Commonly traders using technical and fundamental analysis to decide to enter a trade. Taking a completely different approach, Jigsaw Trading uses a suite of tools to help traders learn to use order flow charts to make trades.
In this Jigsaw Trading review we’ll explore how order flow trading works and how it can work for you!
Table of Contents
Jigsaw Trading Review Introduction
Founded in 2011 by Peter Davies, Jigsaw Trading is a privately held company that provides innovative solutions for traders day trading stocks and futures markets. Serving more than 3,500 customers globally, Jigsaw is rated the top software product out of more than 280 trading applications.
Stock market trading needs great brokers in order to be successful. Gone are the days of someone doing it for you. Therefore, make sure you have the best broker for your trading style.
A Little Secret
Our Jigsaw trading review has a little secret for you. Here’s a fact that may come as a surprise to you. As you know, markets operate on a cause and effect model. A move happens due to a “cause”and the “effect” is displayed in the charts.
Because of this, many professional traders hardly bother with the charts at all. They’re interested in the “cause” so they can catch the move before it hits the charts!
Level 2 or the order book is known to be a “leading indicator”; which means it shows activity BEFORE a trade happens.
Moving averages, charts and most of the other indicators are known as “lagging indicators”; meaning they provide information AFTER that trade takes place.
The Jigsaw Trading Solution
No one wants to be “that” person — the one who buys the high or sells the low. But without insights into market order flow, how can you find the best entries and stops?
Generally speaking, traders know that quickly acting trading opportunities is a key to success. In my opinion, being able to understand the order book is one of the most important keys to success for retail traders.
And why’s it important? Well, by “reading the tape” a.k.a level 2 data, traders can buy and sell at the right time. Certainly, the importance of order flow cannot be underestimated.
As a matter of fact, that’s where Jigsaw comes in. Their philosophy is to help users understand and anticipate these “causes” or what moves the market so traders can time their entry accordingly.
As an example, they focus on identifying stocks primed to “move” based on volume profile and order flow. Keep reading our Jigsaw trading review to learn more.
Understanding Depth of Market Data
Depth of market is a window that shows the number of buyers and sellers interested in a particular security or currency at different prices. Simply, it measures supply and demand.
Depth of market data is also known as the order book or level 2 data since it shows pending orders for a security or currency.
The higher the number of buy and sell orders at each price, the higher the depth of the market. It also refers to the number of shares of a stock that can be bought without an impact on stock price.
Being able to view depth of market information for a particular security in real-time allows traders to profit from short-term price volatility. Traders use this information to their advantage as it can reflect where the price of a stock is going.
How Jigsaw Identifies Order Flow Patterns
There are two ways in which Jigsaw can help to identify order flow patterns. Firstly is providing order flow in real-time in their Depth of Market (DOM) tool and order book heat map.
Secondly is the historical representation of the order book.
What Is the Jigsaw Trading Dom Tool?
The clearer the DOM is, the easier it is to read and not make mistakes. Jigsaws strength clearly lies in its DOM tool. Compared to BookMap, Jigsaws competitor, Jigsaw’s DOM is far more visually appealing.Virtually everything displayed is customizable in terms of appearance. Honestly, this can make a real difference when staring at your screen for hours on end.
Historical Representation
Interestingly, historical bid x ask data isn’t available on most data feeds. Generally, if it is, the data is unorganized and doesn’t make sense. Thus it is referred to as “unbundled” data.
What sets Jigsaw apart is their ability to record this data and stitch it together. Now this is cool, Jigsaw uses an algorithm to re-bundle orders into the size they were executed at market.
No other trading platform on the market has this ability. Which means you are armed with very powerful information when backtesting your strategies.
Trading Capability
Its DOM is highly customizable and it allows traders to enter OCO’s and custom smart order types depending on which platform it’s running on.
On the contrary, the platform has nothing particularly innovative to offer. But in my opinion, that shouldn’t be a deal breaker.
Educational Support
Jigsaw offers extensive orderflow education on their site. Such as their free Order Flow Foundation video course. Arguably it’s the best order flow training material available online.
It comprises 4 modules: theory, practical exercises, benefit specific lessons (e.g. trade management, reversal trading, scalping) and trade location.
In fact, Jigsaw’s educational material is being disseminated in a number of Proprietary Trading firms to help their interns grasp Order Flow concepts. Pretty impressive if you ask me!
The Community
CEO of Jigsaw, Peter Davies, explains, “What sets Jigsaw apart is that we actively encourage our customers to communicate with each other.
Indeed, we even provide a venue for them to meet in the ‘Jigsaw Chat Room’, a friendly, un-moderated, live discussion room where traders discuss the market action.
Many of our customers have their own YouTube pages, contribute to the Jigsaw Blog and create threads on various Trading Forums explaining their methods and how they use the products.
We contribute our own content and trade recordings to the site, as well as to our partner sites.”
Are They Legit?
A quick internet search and the results speak for themselves:
- Voted “Trading Product of the Year” in the futures io communities “True Edge Awards”. This is the largest futures trading community in the world with over 85,000 traders
- Voted number 1 product in the “Trading Software: Forex/Futures” category at Trader Planet.
The Key to Their Success?
A complete understanding of the trading process. CEO of Jigsaw, Peter Davies, explains, “Of course, people need quality trading tools, they need education too but more importantly, they need the confidence to persevere through the learning process.”
As a matter of fact, this confidence factor is not to be underestimated. “When you discover a new trading method, you can’t expect to be to be an expert from day one.
There’s a learning curve. Having access to other traders that have been through that learning curve gives you the confidence to stick with it.”
What Does Jigsaw Trading Cost? (Pricing Review)
- Independent $579
- Professional $879
- Market Maker $1,499
- Institutional $1,799
- You will need a subscription on top of that as well at $50 a month or $500 annually
Get updated pricing here.
Pros
- High quality order book software
- Superior quality training and educational materials
- Two visual representations of real-time market flow – a DOM tool and heatmap
- Excellent customer support backed by a strong, supportive community and live daily chat room
- Ability to re-bundle orders into the size they were executed at market.
Cons
- Jittery heat map
- No built in market replay function
- Fees can add up
- Focus is exclusively on order book traders
Jigsaw Trading Stock Price and Symbol: Are They Publicly Traded?
Investors cannot purchase shares of Jigsaw Trading because the company is privately held.
Jigsaw Trading Review Final Thoughts
With a trail of accolades, it might be tough to understand why anyone would choose to go with any other order book trading software.
Furthermore, users get access to a set of trading tools, a comprehensive free training course and a vibrant trading community.
If you’re an experienced order book trader, the basic subscription is well worth the investment.
However, if you’re new to order book trading and need advanced tools it will be very expensive. It might be wise to start with the basic and with experience you can scale up.
