I did a trial with them back in Dec 2011 and even attended the trading room with the head honcho for a few days (I think his name was Nick?). Overall I found that the service gives a qualitative estimate of limit orders and some visual interpretation, however the depth and resolution is very limited. Overall it seems to be targeted at very short term scalping and the methods taught in the room required you to stare intently at the screen to catch a large order coming in and hope to follow suite. Back then they claimed to have 90% positive trades (not sure if that has changed…), however that did involve some sort of martingale strategy and i personally saw the main guy sit through a 15-20 pip drawdown with around 15 lots on the table (progressively entered as the market went against his initial entry), hoping for a retrace. I believe he closed for break even. His main trading method seemed to be cycle lines though, and had very little to do with reading the orderbook or any of their proprietary indicators.
Although they offer the orderbook service, this is not their main product. Primarily they sell liquidity aggregation and semi-automated high frequency arbitrage software for clients with multiple institutional accounts. Leasing these products costs 150-200kUSD per year, so you can understand that OrderbookFX is not their primary focus.
One important factor that led me to ditch their product was their complete and utter lack of customer service. I sent them several emails but got only one response around 10 days later.
Perhaps they have developed the product and company further by now? Do let us know if their services would compliment anything taught here by David.
Maybe rite… i still waiting for this thing to happen" Sell high , buy low"…
Quite tempting to sell short now, however no price action to state so although market bias is more to the down side.
Just waiting for some correction around 200sma and some S/R area which i classified as 1.5570 to 1.5610…
Depends maybe will go all the way to test the 100 sma better still, then really “sell high buy low”…
Just my two cents. btw anyone of you now already on twitter??
Morning David, quick question. If price is where cable is now, just surpassed the MA200 and we are evaluating if it will hold, re-test and go lower, or bounce and go back…if for instance something indicates that it will bounce and go back to the bulls side … would you consider taking that trade or would that be considered against the trend and therefore too risky?
To make it simple, trade what is on the screen based on a set of guides… ie… what is happening based on the price action and MA’s and not what you think may happen… The aged old saying, trade with the trend has been repeated until many a trader is blue in the face, but yet the say questions are asked time and time and time again… can I trade against the trend or can I trade against the momentum or flow.
Yes you can, its your money, so trade any direction you want. But if you want to know where the pro money is going… well its going with the trend, its going with the momentum and flow on the current bias.
Its your choice. Only you can make it.
Price will only turn back to the bulls if it moves and hold above the 100 SMA not the 200 SMA. Moving back above the 200 SMA still keeps the bears in focus, just not a fully clarified trend.
Bias Rules: (As previous posted)
1: Price below and sustaining below 100 SMA is deemed bearish and attempting to take control
2: Price below and sustaining below the 100 & 200 SMA is deemed bearish and in full control
3: Price above and sustaining above the 100 is deemed bullish and attempting to take control
4: Price above and sustaining above the 100 & 200 SMA is deemed bullish and in full control.
Live and die by those 4 outlines… all other technical factors, tools, zones, corrections ect ect ect are based around those 4 scenarios.
That’s how we do it… where as retail traders will ignore it, and try to out smart or find other ways (counter trend)… that’s their problem… we all know that 85-90% of retails are always wrong.
ps: The above prob sounds like a rant… its not really meant to be that way… but if thats what it takes then so be it!
Lets print that off along with the other 2 posts from Sunday… I hope I don’t get asked about counter trend or counter bias trading again.
Repeat after me…
Professional money trades the current trend… professional money trades the current bias.
Dumb money trades against the trend, dumb money trades against the current bias.
Professional money trades the current trend… professional money trades the current bias.
Dumb money trades against the trend, dumb money trades against the current bias.
Professional money trades the current trend… professional money trades the current bias.
Dumb money trades against the trend, dumb money trades against the current bias.
Professional money trades the current trend… professional money trades the current bias.
Dumb money trades against the trend, dumb money trades against the current bias.
Professional money trades the current trend… professional money trades the current bias.
Dumb money trades against the trend, dumb money trades against the current bias.
Professional money trades the current trend… professional money trades the current bias.
Dumb money trades against the trend, dumb money trades against the current bias.
Professional money trades the current trend… professional money trades the current bias.
Dumb money trades against the trend, dumb money trades against the current bias.
Professional money trades the current trend… professional money trades the current bias.
Dumb money trades against the trend, dumb money trades against the current bias.
Professional money trades the current trend… professional money trades the current bias.
Dumb money trades against the trend, dumb money trades against the current bias.
Professional money trades the current trend… professional money trades the current bias.
Dumb money trades against the trend, dumb money trades against the current bias.
Professional money trades the current trend… professional money trades the current bias.
Dumb money trades against the trend, dumb money trades against the current bias.
Professional money trades the current trend… professional money trades the current bias.
Dumb money trades against the trend, dumb money trades against the current bias.
Professional money trades the current trend… professional money trades the current bias.
Dumb money trades against the trend, dumb money trades against the current bias.
We can discuss counter trend, counter bias trading at a later time… that will be done using short term trading techniques such as flow scalp trading which goes against and with trends… totally different from this.
David covered this already: Regardless of what does happen, you know the zones to watch the price action.
The first chart uses the correction zone and 100 sma… remain below it and the bears keep the momentum. Move and hold above the correction zone and 100 sma, and the bulls are fully back in control as price will be above the 100 sma but also the 200sma.
The second chart points to the possibility of the bears taking complete control with price moving below the 200sma, but more importantly keeping it below.
The other scenario on chart 2 is the bears will use the momentum to try and take price below the 200 sma, but the bulls will put up a fair fight to stop any down trend for fully forming.
As I said… you know which parts of the charts to watch and what to watch for in terms of price action at the MAs or correction zone.
The other scenario which I haven’t market off, is the over night trade does NOTHING and we just see sideways action…
I only trade London so I will reassess in morning.
ps: The charts above only represent the technical analysis aspects and do not include any flow/barriers or fundamental analysis)
If i understand correctly, the zones have changed as its a new low. Until there is a pull back from these lows then its hard to draw the zone in again.
As far as zones go that is 100% correct… you not only have a bias shift, but also a trend shift as the GBP is below the 100 and the 200 SMA’s.
One of the scenarios I posted last night played out…ie… break and hold below the 200 SMA. That is regarded as selling high by the way… as that’s the point the trend officially starts. You can anticipate the trend change using the bias change and also sell there (100 sma cross and hold). If you do that then your trading with the current bias. If you trade the cross hold of the 200 then your trading the current bias and current trend.
If you miss both opportunities above… then that when you start drawing correction zones and BBzones to try and get in the current bias or trend.
Its simply really… it will click with you, and when it does, you will see why it makes sense.
Kind of answered your own question, and please anyone else for Davids sanities sake, use common sense!
As David already preaches, common sense is a huge factor in trading.
A cross in price of the 200 sma confirms the bears are in control however its not a definite sell order as you asked. Waiting for a test of resistance at the 200 sma and a solid hold at the 200 sma as resistance would be a more ideal time to look for entries.
David has already said this 100000000000000000000 times as well, everyone please read more of his posts before asking questions, it can get very tiring
