Depth of Market: what is it, who uses it?

[trendie]

hi,

There appear to be no Depth of Market threads here for quite some years.
Whilst waiting for trades, I get YT adverts.
One is for G7FX, a guy called Neerav.
He purports to be a former institutional trader, who now offers training in the use of DoM.

Anyone heard of him? Is DoM viable?
I get the underlying principle, ie, Order Flow, locations of orders and sizes, etc.

Is this still a thing?
I seem to recall a thing called iceberg orders which skew the perception of Order Flow, as well as Algos with spoof orders.

Any ideas?

 

[BigDeal]

Whilst fascinating to look at, I don't think it's possible to really benefit enough from the order book. I don't get involved in FX any longer, but used to get the level 2 feed from MoneyAM (which is no longer going I think) for shares, but most of the time it moves so quickly, (unless you are looking at less liquid instruments) you don't really have a chance to react to what it's showing you. Plus, as you've said, iceberg orders, dark pools, the splitting of large orders, or allowable hidden trades make a mockery of it, at least from my simple point of view.
It's like the live ticker / order book at bitcointicker.co - great fun to watch, but really doesn't help with trading decisions IMO.

 

[trendie]

Thanks for the insight, BigDeal.
I suppose it's like anything, any successful pattern gets over-used then disappears as it gets corrupted by too many participants.

 

[new_trader]

Thanks for the insight, BigDeal.
I suppose it's like anything, any successful pattern gets over-used then disappears as it gets corrupted by too many participants.

No, the point @BigDeal is making is that DOM was never really a useful tool due to the practice of spoofing and other manipulative tactics.

IMO:
DOM = Fake News
Time & Sales = FACT

 

[McQuant]

No, the point @BigDeal is making is that DOM was never really a useful tool due to the practice of spoofing and other manipulative tactics.

IMO:
DOM = Fake News
Time & Sales = FACT

Agree, spoofing is a big disadvantage for using DOM. It can be maybe filtered algorithmically, but I'm not sure if it is worth an effort for retail traders.

hi,

There appear to be no Depth of Market threads here for quite some years.
Whilst waiting for trades, I get YT adverts.
One is for G7FX, a guy called Neerav.
He purports to be a former institutional trader, who now offers training in the use of DoM.

NV is not a bad "investment", he is explaining a lot of things for trading newcomers. His whole trading concept is based on Volume profile and VWAP. Do not know if the institutional history is correct or not though.

 

[sheridanmurray]

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