Welcome to The Discovery Trading Group

 Announcements  Comments Off on Welcome to The Discovery Trading Group
Nov 292011

We are a group of professional traders and principals of a quantitative research firm which develops strategy and periodicity diverse risk modeling tools suited to larger, longer time horizon portfolios. Our own internal process involves using this webspace as a collective resource for sharing both discretionary information during intraday sessions and as a sort of virtual think tank for our ongoing quant research. A big part of that ongoing research has consistently shown that the ‘Holy Grail’ of the purely mechanical, single market intraday trading strategy that produces near linear returns without significant ongoing adaptation DOES NOT exist. As such we have found that for most traders pursuing single market intraday strategies, a dynamically adaptive, risk focused discretionary approach is likely to bear the most fruit. Ironic, given that rigid, purely mechanical systems are what the vast majority of retail traders (including us at one time) seem to be in relentless pursuit of. 

In the spring of 2010, we created a private, member only forum behind the blog devoted to our ongoing discussions related to discretionary analysis of market structure, price action and order flow to other like minded retail traders as a sort of experiment. Since we have always found the format in which we use this space privately to flesh out ideas to be so beneficial, we wondered if it might be even more fruitful to increase the sheer numbers of those participating in this process and with that, DTG as it exists today was born. By any measure, the experiment has been almost unfathomably successful for us in terms of it’s role in keeping us sharp in whatever discretionary or quantitative work we happen to be engaged in at the time. Sharing our experiences and interacting with the greater numbers continues to spark new ideas as well as serve to cement the ones already implemented. 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:

Methodology Introduction

 Posted by at 11:24 am

12/06/2016 Chat Room Live Event: PNF Periodicity Normalizing

 Videos  Comments Off on 12/06/2016 Chat Room Live Event: PNF Periodicity Normalizing
Dec 062016

RG held another live event today in the chat room, this time a continuation of recent forum discussions on using point and figure or reversal bar plotting to effectively view price action intraday. The importance of learning how to normalize periodicity to “see” the same true price action regardless of the PNF chart parameter setting was discussed referencing the current day educational example. This was followed by the usual question and answer segment dealing with a variety of topics.

Thanks again to FatFish for providing us with the recording.


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 Posted by at 7:56 pm

12/06/2016 ES Trade Plan Worksheet

 Pre-market Commentary  Comments Off on 12/06/2016 ES Trade Plan Worksheet
Dec 062016

Lack of fundamental news flow have most markets, including the ES, flat overnight while waiting on Thursday’s ECB rate announcement.  There’s no tier one data for the US session today although we have Revised Nonfarm Productivity and Trade Balance @ 8:30am EST and Factory Orders @ 10:00am could give traders something to digest.  I suspect there’s more likelihood for increased volatility to the downside rather than the upside, however the bulls are in range to grind up and test or probe the 2213.75 all-time ES high.  Otherwise, volatility may be muted today without any changes in trader expectations.  Size bias is short into the 8:30am EST numbers.



 Posted by at 7:05 am