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

01/17/2018 ES Trade Plan Worksheet

 Pre-market Commentary  Comments Off on 01/17/2018 ES Trade Plan Worksheet
Jan 172018

The US east coast is being hit by another round of wintery weather.  Mixed words between the US and North Korea created a range expansion bearish move yesterday.  The ES is rebounding, and focus remains on corporate earnings.  GE and Ford are tumbling this morning.  GE’s CEO hinted of breaking the company into smaller companies and Ford expects lower profits in 2018.  Ford also said it would expand its line of electrified vehicles to 40 models, including 16 full electric vehicles by 2022.  Meanwhile, Infiniti announced they would go 100% electric vehicles by 2021.  Today’s earnings include the big banks GS, BAC, and USB.  The economic calendar focus is Industrial Production @ 9:15am EST, and the Fed’s Beige Book @ 2:00pm EST.  Volatility has loosened up because of yesterday’s drop.  Today’s volatility will depend on reactions to corporate earnings.  Size bias is long into the US session open.


 Posted by at 7:48 am

01/16/2018 ES Trade Plan Worksheet

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Jan 162018

Encouraged by strong corporate earnings thus far this quarter and a weakening US dollar, the stock bulls are running in Asia and Europe.  The ES futures also reflect the bullish sentiment as US traders return from a 3-day holiday weekend to find the ES above the 2800 price level milestone.  DOW futures are pointing to a 26000 DOW today.  With market focus firmly on corporate earnings, on deck today are C, CSX, and UNH.  The economic calendar focus is the 8:30am EST Empire State Manufacturing Survey.  Volatility remains a tough call.  After the large move up over the long weekend, further upside could become hampered under the 2810s.  If the 2810s are cleared early, this could be a strong uptrend day as the bulls fly into the clear blue sky above.  Size bias is long into the US session open.


 Posted by at 6:46 am

01/25/2018 Martin Luther King Day

 Pre-market Commentary  Comments Off on 01/25/2018 Martin Luther King Day
Jan 152018

US Stock markets are closed today for the Martin Luther King Federal holiday.  DTG will resume posting tomorrow.  Do something, enjoy the day away from the markets!

 Posted by at 6:07 am