[Trader's Handbook] Draft articles, "out of pocket" discussions - page 31

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sanyooooook:

the slippage allowed there is "+-delta".

to be more precise, it will be a point: "Execute within: n spreads".

Although, as far as I understand, it may still go lower, but only by a given amount.

OK, that's what I thought at first. But, in order to avoid ambiguity, I asked a clarifying question.
 

From here: http://www.forexfactory.com/showthread.php?p=7003891#post7003891

В настоящее время огромный сектор товароденежного оборота через криптовалюты является нелегальным из-за высокой анонимной безопасности их. Сузим повествование до биткойнов - BTC.

The BTC/USD exchange rate is crazy, so sellers/buyers of real commodities (mostly illegal) are obliged to hedge when making sales/purchases to mitigate their risks. One of the historical reasons for the creation of almost all exchanges is to solve the problem of hedging. Speculation, on the other hand, is a natural by-product of exchange development.

It is because of the growing demand for risk hedging tools that relatively recent cryptocurrency exchanges have evolved.

The uniqueness of cryptocurrency exchanges lies in the opportunity to observe the stages of exchange development from the very inception of the new real money market. That is, a significant part of a thousand years of humanity's financial development can be not just mathematically modelled, but adjusted by observing real experience of rapidly replaying the same history in a short period of time.

All this allows the existing economic theories to be tested for consistency. To build more adequate socio-economic cause-and-effect relationships. Such possibilities of fast replaying of one of the important processes of human history give an order of magnitude reduced latency of information delivery, compared to what it was tens-hundreds-thousands years ago.

Currently, the main users of cryptocurrency exchanges are hedgers. There are few opportunities for speculation now, if only because of the high costs in the form of commissions. But the speculative and even manipulative component is there. You can see it gradually evolving.

Hedgerow turnovers are growing and at this stage it is hedgers that are the meat for manipulating the BTC/USD exchange rate.

To clearly analyze what happened in the market, as shown in the screenshot, you need to have a Full Orders Log. Or a Last-history. Or at least the Level2-history. Level2-history is now freely available for downloading at one of these exchanges. Therefore it is possible to analyze more or less clearly. However I won't do it, I will only comment the approximate scenario of real-time observation of one situation (www.mql5.com/ru/forum/14006/page38#comment_617675):


So, the most important event was missed - the panic due to serious problems of a major player in the illegal market. The bitcoin exchange rate went panically down - the hedgers. And the only thing that stopped them from hitting the abyss was someone's big no-nonsense (not hedgers) BuyLimits. This changed the mood of the crowd, got them to settle down and switch a bit from an emotional to a thoughtful worldview (emotion is a fading process). There was a rebound and so on and so on into the night.

No one was undressing the crowd at this point. They undressed themselves with inadequate actions.

And then from my rare Level2 real-time observations I got a hypothesis about manipulation of BTC/USD rate. Someone clever was making large SellLimit bids slightly worse than the ask-bestband. And shifted them upwards in the course of the move, creating even more skew in the cup. Roughly speaking, he lured them to the previous levels before the panic, while making almost no trades. This is my hypothesis from observations. Only analysis of the aforementioned data can confirm or deny it.

I suppose that the skewness will remain and they will try to pull up the rate by such an artificial method for a start, until the panic disappears. And then the exchange rate will naturally go above the level that it was before the panic.

All this, of course, is just verbiage. But the approximate course of reasoning in the analysis of the data allows to imagine.

 

From here: http://www.forexfactory.com/showthread.php?p=7008268#post7008268

Биржевики, к огромному сожалению, почти все являются узконаправленными специалистами. Они ВЕРУЮТ в рыночность ecn и антирыночность других схем рыночных образований.

Only the untalented stockbroker (almost all of them) does not understand that arbitrage between cointegrated exchange FIs is implemented ONLY through stp-circuitry (it is described in detail in the libre). And how arbitrage solutions are generalised to stp-aggregation in general.

Stockbrokers are unable to understand the difference between ecn, stp and ecn/stp schemes. Even though it is all elementary and chewed up in the liquor book as well. They only know well how limiters are executed in ecn. And their whole worldview collapses as soon as they start generalising towards the broader scope of a possible market world order. They are well zombified hamsters who refer to the decentralised world market as "CUHN". That is, they have absolutely no idea what rules the MARKET lives by. You have to be a moron (almost synonymous with stockbrokers) not to understand that the market will die if the givers start to dump. That is, if you count each giver's MOs and it turns out they are below zero, then that is the death of the market. For the market to survive, reality gives them LIFE. I.e. a positive MO of givers is the LAW of life.

Only an idiot stockbroker doesn't see that the biggest givers in forex at present are banks. As has been written a hundred times, the battle is always solely between the giver and the taker to the delight of the floor (exchange). If you have earned from a giver, then he is at a disadvantage. I.e. if you earn as a taker, then some giver loses. And since almost all givers in forex are banks. Then you are taking money out of his pocket. And you have to be an idiot not to understand that all the laws of the world eventually boil down to protecting the powerful. It's the banking system at the moment. And it was not created for cows to milk their masters.

The trading floor is a systemic parasite. Because of this, any market is doomed to die unless there is an influx of fresh money. All this shit is described in detail in the libel book. But, apparently, the high ego of stock hamsters does not allow them to overcome their squeamishness complexes and comprehend it after reading a few lines of text.

Talking about correctness of only ecn-price formation within complete closure of the system is also a popular delusion of stockbrokers. Repeated cases of stock exchange FI collapses, cancellation of trades by exchanges due to alleged tech glitches, etc. are not even able to raise doubts in their smoothed out imaginary uniqueness.

To talk about the correctness and fairness of solely ecn-price formation, when these exchange markets are in obvious opposition to the real financial state of affairs is also the sign of a stock-exchange jerk. The green shoots are so green.

In general, only a small child can believe in financial fairness. I.e. believe in the absence of manipulation under the guise of ecn, believe in regulators and their alleged good intentions, etc.

And as an aside, confirming the flawed thinking of stockbrokers. They think there are different orders from limit orders. They think that markets, icebergs, etc. - This is a different entity. How narrow-minded do you have to be not to see that all trade orders are derivatives of limiters.

It is good that, like other people, there are rare exceptions among stockbrokers, who do understand what is what. And they do not shout about "CURRENT" without seeing the log in the eye, but simply take advantage of the inefficiencies of the established system of voluntary siphoning of resources from the public.

Why these "insults"? No, it's not a sign of running out of arguments. It's simply a lack of tolerance (not to be confused with tolerance) and ... a common headache. Better than diplomatic hypocrisy.

P.S. The forexists, too, are far from shining in their understanding of the basics. Moreover, they are even more illiterate in its majority than stockbrokers. Which is apparently the reason for their modest silence towards stockbrokers and the reason for stockbrokers to attack them.

 

Итак, самое главное событие пропустил - паника из-за серьезных проблем у крупного игрока нелегального рынка. Курс битка пошел панически вниз - хэджеры.

No way! Anyone but hedgers.

 
TheXpert:

No way! Anyone but hedgers.

Look at the end of this post, I've also attached the archive with the glass.
 
MetaDriver:
Look at the end of this post, I also attached the archive with the glass.

I have read it, and more than once. Investors and speculators panic, but not hedgers. Hedgers don't care. That's why they are hedgers.

By the way, I'm really surprised that the price didn't fall in the end, I'm really fucking surprised. And if you ask me, that can only mean one thing...

 
TheXpert:

I have read it, and more than once. Investors and speculators panic, but not hedgers. Hedgers don't care. That's why they are hedgers.

By the way, I'm very surprised that the price didn't go down in the end, I'm pretty fucking surprised. And if you ask me, that can only mean one thing...

uh... what is it? I'm intrigued...
 
MetaDriver:
Uh... what is it? I'm intrigued...
Well... at the very least, my bots should be making good money :) finally.
 
TheXpert:
Well... at least that my bots should make a good living :) finally.
:)
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