About Market Making

There are dolphinately secrets to trading.

First and foremost: not all trading is created equal.

Futures trading is a clean thing. Zero sum means that to buy a contract someone has to sell a contract. There is even delivery upon expiration.

People buy stocks based on supply and demand bets: they hope to get a piggy ride on the excessive interest / greed of people, on a bet that a major company is buying up shares or that there is inside buying to gain more control or simply to drive up the share price before cashing out.

Just like Benioff selling some to reap the benefits of the cloud mania while alive.

There are others that intend to keep control, Zuckerberg and Bezos are conscious of not giving up share, and if you are at their level, you really do not need anything in life: your salary can buy you anything that is not already a write off for the company.

Apple is famous for faking previous meetings that did not happen to exercise back dated share buying options at a much lower price when things are running hot for an instant kill.

As for Forex, de de-centralized nature and no limitations breathe an unlimited number of brokers into existence.

Their Market Makers run different programs based on hype and no hype, and they do not even need to make any real transactions, but most likely would do it in a 15 minute window – after hours – to re-balance their books a bit.

We are gonna skip the lesson called: “there are only three real currencies in the world, USD, EUR and JPY. Cryptocurrencies are in fact commodities.”

Market Makers are the ones feeding the snake. When there is high demand in one direction, someone has to capitalize on this with a delay, meaning, first they pull down their pants. They will have made their money in both direction by the time the tide makes the full circle.

If you dared to say that there are no market maker levels, but boy, would you be wrong!

EUR052

About 70% of all trading is high and low tides called into existence by the Market Makers.

The only trace they leave behind is velocity, ferociousness.

During hype they run an AT market fill routine, and the imbalance in the supply and demand would do the rest. This would come with a sudden burst.

To detect for these bursts, you can use Heiken Ashi candles: wherever price was not able to center is where they started the program from.

Heiken Ashi plots slow down the MT4 quite a bit, so my system is much simpler than that.

That’s a wrap for this morning, I just gave back my badge to the security, I’m out of Bloomberg for good and looking forward to getting a new life.