Could anyone here who trades any of the European indices tell me which one has the most volume and liquidity - making it the best option for DOM reading/tape reading?
I know that volume and liquidity are not essentials for making a certain future more appropriate for a tape reading/DOM reading trading methodology, but from what I've gained from FT71's and Peter Davies's material, they do help.
Depends on the level of activity/boredom threshold.
DAX - mad scientist/ritalin addict
Bund - decent paced market, not too frenetic
EuroStoxx 50 - Quite slow, so not suitable for those wanting constant activity
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The following 3 users say Thank You to Jigsaw Trading for this post:
I've found the Bund (FGBL), to be really the most easy to read in terms of order flow. Iceberg orders are easily identified, the market is technical as well.
The Stoxx (FESX), has really changed into something else lately.... Trading very similar to that of the 10yr Treasury Notes (ZN). Very tight range for the most part, and then a sudden move in one direction (usually new driven) with very little chance of entry. Tough trade.
DAX (FDAX) is basically Crude in terms of order flow. You probably better off using a footprint chart to trade that.
Check out some of my trading videos for a better idea of the order flow in the Bunds.
You will not see a better example of spoofing any where else.....
Cheers!
The following 7 users say Thank You to KelvinKing for this post:
Great video-thanks for posting!
If there is so much spoofing in the bund would you say that a visual program like bookmap is not as useful as it is in other markets i.e. the dax?
The following user says Thank You to Keab for this post:
I don't use bookmap, so I'm not very familiar with what it can and cannot do.... sorry... But I think reading the DOM is all you really need to trade order flow.... I think all these fancy charts like footprints and bookmap, distract you from what's really happening...
The following user says Thank You to KelvinKing for this post:
Yes it does happen, especially around support or resistance levels. Also breakout levels. Basically it's how the institutions get their large orders filled....
so in theory this would reflect on chart as series of new lows/highs - big enough breakouts to attract the breakout retail traders, as per your example....
i will start looking at the FGBL DOM if this is common occurrence. theres a guy who has done a few webinars on here (braniggan barrett) who trades order flow in the bund - he has some good videos on youtube, if you dont already know, and he will use these order flow areas to build positions iirc for a later anticipated larger move.
In some respects i can see trading FGBL purely off the DOM isnt a bad way to go - though takes intense concentration, and ability to be flexible with methods.
Yes, that's correct. You can spot a lot of these traps if you simple focus on the DOM. Footprints and Bookmap really abstracts too much of the information away from the order flow, and you won't be able to see this as clearly.
It doesn't happen as often as every day, unfortunately, maybe once or twice a week. But good enough, if you can spot them and make a quick scalp....
I mainly trade the FGBL off the DOM and just a tick chart... I have higher time frame charts with volume profile as well, but I don't refer to them much during the trading day.
I used to listen to Braniggan back when he was still in FutexLive. Very informative.
Cheers!
The following user says Thank You to KelvinKing for this post:
Apologies, thanks for your response-I never saw your reply
Am going to demo bookmap and will see how I get on and see if it can separate the wheat from the chaff.
well footprint in my opinion is a very good addition to the dom if you dont want to spend too much energy memorizing levels of activity,
also, when trying to get into position trade, footrpint is a very good instrument to see the bigger picture and dom to pinpoint less risky entry.
my limited experience says that you you get killed by commissions if scalping for 1-2 ticks all the time, as you rarely get scratch fill on bund. during my best times I ended average 3-6 ticks per day net of commissions with purely DOM scalping. but these 3-6 are so marginal, that any small psychological failure or a couple of trades where you have to take 5t loss will kill all your effort.
i have watched all available Branningan live trading videos, he is really a guru. but even him cant do it consistently, at least on these videos. Whenever he looks to position himself as per market structure - its a killing.
if you move to less stressful position day trading, market profile and footprint will give you more freedom in terms of risk reward and you can still read orderflow from footprint at reference points.
The following user says Thank You to sjegorov for this post:
