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HFT Alert - Announcements

Subscriber Portal > Announcements > How to Predict When Buy or Sell Programs are Going to Hit

06/08/2012 06:03

We have learned how to predict when buy or sell programs hit. It's not 100% and you need to be quick or else fade the move depending on how you trade.

What you want to watch for are high quote counts with trades exceeding 100 in the High Quote Count list for VXX. You will need to also watch a 1 minute VXX chart. When you see the price bars expand as the High Quote Counts register and trades exceeding 100, then a program is about to hit. A down move in VXX means a buy program will hit, a move up, a sell program. The larger the trade rate, the larger the spike will be.

When you see 'gap' bars on the 1m, pay particular attention to those. You will have between 10 seconds and several minutes before the program hits. The higher the quote counts and trades, the larger the potential program will be.

As I said, it's not 100% but it works especially well during the last half hour of the day.

Steve Hammer

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