JSAnalytics provides context for dynamic order book events which improves awareness and offer a framework to apply a more systematic trading approach.

 

BookMap xRayMap xRay delivers a configurable heat map display that visualizes both real-time order flow and live trade analysis, showing you exactly how the limit order book evolves over time. This granularity is essential to improve awareness of the micro dynamics so trading tactics can be optimized and make the execution of a macro trade strategy more effective. It is also true that micro order book trading tactics can be made more sustainable when they are aligned with macro conditions or more specifically the structure of the market state.

JSPriceMap

JSAnalytics incorporate both technical and behavioral variables, that have been developed from observations over the past 30 years, into a quantitative model, to define the structure of the market state. This structure or PriceMap Framework is integrated into the BookMap Order-Book Heat-Map display as an independent “JSNotes” column.

PriceMap Framework                                                 Heat Map – JSNotes Column

Macro Structure                                                 Micro Structure

 

The integration is strengthened by JSServices Desktop application which identifies the current market state and optimal strategy theme, along with the PriceMap market structure framework, to provide a complete picture of the macro condition.

 

STATE                                         STRUCTURE                                STRATEGY

JSDesktop

 

Clarity of real time events is achieved by observing order flow dynamics within the PriceMap Framework in the context of the market State and PlayBook Strategy themes. JSAnalytics more than anything else, is an awareness tool that provides clarity to what the current conditions are, so trading methods can be optimized by aligning tactics with these facts.

 

Practical Application – Creating a Structured Trading Approach

The following is a practical application of standardizing JSAnalytics with trading tactics that incorporate dynamic order flow events to improve their effectiveness and make them more sustainable.

STEP 1

What is the CONTEXT of the current condition?

• Identify the market State, Structure and PlayBook Strategy themes as an underlying macro foundation.

JSDesktop displays the JSAnalytics

CONTEXT

• FACT is the MKT is in a BULL TREND
• FACT is that trend is engaged above the R LEVEL
• FACT is the Optimal Strategy Theme is a BUY BREAKOUT

 STEP 2

Where is an order book event occurring within the Structure of the State?

• Identify the order book event within the PriceMap framework. IF the order book event is occurring within the PriceMap Risk Parameter Entry Acceptance Zone THEN the it has value. IF the event is not occurring within the zone it has less value.

 Example of a Liquidity Shift event occurring at the top of the PriceMap Entry Acceptance Zone

 

STRUCTURE

• FACT a Liquidity Shift is occurring in the order book
• FACT the shift is occurring within the PriceMap Entry Acceptance Zone
• FACT the Liquidity Shift is supported with price structure that is in alignment with PriceMap metrics

 STEP 3

What PlayBook Strategy theme is the order book event in alignment with?

• Identify if the order book event is in alignment with a PlayBook Strategy theme. If so use the PriceMap risk/reward parameters to optimize trade entry/exit techniques using order flow dynamics displayed in the Heat Map.

BUY R BREAKOUT Strategy Theme is “in play”

STANDARDIZE

• TRADE ENTRY – Entry Limit orders are standardized within the Entry Acceptance Zone using PriceMap market metrics that are aligned with of historical Resting Paper.
• STOP EXIT – The PriceMap risk parameters provide a unified approach to standardize trade exit techniques which can be applied across all markets and optimized using historical resting paper alignment.
• EXIT LIMIT – The PriceMap reward parameters identify the price segment movement the market is trading in or in other words the reward that the market is “paying out”. Standardizing Exit Limits to this fact using the PriceMap framework offers a systematic approach to defining exit targets which can be optimizes by incorporating dynamic order flow events.

 

Trade tactics can be optimized when executed within Entry Acceptance Zones and their effectiveness improved by using real time order book events that are in alignment PriceMap market metrics. By standardizing trading tactics with JSAnalytics trading methods become more structured and sustainable.

 

DEMO JSNotes Integration and JSDesktop

The JSNotes integration works in conjunction with the JSDesktop so you will need to download both applications.

1. Please click here for a  JSNotes DEMO
2. Please click here for a  JSDesktop DEMO

For more information please contact us at info@jsservices.com