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Jeff,
I understand your desires but after spending about a year as a LII based
stock-daytrader, I'd say that what you want to do would stand a very small
chance of working the the real market. Market Makers have SO MANY GAMES
that they play with INCA and ISLD and their buddies that it's really hard to
judge market direction from spreads or their actions. Depth of bid or ask
usually mean very little with the current rules. I've seen a MM sit on ask
showing 100 shares for 300K worth of selling. No way to tell when he's
finally ready to move. Not saying it's impossible just that you will
certainly have your work cut out for you. Good luck.
-----Original Message-----
From: owner-realtraders@xxxxxxxxxxxx
[mailto:owner-realtraders@xxxxxxxxxxxx]On Behalf Of Crystal, Jeff
Sent: Tuesday, September 14, 1999 11:14 AM
To: realtraders@xxxxxxxxxxxx; omega-digest@xxxxxxxxxx;
EnsignList@xxxxxxxxxxx
Subject: Positional Trading with Level Two
?? As some of you know I have been "back testing with Level two data". I am
trying to picture in my mind what a Level two screen would look like when a
Turning point starts to come into the market. Here is what I have noticed
the Spread between MMId's narrows as a stock run one way or another, The
Spread widens out as the move up or down stops.If a turn is going to take
place again the spread will narrow a again. (By spread I mean the over all
spread of all active MMid's).
Anyone have any comments of the Logic of this statement.
I am also looking at the depth of the bid at a turning point.
Any thoughts
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