Originally posted at forexfactory on February 27, 2011
Sure Cindy I am not here to fight, neither I am judging him, thats why I said is probably about semantics. Sometimes concepts and technical terms get a little bit mess up in FF. In simple words, they are not the actual terms you will hear in trading but I guess is just the words that are misused not the concepts.Plus I don’t have a clue what you mean with missalolocations of liquidity but I will be happy to hear your or his opinion on it.sisse
Yeah I am not talking algos or quants. I have no idea how they work, nor do I care.
When I talk about mis pricings, I mean order flow mispricings meaning that there will be people willing to move the price substantially, because the current market price does not reflect the true value, according to how some market participants view the market and can generate the order flow to move price.
There are mathematical quant and algo inefficiencies, but the average trader cannot exploit those (at least I don’t think so).
Then there are order flow inefficiencies, which is foundation of every market according to my mindset.
Then within order flow inefficiencies there are different categories like mis allocations of liquidity inefficiencies, sentiment inefficiencies, fundamental inefficiencies, etc.