sceeto 10 Techniques for beating the botsStrategies for Beating the Bots

I am pleased to announce my participation in 10 Techniques for Beating the Bots, an eBook that covers in-depth analysis of today's volatile markets, and what you can do about it as a trader.  

The chapter that I authored, is gleaned as an excerpt from my completed, but as-yet-to-be-published book, "How to Trade Head and Shoulders Patterns Using Order Flow".

I've come together with nine (9) other industry veterans to share our techniques and recommendations for trading markets alongside algorithmic quants, high frequency traders, and automated trading systems.

Get 10 Techniques for Beating the Bots here

Some of the questions we answer include:

How does a regular trader find a tradable edge in high-tech, automated trading environments?
Where is the better data that can be leveraged into trading day patterns?
Can I learn the directional bias that big market makers use to find trades?  
...and much, much more!

On top of getting this incredible collection of insight, for a limited time everyone that signs up for a copy of this eBook gets a free trading strategy of their choosing.

Grab your copy of 10 Techniques for Beating the Bots for free today.

All the best,

Carl Weiss

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If you have not been complaining about ES lately, well then, you either don't trade ES, or you are serene budhist monk who trades ES.

I talk to a lot of traders and have heard a lot of chatter about the goddamn ES.

We all wanted the volatitlity to pop after Labor Day, but it didn't.

So what's a trader to do?

If you trade based on order flow, as I do, then you can apply the same supply and demand concepts that work in ES, on other markets.  This is simply because the laws of Supply & Demand don't change.

If there is overwhelming demand, price will go up.  If there is overwhelming supply, well then, price will go down.

If you trade order flow, and are seeking more volatility, consider both CL & GC as alternatives to ES.

If we go back and look at the average daily range for the following markets, and express that average range in terms of dollars x ticks, we get the following:

Market Average Daily Ticks Dollar Value
CL 140  $                         1,400
GC 136  $                         1,360
ES 54.4  $                            680

The above matrix shows a better than 2:1 ratio for both CL to ES, and for GC to ES.

The implication is that if you were the world's greatest trader and bought the low tick of each market, and sold the high tick of each market, you would make more than twice the profit trading either CL or GC than you would ES.

The takeaway here is simply that you have more intra-day dollar variations on GC and CL than you do with ES.

For me, a trader who likes quick trades, the rubber meets the road, and then leaves the road and pulls into the parking lot, much more quickly trading GC and CL than ES.

Since January, I have been primarily been trading GC.  I have found it a market that provides consistent order flow setups, and quick trades.

If you have any questions regarding how order flow impacts the Supply & Demand curve, and the Price Discovery process, feel free to reach out to me by opening an help desk ticket here and suggest a few date\times that work for you for us to speak and share a screen.

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14-JUN-2016 | ES - Long [S&P 500]

1)  In this morning's example of a Head & Shoulders pattern using a 4 tick range bar in the forward e-Mini S&P 500 electronic futures contract, the ES had been in an Downtrend since Monday June 13th 10:31 am. ET.

2)  The left shoulder with a left strength of at least 5, occurred at about 03:56 am ET.  The Head occurs at 04:45 am ET.  At the head we have a Sell Programs Waning order flow event. Immediately after the head we have a +2 Standard deviation uptick Raio, a Reversal in MacDaddy and MacDaddy Institutional becomes bullish versus MacDaddy Retail. We are now looking for a right shoulder with a left strength of at least 5 and tape in order to enter the trend.

3)  A right shoulder with a left strength of at 6 occurs at 5:24 am. ET. Our Right shoulder occurs concomitantly with a Sell Programs Waning and a Long Strong Tape Imbalance order flow events.

4)  Immediately after the right shoulder we have a reversal in MacDaddy, a +1 Standard deviation Uptick ratio, and MacDaddy Institutional becomes Bullish versus MacDaddy Retail. As the move continues we have a few "short" indications in the tape. Macdaddy continues to show higher highs despite these "short" indications.

06.14.16 1st right shoulder
For a deeper dive into how to use Better Data trade the Right Shoulder of a Head & Shoulders pattern click here.


The supporting order flow data that is presented on this page was generated by ...sceeto.

If you find this type of information and trading approach, as interesting as we do, please feel free to take a free trial of ...sceeto.

If you are curious about incorporating Better Data into your trading, please feel free to set up a complimentary consulting call here.