Order Flow Trading In 2022

Discussion in 'Trading' started by proftradingjourney, Nov 25, 2022.

  1. Real Money

    Real Money

    $TIKI tells you where (bid or offer) the DJIA is trading at any time during RTH
    $VOLD (up volume/down volume difference) tells you about aggregated order flow

    You can watch (ES + 10*SPY) - (2*SPX) which is a basis spread (PREM).
    For Nasdaq it's (NQ + 40*QQQ) - (2*NDX).

    You can also price a front month synthetic index, e.g. (100*ES - 20*NQ) (synthetic ES).
    This is a hedged index trade (overweight SPX with an NDX hedge), which is being monitored by countless volume/price algorithms. Heavy flows coming out of this trade.

    Ultimately, if you want to get on top of, or understand flows, it's the US treasury market you need to learn.
     
    #11     Nov 26, 2022
  2. ET180

    ET180

    Market orders are matched with resting orders on the order book, no? Even if two market orders of the same product and quantity, one buy, one sell, arrive at the exact same time, one is filled at the ask and the other at the bid.
     
    #12     Nov 26, 2022
    longandshort likes this.
  3. I don’t use order flow but start using volume profile with trading futes….it works wonder.
     
    #13     Nov 27, 2022
    Leob likes this.
  4. no lol
     
    #14     Nov 27, 2022
  5. destriero

    destriero

    lol.
     
    #15     Nov 27, 2022
  6. qlai

    qlai

    What source do you use to find out that BlackRock is getting into (adding/reducing) a position? I only know of 13F.
     
    #16     Nov 27, 2022
  7. That’s a good start. 144s, 13d/g are also good.
     
    #17     Nov 27, 2022
    proftradingjourney and qlai like this.
  8. Sup todd
     
    #18     Nov 27, 2022
  9. qlai

    qlai

    @longshort, I read your other threads and I am pretty sure you know what you are talking about. So I’m not arguing with you, but it would make no sense for a large market player to make his/her intensions known ahead of time. My understanding is that if they want to enter into a position quietly over time, they can utilize their prime broker to accumulate the position under broker’s name so they don’t have to report it until they are done. Are you saying that you can find out their intentions/actions prior to them having to disclose it? Or are you just saying that once it’s disclosed, there’s still an effect on the price that can be taken advantage of?
     
    #19     Nov 27, 2022
  10. that's not how it works.

    Fund managers publish their mandates all the time. Think of the name of many of these funds -- "Vanguard Small Cap Growth Fund" etc. Furthermore, in their summary prospectus they'll often include more information about what they look for in companies. Funds don't have to disclose until they reach certain thresholds, so typically when they report a holding, they may have actually been in it for some time.

    1) yes you can find out their general intention by reading their fund strategy and reviewing their historical holdings
    2) there's no edge to this information YET
    3) for there to be an edge, you have to be good at figuring out what stocks they will buy (not so hard to do) and then buy those stocks before they do (quite hard to do)
     
    #20     Nov 28, 2022
    qlai likes this.