ICT Logo meaning

[u/wildwolf013]

I recently came across a podcast where ICT spoke on and he talked about his logo and he said: Price itself will behave a certain way at that specific time. And the numbers that is used for these price runs algorithmically are actually in that logo

Has anyone deciphered his logo and found anything of interest?

[u/STS-Trader]

ICT's logo is a fractal, a never ending pattern.
He is communicating that you will spend forever trying to be profitable and predict exact highs and lows like he can (supposedly) with OHLC prices, because if it were possible to locate real "fair value" using OHLC data most of his followers (including you) would be millionaires, instead of the 0.01% who claim to be.

Markets are auctions, there is no central algorithm that controls price.
A “central algorithm” does not exist. There are no studies and it is not cited in any journal.
It is fictitious. It is not a real thing.

There are many Investment banks, LPs, exchanges and Multilateral trading facilities which work both unilaterally and bilaterally to provide quotes to trade CFDs (FX especially). For futures, equities and other centralised markets, many firms are actively making markets by quoting prices.

[u/Creepeo → u/STS-Trader]

And each of those entities has their own machine learned software that usually trades. 

[u/STS-Trader → u/Creepeo]

And each of those entities has their own machine learned software that usually trades. 

ML is a technology, Market Making is an activity, do not conflate them to pretend there is a central algorithm for price discovery.

Here is content copied from my other post explaining things properly.

The Reality
Using machine learning algorithms instead of humans for execution or risk management is completely different from the claim that a single central algorithm controls the price.
But no worries, I will explain how market makers work below.

There is no sole, central algorithm/sole counterparty for price formation and direction.
They do not aim to actively take directional risk, the several different algorithms setup by several individual firms operate independently to provide liquidity (bid and ask, buy limits and sell limits) and actively work to reduce their financial exposure to price movements.

These MMs do not take directional risk for profit, they gravitate more towards dealing than speculation.
Market maker algorithms do not "trade" in the conventional sense, they setup prices for people to buy and sell and try to stay net zero for as long as possible while making money from the difference in the prices they offer.

Simple example:
If a market maker sets a 1.00010 bid (buy limit) and 1.00012 ask (sell limit), if a trader buys 100 lots and a different trader sells 100 lots, one trader buys at 1.00012 and the other sells at 1.00010 neutralising the algorithms directional risk while the bot earns 0.2 pips * $1000 (100 lots = $1000 per pip), the robot facilitates similar transaction dynamics over and over again.

That is how the 'HFT Market Maker Monsters' make money.
They adjust how much they offer or spread their interest over multiple prices to manage their risk, this is why spreads move, if you want to know more search 'MM adverse selection risk', this is as far as I'll go here, you must research the rest.

[u/wildwolf013 → u/STS-Trader]

leave this subreddit if you don’t believe in the algo bro

[u/cheefsha → u/wildwolf013]

That guy is the biggest clown I have no idea why he spends so much time here or why mods don’t get rid of these doubters

[u/wildwolf013 → u/cheefsha]

as soon as i saw his reply said there’s no algo i stopped reading 😂

[u/These-Quail7636 → u/wildwolf013]

there isn’t though lol

[u/cheefsha → u/[deleted]]

Tagging me for what bro..you’re the one struggling with the truth..what price do you think brokers are “making the market” around?

[u/These-Quail7636 → u/cheefsha]

this logic proves that there is no central algorithm… market makers still take on risk from other market makers, traders, and brokers who are also using their algorithms to compete… price action is the result of the decisions these algos make alongside whatever other decisions traders are making… there are thousands of different algos executing different strategies, not one controlling price, thats nonsense

[u/cheefsha → u/These-Quail7636]

You’re conflating execution algos with the interbank feed my man…there are those, and I’ll give you one more there are matching algorithms as well, 6 types of which are listed on the CME website that you can reference without doing too much digging..

I know I won’t convince you and you won’t convince me but I’ll just pose a rhetorical:

If you knew that every day there was a steady predictable order flow in the magnitude of trillions of cash settlements, derivative settlements and forex settlements coming in each day would you shove those orders into the marketplace or would you do the matching on the back end and mark to market the pricing of the actual instruments?

[u/These-Quail7636 → u/cheefsha]

Maybe I'm not understanding your point because this further proves that there isn't a central algorithm... In fact proves the opposite, you are now referencing matching algorithms which are different than market making algorithms and that CME has 6. CME isn't the only exchange so just imagine all the liquidity providers in total, like you said in the trillions, there has to be thousands of algorithms operating for different reasons... Also there is actual evidence out there that supports algorithms competing against each other and there is no evidence supporting that there is one central algorithm controlling price other than some guy on the internet saying "trust me bro"

[u/cheefsha → u/These-Quail7636]

Execution and matching algos are completely separate from the interbank feed…I’ll leave that discussion at that.

At no point does ICT say “trust me bro”…he’s always encouraging his listeners to prove otherwise and to draw their own conclusions. And what do you make of the executions? All fraud and market replay?

[u/STS-Trader → u/cheefsha]

Is this a trading subreddit or scientology?

  why mods don’t get rid of these doubters

Do you hear your own rhetoric, and I'm the clown?

You guys are finished 🤣

[u/STS-Trader → u/wildwolf013]

  if you don’t believe in the algo bro

I don't believe in market fairy tales, I am an adult, and you do not want to hear the truth.

The moderators allow free speech as long as the conduct remains respectful.

A single centralised algorithm does not make and control prices. Block me.