you do this by telling you when it's happening and giving you alerts to tell you what way to expect the market to move.Once you trade with it you'll wonder how you did without it. We have Sceeto indicators for Crude Oil Futures, S&P E- Mini Futures , Euro, US Dollar Futures as well as The Russell Futures.....get the free signals sign up for a free no obligation trial at http://www.sceeto.com/ you'll be glad you did.
Text Courtesy of Wikipedia From Wikipedia, the free encyclopedia
A Forex signal is a suggestion for entering a trade on a currency pair, usually at a specific price and time.[1] The signal is generated either by a human analyst or an automated Forex robot supplied to a subscriber of the forex signal service. Due to the timely nature of signals, they are usually communicated via email, website, SMS, RSS, tweet or other relatively immediate method.
Contents [hide]
1 Types of services
2 Typical features offered by Forex signal service providers
3 Scams and fraudulent activity
4 Methodologies and trading strategies
5 See also
6 References
[edit] Types of servicesServices provided fall into four categories:
1.Unpaid/free signals
2.Paid signals from one provider whether by personal analysis or algorithmic analysis
3.Paid signals aggregated from multiple signal sources or 'systems'
4.Signals supplied by trading software located on the trader's computer, also known as a forex robot or EA (expert advisor)
[edit] Typical features offered by Forex signal service providers
Typical forex signal when delivered via SMSThe main services offered by forex signal suppliers are:
Exact or approximate entry, exit and stop loss figures for trades on one or more currency pairs
Supporting graphs and/or analysis for the signals
A trading history showing the number of pips profit/loss per month and/or the risk/reward ratio and actual trades. Sometimes (especially in the case of forex robots) this may be shown as back-tested results
One-on-one coaching, or additional interaction with the signal provider such as comments, forum, etc
Account management whereby a subscriber's account can be traded by the signal provider
Educational resources either via the internet or phone
A trial period for a lesser price
Although these are the main features of a signal supplier, not all of them offer the complete list of services.
[edit] Scams and fraudulent activityAs forex is popularly touted as a get-rich-quick method there are a number of services that supply signals of debatable quality, which do not answer the users' expectations for profits.
[edit] Methodologies and trading strategiesThe majority of signal providers focus on supplying signals based on technical analysis and a minority work on fundamental analysis or price action. Technical analysis, such as ichimoku and candlestick charting, show both short and long term price trends giving the signal provider flexibility in supplying a range of trade options. Fundamental analysis gives longer term trade ideas. Price action gives extremely short term trade ideas, often more suited to scalping.
11th July Daily Report S&P 500 Emini Futures - Order Flow
If you trade the S&P 500 Emini Futures, or trade the Nasdaq, Dow Jones, Rusell mini futures, or if you trade Forex and Crude Oil you need to check out www.sceeto.com for one of the worlds most advanced indicators. A no obligation Free Trial is availible.www.sceeto.com
11th July Daily Report S&P 500 Emini Futures - Order Flow
Real Time Binary Options Alerts.Please make sure to sign up for free signals by taking a trial at http://www.sceeto.com/ Please also check out http://www.binaryforecast.com/ for monitoring Emini trend free. Sceeto is a set of real time indicators that monitor the order flow or buy sell flow orders coming in and out of the markets meaning you get a real time signal or alert as to the way the big companies, trading houses and banks are trading before the price and momentum change so you can jump on moves a lot earlier than other day traders giving you a distinct adavantage over every one else.We have Sceeto indicators for Crude Oil Futures, S&P E- Mini Futures , Euro, US Dollar Futures as well as The Russell Futures.....get the free signals sign up for a free no obligation trial at http://www.sceeto.com/ you'll be glad you did.
We have different versions of Sceeto for Ninja Trader Indicators , Tradestation Indicators as well as Sierra Chart Indicators.
Text Courtesy of Wikipedia From Wikipedia, the free encyclopedia
Algorithmic tradingFrom Wikipedia, the free encyclopedia.Algorithmic trading, also known as automated trading, algo trading, black-box trading, whitebox trading or robo trading, is the use of electronic platforms for entering trading orders with an algorithm deciding on aspects of the order such as the timing, price, or quantity of the order, or in many cases initiating the order without human intervention.
Algorithmic trading is widely used by pension funds, mutual funds, and other buy side (investor driven) institutional traders, to divide large trades into several smaller trades to manage market impact, and risk.[1][2] Sell side traders, such as market makers and some hedge funds, provide liquidity to the market, generating and executing orders automatically.
A special class of algorithmic trading is "high-frequency trading" (HFT), in which computers make elaborate decisions to initiate orders based on information that is received electronically, before human traders are capable of processing the information they observe. This has resulted in a dramatic change of the market microstructure, particularly in the way liquidity is provided.[3]
Algorithmic trading may be used in any investment strategy, including market making, inter-market spreading, arbitrage, or pure speculation (including trend following). The investment decision and implementation may be augmented at any stage with algorithmic support or may operate completely automatically.
A third of all European Union and United States stock trades in 2006 were driven by automatic programs, or algorithms, according to Boston-based financial services industry research and consulting firm Aite Group.[4] As of 2009, HFT firms account for 73% of all US equity trading volume.[5]
In 2006 at the London Stock Exchange, over 40% of all orders were entered by algo traders, with 60% predicted for 2007. American markets and European markets generally have a higher proportion of algo trades than other markets, and estimates for 2008 range as high as an 80% proportion in some markets. Foreign exchange markets also have active algo trading (about 25% of orders in 2006).[6] Futures and options markets are considered fairly easy to integrated into algorithmic trading,[7] with about 20% of options volume expected to be computer-generated by 2010.[dated info][8] Bond markets are moving toward more access to algorithmic traders.[9]
One of the main issues regarding HFT is the difficulty in determining just how profitable it is. A report released in August 2009 by the TABB Group, a financial services industry research firm, estimated that the 300 securities firms and hedge funds that specialize in this type of trading took in roughly US$21 billion in profits in 2008.[10]
Algorithmic and HFT have been the subject of much public debate since the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission said they contributed to some of the volatility during the 2010 Flash Crash,[11][12][13][14][15][16][17][18] when the Dow Jones Industrial Average suffered its second largest intraday point swing ever to that date, though prices quickly recovered. (See List of largest daily changes in the Dow Jones Industrial Average.) A July, 2011 report by the International Organization of Securities Commissions (IOSCO), an international body of securities regulators, concluded that while "algorithms and HFT technology have been used by market participants to manage their trading and risk, their usage was also clearly a contributing factor in the flash crash event of May 6, 2010.
11th July Daily Report Crude Oil Futures - Order Flow
If you trade the S&P 500 Emini Futures, or trade the Nasdaq, Dow Jones, Rusell mini futures, or if you trade Forex and Crude Oil you need to check out www.sceeto.com for one of the worlds most advanced indicators. A no obligation Free Trial is availible.www.sceeto.com
11th July Daily Report Crude Oil Futures - Order Flow.Real Alerts Time Spread Betting Signals.Please make sure to sign up for free signals by taking a trial at http://www.sceeto.com/ Please also check out http://www.binaryforecast.com/ for monitoring Emini trend free. Sceeto is a set of real time indicators that monitor the order flow or buy sell flow orders coming in and out of the markets meaning you get a real time signal or alert as to the way the big companies, trading houses and banks are trading before the price and momentum change so you can jump on moves a lot earlier than other day traders giving you a distinct adavantage over every one else. You have to trade with the bots....i.e the trading robots or HFT sysyems (high frequency trading) and program trading computers these huge companies and trading houses have. Sceeto helps you do this by telling you when it's happening and giving you alerts to tell you what way to expect the market to move.Once you trade with it you'll wonder how you did without it. We have Sceeto indicators for Crude Oil Futures, S&P E- Mini Futures , Euro, US Dollar Futures as well as The Russell Futures.....get the free signals sign up for a free no obligation trial at http://www.sceeto.com/ you'll be glad you did.
Text Courtesy of Wikipedia From Wikipedia, the free encyclopedia
In financial markets payment for order flow refers to the compensation that a broker receives, not from its client, but from a third-party who wants to influence how the broker routes client orders.[1] Generally, market-makers such as dealers and securities exchanges are willing to pay a broker for the right to transact with that broker's clients because they believe those clients will be uninformed traders. Often these uninformed traders are retail[2] or other investors who are trading because of emotion or the need to raise cash and not because they know an asset is mis-valued. By purchasing what it expects to be uninformed order flow, a market-maker can buy at the bid and sell at the ask with less risk of trading at a loss than with an informed trader who knows that the market is mispricing the security.[3] Thus, market-makers who pay for order flow can capture the spread while reducing the risk that the spread is too narrow to adequately compensate them for the risk of loss.
HistoryPayment for order flow was a practice pioneered by Bernard Madoff, and the practice has long been controversial.[4][5][6] However, on February 27, 2009, after years of opposing payment for order flow, the New York Stock Exchange sought permission from the U.S. Securities and Exchange Commission (SEC) to allow payment for order flow on its electronic exchange(s).[7] The NYSE is proposing to pay for limit orders in order to put more cash into the market. This contrasts with the traditional model of payment for order flow that pays only for market orders. Payment for order flow has become less lucrative on a per share basis because of the decline in the tick size and the bid/ask spread. When stocks traded on 1/8ths of a dollar, payments for order flow were much larger than they became after 2001 when the tick size in U.S. markets fell to one cent.[3][4] Larry Harris reports that in 1997, 24% of E*TRADE's transaction revenue came from payment for order flow, but that by the second quarter of 2001 such payments accounted for only 15% of transaction revenue.[3]
[edit] AnalysisThe benign view is that in competitive markets, the payments that brokers receive for selling uninformed order flow reduce commissions for retail investors so that the retail investors are no worse off.[3] Payment for order flow may also allow smaller trading venues to compete more effectively with the NYSE.[8] A more negative view is that exchanges and other market-makers who pay for order flow reduce liquidity on exchanges that do not pay for order flow and thus increase the bid/ask spread. This means that traders whose orders do not receive payment bear the cost to their detriment.[9][10] Joel Seligman has noted that "Few practices are more likely to subvert quote competition" than payment for order flow.[8] John C. Coffee has described it as a "bribe".[11] He notes, however, that the SEC permits the practice because it sustained competitors to the NYSE and reduces the likelihood that NYSE specialists will obtain monopoly power.[12]
[edit] LegalityIn the U.S., accepting payment for order flow is only allowed if no other trading venue is quoting a better price on the National Market System. Moreover, the broker must inform its client in writing that it accepts payment for order flow: 1) upon the opening of the brokerage account, 2) on an ongoing annual basis, and 3) on trade confirmations
11th July Daily Report Euro USD Futures - Order Flow
If you trade the S&P 500 Emini Futures, or trade the Nasdaq, Dow Jones, Rusell mini futures, or if you trade Forex and Crude Oil you need to check out www.sceeto.com for one of the worlds most advanced indicators. A no obligation Free Trial is availible.www.sceeto.com
11th July Daily Report Euro USD Futures - Order Flow
Free Forex Trading Signals.Please make sure to sign up for free signals by taking a trial at http://www.sceeto.com/ Please also check out http://www.binaryforecast.com/ for monitoring Emini trend free. Sceeto is a set of real time indicators that monitor the order flow or buy sell flow orders coming in and out of the markets meaning you get a real time signal or alert as to the way the big companies, trading houses and banks are trading before the price and momentum change.We have Sceeto indicators for Crude Oil Futures, S&P E- Mini Futures , Euro, US Dollar Futures as well as The Russell Futures.....get the free signals sign up for a free no obligation trial at http://www.sceeto.com/ you'll be glad you did.
We have different versions of Sceeto for Ninja Trader Indicators , Tradestation Indicators as well as Sierra Chart Indicators.
Text Courtesy of Wikipedia From Wikipedia, the free encyclopedia
Foreign exchange autotradingFrom Wikipedia, the free encyclopediaJump to: navigation, search Forex autotrading is a trading strategy where buy and sell orders are placed automatically based on an underlying system or program on the foreign exchange market. The buy or sell orders are sent out to be executed in the market when a certain set of criteria is met.
Autotrading systems, or programs to form buy and sell forex signals, are used typically by active traders who enter and exit positions more frequently than the average investor. The autotrading criteria differ greatly, however they are mostly based on technical analysis.[1]
HistoryForex autotrading originates at the emergence of online retail trading, since about 1999 when internet-based companies created retail forex platforms that provide a quick way for individuals to buy and sell on the forex spot market. Nevertheless, larger retail traders could autotrade Forex contracts at the Chicago Mercantile Exchange as early as in the 1970s.
[edit] TypesThere are two major types of Forex autotrading:
Fully automated or robotic Forex trading: This is very similar to algorithmic trading or black-box trading, where a computer algorithm decides on aspects of the order such as the timing, price or quantity and initiates the order automatically. Users can only interfere by tweaking the technical parameters of the program; all other control is handed over to the program.[citation needed]
Signal-based Forex autotrading: This autotrading mode is based on manually executing orders generated by a trading system. For example a typical approach is to use a service where traders all over the world making their strategies available to anyone interested in the form of signals. Traders may choose to manually execute any of these signals in their own broker accounts.[citation needed]
[edit] AdvantagesAn automated trading environment can generate more trades per market than a human trader can handle and can replicate its actions across multiple markets and timeframes. An automated system is also unaffected by the psychological swings that human traders are prey to. This is particularly relevant when trading with a mechanical model, which is typically developed on the assumption that all the trade entries flagged will actually be taken in real time trading.[2]
Forex Signal Provider based models offer traders the opportunity to follow previously successful signal providers or strategies with the hope that the advice they offer will continue to be accurate and lead to profitable future trades. Traders do not need to have expert knowledge or ability to define their own strategies and instead can select a system based on its performance to date, making Forex trading accessible to a large number of people.
[edit] DisadvantagesAs a decentralized and relatively unregulated market, it is extremely attractive to a number of Forex scams. Forex autotrading, as it brings Forex trading to the masses makes even more people susceptible to frauds. Bodies such as the National Futures Association and the U.S. Securities and Exchange Commission have issued warnings and rules to avoid fraudulent Forex trading behavior
11th July Daily Report Russell TF Futures - Order Flow
If you trade the S&P 500 Emini Futures, or trade the Nasdaq, Dow Jones, Rusell mini futures, or if you trade Forex and Crude Oil you need to check out www.sceeto.com for one of the worlds most advanced indicators. A no obligation Free Trial is availible.www.sceeto.com
11th July Daily Report Russell TF Futures - Order Flow
Real Time Binary Options Signals and Spread Betting Signals.Please make sure to sign up for free signals by taking a trial at http://www.sceeto.com/ Please also check out http://www.binaryforecast.com/ for monitoring Emini trend free. Sceeto is a set of real time indicators that monitor the order flow or buy sell flow orders coming in and out of the markets meaning you get a real time signal or alert as to the way the big companies, trading houses and banks are trading before the price and momentum change so you can jump on moves a lot earlier than other day traders giving you a distinct adavantage over every one else.We have Sceeto indicators for Crude Oil Futures, S&P E- Mini Futures , Euro, US Dollar Futures as well as The Russell Futures.....get the free signals sign up for a free no obligation trial at http://www.sceeto.com/ you'll be glad you did.
We have different versions of Sceeto for Ninja Trader Indicators , Tradestation Indicators as well as Sierra Chart Indicators.
Text Courtesy of Wikipedia From Wikipedia, the free encyclopedia
Computerization of the order flow in financial markets began in the early 1970s, with some landmarks being the introduction of the New York Stock Exchange’s “designated order turnaround” system (DOT, and later SuperDOT), which routed orders electronically to the proper trading post, which executed them manually. The "opening automated reporting system" (OARS) aided the specialist in determining the market clearing opening price (SOR; Smart Order Routing).
Program trading is defined by the New York Stock Exchange as an order to buy or sell 15 or more stocks valued at over US$1 million total. In practice this means that all program trades are entered with the aid of a computer. In the 1980s program trading became widely used in trading between the S&P500 equity and futures markets.
In stock index arbitrage a trader buys (or sells) a stock index futures contract such as the S&P 500 futures and sells (or buys) a portfolio of up to 500 stocks (can be a much smaller representative subset) at the NYSE matched against the futures trade. The program trade at the NYSE would be pre-programmed into a computer to enter the order automatically into the NYSE’s electronic order routing system at a time when the futures price and the stock index were far enough apart to make a profit.
At about the same time portfolio insurance was designed to create a synthetic put option on a stock portfolio by dynamically trading stock index futures according to a computer model based on the Black–Scholes option pricing model.
Both strategies, often simply lumped together as "program trading", were blamed by many people (for example by the Brady report) for exacerbating or even starting the 1987 stock market crash. Yet the impact of computer driven trading on stock market crashes is unclear and widely discussed in the academic community.[21]
Financial markets with fully electronic execution and similar electronic communication networks developed in the late 1980s and 1990s. In the U.S., decimalization, which changed the minimum tick size from 1/16 of a dollar (US$0.0625) to US$0.01 per share, may have encouraged algorithmic trading as it changed the market microstructure by permitting smaller differences between the bid and offer prices, decreasing the market-makers' trading advantage, thus increasing market liquidity.
Subscribe to:
Posts (Atom)