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panama
Posts: 1 since Nov 2020
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Thanks Received: 1
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I have spent the last two months doing paper trading in ES and my possibly discoveries are the following:
- The HFT trader start at 9:30 am (GMT-5). I think they analyze the pace of the market before, the news, etc. So, after 9:30 am they have a strategy or strategies to use in the day.
- Some of the strategies of the HFT traders are:
o The Shark Strategy. I found it in the ES when the average limit orders in the order book where lower than 20. If you saw a limit order higher than 50 the market moved in that direction. So, you can predict the movement of the market. If you have limit orders with an average of 50 you cannot see these movement.
o The Contrary Strategy. I found it in the ES when you have candlesticks and for example EMA (21) forecasting a bullish sequency, and then you have a … bearish sequency. The same when you have forecasting a bearish sequency an then you have a … bullish sequency.
- The indicators cannot function at all for example with a Contrary Strategy.
- I think is more important to find the strategy of the market makers than the personal strategy that you can use. First you find the strategy of the market makers and then you adjust your personal strategy to have a profit.
- I think of the limit orders in the order book like sitting ducks in a hunting zone. The market makers use the limit orders to maximize their profit. Most of the time if they trade exclusively buy limit orders, after that the market fall dawn so the profit of the buyers disappear, if that’s not the case maybe the market goes up and then have a reverse and reverse maybe some ticks before the zone of trade eliminating any profit and taking stop orders in the movement. The same when the market makers trade sell limit orders, or the market goes up immediately or the market goes down and has a pullback and goes up.
I recommend implementing a daily chat room to just find the strategy or strategies of the market markers in the day. Not to write nonsense like could be a Robin Hood chat, just only to find the strategy of the market makers. I think it’s going to be very profitable to the persons in the chat room.
Maybe the thinks that I write are common knowledge, maybe It’s not entirely like I said, that’s my grain of salt in this forum.
Sorry for my English because it is not my first language.
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