A Jack of Small Trades

Questions:

What is SCEETO measuring?

Relative change in:

Volatility?
Delta?
Absorption?
Order flow rate of change?
What else?

Answer:

Sceeto, and the order flow algorithms have continue to grow and evolve.

They measures a lot of stuff.

What is important is not so much the measurements, but rather, why and how is the output of these measurements relevant for out trading?

The outputs that I focus most on are:

1) Conclusionary Order Flow - This tells me that traders are trapped.  I am becoming more and more of a stickler for only deploying Sceetos when there is forensic evidence that a material amount of traders are trapped.  Their 'trappiness' provides a push in the price discover process.  We use Tape Meter, Engulfing Sweep, Book Pressure and Sweep to help us determine this.

2) Significant Imbalance Between Supply & Demand - After we see that traders are trapped, we then want evidence that the supply/demand balance is out of whack.   We use Book Pressure and Sweep to help us determine this.

3) The Right Side of the Market, Price Action, Market Structure, and Room to Run - I am going a little out of order here...these items must be all known and checked off on my check-list before I determine that the market conditions are viable to trade.  If I don't have a handle on any one of these items, then I do not have a clear enough market advantage to warrant risking capital by deploying any Sceetos.

I hope that this answers your question....if not, just let me know and I will expand.


Hi Traders,

This is an open workshop for SceetoBot for Sierra Chart traders, NinjaBots for NinjaTrader traders, or anyone who is interested in being able to pro-actively deploy order-flow powered trading bots in order to get ahead of the pack, lower their stress levels, and free-up their time.

This 'Ask-Me-Anything' workshop will be interactive so please feel free to come armed with setups questions, order flow questions, configuration questions, trade management questions, etc.

Ask-Me-Anything Event Info:

NinjaTrader - Order Flow Sceeto AMA

Fri, Mar 15, 2019 12:00 PM - 1:00 PM EDT

You can register for the event here.

If you have any questions, please feel free to reach out to me here.

P.S. - Time permitting, we will review our new Breach Bots.  

All the best,
Carl

Of the semi-random list of futures contracts below, you will see that with regards to bang for your buck for daily price moves, CL is currently offering a dollar daily range of $1,700/contract.
Daily Dollar Range = (Point Value/Contract * Average Daily Range of the Instrument)
CL's overall daily dollar range change from a month ago is essentially flat (+0.59%).

ES's daily dollar volume range has dropped by more than half over the last 30 days (-52.35%).   Yuck.

Looking at these number, my own trading for the coming week will have me focusing more on CL and GC, over ES.

Note GC's daily dollar range over the last month is up by almost 1/3 (32.35%).   Nice!



 

Rule 1 - Do not buy Bottoms or Tops.

Instead of buying bottoms, it is the job of the traders to inspect bottoms for both Conclusionary Order Flow and Material Price Excursion.

We use a bottom, which would become the 'Head' of a Head and Shoulders, as an indication that it is now ok to start trading to the long side.   

It is a very healthy and easy habit to not buy bottoms.   

If you do not buy bottoms, will never find yourself in a series of unecessary stops-out across a series of lower-lows.

If the bottom has both Conclusionary Order Flow and Material Price Excursion, then the trader is in a safer position to successfully trade the sequence of the Right Shoulder > Breach of Neckline > ABC Retracements and Conclusionary Order Flow Breaches.

Best to put your trading efforts, energies, and capital in the right place.

Hope this helps.

Subcategories