Here are back to back examples of the Buy Programs firing away in the hole thereby offering traders Early Warning Signals to either cover their shorts or to piggy-back the Big Guys.
It is our opinion that MacDaddy, an algorithm that measures the strength and momentum of Program Trading, will consistently give a quicker signal than a momentum indicator, such as ROC (Rate of Change).
Why is this? Simply because Price is a function of Supply & Demand. Price will go where it needs to go to find liquidity and transactions when there is an imbalance in Supply & Demand.
Large Program Trading runs, such as the Buy Programs shown below, will usurp the local inventory of contracts available. Their continued presence will thus, drive up price.
Hope that you found this interesting.
It is our opinion that MacDaddy, an algorithm that measures the strength and momentum of Program Trading, will consistently give a quicker signal than a momentum indicator, such as ROC (Rate of Change).
Why is this? Simply because Price is a function of Supply & Demand. Price will go where it needs to go to find liquidity and transactions when there is an imbalance in Supply & Demand.
Large Program Trading runs, such as the Buy Programs shown below, will usurp the local inventory of contracts available. Their continued presence will thus, drive up price.
Hope that you found this interesting.
I have made comments previously with no acknowledgment.
What is the purpose of this blog?
Once you have demonstrated the advantages of detecting program trading, what then?
When will the other shoe drop?
....Hi Stuart,
The other shoe? Great question.
We are building out an algorithm distribution model which would allow you to use our algorithms in your own trading.
The first pass will allow you to trade using NeoTicker and Ninja.
All the best,
Carl
great example of computers buying at the top of a bear market rally.