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  #13  
Old Jan 5, 2011 11:22pm
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Default calendar?

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Originally Posted by Louie View Post
Well here goes first post. Been in the background a long time learning. I have been interested in Darkstars orderflow/stop hunting bits of information. I know he talks about option buyers being exploited for the hunt, thus part of order flow. My example is the EUR/USD options maturity calander. The calander posts 1.3125 DIG 20M expires on 1/6/2011. If you look at the EUR/USD chart today 1/5/2011 you see something amazing at around 16:15. Maybe I am incorrect but it looks like it may be in play. My question is what does DIG or TC stand for and could...
Hello Louie,

to which calendar are you referring? where have you seen that?

thanks for the info!
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  #265  
Old Jan 20, 2011 2:50pm
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Originally Posted by scott89 View Post
So let's become practical here:

Price is now at 1.2275, Bank A wants to short, and to do that it needs liquidity.

Right behing 1.2300 there's a bounch of limit orders and stop losses.

Bank A buys a relatively small amount, but enough big to move the price in the 2300/2320 are, where the liquidity is (liquidity is provided to the bank by buy limit orders from breakout traders, but the bank is actually providing liquidity for stop losses; in both ways, the bank is entering its big short order).

Price immediatly drops down, and a cascade of other...
I am by no means an expert here, but since nobody is throwing the towel, here's my take on a possible play in your scenario:

- set 1 sell limit at 1.2305-1.2310
- set 1 sell limit at 1.2320
once filled:
- cover 1 at 1.2280
- trail the other one

depending on the size of the stop losses, one or both orders will be filled.
As I understand it, this process is called fading.

Any other suggestions?

Great thread, btw.

Last edited Jan 20, 2011 3:00pm | Reason: corrected
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  #267  
Old Jan 20, 2011 3:10pm
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Wink

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Originally Posted by scott89 View Post
Alright, that's what I thought and what I'm actually trying to do.
I'll add a little rule:
-cancel the trade if prices get close (like 5-10 pips) and then reverses without triggering your orders.

Of course everyone has to adjust his risk and MM, for example I would take something like 1.5:1 or 2:1 reward:risk, but that would be a calculation made AFTER you already have the edge proven to be succesful x% of the time.

Do we all agree on this way of trading it?
Any suggestion?
As i see it, once you practice long enough and start to get a feeling on the order sizes, price / time progress, etc, one does not need to go for a higher reward than risk. 1:1 might be enough as long as you pick the best setups.
We might just start working on that 10k chart hours...
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  #274  
Old Jan 21, 2011 12:12am
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Originally Posted by scott89 View Post
I'll just throw a little idea in:
We may not be able to know when and where banks want to enter the market, what we know is that they NEED to get out of the market, and to do that they need another pool of liquidity.
This is certainly something to always keep in mind!
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