Icebergs, Stop Runs & Balance of Outright Traders

Published on: July 02, 2020

In this months group therapy, we took a look at icebergs, stop runs and the balance of outright traders. The latter being important as many traders presume that all of the activity we are looking at relates to traders with outright positions (e.g. buy low, sell higher).

With the advent of MBO, people are getting excited about using some of the new information in their trading. In this webinar, we took a few steps back and examined the underlying activity of Order Flow to ensure we put icebergs and stop run info in the right context.

Topics covered:

• The different types of trading (from an outcome/reactionary perspective), we see in the order flow. What their orders really mean.
• The concept of ‘reactionary’ positions.
• What an iceberg order is, how they can be submitted, how they can be hidden
• MBO based iceberg detection vs Volume-based iceberg detection
• Stop detection & the concept of netting-out stop qty against traded qty
• How to spot icebergs on Vista/D&S
• How to spot stop runs on Vista/D&S
• Common sense approach to using iceberg/stop run information

The goal here is to see past the hype and implement a rational and realistic approach to using this subset of market data. Enjoy the video.