Scalping by order book is currently considered among traders to be one of the most difficult methods of trading on Forex.
Using this strategy, it is necessary to constantly monitor large orders (this can be at least 200 futures) and determine in which direction these orders will be thrown, either towards the guides or against them.
Scalping by order book. Basic Day Trading Principles
Scalping by order book assumes that traders know how to use profit stretching, in other words, having found entry points - do not exit positions until the DAX begins to give a hook directed against their movement.
The scalping strategy by glass largely depends on how exactly the glass itself is presented. And this type of scalping without reading the order book is simply impossible. The glass in this case is the foundation of the entire trading system.
In addition, without a normally represented glass, this type of scalping is also impossible. According to experienced traders, a correctly presented order book is 50% successful in reading it, and in order to learn how to read it correctly, a floating spread usually must be present in the order book.
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What is Quik
Hello everyone, friends.
If you are reading these lines, then you have finally decided to become a trader. And most likely you want to make some kind of profit from trading, to fulfill your old dreams, which depend only on money that doesn’t exist yet. I hope my article will give you a complete answer on how to set up Quick Sberbank. And you can calmly study further all the necessary nuances of the work and slowly start trading. By the way, if we don’t know each other yet, you can read about me and the successes of my students here.
How to increase your brokerage account from 50,000 to 100,000 rubles. Description in the VKontakte group
How to increase your brokerage account from 50,000 to 100,000 rubles. Description in the group In the telegram.
We will set up the Quik trading terminal of the Sberbank broker with you. Although it is worth noting that the installation and configuration of Kwik is the same for almost all brokers. So don’t close the article if your broker is not Sberbank. I'm sure you'll find something new to trade.
This article will include some more answers to your questions. Some are very simple, and some are more advanced. As questions come in, I will add them to this article or to the Quik section on my website. Let's begin!
Kwik or Quik is a software solution for the interaction of a trader with the markets and a broker. Translated from English it means “quickly updated information set”. Indeed, Quick works very well. And I have never once had the thought of changing it for something else. And the ease of setup is very captivating. Almost all traders use this program.
The program itself is relatively young, it became the leading Internet system only in 2001. In 2021, we launched Quik for Android and iPhone. Although, in my opinion, this is already unnecessary.
The profession of a trader is very psychologically stressful, and you need to take a break from the market. And a gadget with Quik will never let you rest; you can become a slave to the market. Although in some cases this will be an excellent technical solution.
I don't use Quik for android. The only thing is that I have the program on another small laptop. This is very convenient when you are away on business for several hours, but need to monitor something on the market.
Bonds vs. deposit
Do you know that buying bonds by individuals is much more profitable than the same deposit in a bank? You probably think that all this is complicated. I'll try to dissuade you.
If you look carefully, there is essentially nothing complicated about bonds. But they have more nuances than a regular bank deposit, which is probably why most people take their savings to the bank, because they don’t want to delve into all the intricacies of bonds.
Did you know that by purchasing bank bonds you can receive from 10-15% per annum, instead of if you invested these funds in a bank at only 4-8% per annum.
Here are the significant advantages of this security:
- Bonds give a more profitable interest rate than a deposit.
- By selling bonds ahead of schedule, you will not lose the accumulated interest, which is accrued every day.
- Investing more than 1,400,000 rubles in risk-free bonds is much safer than taking them to the bank.
The only downside is that you need to learn to understand this, but believe me, you can figure it out even for a person who does not have a financial education.
How to download Quik (Quick) Sberbank
Important! You need to download the Quik distribution kit only from the official Sberbank website. You cannot download from other places, from torrents, especially from dubious resources.
Open the official website of Sberbank and go to the “Investments” tab.
In the window that opens, select the “Investment and brokerage services” tab.
On the next tab that opens, select “Trading Platforms”.
A small list will appear in which you need to find the Quik program for your computer. Click on the yellow “Install” button.
The distribution package will be downloaded to your computer. This will be an archive folder with compressed files.
On my computer, when downloaded, all files go into the “Download” folder.
How to install Quik (Quik) Sberbank on a computer
Sberbank offers three options for installing the Kwik trading terminal on a computer for trading on the stock exchange:
- Connecting Quik with two-factor authentication using login and password
- Quik connection with KA authentication (USB token)
- Connecting Quik with two-factor key authentication (RSA)
In my opinion, the easiest and fastest way is to connect using the first option with two-factor authentication using login and password. Above, I showed how to download a distribution kit with the Kwik program from the official Sberbank website. Now open this downloaded file by double clicking the mouse. And in the archived file that opens, open the file with a white and blue rectangular icon and the inscription “quik_8.3.exe”.
Important! The numbers 8.3 will change. These indicate the version of Quik you are installing. This version will constantly change upward: 8.4,...9.1, etc.
The Installation Wizard window will appear. Click the “Next” button.
Select the first authentication type and go “Next”.
By default, the Setup Wizard suggests saving the Quik folder on drive C. We agree and move on.
To make opening Quik easier, create a shortcut.
Be sure to create a program icon for quick use on the desktop.
And we start the installation process on your computer on disk C with the “Install” button.
After a few seconds, the installation will be completed. Let's launch Kwik to work.
The main Kwik window will open. There will be one solid gray field and a warning window will automatically pop up. Click the “Ok” button.
Now here is the most important part for you: you need to enter your Username and Password.
Important! The username is the same as your brokerage account number.
For me it consists of 7 characters: three numbers + 4 letters. You don't have a password yet.
Important! The password for logging into Sberbank Investor will not work for logging into Quik Sberbank.
To get a password, you need to click on the phrase “Get password”. It is located under the password input field, is blue and underlined.
After clicking on the “Get password” command, a window will appear where you must enter the number of the Sberbank brokerage service agreement and check the box next to the phrase “I am familiar with the procedure for obtaining a password.” And click the “Submit” button.
Successful submission of the application is confirmed by a counter letter from the system with the following content:
A message from number 900 will be sent to your phone with a temporary password for logging into Kwik. Now you enter the following data into the login window:
- Username is your brokerage number
- The password is a temporary password sent from the 900 number to your phone.
After successfully entering all the numbers and symbols of the password correctly, the system will prompt you to change the password to yours.
Important! you must come up with your own password, which only you and no one else will know.
To do this, in the “You need to change the initial password” window, click the “Ok” button.
Now get your pen and notepad ready. And write down this password in a safe place. You will use it every day from now on. In the change password window you must enter:
- The password that the system sent you from the 900 number to your phone.
- Create your own password. (If it is too simple, the system will give you recommendations on how to complicate it.
- Repeat your created password, duplicating it in the “Password Confirmation” column.
All entered passwords will initially be encrypted with black circles to prevent intruders. Suddenly you don’t have an antivirus program on your computer and you often surf the Internet.
Important! If you don’t have an antivirus program, install it immediately. Working with money requires special security measures. And an antivirus program is a must for any PC user.
If the system is satisfied with the complexity of your password and you have entered and duplicated everything correctly, then the following window will appear in front of you, in which you need to enter a PIN code automatically sent to your phone from number 900.
Enter the PIN code from your phone. A window will appear confirming that two-factor authentication was successful.
Now you go to the “System” tab, go to “Establish a connection” and enter in the password window:
- Your Sberbank brokerage account number
- A new password, created by you and confirmed by two-factor authentication.
The long-awaited activated Quik will appear with tabs and windows already configured by default. Below is the “Trade” tab.
By default, everything is configured quite well. In principle, you can leave everything as it is, just adjust what you will use more actively. And so the following tabs are configured by default, except for the “Portfolio” tab (screenshot above):
Charts tab
Tab "Forex market".
"Future Market" tab.
“Algo orders” tab.
"Alerts" tab.
Well, the “News” tab is still present. I would delete the last three tabs: News, algorithmic requests, alerts. You can definitely do without them.
How to customize your feed in Quik
Let's first look at what a deal feed is. I would like to immediately note that without a transaction tape it is quite possible to trade well. But if you decide to supplement your trading with this assistant, then I advise you to test it in conjunction with your trading strategy.
In general, a feed is information about a specific instrument, which you can choose yourself and even customize feeds for several instruments. The tape window contains information on volumes, the seller or buyer set these volumes, and the execution time of these transactions.
When you gain experience in trading, you can collect information from this feed on the following important factors:
- How does a breakout of an important level occur?
- Where are the big players and volumes?
- How the market reacted to an event
Let's set up a transaction feed using Sberbank as an example. To do this, on the main Quik panel, select the “Create window” item and in the menu that appears, “Table of impersonal transactions”.
An editor window for the future feed of transactions for Sberbank will appear in our example within the framework of this article.
It is worth noting that you can configure several stocks and other instruments in one feed. But it’s inconvenient to analyze this way. And I set up two transaction feed windows: for shares of Sberbank and Gazprom.
In the window, select the tool class we need. Shares of Sberbank and Gazprom are located in the section: MB FR:T+:Shares. The ribbon table columns can contain various parameters. I will put it by default, but usually they use: quantity, operation, price and time.
In these windows you can sort each column. It will be more convenient to sort the “Time” column. We will place the most recent transactions at the top of the table.
Let's now filter the tape trades by volume. Let's make a copy of the Sberbank tape. To do this, right-click on any ribbon field and select “Make a copy.”
In the original Sberbank feed, we will set up the display of large transactions; we will not change anything in the duplicate. But it is possible to set up small transactions, or even larger ones.
In the “Quantity” column, set “Greater than or equal to 100”. And indeed, the table will only contain transactions with a volume greater than or equal to 100.
There is another convenient trick: color-code purchases and sales. We will color buy transactions in green and sell transactions in red.
Select the “Operation” column and click on the funnel. Edit two conditions:
- Condition No. 1 - Purchase - green color
- Condition No. 2 - Sale - red color.
- Be sure to check the “Apply to entire line” checkbox next to the two conditions.
Take this into account, this is a good free way to analyze supply and demand. The Quik feed will be useful for all types of traders, but scalpers use it more often.
Swing traders love to watch for big moves near some very important level. If we see an opportunity to enter a long position, then large purchase transactions indicate that there is a high probability of a good movement in our direction. And if there are no big deals, then maybe it’s not worth entering. The idea is that impulses can start quite often with the appearance of large investors in the instrument.
It works well in conjunction with a glass in some strategies, but I do not recommend beginners to start their journey this way. The simpler it is, the greater the chances of success.
Trading using the order book, basic principles
There are 2 criteria for trading on the stock exchange by glass - for high density consumption and for release, taking into account a large number of additional factors. When trading low-liquidity securities/currency pairs, it is better to act only on the pullback, since it is quite difficult to enter a trade when it is eaten. In this case, we are talking about illiquid shares with a turnover of 1,000,000 to 10,000,000.
In the order book, you need to look only for large orders by density, and the trader’s trading system should indicate what it means for him.
Here it is necessary to take into account the average daily volume for the selected exchange parameter or the average in the order book itself.
If there is a large order in the order book, this means that it will remain (it may simply be cancelled). Larger market participants may intimidate small investors with such a bid after purchasing shares so that the price increases even more. This occurs on securities of categories 2-4 with a low degree of liquidity. The main thing is to remember that the glass is only an additional criterion that helps to consider signals for a quick entry into a trade.
Trading by glass based on density, secrets and nuances
When trading by order of book, you should take into account factors such as support/resistance lines and exchange volumes.
If a trader trades taking into account only density, without taking into account other parameters, profitability will be minimal. To improve the final trading result, it is necessary to conduct a comprehensive market analysis. Therefore, it is important to take into account the main lines of support/resistance, which should be as strong as possible and clearly limited. Traders should find the clearest levels that have the smallest bar spread error, false breakouts and strong shadow takeouts. In this case, the level must be drawn along the shadow tails.
A large density should accumulate at this point in the order book, and the trader will enter into a trade to eat it only when no more than 20-30% of it remains. With correct calculations, a powerful impulse should arise, which will allow you to make a good profit.
It often appears when taking stops located behind the line. At this moment, other traders begin to buy shares at the breakout levels. If the density is eaten and no movement occurs, the trader needs to close the position, and if the movement has begun, sit until the very end.
Trading stocks and futures by order of magnitude
In futures, the use of order book is less efficient than in stocks. Therefore, when working on futures, you can use the order book from the securities exchange, i.e. Some market instruments will have 2 books at once: futures and shares.
How to create a current parameter table from scratch in Quik
After installing the Quik trading terminal on your computer, there are always a lot of windows configured by default.
There may be exchange rates, blue chip charts, order books, etc. You can delete all this and reconfigure only what you need. Or leave it like that. I will tell you how to configure the current table of parameters in the first option, if you have deleted all windows and tables, or created a separate tab and configure it for work. It should be empty and gray.
The trader's workplace in the Quik terminal should be configured as simply as possible, with a minimum of information and maximum usefulness. The most important part in this window is the current parameter table. Let's configure it:
- In the main menu of the terminal we find the “Create window” tab.
- In the pop-up menu, select the line “Current trading”.
In the “Current parameter table” window that appears, you need to configure a number of parameters.
- Available tools
- Available options
From the available instruments, we choose the most popular security in Russia - Sberbank shares. Sberbank and other liquid shares are located in the folder MB FR T+: Shares. Click on the yellow plus to the left of the name and look for the required paper in the list that opens. Click the “Add” button and the paper will fall into the empty right window. In the same way, configure the lower window “Available parameters” by selecting:
- Lot size
- Short name of the tool
- Opening price
- Turnover in money
- Session state
- % change from closure
You can choose the parameters at your discretion. I give the minimum parameters. As a result, we will get the following table of parameters:
Instead of introducing
There was already one of my previous articles on the topic of scalping, but it was dedicated to the Forex market. Now we will discuss scalping in relation to the Russian stock market.
It is usually believed that on the intraday market it is more convenient to trade the most liquid shares, “blue chips” (Sberbank, Gazprom, Lukoil). On the one hand, they attract more traders, so trades happen more often.
However, second-tier shares (Polyus Gold, Uralkali, NLMK) also have their advantages, which can be convenient for novice scalpers.
Paradoxically, the main advantage of such shares is their wide spread. This is exactly what the popular “reverse” strategy is based on, in which they buy high and sell, on the contrary, cheap. A wide spread allows you to compete with other market participants by offering a better buying price for sellers and a better selling price for buyers.
In addition, relatively low liquidity is convenient for traders who are accustomed to working in Quick, which is not entirely convenient for quickly placing orders. Direct access to the Russian stock market, for example, on the MICEX, requires opening an account with one of the brokers (BCS, Finam, VTB24 or Otkritie).
How to save a chart template for other charts in Quick
Guys, when you set up a chart for trading stocks or futures, you can save this type of chart with certain colors and settings into a template. And when creating a chart of any instrument, you can take the settings from the saved template and the new chart will change the default settings to the same as in the template.
Let's save the settings of our Sberbank chart into a template. The schedule must be open. Right-click in the graph area and call up the menu.
We look for the “Chart Template” item and click on it. Select the next item “Set as template”.
Click on the “Save as New” button.
In the window that appears, enter the name of the new template. We choose a name so that you can understand what this template is for some time after creation.
Important! If you want the created template to be applied to all created charts, then right-click the menu, select “chart template”, then “templates”. Select from the list the template that you want to apply to all charts created in the future and click the “Set as default” button.
If you want to use several templates depending on the tasks, then when creating any chart, right-click on the free field of the chart and select “chart template”, then select the desired template.
Quik gives you the option to apply a template to all charts in a tab, or to all charts in all tabs.
Trading by glass depending on density
To begin with, I will repeat that for successful trading by order of book you always need to take into account several factors; if you look only for densities, then successful trading will be problematic. Moreover, you must formalize everything as clearly as possible - what density you are looking for, how you should eat it to enter a position, what the level of support/resistance should be, etc. If you are trading on a rebound from density, then it is desirable that the density coincides with a strong level. Or at least it was clear that the instrument was held at this level. The only exception is the enormous density in the glass. See example below.
Another important point, it is advisable to understand that this density is real and they really want to fulfill it. That is, you need to see what they hit and eat, then you can enter the position. It often happens that large players simply scare other participants in order, for example, to move the market up or for other manipulation. In this example, using M.video from such a density, you can work on a rebound. Enter either on the market when the instrument comes as close as possible to the density, or with a limit order, placing it slightly above a large volume. Be sure to look at the density below. Otherwise, an extremely unpleasant situation for you may happen. If the density is pushed through, the tool will rapidly rush down. If there are other densities below, on which the tool is most likely to stop, then you can cover the position about them. If suddenly the density starts to be eaten away, then as soon as 30% of it remains, it is better to jump out of the position.
How to set up a stock (futures) chart
You cannot trade on the stock exchange without a chart. This is a separate, extensive topic that includes a number of important parameters, including volatility, time frames, and gaps.
However, for the purposes of this article, we must plot a chart of the stock we want to buy. The task is to experience the whole process as a trader. In the “Current table of parameters” window, you need to right-click the pop-up menu and select “Price and Volume Charts”.
In the Sberbank stock chart window that appears, you need to slightly change the default settings:
- Remove grid from screen
- Set up highlighting of lows and highs when you click on a candle
- Remove the unnecessary “Volumes” window for now.
- Set up timeframes
In addition, I recommend setting up a couple more windows this way:
- 60 minute chart
- 5 minute chart
All these recommendations are configured by right-clicking and selecting "Edit" from the menu.
Features and Features
The Quick terminal includes the main set of tools for a trader. It consists of server and client parts. Here you can create any type of orders, analyze the state of your portfolio, monitor the market and quotes.
Additional features include:
- easy-to-use graphics that display changes in parameters;
- messenger for exchanging messages with Kwik technical support, as well as other terminal participants;
- Hotkeys;
- digital signatures;
- bookmark system.
Exchange markets
Kwik has earned its popularity thanks to its work not only with international, but also with Russian and Ukrainian exchanges. These include such well-known platforms as the Moscow Exchange, St. Petersburg Stock Exchange, NYMEX, MICEX, WSE, NASDAQ, NYSE, etc.
International market quotes
Using the platform, a trader can track:
- exchange rates;
- indicators of world indices;
- data on depositary receipts of NYSE, LSE, Deutsche Boerse;
- prices of contracts for commodity futures and indices.
All information is shown in QUIK online.
How to set up a glass in Quik
The most convenient way to configure the depth of quotes for the instrument we need is through the current table of parameters. In one of the sections of this article, we set up a table of parameters for shares of Sberbank and Gazprom. Double-clicking the left mouse button on the name of the security brings up the order book.
I recommend making the current table of parameters for futures on a separate tab. And if you trade currency pairs, then this will be the third table of parameters on a separate tab.
When trading futures and stocks, I always recommend using the MOEX and RTS indices for technical analysis. We cannot trade them. And when you click on the names of these indices, the order book will not appear. Because indices are the average value of the market.
Please note that the market depth will not disappear when the trading session is closed. It will just be empty. Therefore, try to work with the glass during working hours.
Let's look at the market of quotes in more detail. By default, the order book consists of ten sell offers and ten buy offers. In general, the parameter of the offers visible in the window can be adjusted. But if your strategy is not based on analysis of the order book to make a trading decision, then there is no point in changing the visibility parameter.
The location of data inside the order book can be changed in the “edit order book” table. You can access this table in the standard way: by right-clicking on any area of the order book.
In the order book, you can estimate the spread between the best buy offer and the best sell offer. The smaller it is, the better.
In addition to analyzing the spread, through the quote book you can place a simple order to buy or sell, and most importantly: a loss limiter.
Trading by glass depending on density
For profitable trading, a trader must first of all clearly determine for himself what density he is looking for, how it should be eaten to enter a trade profitably and other factors. When trading on a rebound, the density must completely correspond to the strong line. An exception may be if the density is too high.
But first, the trader must find out that it is not fake and they want to fulfill it. If they approach it and then eat it, you can enter into a deal. Sometimes market makers scare other traders to push the market higher. This method requires a lot of attention from the trader and can be used on both securities and currency pairs.
To trade, you need to wait for the largest orders or icebergs that hold the value, and enter a trade in accordance with the density. Immediately after these indicators you need to set a stop, wait for a pullback and exit the trade.
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