Order Flow in InteractiveBrokers? - futures io
futures io futures trading



Order Flow in InteractiveBrokers?


Discussion in Brokers

Updated by fivewhy
    1. trending_up 2,253 views
    2. thumb_up 3 thanks given
    3. group 3 followers
    1. forum 2 replies
    2. attach_file 0 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 100,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Order Flow in InteractiveBrokers?

(login for full post details)
  #1 (permalink)
Luxembourg
 
 
Posts: 27 since May 2020
Thanks: 25 given, 5 received

Hiya,



How do we use the Order-Flow in Spot Forex trading(major pairs) in our favor in the InteractiveBrokers? Where we set it?

Whether is it make difference to use IdealPro/FXconv/IBalgo for order-management/placing-order to use either of these alongside Order-Flow?


Thanks in advance
Best of luck

Reply With Quote
The following user says Thank You to Blonde for this post:

Can you help answer these questions
from other members on futures io?
Basic Indicator and Strategy Question
The Elite Circle
Looking for NT-8 R-Vol tool
Traders Hideout
S&P to launch cryptocurrency indexes in 2021
Cryptocurrencies
Market data
Traders Hideout
Post your backtest results
NinjaTrader
 
 
(login for full post details)
  #2 (permalink)
Nürnberg, Germany
 
Experience: Intermediate
Platform: Ninja Trader
Broker: IB/Kinetick
Trading: CL, YM
 
PowerM's Avatar
 
Posts: 111 since Jun 2010
Thanks: 157 given, 44 received

Hi,
as far as I know, InteractiveBrokers does not deliver tick data. So it appears not to make sense to work with order flow under these circumstances.

Reply With Quote
The following user says Thank You to PowerM for this post:
 
(login for full post details)
  #3 (permalink)
Fort Lauderdale, Florida, USA
 
Experience: Beginner
Platform: NT8, Bookmap
Trading: ES, MES
 
Posts: 135 since Feb 2017
Thanks: 61 given, 117 received



PowerM View Post
Hi,
as far as I know, InteractiveBrokers does not deliver tick data. So it appears not to make sense to work with order flow under these circumstances.

I agree that you need a separate data service (other than IBKR's internal filtered tick data) in order to use order flow to trade futures with IBKR.

I'll try to answer the more general question: how to apply order flow to spot forex trading (regardless of broker).

While there is no centralized exchange, I have found that using tick-count volume as an analog to true volume is perfectly close enough. People will argue with this, and I am not saying it is precisely the same. I am only saying that using tick volume as an analog for real volume is good enough for purposes of applying order flow analysis.

Further, we have the question of how to differentiate between aggressive buys and aggressive sells, i.e, whether the trade or tick (because ticks are our volume measure) is an aggressive buy or aggressive sell. The way I've done this, is to look to which price the transaction or tick occurred at--whether it occurred at the bid or the ask. Each tick (which is an item of data) contains a value for bid price, a value for ask price, and a value for last price.

Remember that the "forex market" is really just your broker's dealing desk or the ECN that your broker sends your orders to. And for every tick that you receive from your broker or data provider, the tick (or transaction) will (at least 99% of the time) occur at either the bid or the ask. So if the "last price" equals the "bid price" than the transaction occurred at the bid, and I call it an aggressive sell and passive buy. If last price equals the ask price on that tick, I call it an aggressive buy and passive sell. Fairly simple, really.

In sum, knowing the tick volume and whether the tick was an aggressive buy or aggressive sell is really all the data you need to apply order flow analysis to spot forex. You can build footprint charts, cumulative delta, volume profiles, VWAP, etc with that data.

Now, the question is, does your forex trading platform support this type of analysis as applied to spot forex data? NT8 order flow package does if you set delta type to "up/down tick", which might be slight different than what I explained above. I just can't remember, so maybe to their support forum for better info than what I can give.

An additional question is whether the forex market tends to "respect" order flow analysis in the same way that the US futures market does. It does but to a lesser extent than the futures market does, imo. But it's all about how you use the tool, rather than how "good" the tool is on its own.

Bottom line, yes order flow analysis can be used in the spot forex market. Whether it is effective will depend on the user, as is the case with order flow on absolutely any market.

Reply With Quote
The following user says Thank You to fivewhy for this post:


futures io Trading Community Trading Reviews and Vendors Brokers > Order Flow in InteractiveBrokers?


June 1, 2020


Upcoming Webinars and Events
 

Battlestations!

January
     



Copyright © 2020 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts