Welcome to The Discovery Trading Group

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Nov 292011

We are a group of professional traders founded by principals of a quantitative research firm which develops strategy and periodicity diverse programs and risk modeling tools. Our own internal process involves using this webspace as a collective resource for sharing both discretionary thoughts during intraday sessions and as a sort of virtual think tank for our ongoing quant research. A big part of that 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, an adaptive, risk management 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 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 for all of us, making 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 most members are focused on here, follow this link:

Methodology Framework

 Posted by at 11:24 am

04/24/2018 ES Trade Plan Worksheet

 Pre-market Commentary  Comments Off on 04/24/2018 ES Trade Plan Worksheet
Apr 242018

Inflation concerns are in focus as the US 10-year note continues to flirt with 3% and oil prices continue to rise.  Google crushed earnings forecasts after market hours yesterday but the reaction remains muted as analysts pointed out that traffic acquisition costs (like last quarter) remain 2% higher than last year.  The earnings season is in full swing with MMM, CAT, KO, VZ, UTX, TRV, LLY, HOG, BIIB, TXN, and LMT on deck today.  The economic calendar focus is Consumer Confidence and New Home Sales @ 10:00am EST.  Volatility continues to settle in around 30 points per day which means there’s potential for the ES to reach 2700 today.  However, Size bias into the US session open in bearish so if the bulls are to get something going in the US session, they’ll need to first work through the bearishness.


 Posted by at 7:32 am

04/23/2018 ES Trade Plan Worksheet

 Pre-market Commentary  Comments Off on 04/23/2018 ES Trade Plan Worksheet
Apr 232018

It was a quiet weekend for geo-political news as inflation concerns and corporate earnings are in focus.  The US 10-year note is nearly 3%, the highest rate in over 4 years as the expectations for another Fed rate increase rise.  Earnings today include GOOGL, ALK, HAL, HAS, KMB, TMUS, and WHR.  So far this quarter, 80% of S&P 500 companies reporting have beat expectations.  The economic calendar includes Flash PMIs @ 9:45am EST and Existing Home Sales @ 10:00am EST.  Volatility is settling in around a 30-point daily range.  Expect volatility to be similar to Friday unless Friday’s 2659.75 LOD is cleared.  Size bias is long into the US session open.


 Posted by at 7:00 am