The Equilibrium, a key to success!

Why trade with the eyes when the ears are 20 times faster.



Hello dear subscribers,


In the last 14 days, I initially took a few days off to prepare my next concepts in peace. We traders are like artists who sometimes need a creative break. You can recharge your batteries by the sea or in the mountains and come up with interesting ideas that you can then implement.

In the past few weeks, my filter settings for stock market data have increased so much that my workstation was regularly overloaded, the temperatures of the CPU rose to 75-80 ° C in some cases. The data stalled in very volatile phases, making it difficult to make a trading decision. Most exchange traders may have opened 5-10 different charts and use 1 to 5 different indicators with filter settings within these charts. That are a total of 50 different filter settings. I use up to 25 different charts, using 300 different filter settings in three different DoM views alone. Overall, I work with over 1000 filter settings. So it is clear that the performance suffers. My average CPU mark was 15,000, which was above average. But the CPU alone is not enough, it is crucial to optimally match the individual components such as CPU, mainboard, cooler, hard drives and graphics cards. I started with this, this two weeks ago.



With many comparisons on the Internet and in trade magazines, I put together my first individual trading PC. This time I switched to an AMD processor because the Intel processors are getting very hot. In addition, I use a maintenance-free CPU water cooling and 6 internal fans. The graphics card is enough because I don't use video games. The hard drives are extreme with up to 5000 MB / s write speed and an access time of 0.02 seconds. The color of the fans immediately shows me the CPU temperature range. From the perspective of a computer professional, this compilation could certainly have been optimized, but I would also like to be familiar with this area to be independent. In the beginning you always make mistakes. The first benchmark test was very promising. Point A shows the results of my new workstation, Point B shows the results of my old workstation. At cpubenchmark you can test your workstation yourself for free.



Of 750 high-end processors, I currently have the 16. fastest CPU with the best price-performance ratio. The CPU benchmark is now over 33,000, previously it was 14,000. The benchmark in the graphics card area has also improved from 10,000 to 18,000. It is extrem in the area of the hard disk. Although I had previously worked with a Samsung SSD, the value has now improved from 4000 to over 31,000. It's not about being in first place in all areas, but about achieving the best price-performance ratio. I could have bought an equivalent CPU, but it would have cost twelve times more. The RAM only plays a subordinate role with these components. If you enter Google: PassMark Cpu, you will find your personal benchmark values. By the way, this helps you to determine the best price-performance ratio if you want to buy a new computer component soon.



My next project will be a 75 inch 4K screen. This will then replace the 55 inch 4K and my 3 smaller screens. Five screens are a little clearer than eight screens.

Last week I started comparing my old workstation with the new workstation. I used the same filter settings in the area of my stock exchange software and was absolutely delighted with the huge difference. The speed of the new hard drives, due to the access time, can no longer be compared and I noticed temperature differences of up to 20 °. Even in extreme, volatile phases, there was no weakness with my new workstation. This motivates me to the extent that I now have great potential to drive further complex filter settings. I immediately started doing this last week and I want to show you the first result today.

On May 23, 2020, I posted a crucial contribution that, in my view, was not noticed enough. Those of you who haven't read this post can do so here. The decisive part begins according from slide no.2.

Fast and furious

The identification of bid and ask via tones beat our sense of sight by a long way. With this I question a trading decision based on our eyes. Let's take a closer look at that.



Last Friday, 264 lots with 108 ticks (trading transactions) entered the market in the Euro FX within 1 second (from 08:58:48 - 08:58:49 CET). In the chart you can see the individual trading transactions and, below, a breakdown of how much bid and ask were contained in this trading transaction. Please note that this representation is 1 second.



Let's look at an evaluation. If 108 trades enter the market within 1 second, it means that you have 9.2 milliseconds to identify a trade. With our eyes, however, we need at least 40 ms to record information. This means that out of the 108 trades, we can effectively only identify 25 trades. With special tones coming from a loudspeaker, we would be able to identify 250 different pieces of information. With headphones and special sound programming, this value could double once again.



Point A
Here we see my time and sales list, which only shows the market sell orders that are known to run in the limit buy orders. The blue fields show when an equilibrium arises in the area of the sizes.

Point B
With a special filtering of bid, best bid and best ask, this information is passed on to a specially programmed tone.

Point C
This special programmed tone has the property of being completed within 1 ms. However, human hearing is only able to perceive different tones from 2 ms. In order to have some air and to ensure optimal perception, I will program the sound in the 1ms range. I chose a frequency range of 20-100 Hz, which corresponds to a lower tone, similar to a bass. I assigned this sound to the left speaker channel.

Point D
From there, this sound must be sent to a high-quality, external or internal sound card, since the sound card on the mainboard is usually not able to transmit these 1 ms tones to the speakers properly.

Point E
Here we see a time and sales list that only shows the market buy orders that are known to run in the limit sell orders. The blue fields show when an equilibrium arises in the area of the sizes.

Point F
With a special filtering of Ask, Best Ask and Best Bid, this information is passed on to a specially programmed tone.

Point G
This special programmed tone has the property of being completed within 1 ms. I chose a frequency range of 1000-2000Hz. that of a higher note is similar to the treble. I assigned this sound to the right speaker channel.

Point H
From there, this sound must be sent to a high-quality, external or internal sound card, since the sound card on the mainboard is usually not able to transmit these 1 ms tones to the speakers properly.

As we know, the human brain is divided into an analytical, logical left brain and an emotional, creative right brain. Basically there are asymmetries in this area, not both hemispheres of the brain are responsible for everything equally. We should take a closer look at these factors later, but first I did the sound distribution as follows.We hear the different ask tones (course wants to go up) with our right ear and the different bid tones (course wants to go down) with our left ear. Now let's take a look at how this works in practice.



So that we first know where we are, you can see where the video starts with the blue arrow. The chart is in EURUSD from the last trading day on Friday.



Here you can see my filtered stock market data, which I do not want to go into in detail now. For better orientation I have shown you an M1 from the Forex Chart (Point A). If you now watch the video you will notice that my special filtered bid tones come in on the left speaker side and my specially filtered ask tones come in on the right speaker side. You can literally notice how the price is pushed up and some institutional traders try to push the price down again. Ultimately, buyers win because the price then went up 44 pip.

Inserted Video

The tones that I have programmed here are only a rough draft and will be of course yet significantly optimized. Likewise, they are clearly too slow with about 3ms, but they are enough to understand the principle. To make a comparison, three known Windows tones have the following tone times: Windows note tone: 1350ms, Windows Ping: 1100ms and Chord: 650ms. The sounds you heard in the video were 200 times faster than the fastest Windows sound. These are worlds in trading. Maybe you noticed something in the video. There are significantly more tones coming in than there are bid and ask orders. This is because the penetration of the sizes (Best Bid and Best Ask) are included. I also included the strength of the limit sell and limit buy orders. This results in clear pattern sequences that appear again and again at regular intervals. And it is precisely these aspects that you can never grasp with your eyes.



The stock exchange software I work with is optimal for my special needs. There is no comparable software worldwide that has such filter settings. The complex stock market data require high computer performance, which is why this software has been completely re-programmed with a new architecture. Part of the required performance is outsourced to the GPU so that the CPU is used less. The speed increase is enormous and helps me with these complex filter settings. In principle, my filter settings are comparable to programming an indicator. In theory, anyone who works with the same software could use it. But without concrete background knowledge it doesn't make sense.

Over the past few months, I have noticed that there are clear patterns in my programmed DoM views that can be seen in the video that keep reappearing in certain situations. This is because the big players work with algorithms that always work the same way. The advantage of the algorithms is that they can submit trading orders significantly faster than a human being would be able to do. The disadvantage is that there are always the same patterns that can be read and recognized with the appropriate software. The same also applies to the tones. Everyone knows the situation when a course goes down and you wonder when the course will go up again. Interestingly, I am already able to tell when it is time from the tones and pattern sequences in the DoM. Of course, that doesn't always work, since I've only just started to analyze the different patterns.

Traders have been looking for specific patterns for many years and have so far been unsuccessful. This is because there are no patterns in the price trend, volume, bid and ask in the footprint charts or in the indicators. Anyone who knows a little about programming algorithms knows that they always react the same way in certain situations. This is exactly the guarantee that there are certain pattern sequences right there that you only have to clearly and infect. The trick is to use a certain filter setting to highlight the crucial things. Decoding the code will take a while, but I'm already on the trail of the big players. The only chance for clear pattern recognition lies solely in the algorithms, everyone should be aware of what this could mean in the long term. Next week I will look at the tones in more detail. The timbre is crucial for quick identification. The speed should be less than 1ms and control the correct channel. My first goal is to program two different tones on the right and left speaker channels. It is theoretically possible to measure the strength of the market orders and the limit orders. Let's see how far I get. As always, it remains exciting.

I wish you a nice weekend and a successful start next week.

Best regards Michael

It is really nice to see that you are using new and advanced way to improve your trading every day. in a helping gesture i would like to share few things about sound so that you can dodge some troubles.
Temperature and humidity changes the speed and Timber of sound so i would highly suggest to wear headphones
Humans are much more responsive to Frequencies between 1K to 4K
If we are ill/cold/cough or even drunk or on your medication then those things effect our hearing ability
liquid cooling is a big NO for me due to spills while i am within a trade
using another pc just to fire trades and using another pc for analysis with heavy load had always proven a good choice to me

Every trader needs an emergency plan

Quoting nadiyakinare

Disliked

{quote} It is really nice to see that you are using new and advanced way to improve your trading every day.

Ignored

Hello nadiyakinare,


First of all, thank you for your great ideas and help at the same time.

In fact, temperatures change sound structures, which is why I work in direct trading with headphones, but connected with a cable, since the milliseconds tones are not transmitted optimal via Bluetooth. The main reason, however, is that headphones should be used to identify patterns in the Bid and Ask structures faster and more cleanly. I don't always wear the headphones, first the tones come from my speakers and tell me what's going on in the market. So I can also deal with other things while listening to what is happening in the market. As soon as I perceive an interesting sequence of tones that offers a deal, I take my headphones.

I have found that there are hardly any tones in the world that are in the millisecond range. There may be too few areas of application for this. That's why I decided to develop and manufacture the tones myself. This is a small challenge, but it is worth it in the end. You are absolutely right with the tone frequencies (1K-4K), but I need four clearly distinguishable tones that can be saved in a millisecond. The bass tones 20-100 Hz are much more memory intensive anyway and it is difficult to save them to less than 2ms. An alternative would be to use medium tone structures for the bid and higher tone structures for the ask. With this one could reach the 1ms range again. Another challenge is to assign the tones to a specific channel. My slogan is: it doesn't work, doesn't exist for me. If my tones don't exist, I'll build them myself.

My personal: what if plan!

I already use my smaller workstation for the MT4 structures and for trade protection. I have already considered the risk of defective water cooling in my workstation, but the processor could overheat and switch off due to poorer air cooling. I have analyzed both situations. I use my high-performance workstation primarily for stock exchange data, but also for trading Forex. If I were to trade via the MT4 on my second workstation, I would have to work with 2 mice and 2 keyboards at the same time. For reasons of efficiency, I decided to control the stock exchange and forex market with a mouse, since I am a seconds scalper.

I have secured myself as follows. I use my second workstation for my Metatrader charts. These run alongside, so I don't have to use the mouse or keyboard. In the background there is always a trading screen that I can access at any time when my first trading screen fails. If the power fails, I still have my cell phone, where I can close the trade at any time. I needed this protection because my virtual stop is no longer active in the event of a system failure. This could have fatal consequences, with the maximum threat to my account balance. However, this credit can always be kept very small by opening a second account, where you can move your money fast. I can save myself an uninterruptible power supply due to my cell phone. If you work with an uninterruptible power supply, you should include the router, otherwise it makes no sense. In 10 years the electricity has only failed 3 times and I was not in the trade. If the internet goes down, one should have the broker's phone number to close the trade over the phone.

Your comment is absolutely right and every trader should always have a what if have a plan. Before astronauts fly to the moon, they must be prepared for all emergencies. What if the food, water or air runs out? If one first start to think in an emergency situation, it is often too late. This is a very important point that everyone has to solve for themselves. One cannot plan all eventualities in advance, unfortunately there is always a residual risk, such as in the franc shock (EURCHF January 15, 2015).

As I wrote in my last article, the tones from the time and sales list and the structures in my specially filtered DoM are an important building block to identify clear patterns in the algorithms. These algorithms always work on the same principle, so that derivations can be made from them. I am excited to see what knowledge we will get from this in the coming months.

I wish you a successful trading week

Best regards Michael

Success with algorithms


Hello FXsniper111,

Thank you for your kind words, I am happy if the information help you. In recent years, like most traders, I have looked for recurring patterns in the indicators, in the price, in the resistance zones and in the candlestick patterns and could not find any clear patterns. After used the stock market data, I examined the big player algorithms and found that this could be the key to identifying patterns. The big players are looking for volume that can be reached quickly and efficiently via the stops of the retail traders. For many decades, retail traders have always reacted to certain actions by big players in the same way. That is why the big players have only had to make a few changes to their algorithms in recent years. (Never change a running / winning system). Generally speaking, an algorithm provides an approach to solving a problem. This solution plan is used to convert input data into output data in individual steps. In principle, algorithms are to combine a sequence of commands, market orders and limit orders (also iceberg orders) in such a way that as much volume as possible can be generated from them. These patterns can only be recognized with very complex filter settings in the DoM, the time and sales list and through a certain tone sequence. Here I have described some examples.

Why trade with the eyes, when the ears are 20 times faster

The pattern structure determined by algorithms is always the same, because a clear sequence must always be specified in the programming. Since the programming of algorithms is not easy, it is not changed permanently. These pattern sequences can be made visible with a certain procedure. After that, all you need is time and patience to identify these patterns and you get a clear trading advantage. For this you need an average PC, stock market data, the corresponding software and the appropriate filter settings. The resulting costs of about $ 60 a month can be quickly brought in by the better data. The main factor is the time you have to be willing to invest.

I wish you a successful trade

Greetings Michael

Act professionally, even as a beginner



Hello Sorobanista,

Welcome to our blog and thank you for the refreshing words. I have been dealing intensively with the stock exchange for many years and in recent years have developed a procedure that also enables beginners in the Forex market to become successful with stock exchange data. The future market is 3 times more likely to win than the forex market, but a beginner often doesn't have $ 30,000 to trade effectively in the future market. Therefore my approach is: Trade in the Forex market, but based on the stock market data from the future market. This gives a beginner the highest level of security in the stock market, requires relatively little capital, has a three times higher probability of winning and everybody can trade like a professional. You can find a lot of information in my blog, but the biggest challenge is time. Even if you know all the information in this blog, it will take you many years to act professionally. In the past 2 years over skype I have supported 3 best friends who are also traders. They have also become very professional traders. However, that was because, after my support, they invested a lot of time in their further development. I have received many requests for private training over the past few months, which I consider a great honor. Of course, intensive training can save you up to 1/3 of the time (2 years), but it would be wrong to believe that you will then be directly successful. I sit in front of my screens for 10 hours every day and I need that time to make a living. Of course, at the age of 56, people I think about whether I can support more traders individually in the long term. But that would mean that I have less time to trade and I love trading. With this blog I started to pass on some experience, but in theory it always looks different than in practice. In addition, I don't like the approach of many trainers. Successes and profits are promised that are impossible and unrealistic, just so that the coach can buy a Porsche that he would never have been able to afford with his trading style. The trade of trainers in the trading sector has unfortunately been discredited by the black sheep, which makes it difficult for honest trainers. I experienced this myself because I used to work as a trainer in finance for 15 years and saw many things there that scared me. It's just about of money, that's a shame. Nevertheless, as a trainer it was a good feeling when you helped other people and saw how they became more successful. The fact is that one didn't get much further with the known trading strategies. In any case, the stock market data is a crucial point to advance faster.

I wish you the best of luck and keep my fingers crossed for you

Greetings Michael

Looking for patterns in the chart



Hello dear subscribers,


Every beginner and advanced Forex trader has spent a lot of time analyzing indicators, systems, setups or certain strategies. It is often a matter of identifying certain pattern structures in order to derive a specific trading decision. We know the best-known pattern identifications from the candle formations. Doji, Hammer, Morning Star and Hanging Man are just a few examples. Likewise, many traders follow certain pattern structures that take place within different indicators or in the course of prices. Today we want to take a look at the different patterns and find out how it makes sense to spend our time on them.

First of all, it is important to find out what kind of data we are getting in the forex market. The most important information is the price of the current course. With the help of time, a candle in the form of OHLC is formed from the price information. In MT4 there are nine different time units that the majority of traders use. We now have two pieces of information, price and time, from which a candle is formed. Since the time is fixed (M1, M5, M15 .....), the price information mapped from it will always create a random candle that looks different at each broker. If the candlestick formation from the price is a random representation, it should be clear that no clear pattern recognition can be derived from it.

Now we come to the indicators. Most of the indicators relate to the price within a fixed unit of time. In this respect, the same applies to the indicators as to the candle. This is just a random representation. It is impossible to derive a clear pattern recognition from a coincidence. Of course there are traders who do not work with time-dependent charts, such as Renko, or tick charts. However, these representations do not bring any decisive advantage either. The background is as follows: The price that we receive in the forex market is only a result. The actual cause lies in the market sell orders which run in the limit buy orders and the market buy orders which run in the limit sell orders. And it is precisely this information that we do not receive in the forex market. There is also the possibility to make a volume visible in MT4, but this has nothing to do with the actual total volume of the market.

In addition, the volume information in Forex does not help us because the volume is only an addition of bid and ask. Bid and ask have nothing to do with each other and never meet in the market, so you should always consider these factors separately. So if candles or indicators in this market are created only by chance, by the given time, a concrete pattern identification is automatically impossible. Of course, we often see that a price is repeatedly rejected at a certain price level and we believe that this is a strong resistance. The big players have so much money at their disposal that it would be easy for them to drive the course through this supposed resistance. In fact, it's always about misleading and stopping retail traders in order to get the crucial volume. This volume is recorded in the form of iceberg orders, so the big players can collect a certain number of asks or bids unnoticed without the majority of market participants noticing. And that is exactly the point. If most retail traders do not know what the big players are collecting, they will not be able to see where the price will head in the medium term. But even if a trader finds out what a big player is collecting, it won't do him much good either. He doesn't know when the big player has finished his collection campaign and he also doesn't know whether the big player will start a stophunting.

As we know, the big players use algorithms to control their market orders and limit orders. I have written a very detailed report that you can find here:

The interplay of algo

The sequence of upward and downward movements is always structured similarly. I would like to consciously speak of upward and downward movements here, because from my point of view there are no trends. The big players always align their strategies to the actions of retail and institutional traders. In EURUSD, for example, this means: 2-3 big players have to align their strategies with 1 million retail traders every day. Unfortunately, you can never tell in advance how the majority of retail traders will react to certain actions. Let's look at a typical situation. There has been a prolonged downward movement and suddenly the price is pushed up. This can mean that the big player exited the dollar in the course of the downward movement, but at this point in time he does not yet have an ask that would justify a stronger upward movement. First the price is pushed up a little and a sideways market (equilibrium) arises. In this sideways market, the big player is now beginning to collect a larger number of asks. After that, the price will continue to be pushed up. As soon as an increasing number of buyers enter the market, the big player uses this situation to get out of the euro. Even if he has already exited the euro, he will continue to drive the price up to attract more buyers. With the help of these buyers, the big player is now able to buy the dollar unnoticed with its sell limit orders and then drive the price sharply down.

In order to ensure a smooth process here, the big player uses specially programmed algorithms that are precisely tailored to his market orders and limit orders. First of all, it is clear that the big player has to collect a certain number of asks at a narrow price level. As soon as he has completed this collection, he will start pushing the price up. In order to push a price up, the big player usually has to invest a large number of asks (in the form of market orders). In order to avoid this situation, he previously occupied 5-10 sell limit levels in the DoM. Shortly before it pushes the price up, the algorithms withdraw the limit sell orders that were previously placed in the market. At the same time, the algorithms begin to shoot market buy into the market. With this little trick, the big player succeeds in pushing the price up massively with just a few lots. To push the price up by ten ticks in Euro FX at the moment, you normally need 600 lots. With this little trick, the big player only needs around 100 lots. The reason for this is as follows: First, the big player collected 500 Lot Ask at a price level to make a profit. If he now pushes the price up and had to spend 60 lots for a tick, the game would no longer pay off. In addition, we must not forget that he will have to get out of the euro again at some point. The less lots he has collected on the way up, the faster he is out of his position.

Now we come to a very interesting point. The big player algorithms were individually tailored to the behavior of the retail traders. These behaviors are always the same, so the big players are also able to use these algorithms on a regular basis. They are very complex to program because they require a specific coordination for the market orders, limit orders and also iceberg orders. It should be logical that recurring patterns are can be identified within these algorithms. The first problem is that there are different algorithms for different approaches. The big advantage here is that the algorithms are adapted, but not completely changed. This means that the resulting patterns do not change much. So if you want to identify patterns, you only have one chance to make the patterns of the algorithms visible. These patterns only appear in the DoM and in the time and sales list, since both representations are independent of time and volume. In addition, you need special software for this, which allows one to use unlimited filter settings. But even with the appropriate software, you are still a long way from achieving your goal, as you first have to find the optimal filter settings.

I use different charts to help me find patterns. The tones are also a crucial aspect that I have already written about in detail.

Striking the right note

Why trade with the eyes when the ears are 20 times faster


Here you can see my current chart with which I am currently doing my pattern search in the field of algorithms.



These sample chart analyzes are updated and optimized daily. Tones that I have programmed in the millisecond range and assigned to the right and left channels also help me. On the left channel there are tones for the market sell orders and limit buy orders, on the right channel there are tones for the market buy orders and limit sell orders. This enables me to immediately detect when a rising course encounters an obstacle.

Another discovery I made is in the area of sizes.



On the last trading day (Friday between 14:54:40 - 14:54:50 CET) we see the crucial 10 second candle (Point A) in the 10 second chart. After that, the price went down 90 pips. At Point B we see the Times and Sales list, the yellow frame shows all market orders that came in during these 10 seconds.



The price was in an upward movement, which means that the market buy orders ran into the limit sell orders (Point 1). At point 2 we can see that almost 100 Lot Ask entered the market within 1 second. These were stops by short traders. Now we want to use the sizes (best ask / best bid) to find out whether there was a strong resistance in the area of limit sell orders.



At point B we see the Times and Sales list again within these 10 seconds. At point C we can see that the sizes in the Best Ask area were larger than average. This means that a big player stepped on the brakes and absorbed the entire ask with his sell limit orders. That stopped the course, then it went 90 pip down. At the same time I had an interesting pattern recognition in my chart and the tones also gave me a corresponding hint.


Conclusion:

You cannot find clear patterns in candles, indicators, prices, resistance or support zones in the forex market. The only way to identify patterns is through the big players' algorithms. These algorithms can best be read in the DoM and the Times and Sales list with stock market data. For this you should work with appropriate software and efficient filter settings. I also recommend using tones, as this can shorten the identification time by up to twenty times. Those who rely more on their ears than their eyes can significantly increase their probability of winning.

For almost a year now, I've been working on the identification of algorithms and have analyzed recurring patterns during this time. It is interesting that in certain situations the same patterns keep coming up. Not only can you generate profitable trades from this, but you can also quickly see what situation the market is in at the moment. And that is exactly an interesting goal. I would roughly estimate that there are around 20 different patterns representations that are used in different situations. As soon as I am able to assign these patterns to a certain situation, I can react accordingly at the moment when this pattern arises. With a little experience, one would theoretically be able to recognize what is happening in the market at any time. This allows you to plan your trades even better. However, this will still take a little time to assign the different patterns to a clear situation. But the foundation has already been laid and that is an interesting prospect for the future.

I wish you a nice weekend and a great start on Monday

Kind regards Michael

The hardest way, the algorithms



Hello dear subscribers,


In February 2018, I described the different algorithms of the big players in my blog. I initially looked for a way to read these algorithms in the Forex market, but this was not possible based on the incomplete data. As we already know, only price and time data are given in the forex market. The volume data we get in the forex market is useless. A normal volume is made up of the addition of bid and ask. Since no bid and ask are available in the forex market, the volume is generated from the ticks. A tick is a trade, but a trade can consist of a different number of ask and bid. In addition, a broker is only able to make its own traded volume available to its customers. However, this volume has nothing to do with the actual volume. Even if we had the specific volume available in the forex market, it would be of little use to us. A high volume shows interest at certain price levels, that's all. I find it particularly interesting that the bid and ask are added together, although the market buy orders and the market sell orders have absolutely nothing to do with each other, as they never meet. When a market buy order is placed by a retail trader, it only enters the market as soon as it is simultaneously accepted by a limit sell order from a big player. Of course, a retail trader can also place a limit order, just as big players use market orders. Now let's look at the individual orders.



The market buy order of a retail trader can represent a purchase of the euro in EURUSD, but also an exit from the dollar. The big player who accepts the market buy order with his limit sell order could thus enter the dollar or exit the euro. As soon as a market buy order is placed, there are four different possibilities.

It is interesting that only the market orders are displayed in the stock market. In my opinion, the representation is not entirely correct. For example, if a retail trader buys the euro with his market buy order and the big player buys the dollar with his limit sell order at the same time, there are actually two open orders in the market. This would mean 1 lot in euros and 1 lot in dollars are invested. In fact, the volume shows us only one lot in the ask but no lot in the bid. But at some point these two orders will be canceled and it could happen that the retail trader exits his euro and the big player exits the dollar at the same time. In this case a lot bid is displayed even though both market participants are no longer in the market. That is exactly the problem, we only receive information about the market orders in the stock market, the limit orders remain in the background. Of course, it is clear to us that a market order must also activate a limit order at the same time, otherwise it would not enter the market. But what the individual participants are buying or selling with their respective orders remains unclear. With the Open Interest you can get more information here, which is only available in the Russian market.

Of course there must always be a buyer and a seller for an order, but if the market is just opening and a market buy order is accepted by a limit sell order, it means that there are now two different orders in the market. One market participant bought the euro, the other the dollar. From my point of view, that would normally be two lots, 1 lot ask and 1 lot bid. But we only see 1 lot of ask in the market. If both market participants exit their positions, 0 lot should actually be displayed, but in fact 1 lot bid is now displayed. Now the calculation is correct again, albeit a little offset. From a mathematical point of view, the variant carried out by the stock exchange is correct; the small change would give the trader a deeper market insight. However, I strongly doubt whether this is what the big players want. You can act hidden in the background with your limit orders (especially iceberg orders) without the majority of retail traders noticing what is happening in the market.

Personally, I wouldn't be in favor of getting better transparency on the market, because better transparency also increases the probability of retail traders winning. This automatically makes it harder for profitable traders. The background is that you can take relatively little profit from the big players because they hardly make any mistakes. Retail traders make the biggest mistakes, and increasing their odds makes it harder for already profitable traders. Of course, our biggest competitors are the big players, but the profitable traders usually only take the hard-saved money from their own colleagues (retail traders).

Now let's get back to the algorithms. The algorithms are nothing more than control sequences with which the big players coordinate their market orders and limit orders (iceberg orders). The goal is to generate as high a volume as possible from this (through the stops of the retail trader) in order to then take it up with your own limit orders. In my blog I have already described a few examples of the coordinated algorithms. I have been working specifically with these algorithms for over a year, although I have been able to identify a lot of specific patterns in them in the last few months. In theory, from my point of view, it is possible to track down the algorithms with the heatmap, the DoM and the Times and Sales list. In addition to optical identification modules, I primarily use acoustic alarm signals that are individually filtered. Depending on the filter setting, it is possible that in certain volatile phases up to 500 different tones come in per second.

First, a tone is requested by the filter setting in my software to pass this signal on to the sound card on my mainboard. With my older workstations, I quickly reached a limit here because the sound card was not able to process this mass of tones accordingly.



For this I first put together a high-performance computer. Of course, the sound card on the new mainboard was much better, but the tones weren't displayed correctly here either. I bought an external graphics card to try out whether a different graphics card reproduces the tones better. The result was impressive, but when I started other memory-intensive programs, sound overlaps. An important point to properly process the tones is the sampling rate.

The term sampling rate (sampling frequency) is a technical term from signal processing, which, in addition to bit depth and dynamic range, is very often found in modern music production. The sampling rate says how often an analog signal that is sent to our audio interface via a microphone or an instrument is sampled during the analog-digital conversion. The unit is Hertz (Hz). It indicates how many points in the signal (samples) our computer has to remember in order to be able to reproduce it later without audible loss. Typical sampling rates are e.g. 44.1, 48, 88.2, 96 kHz up to 384 kHz. However, as the sample rate increases, so do the demands on our computer.

The Nyquist-Shannon sampling theorem or WKS sampling theorem (for Whittaker, Kotelnikow and Shannon) precisely defines how high the sampling rate has to be for a signal to be able to reproduce it later without loss. This means that a band-limited signal with a maximum frequency “fmax” can be exactly reconstructed if the sampling frequency “fsampling” is more than twice that of “fmax”. This means that if you want to record a signal with a maximum frequency of 20,000 Hz, the sampling rate must be at least 40,001 Hz. Curiously, my internal sound card had a higher sampling rate, but it tried to shift it to my processors. So there were problems. In the end I buyed an internal sound card that works with a sampling rate of 384 kilos of hearts at 32 bits. I'm curious to see whether this will improve the acoustic signals.

Thanks to my significantly faster computer, I was also able to increase the requirements for my filter settings. In my last articles I already talked about the importance of the values of Best Bid and Best Ask. The sizes in the Times and Sales list show me the specific situation in the area of limit orders. This enables me to identify a current penetration rate and also interesting patterns.

In order to display these sizes optimally, I had to create 53 different times and sales lists and filter them differently. I recorded a video for that.



First of all, we determine that the values given in the Times and Sales lists have been correctly implemented. However, the process was not smooth and in highly volatile phases, the system jerked. This is understandable because the software is not programmed for 53 different times and sales lists. It is also conceivable that the internet line is not able to optimally supply the 53 different smart tapes at the same time. Fortunately, I will now receive my fast fiber optic cable in a week, the work had been massively delayed due to the corona crisis. With my first display of the sizes, you are able to grasp the size immediately, which is a clear advantage. However, this makes clear pattern recognition more difficult. For this purpose I have filtered another representation that I would like to introduce here.



When looking at it, the display looks like the matrix at first, but I am able to identify a much faster pattern recognition. The more patterns there are on the outside, the higher the resistance in the area of Best Ask or Best Bid. The more patterns there are on the inside, the higher the penetration. However, we are still at the very beginning with this pattern identification, but the experiences made so far seem to be very interesting. I will of course keep you up to date.

The closer I get to these algorithms, the faster I get ahead with pattern identification. The best filter settings from the last week can be found in my chart. Let's compare my chart from last week with this week.



Here is my chart from last week

Inserted Video

Here is my chart from this week. You can already see clear differences, the optimized chart displays enable me to identify the patterns even faster.

As I wrote in my last articles, a pattern identification with price and time data is not possible, this applies to both the Forex and the Future market. In my opinion, even bid and ask are only partially suitable for generating a clear pattern. Best bid, best ask and the spoofing information have the greatest potential for pattern identification. We will deal with this in more detail in the next few months and of course report on it.

With my new sound card and the new fiber optic connection, I should be ready to deal more with these algorithms in two weeks at the latest. The fact is that so far I have been able to identify clear and recurring patterns that occur regularly in similar situations. I wrote that I have been able to identify around 20 different patterns so far. Possibly a few more will be added in order to achieve an interesting goal from my point of view.

First and foremost, I am not interested in entering into a trade immediately based on a pattern identification. Rather, it is about using these patterns to find out what market situation one is currently in. The sequence of upward and downward movements is in principle always the same. There is a low point and then an accumulation phase, then there is a movement, then usually a re-accumulation phase, where further ask is collected. This is followed by the movement and an exit from the euro. Finally the rate is pushed up again and in this phase the dollar is collected, after which it comes to exhaustion and a high point. Now the price is pushed down and there is a distribution phase, after which there is another movement. The algorithms have to react differently in different phases. With the appropriate time, I am convinced that we can assign the reacting algorithms to specific phases. With this assignment, the current market phase can then be determined. First of all, you know exactly whether you are in an accumulation or distribution phase. But even within these phases there are different approaches that the big players use. It is now important to find out when the collection phases are over and which patterns can be used to identify the stophunting.

In principle, I would like to use this pattern recognition to set up so-called “traffic signs” in the chart, which show me exactly what is happening. From this, better trades can be planned and executed with a significantly higher probability. With my previous algorithm identification, I was only able to look into the future for a few seconds. With the “traffic signs” in the chart, one could plan a little longer.

I wish you a successful trading week


It is not difficult to make algorithms visible or audible. But it's incredibly difficult to filter out the unnecessary information.

Kind regards Michael

I cann't really figure out your need of tone generation and sound card upgrade

Problems with a clean sound generation

Hello math,

Then there are three of us, because at first I couldn't explain it to myself either. A friend of mine who works with a setup similar to mine had the same problems. Up to now there have probably not been any traders who acted with a tone sequence of up to 500 tones per second.

In the first-person shooter games such as Call of Duty, Counter-Strike, Portal 2 or Battlefield, machine guns are used that reach 1000-1500 shots per minute. That's 16-25 shots per second that the loudspeaker has to fire one after the other. This is not a problem for a good mainboard. With our filter setting, up to 30,000 different tone sequences are produced per minute in extremely volatile phases, that is 20 times as many per second and could be an explanation for the fact that the sound card is overloaded.

With the software I use, there is the option of opening a window for each tone sequence in order to visually display the alarm. The Windows window needs at least 0.1 seconds to react. If I use this display and switch off the Internet while the system is running, it often takes a few minutes and these windows continue to appear.

In principle, the enormous number of signals is sent into a tube and there is a blockage because the tones cannot be transmitted to the speakers quickly enough. This can be due to the mainboard, the length of the tones or the speakers. So far, no one has had a problem with it, because there was no one who worked with such an extreme number of tones. There is not a single literature on it worldwide, maybe we are really the only ones who deal with it. We will deal with special sound engineers who are familiar with it, maybe they have an explanation for it.

I would normally not pursue this matter, but the benefit is enormous. The tones can be used to record the best Bid and best Ask information up to 20 times faster than with visual signals. Every second counts as a scalper.

I wish you a beautiful Sunday

Kind regards Michael

The sound makes the music



Hello dear subscribers,


In the last few weeks I had relatively little time because I had to deal intensively with my projects. I would like to briefly share the first results with you today.

In May I wrote an interesting article about the different perceptions of the eyes and ears.

Fast and furious

It turned out that the ears can absorb information up to 20 times faster than our eyes. From this I developed a strategy to use the tones to expand this information advantage.

Why trade with the eyes when the ears are 20 times faster.

As a result, I replaced all of my hardware in order to be able to identify these tones in real time.

The hardest way, the algorithms

Most recently, I ordered a high-quality graphics card and found that this graphics card did not meet my requirements. It had to do with the latency, which we will take a closer look at below.

The transmission of the data via the bus takes a certain time, there is a delay between the moment when the sound card provides a sample value and when this value arrives in the program (mediated by the driver) or vice versa. This delay is known as latency.

The matter is made more complicated by the fact that it has to be strictly regulated who is allowed to send what via the bus and when so that nothing gets lost or mixed up. That swallows some computing power. In addition, a safety reserve must be built in for the serial transmission of FireWire and USB, which can intercept the interruption of the data stream within certain limits. For this purpose, so-called sample buffers are interposed, which always hold a certain amount of the data stream in stock in order to prevent a gap. These buffers increase the latency (common values are in the range of 64 to 512 samples). Advantage of PCI: Thanks to parallel transmission and high data transfer rate, the buffer can usually can be set smaller than with USB or Firewire interfaces, which reduces latency.

But not only the data transmission is subject to latency, the ADC and DAC components also need a certain amount of time for the conversion, which is around 1ms to 1.5ms - really not much, but it adds up. The last thing in the problematic league of latencies is the audio software or the computer's processor: It must be able to calculate so quickly that the next value for conversion arrives at the sound card for conversion or can be fetched from the card when recording . If there is a gap here, the converters lack the information, or the pending sample of the recording is not saved, which leads to the same result in both cases: it cracks.

Additional latency can arise from plug-ins in the audio program. Not all plug-ins generate noticeable latency. However, a look-ahead compressor must e.g. first measure the level, before he knows whether he has to regulate. Even the fastest sound card driver cannot change such latencies. The fact that these delays occur does not necessarily have to be a disadvantage in every situation. As long as the ear has no comparison to the (direct) signal with no latency, the delay does not matter at all. This is e.g. This is the case with internal mixing when only tracks are played back - whether or not there is a delay of 23ms after pressing Play does not matter. You can even increase the latency in a targeted manner in order to have more computing power available (the processor then has more time until the next sample has to be sent to the sound card).

Latency becomes annoying as soon as there is a relationship between input and output. If you play a virtual synthesizer that is calculated on the computer, you can feel every major delay that occurs between the key press on the keyboard and the sound that is triggered. Even a singer who hears himself in his own headphones with a slight delay will not feel comfortable because the direct signal that he, among other things, Heard over his skull bones with the delayed signal on the headphones superimposed. In this case, however, a remedy can easily be found using direct monitoring. The singer simply receives a signal tapped from analog or directly behind the converter, and thus hears himself almost instantly. This so-called direct monitoring is now part of the standard equipment of audio interfaces.

I was able to determine that a simple USB sound card for € 20 had a significantly lower latency than the high-quality graphics card for € 150. Next, I inserted a graphics card that I controlled via a USB-C input. This was a significant improvement. There are now two concrete alternatives, a high-quality sound card with direct monitoring, which is controlled via the PCI and a sound card via USB-C. Then I have to find out whether the buffer can actually be set smaller via PCI so that the sound is displayed better than via USB-C.

Why is that important?

In high volatile phases my filter settings reach a rate of 500 tones per second. I have already been able to reduce this extreme load by programming my own tones that are in the millisecond range. I control the left loudspeakers for the filtered Bid tones and the right loudspeakers for the filtered Ask tones. The ear can identify different tones from 2ms, so I'm already on the right track. The lower the latency, the cleaner the sounds are reproduced and, in addition, no sounds are swallowed. This is particularly important in order to identify clear patterns in the tones.

My new fiber optic connection will be laid in the next week and a few preparations are necessary for this. I think I'll be ready to go again by the middle of the week. The fact is: The algorithms create recurring patterns in the DoM and the Times and Sales list, while one won't find any patterns in the price or in the candles. As soon as I am further with these patterns, I will inform you about them and give you some concrete examples.

I wish you a nice weekend and a good start to trading on Monday.

Kind regards Michael

Back to the Future


Hello dear subscribers,


If you don't keep up with the times, time will catch up you at some point. In the last 6 weeks I have revised and optimized my entire workplace in order to meet the demands placed on me. That demanded my full attention, which is why I had to reduce my activities at FF a little.



Here you can see how my workplace has changed over the past few years. These last few years have been characterized by permanent changes, over time there have been more and more screens and the size has also changed. At the same time, this development placed higher demands on hardware such as processors, graphics cards, RAM and hard drives. I was never really satisfied with it, because satisfaction means standing still and standing still is death in retail. If all of our ancestors had always been satisfied, we would still be sitting in caves in front of an open fire and holding pieces of meat into the fire. The markets in which we operate are changing at such a rapid rate that it is impossible for many traders to follow this progress.

If I were to trade in the Forex market exclusively in Equilibrium today, these changes would not have been necessary. But I was tired of guessing why a green candle originated in the market. Has the euro just been bought or the dollar sold? The only reason for price movements are the market orders that run into the respective limit orders and precisely this information is not available in the forex market. That finally brought me to the stock market two years ago. But I couldn't do anything with the pure stock exchange data either, so I needed software that would translate the stock exchange data for me in such a way that logical deductions could be made from it. The challenge lay in a special filtering of the different stock exchange data. This filtering within my software required high performance and quickly pushed my two Dell workstations to their limits. There was also another project where I had to process up to 500 tones per second through my computer. During periods of high volatility, the entire system stalled, which resulted in the screens freezing. In the long run that wasn't fun anymore and so I decided to put together a new and high-quality workstation first. You can find the article here:

Why trade with the eyes when the ears are 20 times faster.

At first I was very satisfied with the result, but what still bothered me was the fact that I was working with two different computers that provided a total of eight different screens. Two computers means having to work with two different keyboards and two mice. So my first goal was to be able to control all screens with one mouse and one keyboard. The idea was to reduce the number of screens while increasing the screen area.



At first glance, the result is very satisfactory, although in retrospect I am a little annoyed that I didn't go straight to 8K. But you still have to have goals in life. The screen resolution of 4096 × 2160 at 60 Hz is pleasant and I now have almost 3 square meters of screen space. My graphics card still has enough reserves because my stock exchange software also accesses the GPU. The reason is that arithmetic operations can be carried out much faster in the GPU than with the CPU. Five screens are much clearer than eight screens and the goal of controlling all screens with one mouse and keyboard has been achieved.



At the same time, I finally received my fiber optic cable after a year. A 1000 Mbit line would be completely oversized for trading, and also a 500 Mbit line would not have been necessary, but my main concern is the ping values. Over the years I have optimized my ping values more and more, and now I have a ping value of 4-5. Of course, this always depends on how the respective broker's servers can be addressed, but the speed is definitely noticeable.



I've also made some progress in the area of my tones. In the last four weeks I have compared about 30 different sound cards via PCI, USB and USB-C. It is interesting to know that the most expensive sound card I tested (€ 778) achieved significantly worse results than an external USB sound card that costs just € 17. An expensive Bose system transports my sounds to the speakers much more slowly than a cheap PC speaker system that is no longer built today. This shows once again that expensive does not always have to be good.

One thing that I had not considered, of course, was the storage of my 200 different workspaces within my six old screens. Since I am now working with five screens, some graphics are automatically outside the screen area. Bringing out those disappeared graphics is an insane job that I'm not looking forward to at all. But I can take this opportunity to delete unnecessary items and, under certain circumstances, find interesting developments that have not yet been completed.

It looks like autumn and winter will produce very interesting projects and I'm looking forward to digging deeper into the algorithms. After that, it will only be a matter of assigning individual patterns in the algorithms to specific market situations. This can then be used to create individual signposts to find out where you are in the market. As we know, there are no clear patterns in terms of price, time, volume or liquidity. The big players' algorithms are the only patterns that can be reliably identified. My screens are designed solely to identify these patterns of algorithms, so my screens seem very complicated at first glance. But if you take a closer look, you can quickly see that the whole thing is a lot less complicated than it initially looks. It becomes much more interesting when you can identify these patterns and derive clear trade advantages from them.

We will be surprised what awaits us in the future.

I wish you a successful trading week

Kind regards Michael

The time we take is time that gives us something


Hello dear subscribers,

Last week I prepared a very detailed report explaining in detail my new trading screen to identify algorithms. I created a video for this on Friday that I have already put online. There you can also hear the tones I identify from the algorithms.



Unfortunately I won't finish this elaborate article today, but I am sure that I can put it online by noon tomorrow. There I describe some interesting aspects about the algorithms with some examples from the EURUSD from last Friday. This article goes a little deeper and I am sure that you can use some information for your trading.

I wish you a nice weekend and a good start to trading tomorrow morning.

Kind regards Michael

Hear the algorithms



Hello dear traders,


Today's post is the longest article I've ever written here. On the one hand, I will go into more detail on my new trading chart and try to explain certain patterns within the algorithms. However, my main project is the different tones that give me much clearer and more effective patterns. This makes it theoretically possible to trade profitably without a chart. I will go into that in more detail at the end.


In the past few weeks I've finalized a few crucial things

1. A new high-end workstation was put together and set up.
2. A fiber optic line with a ping of 4-5ms has been installed.
3. A 75 inch 4K screen replaced 4 of my screens.
4.3 Tones with a latency of 1ms were developed
5. An optimal sound card can now record up to 500 tones per second
6. My workplace has been completely rewired and shielded.

These changes were necessary because I've been dealing with the algorithms of the big players for a long time and intensified this at the beginning of 2020. At that point in time it was not clear to me which hardware and software requirements this step required. I became aware of this when the translation software I used for the stock market data was developed with a completely new software architecture. So far my software, which is programmed in C #, used the CPU to perform the arithmetic operations. Depending on the comparison of GPU / CPU, a graphics processor can be up to 10 times faster than the central processing and control unit of a computer. For this reason, the newly developed software takes advantage of the faster GPU to perform certain computing operations. This reduces the load on the CPU, which can then be used for other operations.

When I started the first experiments with my tones, I used tones that were in the 100ms range and my CPU slowed down enormously in high volatile phases. Even when I developed tones that were in the 1ms range, my old software was so stressing the CPU that the speed of the tones had to suffer. Since the new software relieves the CPU, I can hear clear tones again, even in extremely volatile phases. As I already wrote in several articles, the tones are a decisive advantage in retail, as tones can be perceived up to 20 times faster than graphical representations. The stock market is all about probabilities and a market advantage. The time plays a decisive role for a seconds scalper, both in terms of incoming and outgoing data packets. Of course, I am dependent on the ping time of my broker when placing a trade order.

The data transmission rate for sending and receiving (down and up speed) measures the amount of data that can be transmitted over an information channel such as the Internet in a certain time. To do this, however, you first have to establish a connection. When you visit a certain website, your computer first sends a request to the website's server. According to the motto "I am there and want to request data from you". If available, the server also sends back a data packet and confirms this request. The time span for sending and then receiving a data packet is called the packet delay. Also known as the round trip time (RTT) or ping.

When you send a trade order to your broker, relatively small amounts of data are sent on the journey; the ping is crucial here. The faster your data package reaches the broker, the faster your order can be processed.



Here I made a ping comparison of three different brokers. While it takes an average of 20ms to send a data packet with the first broker, the best broker only needs 10ms. These three comparisons are nevertheless very fast, as there are also ping times of over 200ms. The ping times depend on various influencing factors. The type of broadband technology, but also the distance between the servers, influence the latency period. A normal speed test is of relatively little use, since a server is addressed that has nothing to do with your broker.

You can measure your ping time to the broker yourself with Windows. Enter Windows “Start” “Execution” and then “cmd”. A black screen should now appear. Now enter the following: "ping google.de", this will give you the ping time to communicate with the Google server. If you enter the website of your broker, you will receive your personal ping values. My ping times in the speed test are 4-5ms, but I can only reach my broker in 8-10ms. But the trading orders with my broker in the forex market have a decisive advantage over the futures market. In the futures market there is not always liquidity, while a market maker almost always provides me with liquidity. This means that I am usually faster in the forex market than in the future market.

My developed tones are a great trading advantage as they tell me the current activities of the major market participants. Sometimes I was able to determine that the tones of the market orders and limit orders come in faster than the graphic display in the times and sales list. The advantage is often only in the ten millisecond range, which is sometimes enough to get a better start. The orders in the Times and Sales lists run down so quickly that you can't tell them apart. The tones have a clear advantage here, especially since I have assigned the bid tones to the left and the ask tones to the right speaker channel. I am less interested in the market orders, but rather in the limit orders when they hold up the market orders. As I wrote in several articles, limit orders determine market behavior. The big players collect a certain number of market orders with their limit orders in order to be able to enter or exit. This can be represented faster and more clearly with tones. You will see and hear some examples of this today.



Let us first consider the last trading day on Friday. We can see the course of the day in the M5 chart. We were in a 30 pip equilibrium (Point A) until 2:30 p.m., then there was a downward movement of 85 pips (Point B), followed by an upward movement of 75 pips (Point C). In the forex market we cannot tell from the candles what the big players have collected. We know: the price is only the result of the market orders that entered the limit orders. And it is precisely this information that is not available in the forex market. Nevertheless, one can ask oneself whether one could have foreseen that with the stock market data.



The yellow rectangle shows the described equilibrium during the day. To the right of that I have shown the delta of the limit orders. We know that the market buy orders run into the limit sell orders and the market sell orders run into the limit buy orders. Most volume traders primarily look at market orders and that is exactly why they get nowhere. My approach concentrates exclusively on the limit orders, as this shows what is currently being collected. On the right side (Point A) are the Limit Sell Orders where the Bid is collected and on the left (Point B) are the Limit Buy Orders where the Ask is collected. We recognize that there is a clear trend in the area of limit sell orders. This shows that the big players have collected bids to push the price down. The only downside is we don't know when they're going to start pushing down, but that's where the algorithms come in. It is interesting to see that the big players collected massive limit sell orders 3 hours before the breakout. You can see this clearly in my limit delta chart at point C. Here at the latest, as a day trader, you have to look for a short entry into the high. The course then ran to Point D and almost all the way up to Point E. That was around 9 p.m. and from Point E I documented an example for you on video.



When the price went up 75 pips again, Point A had reached the high. The course went down a little and then reached Point B. I documented the next 5 minutes up to Point C with a video, overall the course ran from high (Point A) 17 pip down (Point D). Before you watch the video, I would like to explain to you exactly what information I get from my main chart and which tools help me. The software I work with provides these basic tools, but I have modified them with very complex filter settings. Therefore you cannot find this representation in any other trader in the world.



I would like to try to explain the individual representations in more detail, without explicitly going into my complex filter settings. These settings are my personal trading advantage that every trader has developed over the years. A setup must always be individually tailored to the individual needs of the respective trader, this is the only way to be successful.


Point A
Here we see the total volume within a certain period. The volume is a summary of the ask and bid and only shows the price ranges where there was a high level of interest. From this one can sometimes derive interesting information. The time period for this consideration is decisive. Since an upward or downward movement is always similar, this period can be analyzed accordingly.

Point B
This is a delta chart in which limit sell orders and limit buy orders are analyzed in more detail. The specific collection of bid and ask cannot be recorded exactly, but you can still see a sell-off of the euro in an upward movement and the subsequent collection of the dollar. Accumulation and distribution phases can thus be recorded more easily and quickly.

Point C
A cumulative delta chart within a certain period of time. Here, too, limit sell orders and limit buy orders are viewed separately from one another in order to identify dominance more quickly. Dominants on individual price levels, in the area of limit deltas, are interesting. These appear again and again in certain situations and bring crucial trade information. With the help of cumulative chart settings, you can filter out unimportant limit orders, which is crucial for a clear overview.

Point D
The volume in the daily chart is only a rough overview for the daily, interesting price ranges. However, you cannot tell whether a bid or ask has been collected or submitted. Nevertheless, it is precisely the mountains of volume that are important, since decisive collection campaigns or sales have taken place there. Then you have to go into the individual analysis to find out what exactly happened there. So the volume is only information that something happened there, nothing more. A concrete trading decision cannot be derived from this.

Point E
The limit sell orders are able to hold the price briefly in an upward movement in order to get out of the euro position. Likewise, massive iceberg orders can completely stop the upward movement if a large number of buyers enter the market at that time. The big players often place their iceberg orders on the market beforehand in order to be at the top of the limit orders. This allows you to absorb the volume of retail traders immediately or delete the iceberg orders in order to then move the price strongly in your direction with a small number of market orders. The red lines represent the size of the limit orders in the DoM. This enables possible iceberg orders or specific zones that are important to the big players to be identified beforehand.

Point F
The same also applies to the limit buy orders, these can slow down, completely hold up or even accelerate a price if the iceberg orders are deleted and massive market sell orders come into the market at the same time. The green zones show an above-average volume of limit sell orders in certain price zones. These price zones require a detailed analysis to find out what exactly happened there.

There are a few ways a big player will hold or stop a course.

1. He wants to get out of his position or get out with a partial position.
2. he want the movement to continue, but at this point too many traders are headed in the same direction that need to be stopped first.
3. The big player wants to keep collecting and an equilibrium arises.
4. The big player is out of position and has already collected orders for the countermovement, we are on a high or low.
5.The course comes to an artificially created resistance zone, the big player intends to continue the movement, but wants to give the impression that a trend reversal is taking place. Many retail traders fall for it and are stopped out. This allows the big player to buy new orders at a lower price level.

These are just a few examples, the key is to find out why a course is being held up. Of course, this cannot always be precisely determined in individual cases, but it is possible to precisely analyze where a course was held and these are often decisive price ranges.

Point G
The big players are always on the hunt for the volume that they take in with their limit orders. This enables you to accumulate a position or exit a position without the majority of retail traders noticing. The red circles show the stops of the short traders, the green circles the stops of the long traders. These are cumulative orders that are implemented within a thousandth of a second. The circles primarily consider the limit orders, there are exceptions. If a red circle appears on a low, it is not a short trader stop, but rather cumulative market buy orders. As a professional trader you have to recognize these exceptions immediately in order to see what is happening in the market.

Point H
This is the delta in the limit sell and limit buy area. Here you can indirectly see in which area there is massive collection. Under point H we see a high number of limit sell orders that were collected in the brief upward movement at point G. At this point, a few short traders entered the market who were stopped out with a brief upward move. These stops were recorded and collected with limit sell orders. Overall, the price then went down 17 pips.

Point I
This representation was extremely difficult to realize. It shows the positioning of retail traders who only trade with one lot. It's about the weakest traders in this market. The points shown here take place outside of my red and green circles that I listed at Point G. Of course, these are entries and exits for retail traders. Very often you can see, when a large number of buyers or sellers form at certain price levels, that the big players react accordingly with a stophunting. This representation shows the positioning of the retailers with the least experience. By the way, you can see that on most exchange platforms. When the price was up, most retail traders were short and when the price was down, most retail traders were long. My presentation reacts much faster in real time because I can see the positioning of the retailers immediately.

Point J
The spoofing, in my stock market software, shows a deletion or addition of limit orders at certain price levels. This calculation is estimated using a specific algorithm and comes very close to actual spoofing. From this information, I used different filter settings to make the strength of the limit orders and market orders visible. On the right-hand side, the current strength of the market buy orders is compared with the limit sell orders and on the left, the current strength of the market sell orders is compared with the limit buy orders.

Point K
Here, the strength of the limit sell orders is determined from the sizes within the time and sales list. The lighter the color, the higher the strength in the area of limit sell orders.

Point L
Here the strength of the limit buy orders is determined from the sizes within the time and sales list. The lighter the color, the higher the strength in the limit buy order area. Compared to Point J, this is a completely different calculation method, which should bring a consistency in the overall view in order to obtain important information from it.

Point M
This display was also calculated from the spoofing information and primarily relates to the strength of the limit sell orders and limit buy orders. If a price goes down, it is stopped by the limit buy orders, in an upward price the limit buy orders help so that the price does not slide down. Depending on the course, very interesting information can be derived from this.

Point N
Here we see a possible movement trend that was derived from the DoM. When a higher number of market sell orders come into the market, a larger red bar appears.

Point O
In contrast to this, we see a possible tendency for the market buy orders to move. If a higher number of market buy orders come into the market in the DoM, a larger green bar appears. I like to compare the movement tendency of Point N & O with the movement tendency of Point X. We will come to that later.

Point Q
This representation primarily shows the strength of the respective market orders. The yellow bars on the right show the movement of the market buy orders, the red bars show the spoofing in the area of limit sell orders. The yellow bars on the left show the movement of market sell orders, the green bars show spoofing in the area of limit buy orders. In addition, on the far right and left, we see the outstanding limits in the DoM and the executed limit orders.


Point R
Only the limit sell orders and the limit buy orders are considered here. These two order types are side by side, but have nothing to do with each other, so you have to look at them separately. As soon as a price is stopped at a certain price level, I can immediately see what is happening in the market.

Point S
This representation is nothing more than a vertical view of incoming market orders between 1 and 8 lots. If a big player pushes the price in a certain direction for a short time, this is usually done with smaller orders. The larger orders are mostly accumulated, recorded stops by retail traders and are displayed to me at Point G. For this reason, this ad is enough for me. With this approach, the time and sales list can be recorded much faster. Unfortunately, this approach does not exist in any software, so I had to create it myself.

Point T
Here we see a comparison of the strengths in the limit sell and limit buy areas. If a large number of green fields appear, this indicates either support in an upward course or a possible slowdown in a downward course.

Point U
There are two different movements in the market. The market buy orders run into the limit sell orders and the market sell orders run into the limit buy orders. These are four different order types that are constantly competing with each other. My challenge was to determine an equilibrium with a certain filter setting within these four different order types. After many attempts I finally succeeded and we see an equilibrium within these four different order types in the blue fields. An equilibrium always means uncertainty and, together with Point T, gives me very interesting information.


Point V
We know that the ask and the bid will never meet, as they are always included in a limit order. This means that ask and bid have nothing to do with each other. For this reason, normal footprint charts are not useful. The footprint chart we see here primarily only considers the limit orders. With a certain filtering of the imbalance, I was able to show only the critical limit orders in the chart. This allows reversal points to be determined even faster and more efficiently.

Point W
From a speed indicator I have determined the respective strength of the ask / bid and can compare them with each other on the same level.

Point X
From the strength of the limit orders, I was able to develop a movement indicator that shows the short-term movements of the price trend. Depending on the market trend, you can look into the future for a few seconds. I like to compare this movement indicator with Point N & O. If there are differences here, one should be a little careful.

Point Y
This is a very interesting filter setting that I created from the sizes. With the red and green fields I filtered out an equilibrium and in the end there are still green and red numbers left. From this, with a very high hit rate, I can immediately deduce the future strength of the respective movement.

Point Z
Here we see my trading screen, from the Forex market. My self-developed Bionic candle is shown in the M1. The decisive factor is the spread in order to keep an eye on costs. As soon as I place a market order, my stop is automatically placed in the market. With this trading software, I am able to enter the market or close a trade within milliseconds.


If you look at my main chart on a 24 inch monitor, the individual charts look very small. You have to note that I am working with a 75 inch 4K monitor, and a 24 inch monitor fits in there 9 times. In addition to the main monitor, I also use 4 other 32 inch monitors that provide further charts from the futures and forex markets. I don't want to go into that in more detail at this point, because I've tried to unite the crucial charts on one screen. Nevertheless, the currency strength from the Forex market is also an important point for trading decisions.


From the five-minute video I have put together a few points to show what I pay attention to in detail. In reality, however, there are many more aspects that have to be taken into account, as it would go beyond the scope to explain everything in detail.



Point A
First of all, I noticed in the upward movement that at Point A a larger amount of Asks was collected again in order to push the price further up. The more buyers come into the market, the easier it is for the big player, on the high, to absorb the ask in order to buy the dollar.

Point B
The strong sell limit delta, which shows the exit from the euro and at the same time the purchase of the dollar, is striking.

Point C
Here we can see that a higher number of sell limit orders have been collected at a price level. If we now analyze the right volume mountain more closely, we will find that more bid than ask was implemented there. In an upward movement, a bid means an exit from the euro.

Point D
It was noticeable here that a large number of bids were collected. There were some long traders who couldn't get away with their position because the big player absorbed the ask with his sell limit order.

Point E
After the high was reached at 8:54 p.m., the big player placed another iceberg order in the limit sell area around 9:00 p.m. This served to hedge in case the price should run into this price range again.

Point F
Here we can see that a larger number of short traders came into the market who were stopped out with a brief upward move.

Point G
At the same time, the strength of the limit sell orders was significantly higher than the strength of the limit buy orders.

Point H
The price was already in a downward movement and here too the strength of the limit sell orders is dominant. In the area of the sizes on the limit buy side we can see that some limit buy orders are being withdrawn from the market. This indicates that the downward movement is still active.

Point I
In the DoM you can see that there is a higher number of market sell orders coming into the market. The combination that limit buy orders are withdrawn at the same time is an indication that the further course of the price is going down.

Point J
Point I shows that massive sell market orders are coming in and Point J confirms the bearish move. A good sign of an upcoming downward trend.

Point K
It is interesting to see that a higher number of red fields appear that are not in an equilibrium. This means that bearish strength is much more dominant.

Point L
The limit overview shows a clear dominance in the area of limit sell orders.

Point M
It is noticeable that the big player at Point M has already placed some iceberg orders in the market in order to catch the price in this area. This is also an interesting indication that the course could run in this area.



Point A
The price has now run into an artificially created resistance zone and the question arises whether it will continue to slide down.

Point B
The limit sell orders are still significantly stronger than the limit buy orders.

Point C
At this point in time, significantly more market sell orders than market buy orders are entering the market in the DoM.

Point D
At the same time, the price trend is moving in a bearish river.

Point E
The strength in the area of the sizes shows a bearish superiority, but in this dominance an equilibrium arises. This is an indication that the course could be intercepted.

Point F
In my unfiltered footprint chart, there is a clear dominance in the area of limit sell orders at this point. It is still an indication of a further downward movement.

Point G
The green and red fields show a typical Christmas tree, we can see that further limit buy orders are being withdrawn from the market. This is clear information on a further downward movement.

Point H
Here we can already see that the big players are starting to intercept orders on the limit buy side. This is often done to briefly stop the course and then let it continue downward.



Point A
The course briefly crossed the open line and was stopped in its movement for the moment.

Point B
We can see that limit buy orders are still being deleted from the market, which suggests that the price will continue to move downwards.

Point C
In the limit area, the bearish strength is dominant, but a brief uncertainty due to the equilibrium can be seen.

Point D
There is much more activity in the area of buy orders in the DoM.

Point E
However, the price trend is more bearish, so this is only a short pullback within a downward movement.

Point F
We can also see this short pullback in my filtered Equilibrium display.

Point G
Although more ask than bid comes into the market, the overall strength of bid is significantly more dominant.

Point H
Limit buy orders are still being deleted, which suggests a further downward trend.

Point I
The overall picture is still bearish.

Point J
We can see that different iceberg orders have now been placed on several price levels in order to intercept the price in this area.



Point A
The course has now moved further down, but has still not reached its goal.

Point B
The strength in the limit sell area is still dominant.

Point C
At this point in time, more and more market sell orders come into the market.

Point D
At the same time, the trend is bearish, a good sign of further downward movement.

Point E
The bearish dominance can also be clearly seen here.

Point F
The strength of the limit sell orders is dominant and there is no equilibrium in sight.

Point G
The stronger sell limit orders support the downward pressure, while limit buy orders are still deleted.

My recorded video unfortunately ends in this area, but I want to show you what happened a few seconds later.



Point A
The course has now moved further down and has reached my target point. From this point the price was pushed 7 pips up, after which the downward movement continued.

Point B
We can see that the big player is now applying the brakes in the area of limit buy orders in order to hold the price back.

Point C
Although we are still in the downward movement, the number of market buy orders in the market is increasing.

Point D
The movement tendency is still in the bearish area, due to the information from Point C one should be careful here.

Point E
The strength of the limit buy orders is more dominant, but we are still in an equilibrium. This is a typical indication of a trend change.

Point F
With the green Christmas tree, we see some gaps in the lower area of the sizes. This is a typical pattern that comes up again and again when there is a trend reversal.

Point G
We can see here that the big players' target corridor has been reached. There were few stops by long traders. This is an indication that there are more short traders in the market. You can also see that at Point A, by the way.

Point H
We see that the strength of the limit buy orders increases significantly, so one can conclude that there is a short pullback.

Point I
In the area of my filtered footprint chart, we can see in the downward movement that the limit buy orders are significantly stronger than the limit sell orders. The downward movement is still active, but the big player uses the opportunity to push the price 7 pips up. This stops short traders or limits their profits.

With this information now look at the video I recorded.



The explanations I have given relate primarily to the charts, what we can see with our eyes. Much more important, however, are the tones, because they can be used to identify much better patterns.

The combination of charts and tones is an unbeatable trading advantage. In the past I have relied more on analyzing the charts, which I am slowly pulling back. In the future, my main focus will be on the tones, but I still need some time to find the optimal filter settings. The aim is to identify the specific turning points using only the tones. The results so far are impressive, they just need to be optimized over the next few months. This is an insane job as there are millions of different attitudes.

The sounds you hear in the video are a combination of market orders and limit orders. Although the settings have not yet been optimized, you can already hear clear pattern structures. Our brain is able to pick up sounds up to 20 times faster than a pattern structure over the eye. I would like to use this time advantage for myself and that's why I developed this project.

Theoretically, a blind person could also trade profitably with it!

In the next few months or years I will deal more specifically with these tones and try to match the tones to the charts. As soon as I have optimally filtered the main settings, it would theoretically be possible that even a blind person could trade profitably with this system. Although I am even convinced that a person who is blind could act much more profitably than I would be able to. The background to this is that a blind person has significantly finer sensors in their hearing because they have to do without their eyes. So he is able to get more information out of the tones alone than I would ever be able to.

Perhaps in the next few years I will also achieve a higher level of sensitivity in the area of my hearing senses. However, that will only be possible if you do without your eyes for the most part. The fact is that our eyes deceive us when trading, we can rely more on our ears. And that is exactly a particularly difficult step that a trader must first implement. What appeals to me is that nobody has tried this project yet. What trader would be crazy enough to enter a trade without using their eyes? In any case, I would have the courage to do so, but I still need some time.

It may also turn out that as a trader you cannot do without your eyes entirely, but a shift to the sense of hearing brings clear advantages in terms of speed.

This is a very exciting project and I'm looking forward to the future discoveries and developments that this project will bring with it. In any case, I will keep you regularly up to date, but I cannot promise that I will get concrete and usable results in a short time.

I wish you a successful trading week

Kind regards Michael

Good morning Michael.

Under circumstances of Corona and the closed clubs since months,
I guess some of my friends could dance on this on early sunday mornings;-)

Hi Bionics,
You are crazy but in the good way. What you have done is really amazing
And to use sound, woaw, congrats
Best

Bionic dance



Hello Guido,

nice to hear from you again. This is basically a great idea, but it could be problematic.

The term beats per minute became popular in the disco era and is mainly used today in dance and electronic dance music. Since normal bodily functions of a person run at 72 heartbeats per minute, these are the norm for the question of whether the frequency of the beats per minute has a stimulating or calming effect on the recipient. Tempi with a high frequency (over 72 bpm) have a stimulating effect, while those with less than 72 bpm have a calming effect.

Hip-Hop typically has tempos between 70 and 120 bpm, while House is faster at 110 to 140 bpm. The jungle is even faster with 140 to 190 bpm, while terror tempos over 200 bpm and speedcore and speed metal even reach up to 300 bpm. With the splittercore, the bpm is even between 700 and 1000, which corresponds to 16 beats per second. The "Bionic Dance" would be between 15,000 and 30,000 bpm, which would be very stimulating indeed. I found a very interesting video that depicts the tones between 90-100000 bpm.



From 2000 bpm it is almost impossible to tell the tones apart. A Youtuber remarked: "Your heart beats in sync with the music you're listening to". If that is indeed the case, 500 tones per second is not healthy. Even an electric shock (50Hz) ensures that our heart only beats 50 times per second. That is still 10 times less than my tone identification of the algorithms in high volatile phases.



However, the volatility on Friday night when this video was recorded was relatively low. I'll make a recording when Frankfurt, London and the USA are in the market at the same time and an important meeting is also imminent. Some of my friends who work with a similar tone setup because of my motivation find the tones to be a great aid in daily trading. A key advantage is that one can hear when it is better not to place a trade. Alone, that can save a lot of money.

Kind regards Michael

If we don't have any money, then at least we need good ideas!

Hello rosalieone,

Thank you very much for your encouragement, but what I'm doing is a little crazy indeed. In my life I have always looked for ways that no one has gone before. This is very time-consuming and exhausting, but if it works, one have a clear advantage. During the past 10 years in trading, I've noticed how many times I've been wrong. To forecast future price development from a candle or an indicator only had the charm of a game of chance for me. I wanted to rule out chance as much as possible, so I had to start from scratch. My odds have improved a bit, although I would have expected it to be a lot harder at the beginning. It is interesting that my feeling of security in trading has improved enormously. I also measured it once based on my heartbeat. As a scalper, it is harder anyway, because with 25 trades a day you pay up to € 500 spread and you have to earn the spread first, before you earning money. That's why scalping is one of the greatest challenges in trading for me. However, I don't have to sit in front of my screen for hours and hope that my loss will diminish and that the price will develop in my favor. In scalping, my profit or loss is achieved in a few minutes. From 600 interesting M1 candles I can choose the best 20-25 candles and that with the help of stock market data. I'm at the very beginning because 2 years ago I took a completely new path. At this point in time, I cannot say whether this will be sustainable. My odds haven't gotten any worse and I have a significantly better feeling of security. The effort has already been worth it for that alone.

People with a new idea are considered crazy until the thing has prevailed.

Kind regards Michael

[quote=Bionics;13155941]If we don't have any money, then at least we need good ideas!.

Hi Michael,
You sure have been busy, I cannot keep up with your valued inputs--where do you find the time to do it all.

I thought my 2 large screens wold be enough but your latest acquisition must be an eye opener, I am jealous of your capabilities and equipment, :-)

I look forward to experimenting with this latest post, I may have to use your screen though hahahahah, I wonder if Rosalie has a suitable screen.

Ok Bi 4 now
Ben

The kick is the challenge

[quote=btrfx1;13156038] Hello Ben,

I also often ask myself how I was able to implement all these ideas and developments in such a short time. When you have a goal in mind, anything is possible. However, I also work around 300 hours a month to achieve my goals. The contributions that I publish at FF help me a lot. Explaining something to yourself is easy, but it gets complicated when you have to explain it to others. This automatically gives rise to new ideas on how to do it even better. What particularly appeals to me is the fact that nobody else has gone my way. I have a lot of respect for the big players and high-frequency traders because they are the absolute world champions in trading. But they also have weak points that I track down in the area of their algorithms. In the last few years I have concentrated heavily on their strategies and found out many things about which there is no literature in the world. 12 banks control 85% of the Forex market, their power is incredible and yet they make many mistakes every day. These errors lie in the algorithms because they are unable to react appropriately to all situations. They won't change their algorithms until the profits decrease significantly. Goldman Sachs has completely changed its algorithms as they have dwindled significantly in recent years. Deutsche Bank is still well in the running, but they are also slowly noticing that the Asians and Americans are clearly catching up. There are now self-learning algorithms, but it will take decades before they work properly and then I'll be retired. It's just fun to find the loopholes in your mistakes and generate a corresponding trading advantage from them. It's not so much the money that appeals to me, but rather the challenge of having a realistic chance against the best in the world. And that's exactly what motivates me to go to the market every day.

In all honesty, a trader doesn't need screens like the ones I use. This is pure luxury, but I don't work like a normal trader. I don't pay attention to candles, the price, news or indicators, I mostly don't even know where the current price of the EURUSD is because that is completely unimportant. My focus is exclusively on the algorithms that control the limit orders and market orders of the big players. I'm not a professional in this field, but many of the big players' strategies could be programmed much more easily. What is frightening is that I find out relatively quickly when the big players change their algorithms. You are always ahead of me in terms of time, of course, because when new algorithms appear on the market, it takes me a few days or weeks to figure them out. But my advantage is that the big players cannot change their algorithms on a monthly basis, because behind it there is an incredible amount of effort that entails lengthy test phases. A nice goal would be to give up or exit trades based on just my tones without looking at the screen. But that will take a few more years. Algorithms cannot be read with forex data, candles, price data or indicators. This is an insane job that requires a certain amount of screen real estate. If I were only on the move in retail without analyzing the algorithms on the side, I would be need 3 screens. However, I would very much doubt whether I would have so much success and fun with it.

Whenever I face two evils, I turn to the one that I have not yet tried.

Kind regards Michael

WDT=D0+∑Tt=1(dt) +1qT(Y0+∑Tt=1(yt))⇔WDT=W0+∑Tt=1(dt) +1qT·∑Tt=1(yt)