A Jack of Small Trades

Head & Shoulders Analysis - Using Better Data | ES Long 31-AUG-2015

In this example of a Head & Shoulders pattern using a 5 tick range bar in the forward e-Mini S&P 500 electronic futures contract, you will note that when the Right Shoulder was put in there had been an ongoing base of buying, as visualized by the contiguous green MacDaddy bars.

Also, there was an inference that the selling of the equity components of the S&P 500 had completed as visualized by the red spike in WIND.

Head_and_Shoulders_-_ES_31-AUG-2015_-_Long.png

 If you find this type of analysis interesting you might be interested in our new book, "How to Day Trade 'Head & Shoulders' Patterns by Leveraging Better Data" will be published in September.

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If you would like to be notified once it is published, please drop us a note here

"Head & Shoulders" and "Order Flow" at the Beach

Our new book, "How to Day Trade 'Head & Shoulders' Patterns by Leveraging Better Data" will be published in September.

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Book Synopsis

In today’s electronic markets, High Frequency Trading Bot activity relentlessly leaves huge amounts of money on the table that is available to other nimble traders to pocket.

Recent advances in technology now readily allows for the real-time analysis of the magnificent amount of rich order flow data that is created by High Frequency Trading bots.

Surprisingly to us, it has been our experience that most traders do not yet take advantage of all of the additional insights that this are now available to them.

The research documented in this book is focused on overlaying order flow information onto the classic technical analysis ‘Head & Shoulders’ price pattern.

We have dubbed the insights harvested from the order flow generated in today’s electronic markets, ‘Better Data’.

It is our goal for this book to expose you to the benefits of integrating Better Data into your current technical analysis.

We think that this data, which can now be at your fingertips, exposes the naked insides of the market.

Once you see, and experience, what is happening under the hood of the market, you will understand how the laws of Supply & Demand, as manifested in Order Flow, are the determining factor on which way price will move next.

In this book we will review the core concepts of:

  • The impact order flow has on the Price Discovery process.
  • The impact of Buying & Selling exhaustion caused by HFT.
  • How to tell when new recent buying, or selling, coming into the market, is more likely to have a material impact on Price.
  • Why the monitoring of order flow, as Price evolves through a Head & Shoulders pattern, will soon be your new best friend – Move over, Doggy.

This is a must read for those traders who continually crave improvements and want to leverage the better data that is available due to today's electronic exchanges.

 - USE BETTER DATA.

TradeOps Beta - Status Update | Near Term Beta Goal of Limit Entry Tuning

This coming week’s TradeOps beta testing goal is to understand the pros and cons for our customers who are distributed around the globe with regards to using limit entry orders at the inside ask for long, and limit entry orders at the inside bid for short as opposed.

Last week we executed using limit entries on the inside bid for long and limit entries on the inside ask for short but found that there were a handful of very good trades that did not fill due to this strict entry rule.

It is understood that this week’s approach of using limit entry orders at the inside ask for long, and limit entry orders at the inside bid for short, will cost us a tick on each trade, but we think that the overall program can support this additional overhead.

We do have beta testers from all corners of the globe, so it will be interesting to see how things pan out for the house’s P&L, beta tester's P&L in the continental U.S., and most interestingly, the fills for beta testers who are in Europe, the Middle East, Africa, and Asia.

Thank you for your participation in our beta testing for our TradeOps Grey Box beta testing.

We will be resuming beta testing on Monday morning.

The morning rig check will occur at 7:45 a.m.

Initiation of trading will occur at 8:00 a.m.

Thanks again for your participation in this beta.

All the best,
Carl

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