BOOKMAP for learning Level 2 and T&S

[Mike Hammer 1]

I am pretty new to BBT, but i see bookmap as big support whether to take a trade or not if the setup looks pretty good, even for a dedicated beginner like me.  Are there any further efforts to get a special price for bookmap for BBT members? I would love to start today.

[Alastair 114]

On 6/9/2020 at 10:13 AM, KyleK29 said:

 

Most of that is doable. Bookmap has an API, but it's not for their UI so I've been building a rudimentary one out which is a tad annoying because they don't follow any Windows Accessibility (for the blind/deaf) protocols like they should, which is the easiest way to hook into an existing UI. I've requested some additions to their hotkeys, but not-sure how responsive they are to implementing feature requests (even though these would likely take them a few minutes to implement). Right now, it can do this:

- Check if Bookmap.exe is running and display a notice if not --> I can add an option to open a new Bookmap session.
- Close All Open Tabs
- If symbol doesn't work, subscribe to a new symbol [using user-defaults]. Two modes (see next).
- Tab or New Window mode --> If the user option is set, and a SYMB is not found, it can choose to A) do nothing [notify user], B) spawn subscription in new tab, or C) spawn subscription in new window.
- Works in Tab, New Window, or Tabs + New Windows. Meaning that it keeps a catalog of the relevant SYMB's and the program Window handles for quick look-up.

 

I may add the ability to spawn subscriptions to all SYMB's selected in the Market Viewer. Haven't decided on that one if it's worth it, since it's just a time saver feature that can be easily worked around in the premarket workflow.

 

 

Look forward to this when ur ready.   

@sawtooth500I know will test with u if u need. 

He loves BM and has been working with it for some time.

 

 

[Mike Hammer 1]

Hi Alastair, thank you very much for forwarding.

 

As beginner i think i will not be able to trade out of bookmark in the next time.

I would like to use it separetely quasi as standalone for learning orderflow for trading.

 

Is the global + with dbxfeed the only usefull solution?

 

Thanks again

 

[sawtooth500 33]

1 hour ago, eddie152 said:

Hi Alastair, thank you very much for forwarding.

 

As beginner i think i will not be able to trade out of bookmark in the next time.

I would like to use it separetely quasi as standalone for learning orderflow for trading.

 

Is the global + with dbxfeed the only usefull solution?

 

Thanks again

 

If you are going to use bookmap for U.S. Equities, you will need Dxfeed, as it provides data for Bookmap. 

Now for your actual bookmap subscription, there is Global and Global+ - If you want to trade with IB within Bookmap, then you need Global+. I trade inside of DAS, so I don't need it. Otherwise, the features of global+: Iceberg detector does not work with Dxfeed, I feel like large lot tracker is "meh"... and and the order book imbalance would be nice IF Dxfeed could supply the NYSE/ARCA book, but Dxfeed can't, which means any NYSE/ARCA orders are missing from Bookmap which there are a lot of which makes me think that an orderbook imbalance feature wouldn't be accurate anyway as a result.

For the time being, I'm just using standard global on Bookmap - For equities, Global+ does not seem to be worth. it. 

[Alastair 114]

51 minutes ago, sawtooth500 said:

 

For the time being, I'm just using standard global on Bookmap - For equities, Global+ does not seem to be worth. it. 

 

I use/recommend the BM course material above to understand/learn L2 and Time/Sales visually.........the mechanism of  the markets........wht happens internally in the markets.

Then translate and see the same info in DAS displayed as  numbers in the montague

Global+ is the trading component BM.

 

 

[OTC 27]

Kyle and Sawtooth,

I have been watching Bookmap videos and am highly interested in its potential for L2 visualization, I am considering paying for the Global+ if we, as a group BBT, can get a good grasp on its full potential and incorporate it usability into DAS. Let me know how I can help this cause.  I will start by thoroughly reading you all posts on this to see where you have gotten so far and how I can add value to this quest.

 

[KyleK29 260]

On 6/22/2020 at 12:58 AM, Luis Servin said:

Kyle and Sawtooth,

I have been watching Bookmap videos and am highly interested in its potential for L2 visualization, I am considering paying for the Global+ if we, as a group BBT, can get a good grasp on its full potential and incorporate it usability into DAS. Let me know how I can help this cause.  I will start by thoroughly reading you all posts on this to see where you have gotten so far and how I can add value to this quest.

 

I'd suggest Global to begin with, the "+" features don't seem to fill the value they're asking. If you're just taking it for a test drive, you can sign-up via the https://dxfeed.bookmap.com (unless we have a referral link?) which will make the first month about 50% off for the dxFeed rate (saves about $60).

From using it for the past 3.5 weeks, I can say that it does seem useful for adding missing information. Being able to see the L2 on a historical basis helps to see where major resistance / support is being placed. You can easily see when it's pulled (either by NITF or by someone who's going to move) and you can sometimes see the big players "walk up/down"  their levels as a stock trends. If the level isn't pulled and shares are being added to it as it hits, you can assume that the level is being heavily defended and it makes a good place to put a stop (few cents opposite side). For ABCD's about to bust up, you'll see the shares start to evaporate. It makes the price action very clear on stocks with high volatility.

There might be a good scalping strategy in setting up knowing a pull-back scalp position approaching a strong resistance / support, as if the level holds it seems to pull back pretty consistently. Haven't tested it in SIM too much on that though.

With that in mind, it does seem to have a few issues. I've had the program randomly close (just disappears) sometimes. 

[NAVEEN 5]

Thanks for sharing this. I stumbled upon this thread and the videos were pretty helpful. 

@KyleK29 I just finished listening to your podcast. Impressed with your journal habits. Are you able to share your journaling template?

 

 

[KyleK29 260]

On 7/11/2020 at 9:45 AM, NAVEEN said:

Thanks for sharing this. I stumbled upon this thread and the videos were pretty helpful. 

@KyleK29 I just finished listening to your podcast. Impressed with your journal habits. Are you able to share your journaling template?

 

 

 

Not at the moment as it's a custom program. Eventually I might break it out into a webapp for other users, but I have to automate a lot of stuff to do this and haven't had the time recently to finish that. I plan to do it in the future. I might see if Andrew wants me to do an advanced journal / data analysis webinar for the community. 

[mlestina 6]

I appreciate being alerted this.  Now I understand what L2 is (limit orders in an order book) and how they interact with aggressor or market orders to move prices.

However I am puzzled as to why Andrew thinks the TI Level 2 is sufficient.

According to Bookmap, such a TI L2 is basic as it omits:

1. Stop orders (i.e. conditional orders);

2. Iceberg orders(limit orders whose displayed size is deceptive); 

3. dark pool orders that are not visible;

4. limit orders on the order book that will be cancelled or withdrawn before ever being filled; and

5. new market (aggressor) orders that are about to be placed.

Although Bookmap shows (1) stop orders and (2) Iceberg orders, it is unable to tell the viewer (3) dark pool orders, (4) whether any orders displayed on the book will be withdrawn or cancelled prior to being filled and (5) the quantity and size of future market orders.

My question is: given that TI L2 omits so much  of this stuff, is it still adequate for day trading?  

Matt

PS Please forgive me for being the devil's advocate, but I am new to this and am just trying to get a better understanding of everything and how they interrelate.  

Edited August 16, 2020 by mlestina
update

[Alastair 114]

On 8/9/2020 at 6:20 PM, mlestina said:

 

Although Bookmap shows (1) stop orders and (2) Iceberg orders, it is unable to tell the viewer (3) dark pool orders, (4) whether any orders displayed on the book will be withdrawn or cancelled prior to being filled and (5) the quantity and size of future market orders.

My question is: given that TI L2 omits so much  of this stuff, is it still adequate for day trading?  

Matt

PS Please forgive me for being the devil's advocate, but I am new to this and am just trying to get a better understanding of everything and how they interrelate.  

 

ur observations r CORRECT.   L2 and T&S is an additional indicator to help with ur decision making process.

As a trader u r gathering as much relevant info / intel to make a trade or business decision.  L2 and T&S is just another piece of the puzzle.

U will neva have ALL the info as to wht will happen in the future ( if u ever find tht info I will pay u one million dollars for exclusive use.....lol)

I would say that watching L2 and T&S at specific levels which u pre-defined will give a 3 - 5 second advantage.....just allowing a better entry and stop  placement i.e. risk reward setup. HINT: Focus ur eyes on T&S top line at a level.

The more accurate factual info u have the better, u can improve ur odds while ensuring ur money management is also on point.

Trading is a 5000 piece puzzle (with 800 missing pieces) .......I find the corners and the frame then try to fill it in with the info tht I can find.

Good luck........u r learning more everyday .......asking the right questions............on the right path.

Edited September 6, 2020 by Alastair

[mlestina 6]

Alastair,

Thanks for your reply.

I checked (and mark me if I am wrong) but I did not see or come across any educational materials, either in Andrew's books or in the educational center (with the exception for a brief 5 minute video by Andrew saying you can glean order flow from the tape) anything about reading the Time and Sales Tape, building a strategy or determining an entry or exit point from reading the T&S tape, or settings regarding features and setting up the T&S tape.

Could you point me to an educational resource on this?

Am I correct in that this seems to be missing?

Matt 

[Alastair 114]

@mlestina Hey Matt,

I have not found any one location with comprehensive info on reading lvl 2 and T&S tape but try the following:

1. Thor did video on Lvl 2 and Tape, it may be in BBT YouTube Channel.  If ur in chat room during his daily one hour session ask him to explain he will be happy to explain. I neva watched his vid bcoz I listened to his take on the subject during the daily chat sessions.   I found BBT videos by Carlos here https://www.youtube.com/watch?v=EasUXtRAqk8  while BBT William is here  https://www.youtube.com/watch?v=cJO4tlZpzNE

 

2.  The SMB Capital YouTube Channel (Bella is founder) has some great tape reading content in the past 18 mths. Bella and Andrew are friends.  SMB videos r great for new and experienced traders.

 

3. Read all of the following thread, I made a comment in this short thread on BBT forum which could be relevant to you knowledge search .....

 

4.  Watch these two videos they r very helpful on how to read tape and also a short term strategy.  Listen careful to wht he says, watch multiple times.  Different trading platform but same principles.

 

 

 

5.  If u need more help after doing the above steps we can setup a ZOOM voice call. Tht way I quickly gauge/clarify anything ur missing. However I think the above plus experience will get u over the knowledge hump.  Good luck.

Edited September 4, 2020 by Alastair

[Alastair 114]

 @mlestina 

Matt, here is another one.

Listen to how he interprets the aggressive orders compared to the passive orders in a T&S. (No fluff str8 to the point info,  he is a good teacher).

All he used here was filtering of larger orders in T&S, reading larger aggressive orders in TS while watching Demand/Supply zones. (I call them support/resistance, we split hairs on tht)  Again remember this is scalping, BUT personally I use it to help me start my swing trades coz I get better R:R. I prefer to swing my trades.

Hope this adds / helps with ur knowledge base so u can conceptualize better strategies and trade plans.

NOTE: in DAS, orders inside the spread are shown as white.......this adds to confusion as the trader is hiding his/her true intentions......I make an educated guess based on proximity of price / size to S/R level, time-of-day (i.e. TOD) and prior info from TS. This will come with experience watching TS at ur defined S/R levels.

 

[Alastair 114]

I do not want to overwhelm you with info but here r 2 from SMB, that I selected for u, many more on the SMB YouTube Channel.  Here https://www.youtube.com/user/smbcapital/videos

SMB Capital Videos --- Scalping / Tape Reading Skills

1.   Part 1     https://www.youtube.com/watch?v=8F3mdBtygzQ

2.  Part 2     https://www.youtube.com/watch?v=Hnq8-iSHuL0

 

They have alot of terminology/jargon which maybe hard to catch if ur new, but just re-watch along with expanding to other vids and u will catch on.....ur a fast learner.

After learning from  all these vids ( from the top, BOOKMAP to SMB in tht order) and 3 mths of reading tape everyday and applying the knowledge, u  will be a MASTER TAPE READER.

Edited August 31, 2020 by Alastair