John Grady is an independent futures trader from Florida, who primarily trades Treasury bonds. His trading is purely discretionary, based upon his read of order flow. Essentially, he’s a scalper.
Until recently, I’d never really taken the time to understand the order book and make sense of order flow. Sure, I understood the order book at it’s most basic level, but really, not much beyond that point.
Having now learned more about the subject, I feel as though it’s something I should’ve learned long ago. And regardless of whether you decide to use the order book as a part of your trading, it’s my opinion, that it’s at least valuable to understand.
And that’s the reason why I asked John come on the podcast, to share some of his insight and experience with you…
Topics of discussion:
- The (basic) terminology you must understand to make sense of an order book, the value of an order book, and what an order book shows that others don’t see.
- How John trades order flow; his reasons for trading certain markets, using order flow to gauge entries and exits, managing stops, when to use which order types.
- With a lot of numbers changing rapidly, how does a trader make sense of the order book? Plus, a few tips ‘n tricks for how to build skill in reading order flow.
- The impact of HFT; things which scalpers can no longer get away with, staying alert to spoofing in the order book—and how it can occasionally be detected.
Links and resources mentioned:
- EP 147: Thomas Starke
- Order Flow Basics [YouTube]
- @NoBSDayTrading [Twitter]
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