If I'm long or short size, the last thing I want to do is show my position, and especially show my size. So, if I'm long, I'm not in a hurry to put out an offer. In fact, if I want to cover my longs, I might be bidding for size below the market, or even doing some small buying to show activity and prints on the offer. I want to give the impression that there is buying coming into the market, so that it would be easier to cover my longs.The slower the market and the less liquid the market, the easier it is to implement a strategy like this. Of course, there are plenty algos out there that follow exactly this kind of strategy on a high frequency level.
Woo! What a crazy day trading. Made some then lost some. I did this like 10 times. A lot of money could have been made but also a lot could of been lost. I am happy I at least came out positive. +$132. I used 4 and 5 tick stop loss. I will stick to the 4 tick for now. The stop was not the problem. I just need more practice trading in REALTIME. The videos I posted last week were very good help. I quickly realized today how fast things move. You need to think quickly but calmly so you dont jump in too early. I hope this will get better with more experience. I also learn that the REVERSE button on the Dom is really useful. You agree Bloom? You can probably see me use it in one of the videos I will post. Please tell me in the videos what I did wrong and what you would of done. We can both learn something.
In this video I was seeing opportunity for short. As soon as a realized it. It jumped down over three or four prices. I tried using 2 contracts as blooms recommendation. But I didnt know how to close out 1 contract for my scalp. In the next videos I only used 1 contract because I didnt learn that yet.After trading I read on ninja trader website that to close out 1 of your long positions you set it to 1 contract and hit market sell.
The following user says Thank You to pbylina for this post:
In such situations do scalp. Then tape is fast and you stand versus trend only scalp is must be done 5-10-15 ticks as activity becomes slower.
Good reverse to short and good exit. 3 of 3 in +. Well done
The following user says Thank You to bloom for this post: