Hello everyone, it’s nice of you to join me for episode 148 with John Grady. He’s an independent futures trader and primarily does Treasury bonds. Think of him as a scalper, where his trading is purely discretionary. In other words, it’s based on his read of order flow.
I asked John to join me on the podcast because, well it’s a little embarrassing to admit actually. Until recently, I never took the time to really understand the order book or even watch and try to make sense of order flow. Yes, I understood it, but that was at its most basic level and not much more advanced than that.
When I started to do my research, that’s when I came across a few of John’s videos. He did an excellent job of explaining concepts that were useful for me to understand more advanced topics.
I believe, pretty convinced actually, whether you use the order book to help make trading decisions, it’s still valuable for a trader to at least understand what’s happening there. That’s the reason why I invited John here and share his experience and insights with you all.
In this episode, we talk about the basics and value of the order book, how traders can read the order flow, the impact of HFT (or spoofing) and some of John’s trading tactics.
Let’s welcome John Grady.
What’s Covered in This Interview:
- Basic terms you need to understand so you can make sense of the order book.
- What the value of the order book is and what it shows you that other’s don’t see.
- How John trades order flow, including why he trades in certain markets.
- How John uses order flow to manage stops, gauge entries and exits, as well as when he uses which order types.
- How John trades order flow; his reasons for trading certain markets, using order flow to gauge entries and exits, managing stops, when to use which order types.
- How a trader can make sense of the order book since there a lot of numbers changing so quickly.
- Johns tips and tricks on how to build your skill when reading order flow.
- The significance of HFT and what scalpers can actually get away with, how to stay alert to it in the order book and how you can detect it
Links and Resources:
- EP 147: Thomas Starke
- Order Flow Basics – John’s Youtube Channel
- @NoBSDayTrading – Follow John on Twitter
- NoBSDayTrading.com
