Anticipatory Trading

While novice traders seek confirmation, experienced traders know that the ability to anticipate where the market is going before it becomes obvious is a significant advantage. AlphaReveal's highly innovative displays and surfaced market depth information provide significant advantage for the anticipatory trader over traditional trading platforms.

Anticipatory trading involves forming an idea where the market is going and taking a position in expectation of that movement before it becomes obvious. Imagine two traders expecting the market to move higher. The anticipatory trader buys at a relative low while the confirmation trader waits for the market to touch a previous high. The anticipatory trader thus has a pricing advantage over the trader seeking confirmation. Imagine that the market's nature changes and both traders realize that a move higher is a lower probability and that a move lower is now in play. The anticipatory trader stands a better chance of getting out of the bad trade with a small loss, small profit, or break even while the trader who sought confirmation is almost assuredly going to take a loss.

AlphaReveal is an enabling technology for anticipatory trading. AlphaReveal makes it easy to spot changes both in the executed order flow and the resting limit orders that so often precede the price action. This sort of information compliments and combines well with more traditional price action analysis. The result is a powerful synthesis that enables a degree of clarity and insight into the market's internal dynamics that would otherwise be impossible.


Monday, April 01, 2013 7:03:00 PM Categories: education


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Risk Disclosure:

Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure:

Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.