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Trading electronic markets can be automated, mechanical or discretionary. There are three major trading components. Two are dynamic, one is fixed. Any one of the two dynamic forces will influence the behaviour of the other two. It can be immediate or delayed. Real-time trading systems will combine aspects of each one with an understanding of the possible active/inactive states that can occur. Assisting the selection of which trading "tools" will suit. For the DOW, S&P500, SPI200, SPI



The many dimensions of electronic markets

we wont tell you how, but explain
what you need to know, in order to trade

market internals

 components components of trading
 nuts-n-bolts nuts and bolts
 methods processes
bullet library resource
 know-how trading knowledge base
bullet source of trading ideas

the 4 aspects

bullet Information with supporting authorities.
bullet verifiable facts, how they work
bullet research based on the above.
bullet applied in the form of
    (a) do-it-yourself, or
    (b) using our methods.

the 6 options

bullet If you learn nothing, move on.
bullet If you learn something, read our
    terms of use.

If it makes sense, you can either
bullet work out the know-how yourself, or
bullet purchase the know-how from us

applying the know-how, you can either
bullet do it yourself, or
bullet purchase our ready-made solutions.


a no-glitz site, no flash pictures
just information requiring hard work

absence of gloss and glitz is intentional


supported by

 

 

trading analytics - a behavioural approach


components of trading systems
how electronic markets behave - mechanics of electronic trading - identifiying supply and demand, arbitraging, iceberg orders and stealth trading - how it's done.

Introduction
There are a million different ways to trade, it will take a lifetime to try them all.
mechanical systems, mispricing, price exaggeration, and premarket. page 2

when the commercials are buying
Commercial traders are the market. They leave their signature in the form of footprints.
They can be identified. Follow them.

market internals
can you see them. what to look at, how to see. arises from reading the tape. modern software does it for you. who is hitting who. Buyers hitting the offer. Sellers hitting the bid. where the pressure is. Trade size. It's all there. Be aware of it.

camrons razor - the simple solution
learn the basic components, choose those that suit, select your own combinations.

degrees of separation
indicators and moving averages introduce many levels of indirection, taking the observer 50 degrees of separation away from reality. It is necessary to understand the reality in order to understand the indirections.

about the site
siteworks - explains the concepts behind the site. Its purpose. How to use it.

supply and demand
technical analysis comes from supply and demand. Authorities provided. It has lost its way in the ever expanding "another indicator" industry. Examine the theory and laws of supply and demand, how it can be observed, measured, and interpreted. Understand it first. Learn the basics. Then see technicals in a new light. pages 20, 21 and 10

decision making
decide between the business of making money and the business of being right.

the better mouse trap
understand why einstein didnt come out with a new and improved formula for e = mc^2 every year, and why the single helix - double helix dna debate disappeared, and compare it to the ever expanding "latest trading system" industry. What does it say. Discussed in the sitework section.

fragmentation
Electronic trading systems report trades as fragmented parts. Fragmentation is separating something into particles. The disintegration of behaviour of related items. Critical to studies of logic, analysis, technical indicators, and visual perception. A significant effect on line and tick charts, indicators, and course of sales. Important if using Pareto graphs or curves. And Pareto's classification of items according to their relative importance.

Seven trends for 2006 - source - www.wallstreetandtech.com
"As model-based trading continues to fragment larger orders, and increase data volume, peak market data loads increased almost five fold this year (from 25,000 ticks per second to 120,000 tps). Overwhelming all but the most technically sophisticated".

day trading systems - index futures - dow - emini - globex futures - cbot - russell - cac40 - dax - the mechanics of iceberg orders and stealth trading - how it's done.

the answers are here - if you look for them


some of the 100 topics covered


arbitraging
iceberg orders
split orders
jobbing
stealth trading
market ambush
fragmentation
defragmentation
happy hour
volume
supply-demand
hitting the bid
pre-open
pre-market
mis-pricing



nasdaq
dow
emini
globex
cbot
russell
cac
dax
spi200
sfe SPI





















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