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

06/22/2017 ES Trade Plan Worksheet

 Pre-market Commentary  Comments Off on 06/22/2017 ES Trade Plan Worksheet
Jun 222017

Another quiet Globex session as internal UK government conflicts continue to hinder Brexit negotiations and some dissent among OPEC members over further production cuts is pressuring oil prices.  We have some economic data premarket with weekly Claims @ 8:30am EST and HPI @ 9:00am EST.   The Fed’s Powell testifies to the Senate Banking Committee starting @ 10:00am EST.  Unless traders find a reason to move the markets, volatility should be similar to or perhaps lighter than yesterday.  Size bias is long into the morning numbers.


 Posted by at 6:30 am

06/21/2017 ES Trade Plan Worksheet

 Pre-market Commentary  Comments Off on 06/21/2017 ES Trade Plan Worksheet
Jun 212017

The Globex session has seen some risk off as WTI oil prices continue to slide and hit $43 while lack of unity in the UK government is making Brexit negotiations harder.  For today’s economic data, we have Existing Home Sales @ 10:00am EST and Oil Inventories @ 10:30am EST which will be given extra attention because of oil’s recent bearish sentiment.  Volatility is a tough call, however the bulls have some room to work back to the 2451 all-time high which give space for more upside volatility than we’ve been seeing lately.  Size bias is long into the US session open as they bought into the overnight selloff.


 Posted by at 6:27 am