Delayed Entry

One of the misconceptions about reading the order flow is that once the trader understands where the market is going that they need to take a very aggressive posture. Sometimes an aggressive approach is the right approach. But, in many cases a less aggressive approach will work better.  In fact, there are a class of order flow patterns which I've dubbed "cancelation patterns". These patterns tend to occur when many short term traders attempt to take the same trade at the same time-- the opposite tends to happen (at least immediately). As such, the most difficult part can be knowing whether to be aggressive or more conservative. AlphaReveal gives the trader greater insight to help make these decisions by showing how the order book and order flow are interacting. 

Even so, its often at the highest uncertainty that the trader must make the difficult decision. As such, the best we can do is evaluate, adapt to the changing market, and work to improve.

Thursday, March 07, 2013 4:01:00 AM Categories: education

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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.

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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.