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TradeOps Beta Status Update | 1 Week Remaining - New 'Open Door' Beta Policy

TradeOps | Transitioning From Beta Testing to Launch

What a long, strange trip its been...

Holy Cow!  Have we really been building out TradeOps for almost 1 year?

I know, I know....we were going to launch by January, then February, blah, blah, blah.

We hit a few bumps in the road, and for an offering such as TradeOps, we had to iron out all the wrinkles before we could launch.

I am pleased to say that we have now ironed out the wrinkles and are now prepping for launch.

One thing to note, if you are currently a beta tester, or are going to be coming online this week as a beta tester, please remember that our beta offering is for simulation trading only.

Once we go live, then we will give the 'all clear' to use our data to trade with funded accounts.


TradeOps Status Update Webinar | Monday, April 4th @ 12:00 P.M. (EST)


There's still time to participate in the TradeOps beta

If you have not yet signed up to be a beta tester, we are now offering free access to the 'Release Candidate' version of TradeOps.

If you would like to try out TradeOps in our 'Release Candidate' mode, feel free to download the installation artifacts here.

To accomodate late entrants into the beta program, we have issued an open set of credentials for beta use.

Temporary TradeOps Beta User Credentials:

Username = TradeOps_Beta

Password = go_sceeto

If you need assistance with the installation of TradeOps, please open a help desk ticket here.


What is TradeOps 

If you have not yet been exposed to the concept of TradeOps you may find our new offering incredibly intriguing.

TradeOps provides traders with actionable, real-time trade ideas.

TradeOps accomplishes this by transporting trade data from our House Account over the ...sceeto network and then injecting this information directly into our client's NinjaTrader application, where it appears in your SuperDOM, Chart Trader, and Control Center. 

Cool, huh? 

TradeOps Network Topology

TradeOps combines multiple technologies (order flow monitoring, data relay, automated trade management tools, etc.) to create a platform that we expect will be a significant cornerstone in the next generation of trading standards.

In our initial service launch of TradeOps our focus will remain on trading the S&P 500 e-Mini futures contract.

We will be targeting $100 - $200 profit target per day for each TradeOps subscription.

TradeOps Status Update Webinar | Monday, April 4th @ 12:00 P.M. (EST)

We are hosting a TradeOps workshop on Monday, April 4th.  

We will be focused on the following agenda items:

+ Tentative launch schedule 

+ What to expect in terms of trade methodologies 

+ Review of a 'day in the life' of TradeOps 

+ Review of 'Lessons Learned' from TradeOps beta testing period 

Register for this free workshop here.

 
Looking forward to seeing you there.
Carl
 
 
Carl 
Carl Weiss
Chief Algorithmic Officer @ ...sceeto
Chief Executive Officer @ TradeOps
 
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Meet the Top Pimp Algo of Wall Street, 'MacDaddy'

Why Are We Enjoying, the Golden Age of Day Trading?

The markets have evolved into a brothel of HFT bots, spoofed orders, and algorithmic trading routines.

The markets are no longer friendly to day traders who rely on moving averages to help them make their trading decisions.

The markets mug the retail trader.

But, and this is a BIG one, the markets have never been easier to trade.

Today's electronic markets provide amazingly, large, clean, rich sets of data that can be analyzed in real-time by software algorithms that are programmed to harvest and glean information about other trading algorithms.

This natural evolution, where the algos are watching the algos, provides traders who have access to this type of monitoring software, an information advantage.


From UrbanDictionary.com:

MacDaddy [MacDaddy]

1)  "MacDaddy", is a term used to describe a man with an unusual power over women, and is derived from the French and later Louisiana Creole patois term "maqereau", which means "pimp". Adding "daddy" makes it mean "top pimp". 

2)  The pimp-meister, the king of the streetwalkers, possessor of the blingest of bling-bling. The mac daddy is the man who means everything (and the only man who really means anything) to his ladies of the night.  Adding "daddy" makes it mean "top pimp". 


Why is MacDaddy So Prescient at Prognosticating Impending Price Changes?

MacDaddy is so prescient because its underlying algorithms are rooted in the laws of Supply & Demand.

In all markets, from the S&P 500 e-Mini futures markets, to sugar, to housing, to bagels, changes in Price are always a function of changes in Supply & Demand.

This underlying principle of how price functions has been embedded in the bedrock of our understanding of economics for centuries.  Early writings on the supply and demand can be found as far back as in the 14th century writings of Ibn Taymiyyah and in the 17th century writings of John Locke.

Today, in 2015, the laws of Supply & Demand still stand true.

In the electronic markets, changes in price are always predicated on changes in order flow.   

Without a change in order flow, price cannot change.

It's a pretty simple concept - and rather profound.

Traders who focus primarily on price can be frequently misled by momentum indicators.

To counter this Achilles Heel in trading, more and more traders are gravitating to monitoring order flow.

Our tool of choice to monitor order flow is MacDaddy.

MacDaddy can be thought of as the rate of change of order flow on the GLOBEX servers hosted in Chicago.   The GLOBEX servers are owned and operated by the CME and are the transaction matching engines for all electronic CME futures products.

Unlike transactions in the trading pits (which are now watching be put out to pasture), the data provided by the GLOBEX servers is very pristine. 

Hence, algorithms predicated on GLOBEX data are considered 'clean'.   There is an old adage in software development which is 'Garbage in - Garbarge out'.

This means that no matter how wonderful your algorithms are, if you put in garbage data, you will get garbage outcomes.

The GLOBEX data is very clean, hence MacDaddy can provide incredible real-time insights into how order flow is shifting within the GLOBEX servers.

This is of extreme importance to traders when price reaches, and breaches, areas of known support and resistance.  

It is also of extreme importance to traders as this continual shifting of order flow can provide very discrete price points on where to enter into an existing trend.

Think about that for a moment.  If there is an existing trend, and then there is a pullback within the trend, at what point do you think that the trend will resume?

The answer to this question is pretty simple.   The trend resumes when order flow resumes back into the direction of the trend.

This is just one example of the power of understanding, and monitoring, order flow.

If this type of tape reading 'shop talk' is as fascinating to you as it is to us, we are hosting a workshop on MacDaddy this coming Thursday at 4:00 p.m. est. (May 7th).

You are welcome to join us - we will be diving deep into how to readily apply some basic order flow tricks into your trading.

We are targeting to cover a lot of ground on Thursday.  Time permitting we will cover the following tape reading approaches:

1) How to tell if a trend is ending by using decrementing MacDaddy.

2) How to tell if a trend is continuing by looking for a 'resumption' tell in MacDaddy.

3) How to tell if a price acceleration point is beginning by observing breaches in support and resistance with forceful MacDaddy.

4) How to tell if retail investors got 'punked'.

If we cannot cover all of this ground in this one workshop, we will coordinate an additional workshop.

Bring your pencils and your coffee.

"MacDaddy will make you jump, jump" - Kris Kross


Looking forward to seeing you there.
Carl

Carl 

Carl Weiss | Chief Algorithmic Officer @ ...sceeto

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S&P 500 - Downtrend Order Flow Chip Shot | Tape Reading Lesson

This read of order flow via ...sceeto allows a trader a nice place to tuck a short trade into a downtrend.

In this example, indications of selling pressure are splattered all over the chart:

  • Red price background | Trade Direction Gauge [Coming Soon]
  • Lower lows in MacDaddy accompanied by lower lows in price | A classic tape reading 'tell'
  • Decrementing red WIND

 
Downtrend Order Flow Chip Shot 30 APR 2015

All of these indications let astute traders know that there is selling pressure.

This selling pressure will have a downward effect on changes in price.

This graphic is something to burn into your brain if your trading credo is, "Don't Fight the Tape!".

The entry indication is as follows:

  • Look for the first price retracement of 2 points (in this case the retracement was 9 ticks or 2.25 points).
  • Then wait for some indication that selling has resumed.
  • In this case ...sceeto's TapeMeter published an uptick ratio that was greater than 1 standard deviation of the normal distribution.

Uptick_Ratio_-_sceeto_-_Tape_Reading_ES.jpg

 

This uptick ratio occurred on a bar that closed at the low. This infers thatt selling in the order book has concluded. In this event, the uptick ratio surfaced at 8:58:29 @ 2,095.75x2,096.00. A very nice place to see this type of activity as this was at the expected 2 point retracement.

Some traders that I trade with have a standing sell limit sell order 2 points above the lowest low in the down move that trails the market as it goes down. Hence, in this example, the standing limit sell order was at 2,096.25.

Some traders, such as myself, enter on a market order when they (I), see resumption of selling, or conclusion of buying. In this case, the conclusion of buying was the yellow dot that indicated a > 1 standard deviation uptick ratio.

Pretty cool, huh?

The S&P 500 e-Mini futures market (ES) market is littered with this type of setup.

It also works to the long side.

Order Flow Workshop [Free] | Thursday April 30th, 4PM EDT

If you find order flow as fascinating as I do, we will hosting an Order Flow Trading workshop on Thursday, after the market closes.

Bring your questions and sharp pencils.

Pre-Register for this free webinar here.

Carl

Carl 

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I Love This Chart! - Why The Market Went Down Then Up On Tuesday.

Q: Why did the S&P 500 go down then up on Tuesday April 28th?
A: It's the order flow, stupid.

1) Changes in price are a function of changes in Supply & Demand

2) In the electronic markets, changes in Supply & Demand are manifested by Order Flow.

3) Hence, price direction is driven by Order Flow.

4) If Order Flow is carrying sell orders the market will go down.

5) If the Order Flow is carrying buy orders the market will go up.


Why did the S&P 500 go down then up?

   

Today (and yesterday) Order Flow carried lots more sell orders than buy orders.

Then, when the the S&P 500 e-Mini futures contract traded down to 2,088.25 Order Flow carried more buy orders than sell orders.

Below is a graphicl representation to support this claim.  

The red and green bars below price are generated by an Order Flow algorithm dubbed, MacDaddy.  MacDaddy focuses on the rate of change of order flow on the GLOBEX servers owned and operated by the CME.

In trading, just like in politics, as Deep Throat mentored Woodward and Bernstien, follow the money.

Order Flow Selling to Buying

 

If the money is selling the S&P, why fight it?  Sell.

If the money is buying the S&P, then buy.

We keep it simple.

Order Flow Workshop [Free] | Thursday April 30th, 4PM EDT

If you find order flow as fascinating as I do, we will hosting an Order Flow Trading workshop on Thursday, after the market closes.

Bring your questions and sharp pencils.

Pre-Register for this free webinar here.

Carl

Carl 

Get free trade insights by following us on StockTwitsTwitter Facebook:   

Click & Follow Now.    

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