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

07/20/2017 ES Trade Plan Worksheet

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Jul 202017
 

Strong corporate earnings fueled the ES higher yesterday which continued through the European session overnight.  The NASDAQ closed at a record high above its tech bubble high.  There’s plenty more earnings releases today which include COF, BK, V, EBAY, SNAP, MSFT, ABT, ATHN, DHR, and UNP.  This morning’s primary economic data is Claims and Philly Fed @ 8:30am EST.  The ECB is announcing their Min Bid Rate @ 7:45am EST followed by a Draghi press conference @ 8:30am EST where bond purchasing plans will be scrutinized.  Volatility continues to shrink as the ES moves higher.  Size bias is short on light volume into the 8:30am events.

 

 Posted by at 6:21 am

07/19/2017 ES Trade Plan Worksheet

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Jul 192017
 

Subdued summer trading continues…  Yesterday, Goldman Sacs quarterly revenue weighed on the DJIA while Nexflix helped power the NASDAQ to new highs.  While the S&P 500 cash closed at a new record high, the ES remains pinned under its 2461.50 high.  This morning’s corporate earnings are the ES best chance of making new highs as the US political circus over repealing or replacing or not Obamacare does not appear to be affecting stocks. Today’s earnings include AA, AXP, MS, QCOM, TMUS, and URI.  The economic calendar includes Housing data @ 8:30am EST and Oil Inventories @ 10:30am EST.  Volatility should remain muted, especially to the upside, until something wakes up traders.  Size bias is long into the US cash open on light overnight volume.

 

 Posted by at 7:03 am