Thursday, January 10, 2013
High Frequency Trading and Order Flow Signals 10th Jan 2013 Emini Report
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
High Frequency Trading and Order Flow Signals 10th Jan 2013 Emini Report. http://sceeto.com/user/register/ To trade today is a lot harder than what it was years ago when people read the tape, and tapereading was quite a skill. In todays markets as orders are placed in milliseconds this would be impossible. This is what sceeto helps you do. Sceeto is a set of real time indicators that basically read the tape in real time and surfaces live alerts and signals right in your charts to help you trade. it monitors all the order flow coming in and out of the market as well as the hft's the high frequency traders.
We feel it is a great help to the traders today to help them in the battle with the bots so to speak. Test drive sceeto yourself by getting a free trial at http://sceeto.com/user/register/ it might be the best move you ever made for your trading account.
links to some of our other videos
http://youtu.be/xHOmhl3Caik
http://www.youtube.com/watch?v=qOGSL50TUBk
http://www.youtube.com/watch?v=V15-i-TRFP4
http://www.youtube.com/watch?v=Kql2V-0q9fU
http://www.youtube.com/watch?v=_5r6HAIFJKE
http://www.youtube.com/watch?v=1Er_G9ynow0
http://www.youtube.com/watch?v=tUZEZNKnGrY
http://www.youtube.com/watch?v=jsZdevJKj_o
http://www.youtube.com/watch?v=VCyM8PIUcqw
http://www.youtube.com/watch?v=dVYqSYgoNcI
http://www.youtube.com/watch?v=fZ0d7-sCBAk
http://www.youtube.com/watch?v=dVYqSYgoNcI
http://www.youtube.com/watch?v=629oaWU4Tr4
http://www.youtube.com/watch?v=_VYJn-SLgYM
text courtesy of wikipedia creative commons licence
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, in order to gain the bid/ask
difference. This procedure allows for profit even when the bid and ask don't 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. 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.
Algorithmic trading, also called automated trading, black-box trading, or algo trading, is the use of electronic platforms for entering trading orders with an algorithm which executes pre-programmed trading instructions whose variables may include timing, price, or quantity of the order, or in many cases initiating the order without human intervention.
Algorithmic trading is widely used by investment banks, 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). Many types of algorithmic or automated trading activities can be described as HFT. As a result, in February 2012, the Commodity Futures Trading Commission (CFTC) formed a special working group that included academics and industry experts to advise the CFTC on how best to define HFT.[3][4] HFT strategies utilize computers that make elaborate decisions to initiate orders based on information that is received electronically, before human traders are capable of processing the information they observe. Algorithmic trading and HFT have resulted in a dramatic change of the market microstructure, particularly in the way liquidity is provided.[5] 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.