i was wondering if it is possible to be successful with Tape Reading ( Order Flow Analysis, DOM Trading, Depth and Sales) in the age of algorithms.
I trade based on the DOM. I mean there are times when the DOM is a very good tool (buy/sell on pullbacks in a strong trend with the iceberg, no backticking in a breakout is good, when Limit orders are pulling that is a sign of fear etc). These Kind of Things you can not see on a candlestick or bar Chart.
when i enter a trade based on my order flow and Price Action Analysis, sometimes the market goes 2 ticks against me, i hold strong and with Patience i can pocket 4 ticks.
but i dont really know if it is gambling or my in my eyes good Analysis. because classic tape Reader before the age of hft's and algos were looking for size and big Players. they read the tape to identifye the big Players (Goldman, Merryl Linch etc.)
Nowadays the Market Profile and Auction theory is used to identify These Big Players. They buy low and sell high, they left a buying/selling tail, they are aggressive and sometimes passive with Icebergs etc.
I dont think that it is possible to track them with size measuring Tools, i think they use many different order Tools so that nobody and no algos can detect them. E.g. instead of 5000 market orders they fire many 10,20 etc lots and absorb many times in many Levels.
i really dont know how to succeed in this Business.
i know what large orders in the order book are, what icebergs are, i know when i should join them and when not, i know to what to look for when Fading and breaking, i know how to use the volume Profile and how stop loss order get triggered but i dont know man i dont have any nerves left.
Sometimes i make Money sometimes i lose Money, same Setup same entry but different results.
Is someone out there who makes Money with reading the orderbook and makes Money please make me
some hope.