Order Book Leads Flow

AlphaReveal has several advanced features for tracking changes in liquidity across the order book. This includes an integrated visual depth histogram, real-time calculations for order book imbalances, and tracking both the pulls and net change field via our powerful Q-TrackerTM. Traders who use our program will agree that changes in the order book leads the order flow which drives price. In fact, AlphaReveal is the only program to provide a complete insight into the order flow dynamics.

Below are 2 dominant patterns that our software surfaces for easy advantage:

Order Book Imbalances: Order book imbalances can be seen as an imbalance in the resting bid and offer supply. They prove valuable at extremes. The order flow will often reverse when there is a large imbalance in the order book. AlphaReveal's visual histogram allows for some types of imbalances to be seen just visually. Better, the LimitResistanceTM tracker will highlight imbalances in the order book when they become extreme which makes them very easy to track. Often times, HFT bots are programmed to go to market near order book imbalances, and this activity can be seen clearly within our program.

Pulls: The Q-TrackerTM can track the pulls or the minimum depth and net change per each individual level of the depth. Simultaneous pulls across multiple levels of the order book is a leading indicator of order flow and subsequently price. Pulls are a most excellent leading indicator and prove especially valuable when trade activity is below normal. Do give the Q-TrackerTM a spin and see what it can do for your trading! We find it extremely valuable.

 

Thursday, February 28, 2013 3:57:00 AM Categories: education

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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.