Average ticks per hour using the DOM? | Traders Hideout


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Average ticks per hour using the DOM?

  #8 (permalink)

Denver
 
Trading Experience: Intermediate
Platform: Bookmap and Jigsaw DOM
Broker/Data: Stage 5 Trading
Favorite Futures: ZN
 
lax99's Avatar
 
Posts: 433 since Jun 2015
Thanks: 623 given, 809 received

I'm sorry, but I have to disagree with most of this. In my experience, market efficiency is the last thing I worry about. I don't care about whether or not the NOB or FYT spread is in line with somebody's expectations. I care that some big player just waded into ZN, sold 1600, took it offered, threw another 2500 on the offer, started hitting the bid again, and now we're a tick above new lows for the day. What's probably going to happen in this scenario? Damn the market efficiency--longs are going to puke, shorts are going to slam it, and unless a large buyer shows up under the lows to absorb and take it back into range, then you need to be short.

The R on my trades is typically 1.5 to 2. I risk a couple of ticks to see another tick or two on top of the initial risk. I see you're talking about evolving R, which I agree with. If your target is at +10 and the trade is +8, there's no reason to risk it back to +4 just to see those last two ticks. It's the same idea as moving a stop to breakeven.

I think we may be confusing expectancy and risk in this last bit. If your expectancy is +$1 per trade, then you're going to pay quite a bit in commissions to trade enough to make $100,000. If your expectancy is +$1,000 per trade, then you have to trade significantly less to hit that same threshold. Reducing your R multiple from 100 to 1 doesn't necessarily mean that you're throwing more into costs and commissions.

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