Find Hidden Multi-Baggers Using Dark Pool Prints
| I’ve always wondered how traders find these obscure tickers that moon 100+%. Here’s one fast and easy way to find cheap tickers with 100% to 275% potential!
Up until recently, I never really understood dark pool prints — I mean, I’d see the order … but was it a buy? Was it a sell? Well, recently, I found a way to easily identify inexpensive tickers with huge growth potential and, more importantly, it tells me if the market views the ticker as bullish or bearish. Then, I just have to watch the chart for a nice entry!
In this article, I’ll talk about:
- What Exactly Are Dark Pool Prints?
- What are Block Trades?
- How Do You Spot Hidden Opportunities and Make Money From These?
Author’s Disclosure and Disclaimer: The author may or may not hold positions mentioned in our blogs. This is not trade or financial advice and I am not a financial advisor, money manager, or tax advisor. This blog represents the opinion of the author and is for entertainment purposes. Also, this blog is in no way a recommendation to buy or sell any security, and past performance is no guarantee of future performance. Options represent a high risk and we recommend paper trading to backtest these strategies.
What Exactly Are Dark Pool Prints?
Dark pools are private off-exchange trading venues. The term “dark” refers to the lack of transparency where large institutional orders are matched with anonymously. These trades are not immediately visible on public exchanges. The term “prints” just means that the record is not made available until the entire order has been executed.
I found it interesting to find that the highest volumes of dark pool orders are carried out by the very same institutions that could be placing the orders. Here’s what I mean:
For example, many are already broker-dealers that match orders internally. The Sigma X is a dark pool venue and it is owned and operated by Goldman Sachs — not fishy at all, right?
Some other examples of dark pool dealers are (source: Grok):
- Citi Match: Run by Citigroup, focused on block trades for large investors.
- MS Pool: Operated by Morgan Stanley, providing anonymous liquidity for high-volume trades.
- Barclays LX: Managed by Barclays
- UBS PIN ATS: Operated by UBS
- Crossfinder: Formerly run by Credit Suisse, now integrated into UBS.
- ITG Posit: Operated by Investment Technology Group
- Instinet: Run by Nomura’s Instinet group
- Liquidnet: An independent electronic market maker dark pool
- NYSE Euronext Dark Pool: Run by the New York Stock Exchange (part of Intercontinental Exchange)
- BATS Dark Pool (now part of Cboe Global Markets): Operated by Cboe
Needless to say, the volume of these orders is in the hundreds of thousands to several millions of shares being exchanged. The way I see it, is I don’t think these big institutions are wanting to lose money, so if they express urgency in wanting to buy or sell shares, then that could represent a big opportunity for traders with access to their “hidden” block trades.
What are Block Trades?
When large trades are done, they can often impact market price. But for large institutions, it wouldn’t make sense to overpay for shares.
For example, let’s say Citadel wants to buy 500,000 shares of a random stock. Orders of this size usually cannot be done in a single execution, so they are usually split up into chunks. At times, these can be done in sweeps — on-exchange orders simultaneously sweeping across multiple exchanges designed for speed of execution, or Splits — on-exchange orders split up under smaller orders designed for discretion and better pricing.
If a single order is dumped on the market as a “buy”, then the price of the shares would start increasing, and the institution would have to start paying higher and higher share prices. So, that’s where block trades come in.
“Block trades are large securities transactions, executed off public exchanges, often in dark pools, to minimize market impact and maintain price stability.”
~Grok
As these orders are executed off-exchange and are not reported until the entire order executes, their size and urgency is hidden from public view. I’ve seen other dark pool trackers, but in my amateur-ish level, I found them useless, because I would never know if they were a BUY or a SELL.
So, I was very happy to finally find a dark pool scanner platform called Moby Tick Trading that scans block trades and dark pool prints, and more importantly, indicates if they are bullish, bearish, and what level of urgency the institutions are trading at.
Their plans start at just $19.99/month — very easy to “pay for” in a single trade from the Block Trade Indicator feature described below!
I’ll explain how it works and how I’m finding market gems EVERY SINGLE DAY!
How Do You Spot Hidden Opportunities and Make Money From These?
Moby Tick Trading is a block trade and dark pool scanning platform that spots hidden institutional orders in real time. The dark pool prints can be overlayed onto charts to show support and resistance levels. Custom filters allow you to narrow your search and discover high urgency trade executions and, what I do, is I jump in on their momentum, determine the next level of resistance, and jump out with my profits, sometimes 100–200% in the same day, and others in a few days.
Another unique feature is their Seasonality scanner. The platform automatically narrows down the market to tickers that strongly follow their trend compared to previous historical seasonality patterns and also tells you when the ticker typically starts matching the history, and when it ends, so that you will know when to buy and hold, and when to take profits!
Let’s look at these key features of Moby Tick Trading, as well as some other ways I’ve been making money from it.
Block Trade Indicator
NOTE: Do not take these trades, they are old data, examples only.
Below you will see a snapshot of the Block Trade Indicator page of Moby Tick Trading. Now, recall that block trades are not reported until the entire order is executed. Also recall that most dark pool platforms don’t tell you if it was a buy or sell.
Below you can see that for $IREN, institutional block trades were recorded and the institution was willing to pay above the ask price — indicating urgency — they wanted the shares and they wanted them fast!
It works in reverse too. For example, in the image above, an institution was willing to sell below bid or below the sell price $QBTS, perhaps taking off a hedge or taking profits.
So, when I see orders, especially multiple orders, coming in for the SAME TICKER and “ABOVE ASK”, that is my trigger to check my charts for a long entry. I can do it however I want — with shares, or with options.
Here are some other smaller trades I took that worked from this strategy of following block trades and dark pool prints:
Opportunities
This part of their platform monitors large block trades but allows you to filter them by long, short, or neutral. Below, I’ve filtered incoming tickers by “long”, and have sorted the list by Relative Volatility. You’ll recognize a number of tickers on the list: $PLUG, $SNAP, $OPEN, and $HIVE. At the time of this article, I’ve never even heard of $HIVE, but it is a trending ticker on X/Twitter.
Under the “Signals” column, this column is telling you that the ticker has incoming volume and that its moving averages are bullish (widening). You’d still need to check the chart, fundamentals, and recent news to see what is really going on with the ticker. In general, if the news is good, and the technical chart confirms bullish action on the daily, then it might be a swing trade I might consider.
Note that some of these trades are plays on earnings or dividends. So, I’d be careful with what could be “dividend capture” trades, because you don’t necessarily know how long the company would take to recover its share price prior to ex-div.
Seasonality
The last section I’ll talk about in this article is the Seasonality feature. Below, you can see that I’ve sorted the list first by Expected Gain in the middle. So, the expected gain for $GYRO, currently in a bullish “strong” trend, is about 85%, and according to historical averages, it would take about half of October to capture this gain!
As an example, let’s look at $PIPR, showing up on the Seasonality chart for a possible 23.99% gain within 68 days:
You can see that it was very EASY to find high conviction trades that follow their historical trend, using the Seasonality feature on Moby Tick Trading.
Stay tuned — I’ll be doing more tutorials to give traders an edge over other retail traders by showing you how to find more multi-baggers like these (notice that a single ticker’s profit can pay for the whole month’s cost to even the Whale subscription on Moby Tick! :) :
Happy Trading folks!
Ryan @ BlockStoxx.com
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