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

05/29/2017 US Memorial Day

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May 272017

US Stock markets are closed on Monday in observance of Memorial Day.  DTG will resume posting Tuesday, May 30, 2017.  Enjoy the long weekend!

 Posted by at 7:28 am

05/25/2017 ES Trade Plan Worksheet

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May 252017

Oil prices are down overnight as OPEC and non-OPEC members agreed to extend production levels for 9 more months, however they did not agree to cut production further.  In lighter than normal European trading due to the Ascension Day holiday, the oil move has put a damper on the bullish reaction to yesterday’s Fed minutes which continued into the Asian sessions and took the ES to a new all-time high.  The minutes showed that the pace of additional rate hikes is up for debate.  Today’s economic data focus is Claims and Goods Trade @ 8:30am EST.  Fed Governor Brainard speaks @ 10:00am EST.  Now that the ES is at new highs, the bulls may take a shot at seeing how far they can run.  Best guess is that after an initial move up, the bulls will fall into grinding mode…  Size bias is up into the US session open.


 Posted by at 6:43 am

05/24/2017 ES Trade Plan Worksheet

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May 242017

Moody’s lowered the credit rating for China one notch for the first time since 1989 over concerns of slowing growth and rising debt.  However, the move was anticipated as Fitch had already made the same move and the markets kind of shrugged off the news.  The U.K. has raised their threat level from severe to the highest level critical as links after the Manchester concert bombing.  On the economic calendar, we have HPI @ 9:00am EST, Existing Home Sales @ 10:00am EST, and Crude Inventories @ 10:30am EST.  However, today’s focus will be on monetary policy as ECB’s Draghi speaks @ 8:00am EST and FOMC Meeting Minutes are released @ 2:00pm EST.  Volatility continues to be muted to the upside until the bulls find a reason to explore new all-time highs.  No Size bias as overnight volume was mixed but starting to turn bearish.


 Posted by at 7:08 am