Experimental Design
Leverage 1:100
Leverage 1:100
GRANDPA of MM - Stake 100% EQUITY with 100% SAFETY 3 replies
100$ -->100,000$ (period: 12 months) 207 replies
Gutenberg money printing machine.. 100 to 1.000 to 10.000 to 100.000? 15 replies
HVR 6/100 and 10/100 with a 50% ratio 0 replies
100 pip STOP for a 100 pip Target 7 replies
Dislikedspx500usd, long @ 2'269.6, target @ 2'280 spx500usd, daily, 2017 february 02 {image}Ignored
Big Traders Seeking Liquidity
Market liquidity is considered to be "an asset's ability to be sold without causing a significant movement in the price and with minimum loss of value." Big market players with huge orders are not able to trade like the smaller retail traders. When they initiate a position, a substantial order often needs to be filled and price can easily go against them; this comes as they create a large imbalance in the supply and demand. Markets move as a consequence of the liquidity between the bid and ask prices.
What these big traders need is a location where they'd be capable of filing orders with no/minimal slippage. What about our previously referenced accumulation of stop loss orders? Running the stops here would likely help them fill a large position with enough traders taking the opposite side in order to prevent major slippage; therefore provide the large traders with a better average fill. So let's say this huge trader (or a big group of traders) has pushed price through a major round number; they do this knowing there is a good chance that stop loss/buy stop orders will be there as some traders exit bad trades and other speculate on higher prices and trade accordingly. If there are maybe $75 million worth of orders at a given level, the large traders will be keen to drive the underlying price up to set off the stop orders and subsequently get a fill for their orders. If substantial offers appear at a given price, but relatively small volume is transacted, what is this saying to you? With this in mind do you think that there are benefits to reading order flow in short-term trading?
Dislikedhttps://www.youtube.com/watch?v=_hfmuP1ZeNI Kiana Danial. Money Management Techniques. Forex Day 2016. English Version {image}Ignored