DOM T/S and markets to use them

[SlowlyButSurely]

Hi,

Another question regarding tape reading using DOM and T/S.

Everywhere I look I see people using these tools to trade the ES and Bund. Are there any traders out there who use these tools to trade other markets? Such as Gold futures, Crude or Nat Gas? I ask as perhaps the volatility and lack of enough volume in these markets can make it more tricky to trade from the DOM?

Cheers

 

[DionysusToast]

In general....

Thicker markets would lead you to use DOM/T&S more.
Thinner markets would lead you to use T&S without the DOM.

Saying that, I know people that do just the opposite
- trade crude/gold/dax with heavy emphasis on DOM and no Tape at all.
- trade ES/STOXX/Bund without the DOM but with heavy emphasis on Tape.

But as a rule of thumb, thicker markets are more DOM-centric

 

[Mr. Charts]

Hi,

Another question regarding tape reading using DOM and T/S.

Everywhere I look I see people using these tools to trade the ES and Bund. Are there any traders out there who use these tools to trade other markets? Such as Gold futures, Crude or Nat Gas? I ask as perhaps the volatility and lack of enough volume in these markets can make it more tricky to trade from the DOM?

Cheers

I use them all the time trading US equities.

 

[SlowlyButSurely]

Thanks for the answers, Sorry for my delayed reply.

It's encouraging to know people still use the DOM/T&S to trade. You read a lot of people claiming that bots have ruined it and there's no point using the DOM etc etc so it is refreshing to hear people are still using it successfully.

I have one further question. I know there are people that use the DOM to scalp, and who are constantly in and out. Is this an approach you take or do you prefer to use charts to pinpoint areas of interest then use the DOM to execute your entry/exit?

Thanks.

 

[Sigma-D]

In general....

Thicker markets would lead you to use DOM/T&S more.
Thinner markets would lead you to use T&S without the DOM.

Saying that, I know people that do just the opposite
- trade crude/gold/dax with heavy emphasis on DOM and no Tape at all.
- trade ES/STOXX/Bund without the DOM but with heavy emphasis on Tape.

But as a rule of thumb, thicker markets are more DOM-centric

I appreciate you have an agenda to talk up DOM in order to pump your oderflow software, but there can't be too many on these boards who aren't aware that DOM has become little more than a tool to spoof and rarely bears any resemblance to real intent in the market.

Thinner markets are far easier to trade for all sorts of reasons, but primarily because price discovery is that much more difficult.

 

[SlowlyButSurely]

I appreciate you have an agenda to talk up DOM in order to pump your oderflow software, but there can't be too many on these boards who aren't aware that DOM has become little more than a tool to spoof and rarely bears any resemblance to real intent in the market.

Thinner markets are far easier to trade for all sorts of reasons, but primarily because price discovery is that much more difficult.

Hello Sigma,

I understand that the DOM alone might not give much value, but do you think T&S is irrelevant? I have seen examples of DT's software and it seems it shows information such as total volume, bids/asks being pulled and a T&S that reverts to the old format of reporting that the CME used to use. I'm not here to defend DT but I would say a tool like that is valuable, and for some, could be easier than using T&S + a chart.

Can I ask, did you previously trade profitably using the DOM? It seems many share your opinion that using the DOM is futile in todays markets, but then there are others who say it is still viable and who show profitability using it. Funnily enough though, most naysayers never even used a DOM, but have heard there is a lot of spoofing, flipping and bots that operate there. I'm interested in thoughts from all.

Thanks.

 

[Sigma-D]

Hello Sigma,

I understand that the DOM alone might not give much value, but do you think T&S is irrelevant? I have seen examples of DT's software and it seems it shows information such as total volume, bids/asks being pulled and a T&S that reverts to the old format of reporting that the CME used to use. I'm not here to defend DT but I would say a tool like that is valuable, and for some, could be easier than using T&S + a chart.

I wasn't discussing anything other than DOM. T&S has its uses, but the fragmentation of exchanges from around 2005 onward means that the timeliness and accuracy of data reported is far from dependable. I really don't think many (retail) traders trading today or thinking of starting trading realise just how significant have been the changes in the last decade.

Anything that was in place, written, created or used even up to a couple of years ago is probably worthless in today's markets. It's all, very, very different.

Can I ask, did you previously trade profitably using the DOM? It seems many share your opinion that using the DOM is futile in todays markets, but then there are others who say it is still viable and who show profitability using it. Funnily enough though, most naysayers never even used a DOM, but have heard there is a lot of spoofing, flipping and bots that operate there. I'm interested in thoughts from all.

Thanks.

I traded NASDAQ profitably (eventually) and started using DOM only to find it was a game in its own right. None the less interesting than the methods I was using on the stocks I was trading, but a major distraction from the strategy I was using to trade. If I had wanted to play poker, I'd have sat down at a poker table. I just wanted to trade.

In the intervening years, DOM has become even more of an irrelevance to trading in its own right.