Can tape reading be replaced by algos? (Page 2) - Traders Hideout | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Traders Hideout

Can tape reading be replaced by algos?
Started:August 23rd, 2012 (09:30 PM) by YJ78 Views / Replies:2,260 / 10
Last Reply:December 23rd, 2015 (12:22 PM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

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, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Can tape reading be replaced by algos?

Old December 23rd, 2015, 12:22 PM   #11 (permalink)
Market Wizard
Futures Experience: Intermediate
Platform: MultiCharts.NET, S5, Ninj
Broker/Data: AMP, S5, IB
Favorite Futures: ES
DionysusToast's Avatar
Posts: 2,335 since Nov 2010
Thanks: 718 given, 6,932 received
Forum Reputation: Legendary

There is a problem with "the algos".

Most retail traders trade directional, outright positions.

So in turn, most retail traders presume that "the algos" are a bunch of machines taking outright directional positions.

So they think they are in competition with "the algos" - playing the same game but on a different timeframe. That's not true.

When people talk about "the algos", they are talking about a scenario they imagine, rather than what is actually occurring.

Think about it. Firms have spent many millions in property & network infrastructure across the country so they can place microwave transmitters that can "see each other", just to be the fastest link between 2 disparate NASDAQ servers so that they can scalp a penny.

At one time, Citigroup was trading around $3 a share with volume over 300,000,000 a day and a 5-6 cent range with rebate trading.

It's mostly some form of arbitrage or market making - it's not them going after your 1 lot on Crude. In short - they aren't your enemy. They are just a damned annoyance when they pull all the liquidity and the ass drops out of the market. In my opinion, it's better trading conditions when they are around and (for me anyway), it gets a bit wild when they disappear.

If you have any questions about the products or services provided, please send me a Private Message or use the "Ask Me Anything" thread
Reply With Quote
The following 3 users say Thank You to DionysusToast for this post:

Reply > Futures Trading, News, Charts and Platforms > Traders Hideout > Can tape reading be replaced by algos?

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Tape is my shape (tape reading, time and sales) bloom Traders Hideout 1000 September 24th, 2016 08:01 AM
Some questions about tape-reading CME data ptd26 Traders Hideout 24 November 14th, 2014 11:05 AM
Anyone here use tape reading in their methodology ? Xzap Traders Hideout 23 December 19th, 2013 04:03 AM
What is tape reading? Big Mike Traders Hideout 34 May 20th, 2011 07:58 AM

All times are GMT -4. The time now is 11:15 PM.

Copyright © 2016 by 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

Page generated 2016-10-26 in 0.06 seconds with 21 queries on phoenix via your IP