{"id":5021,"date":"2010-05-25T21:51:14","date_gmt":"2010-05-26T01:51:14","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=5021"},"modified":"2013-03-15T11:16:55","modified_gmt":"2013-03-15T15:16:55","slug":"traders-ask-how-to-recognize-real-order-algos","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/traders-ask-how-to-recognize-real-order-algos","title":{"rendered":"Traders Ask: How to Recognize Real Order Algos"},"content":{"rendered":"<p>Yesterday we received an inquiry from a reader regarding algos. Read the inquiry below:<\/p>\n<p style=\"text-align: left;\">Hi. I have been trading for \u00a0nine years now and one of my biggest\u00a0strengths is tape reading. However, the algo programs are absurd these\u00a0days. How does the Gman distinguish real buying from some program\u00a0just market making a stock? Also, it seems like the programs are more\u00a0in NYSE stocks, then NSDQ stocks. Any thoughts?<\/p>\n<p>Dan. J.<\/p>\n<p>Gman here:<\/p>\n<p>Dan first off glad to hear you have developed such great skill. I agree with you in that there are way too many algos littering stocks all day long. Algos with real orders can&#8217;t ultimately hide their size. For real order programs I look for repeating patterns of aggressiveness (offers for size getting scooped for example). But ultimately here are the factors that matter most:<\/p>\n<p><strong>1. Time of the day.<\/strong> On the open and close I expect to see most of the aggressive algos. In the middle of the day we expect to see the market making ones. Every now and then, specially with stocks with fresh news, you can see these real order algos in the middle of the day.<\/p>\n<p><strong>2. Volume.<\/strong> You ought to be able to see the volume come in through the box. If you can&#8217;t see it or if it is too sporadic then most likely the order is not big enough or the algo is not set in aggressive mode.<\/p>\n<p><strong>3. Where in the move you are.<\/strong> If you&#8217;re trading the stock while the play is developing, then you can expect an accumulation algo to be put in place; very easy for them to hide their size trading 2-300 shares a clip. If the stock is in drive mode then it should be easier to see its pattern.<\/p>\n<p>Ultimately, the algos that make us the most and quickest money are the aggressive kind. The passive ones we experience in the middle of the day are way harder to read. But in the end, it does get easier with time to recognize these suckers. Hope that helps.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yesterday we received an inquiry from a reader regarding algos. Read the inquiry below: Hi. I have been trading for \u00a0nine years now and one of my biggest\u00a0strengths is tape reading. However, the algo programs are absurd these\u00a0days. How does the Gman distinguish real buying from some program\u00a0just market making a stock? Also, it seems like the programs are more\u00a0in &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/traders-ask-how-to-recognize-real-order-algos\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":94,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[1019,826,582,463,542,1018,467,276],"class_list":["post-5021","post","type-post","status-publish","format-standard","hentry","category-gilbert_mendez_gmans-blogs","tag-algos","tag-ask","tag-how","tag-order","tag-real","tag-recognize","tag-to","tag-traders","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Traders Ask: How to Recognize Real Order Algos | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/traders-ask-how-to-recognize-real-order-algos\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Traders Ask: How to Recognize Real Order Algos | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Yesterday we received an inquiry from a reader regarding algos. 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