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Archive for May, 2011

OrderBookFX offers great insight into market order depth

May 16th, 2011

A while ago I beta tested a product called OrderBook FX that basically gives you a tool to understand the current market order depth (or depth of book) for currency pairs. The company behind the product collects its underlying data from multiple institutions and aggregates it into what it calls a “global depth of book for all major currencies“. During the beta test there where many problem with non-us installations and such, but all where fixed and they are now live accepting customers. I very much like the chance to see market depth in MT4 as this is very poorly implemented in the standard MT4 terminal (better in MT5 if your broker offers the service, but still not a “global” view, just the brokers book or the ECNs book). Using the global book you can take advantage of selling or buying pressure to speculate in coming price movements in a totally different way than with other indicators. I only had very little time to experiment with this during the beta test and following 7 days free trail, but I will¬†definitely¬†work on some filters for my current EAs to use OrderBookFXs API. It is excellent for a Asian session scalper to know when there is a selling / buying bias in the market to wait for channel bounces and even break outs. And of course this API could be used as base of a new strategy also, buying/selling when others do and chances are that prices will move.

I will very likely (90+ %) sign up for the service once my major trading capital is returned from JadeFX by the helping NFA and CTFC. Hopefully that is soon…

OrderBook FX offers a 7 day free trail. Make sure to use it well. After that there are two choices depending on the amount of pairs you would like to follow at the same time for $49 and $79 per month. Money that better entry and exits by just fractions of a pip will get you back over a month of successful scalps I think :)