tradE with tick-by-tick quotes

Freefutures clients have real tick-by-tick quotes. Most other futures brokers, including Interactive Brokers and their distributors such as Lynx Brokers, supply 1/2 second snapshot quotes. Snapshot quotes only show the first few ticks and one final tick, after all the volume was traded. Snapshot quotes are 1 second or more slower.

This illustration shows the difference between tick-by-tick quotes and snapshot quotes. With snapshot quotes 75% of the trades are not visible in the order book and the charts.

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Don't shoot yourself in the foot

If you think a delay of 1 second or more does not impact your trading results, consider the below.

If you think not seeing 75% of the executed volume in the order book and the charts does not impact your trading results, consider the below.

Your profits are negatively impacted. Traders cannot open and close positions at the same price as traders using tick-by-tick quotes.

Your order execution is inferior. Slippage occurs (more) frequently. One tick less on, say, the DAX future, costs you € 25.

Your tick charts are wrong. Range bars, tick charts, Renko charts and point-and-figure charts cannot be used.

Your charts are incomplete. Traders can be executed at prices, which are not even visible in the charts!

Your technical analysis indicators are wrong. All indicators based on ticks are worthless. This can lead to false entries and exits.

Your volume-based trading is impossible. Market Profile, Time Price Opportunities, Volume Profile and Volume Viewer cannot be used.

Your back-tests are wrong. Differences between real-time charts and historical data charts make back-tests meaningless.

You will be stressed. Orders, which are executed at prices which are not visible in the chart, make the trader suspicious. Doubt starts to set in. Doubt creates stress.

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