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:Here's a hypothetical situation: your tried-and-true TS system fires off a
buy
:signal on a stock that's quoted 43 1/4 x 5/16. There are 500 shares offered
at
:5/16. Level II shows 1 market maker at 5/16 offering the 500, and 2 mm's
:bidding 1500 shares total at 1/4. There are 10 mm's offering 25000 shares
at
:3/8, a fact that's invisible to Level I quotes. Do you buy at 5/16
according
:to your system, or wait to see if the buying will clear the shares at 3/8?
:Your answer will probably tell you if you'd benefit from Level II quotes.
At this point, if you have to answer that question, I'd have to ask, "Are
you a systems trader or a discretionary trader ?" Do you ignore your
tried-and-true TS system, in favor of what the Level II quotes shows? If you
do ignore the signal, what's the point of using a system?
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