Iceberg detection software: valuable or just a new shiny toy?

May 29th, 2020, 04:22 PM

So I've been here off and on, lurking until now. Also trading off and on but not serious about it and have decided to get serious in the last few months.

Yesterday, I attended the FIO promoted seminar by the Bookmap folks who demoed their new iceberg detection software that shows native iceberg activity from the CME MBO feed and then I watched almost 2 hours of live use of the tool today. My first impression is that it looks somewhat useful. It seemed that after a spurt of buying absorption by icebergs that a downturn usually followed fairly soon, and similar actions of selling absorption followed by a price rise. Granted that this is on a tiny set of data. Since Bookmap and their MBO package can be rented, I'll likely give it a try in the real world for at least a month. It seemed very useful for short term scalping or short term swing trading. The tool also indicates when stops are run.

On the other hand, I know that many icebergs are not done with native CME orders and are dispensed by co-located servers with prop technology or using TT. The question I suppose: is catching the native icebergs and stop runs via MBO sofware good enough to help us retail traders?

Thoughts from the more experienced folks here? Thanks!

May 30th, 2020, 04:18 AM

There was a post on this the other day. That answer might be helpful.

Jigsaw Trading's Peter Davies - Ask Me Anything (AMA)

No. Mostly because what we already have is better because you can't hide from it.

It's not as if we didn't consider it. When MBO was announced way back, we spoke to a lot of professional traders and the consensus was that it wouldn't …

Iceberg detection software: valuable or just a new shiny toy?

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Iceberg detection software: valuable or just a new shiny toy?