recently i initiated a series of trades after observing a...

  1. 3,062 Posts.
    recently i initiated a series of trades after observing a pattern of familiar behaviour.

    they were all trades of the same size and well in excess of the average parcel size.

    the algo works on a calculated average of return over a long period .

    if you are able to anticipate the likely movement it is possible to capture through a blocking trade on the bid or ask .

    its a simple enough theory working at anytime for accumulation or profit dependant on directional movement.

    the drawback ,the dominant trader on the bid and ask will change method.

    personally i prefer at market sale or purchase and never use stop lossses,prefer a range of probable outcomes detailed before trading a sequence for profit or accumulation.

    i have just begun one,the other firm rule is it must be a stock i am prepared to hold for months should i be out of the money in a stock, that i believe has a good future or alternatively retain sufficient capital to average down,on rolling trades.

    its also intense monitoring the screen constantly for errors
    and taking advantage of them--yes they do make mistakes on the everchanging setups.

    however they can no longer alter the bid or ask and remain in the queue increased orders go to the back of the queue.

    the unfortunate aspect of this model is you miss the big runs more often than not.

    runs up or down are generally swift on relatively low volume,like many on HC i deplore the lack of interest from the ignorant and it would seem our voice is small against large financial interests-----fair value is little more than an ideal,investors rarely talk about yield normally its value ,however their real game is yield for traders its pretty straight forward time value of money ,costs associated with trading and the enormous taxation disadvantage--i still prefer the trade.


    dark pools have advantages for traders in terms of recognition


 
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