Welcome to The Discovery Trading Group

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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

02/24/2017 ES Trade Plan Worksheet

 Pre-market Commentary  Comments Off on 02/24/2017 ES Trade Plan Worksheet
Feb 242017

After a week of strong earnings from UK financials, Standard Charter and RBS both missed expectations which has set a bearish tone for the ES during the European session.  Looking forward, it’s a light data day for the US session with New Home Sales and Revised UoM Consumer Sentiment @ 10:00am EST.  Volatility should remain similar to yesterday unless traders find some new fundamental information to change their expectations.  Size was very active overnight and their bias is short into the US session open.


 Posted by at 6:42 am

02/23/2017 ES Trade Plan Worksheet

 Pre-market Commentary  Comments Off on 02/23/2017 ES Trade Plan Worksheet
Feb 232017

The ES was mixed overnight, turning slightly bullish on outstanding earnings from Barclay’s and Glencore.  Yesterday’s FOMC minutes did little to move the markets as the ES remains poised to grind to new all-time highs once again.  We have some tier 1 number releases this morning in Unemployment Claims @ 8:30am EST and Crude Oil Inventories @ 11:00am EST.  Additionally, FOMC’s Dallas President Kaplan speaks @ 1:00pm EST.  I expect the grinding to new highs to continue with the potential for higher volatility to the downside than the upside.  Size bias is short into the 8:30am EST Unemployment Claims.


 Posted by at 7:03 am