Saturday 14 November 2020

Trading the Order Flow with the Latest Technology

The lock down for these terrible Covid times had one good by-product: I spent the time upgrading all my tools.

If you have been reading the blog for a while you will have seen that I have been a great proponent of HYBRID trading. Hybrid trading is the part automation of the trading process. I do this by programming my entry rules into a variety of discrete "buttons" so that when I see that the context is right for a particular entry type that I call " a picture", I arm the "button" so that the computer triggers the trade when all the conditions have been met. I get even faster fills as I run on my own private server right next to the Exchange.

 The picture below uses NinjaTrader 8 to which I have added Bloodhound from Sharkindicators to a chart with order flow from Gomi. The Gomi indicator set has a number of programmable indicators that create signals shown by the arrows I have on my chart. These signals can be captured in Sharkindicators' Raven which is an automated strategy envelope and placed as trades with a broker. The rules I can put into those signals (without programming knowledge or requirement) are virtually limitless and as complex and specific as I want to make them.

As you can see from the Shark chart trader, these signals from Raven can be turned on and off with a single click ising the ENABLE/ DISABLE button. Even more importantly, I can pick the pictures (signals) I want to trade from the drop-down you can see at the top of the chart. I can pick both entries and exits ahead of time when the context says OK and have the computer enter the trades when the setup bar appears that matches with my trading plan. My job is to watch the context and pick the types of entries and exits from the drop-down that will provide the highest probability trades.

My goal is to make, say, 10 ticks per contract per trade about 5 to 10 times a session.

The idea behind what I am showing is that there are lots of new tools out there. Some clever people have devised some clever things. However, I, as a trader needed to make a trading plan and use the tools  to make them fit my own way of trading the specific trades I want to make and wrap a good money management plan around them. 



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