Welcome to The Discovery Trading Group

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Nov 292011

We are a group of professional and amateur 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

12/06/2018 ES Trade Plan Worksheet

 Pre-market Commentary  Comments Off on 12/06/2018 ES Trade Plan Worksheet
Dec 062018

The CFO and the founder’s daughter of China’s cell phone manufacturer Huawei Technologies, Meng Wanzhou was arrested on Dec 1 and faces extradition to the US for allegations she was involved with evading US sanctions by selling smartphones in Iran.  The Chinese embassy in Canada has issued stern protests over the arrest as violations of Ms. Meng Wanzhou’s rights.  The arrest is viewed as a huge issue by the markets for the trade negotiations between the US and China.  US stocks will open down sharply this morning.  On a positive note for US/China trade relations, Tesla has opened a bid process to build a $2B Gigafactory in China.  Telsa’s plant would be the first plant in China with no Chinese ownership, a sign that Chinese markets are opening up.  Lots of US economic data with focus on 8:15am EST ADP and 10:00am EST ISM Non-Manufacturing PMI (of course the US/China trade concerns overshadow).  The Fed’s Bostic speaks @ 12:15pm EST.  Earnings today include AVGO, KR, AOBC, SIG, and ULTA.  Volatility remains high and with US markets closed yesterday, most likely very high this morning.  Size bias is short into the US session open.


 Posted by at 7:40 am

12/05/2018 US National Day of Mourning

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Dec 052018

US stock markets are closed today for a National Day of Mourning for former US President George H.W. Bush who passed away at the age of 94 last Friday.  Markets will reopen for regular business tomorrow.

 Posted by at 5:53 am