We are a group of professional proprietary traders and principals of a quantitative portfolio research/strategy architecture firm specializing in modeling risk management tools for use in institutional sized portfolios. Our own internal process involves using private areas in this webspace as a collective resource for sharing both discretionary information during intraday trading sessions, as well as a sort of virtual think tank for our quant business. In the spring of 2010, we opened up a portion of this blog devoted to our discretionary order flow based trading to aspiring retail traders as a sort of experiment. Since we have always attributed our own success to the very process by which we use this space to flesh out ideas and share with each other, we wondered if it might be even more beneficial to increase the sheer numbers of those participating in this process so critical to our own advancement. By any measure, the experiment has been almost unfathomably successful for us in terms of it’s indirect contribution to both our discretionary trading and quantitative work. Sharing our thoughts with the greater numbers continues to spark new ideas as well as serve to cement the ones already implemented. In fact, many times simple questions or requests for clarification about ideas we share coming from outside our team has ultimately been the catalyst for us understanding them well enough to implement them. That we can also give back to the trading brotherhood by way of helping like minded aspiring traders in the process makes our little experiment a huge win on all fronts in our book. For information about the type of trading that is the foundation for what we share here, follow this link:
Dan, or SharpeDan as he is known in our forum is a DTG member and principle at the trading education site Sharpe Trade. Its rare for DTG to be directly or even indirectly promoting any trading educators out there as in our view so many are touting what most pros know to be an impossible and unrealistic path to success. But in this case we found synergies which we thought had great educational value for our membership. Sharpe trade is currently focused on trading stocks, ETFs, and Forex in time-frames much longer than DTG. Where a typical DTG futures trade might be seconds or minutes or hours, a Sharpe Trade equities position may last days, months, or even years. So Dan brings a different perspective to the DTG membership, and in this video its interesting to hear Dan’s take on the value he sees in DTG. Members will also likely find it interesting that while the strategic focus of the two entities are seemingly vastly different, the message is basically the same and success will driven by the exact same core principles.
For more information on Sharpe Trade educational products, click here to visit the Sharpe Trade website.
FOMC vice-chair Fisher has set expectations for a possible rate hike in September which set a bearish reaction during Friday’s Jackson Hole Symposium. Rate hike expectations have shifted to 36% from 21% for September and 46.1% from 41.4% for the December meeting. It’s a banking holiday in the UK and thus overnight trading was lighter than normal. No US tier one data today, however there may be some reaction to the 8:30am EST Core PCE Index number. Expect volatility to the upside to be muted compared to Friday and if the bears clear Friday’s lows; volatility may increase. Size bias is short on light volume into the 8:30am EST US data releases.
The ES spent the Globex session in a tight range as markets are in Fed wait mode, hoping for some US monetary policy direction from FOMC Chair Yellen’s 10:00am EST speech at the Jackson Hole Symposium. Will there be a fireworks reaction or a dud? Only time will tell, however after the risk off this week, I suspect there will be some volatility today during the speech and once the unknowns are out of the way. GDP numbers are released at 8:30am EST, but are far over shadowed by Yellen’s speech. Size bias is short on light volume into the 8:30am EST numbers.