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

03/21/2017 ES Trade Plan Worksheet

 Pre-market Commentary  Comments Off on 03/21/2017 ES Trade Plan Worksheet
Mar 212017

A strong showing by Macron in French presidential debates and a strong UK CPI has brought out the bulls overnight, sending the ES back near yesterday’s highs.  It’s another light news flows day with only Current Account @ 8:30am EST scheduled.  With little driving the markets; expect volatility to remain fairly low unless overnight high area (77s) or yesterday low area (65s) is cleared.  Size is not convinced of the bullish overnight move.  No Size bias this morning as overnight trading was mixed.


 Posted by at 6:54 am

03/20/2017 Chat Room Live Event: Eurodollar/3-Month LIBOR Futures Primer

 Videos  Comments Off on 03/20/2017 Chat Room Live Event: Eurodollar/3-Month LIBOR Futures Primer
Mar 202017

RG did another impromptu event today answering recent interest rate curve/spread questions on the forum. An introduction to the often mysterious Eurodollar Futures (a.k.a 3-Month/90-Day LIBOR Futures) was given, including info on quoting conventions, matching maturities to cash and forward US Treasuries markets, TED spreads as a measure of perceived risk in global markets, STRIPS (a.k.a Packs & Bundles), and potential overlay uses for index traders.

As always thanks to Fatfish for providing the audio/video recordings.


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 Posted by at 6:12 pm