Daily Report High Frequency Trading Bots S&P 500 Emini Futures 4th Jan 2012


Uploaded by WinningMoreTrades on 06.01.2013

Transcript:
In Todays Electronic markets over seventy percent of all transactions
are executed by algorithmic trading bots it's helpful to know what these bots
are up to in real time Welcome to your daily S&P 500
Follow The Bots market recap sponsored by sceeto
Hi I am Carl Weiss the chief algorithmic architect here at sceeto
and it is my hope we can help you trade with the bots and not against them
Today is January 4th, 2013, and you are looking at a 5 tick range bar chart in the forward
e-mini S&P 500 futures contract.
Today we had consistent success using just our standard sceeto setups.
Now our analysis was helped along by WIND which was consistent in one color, and you’ll
see that was Green.
Green WIND infers that the trading bots running transactions across each component of the
S&P 500 are actually aligned to the Buy Side.
And, since we know from WIND that there is a substantive amount of trading bot activity
aligned to the Buy side, we can leverage this information by maintaining a Long only trading
posture.
By maintaining a Long only trading posture, we know that we are actually trading with
the bots and not against them.
Now this approach is simply a modern day adaptation of the one that was used a hundred years ago
by successful tape readers who elected to ‘not fight the tape’.
To decide where to enter Long, we look to what I call our standard “Bread & Butter”
sceeto set-ups to pinpoint the exact entries. Now, these set-ups are predicated on either
specific order flow information or from the footprints of the trading bots in the S&P
futures markets or the trading bots that execute transactions in the S&P 500 component stocks
such as General Motors, Pfizer, Google, Apple, etc.
The first “Bread & Butter” set-up is what we call spikes in MacDaddy which you can see
by these green circles around the red bars in MacDaddy. If you’re not familiar with
MacDaddy, MacDaddy publishes the rate of change of order flow of transcations on the Globex
servers at the Chicago Mercantile Exchange.
Another great entry today was created by a very clean trading bot rotation where we saw
the trading bots go from Selling Exhaustion as surfaced by our Equity High Frequency Trading
(HFT) bot reversal algorithim to a netural tipping point as surfaced by our sell programs
waning to new fuel in the direction of WIND which as surfaced by our algorithim High Frequency
Trading Buy Surge (HFT).
I hope that you found this helpful, thanks for stopping by.
Hi I am Carl Weiss the chief algorithmic architect here at sceeto
sceeto advanced algorithmic order flow monitoring data can be surfaced in real time
in NinjaTrader , SierraChart , Multichart and Tradestation register for a free trial
at www.sceeto.com thanks for stopping by