Welcome to The Discovery Trading Group

 Announcements  Comments Off on Welcome to The Discovery Trading Group
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

05/17/2018 ES Trade Plan Worksheet

 Pre-market Commentary  Comments Off on 05/17/2018 ES Trade Plan Worksheet
May 172018

Yesterday’s Oil report surprised, showing a 1.4M reduction in US oil supplies.  Brent crude has climbed to $80/barrel, a price not seen since November 2014.  Market focus will be on another round of trade negotiations between the US and China.  China’s Vice Premier Liu He and US Treasurer Secretary Steve Mnuchin meet in a summit in D.C. today.  economic calendar is light with focus on Philly Fed and weekly Claims @ 8:30am EST.  Cisco is down over 4% pre-market after slightly beating expectations but with a lukewarm forecast in the middle of analysts’ range.  On deck today are WMT, JWN, JCP, and AMAT.  Volatility continues to shrink, however comments from the US/China summit could change that today.  Size bias is leaning short on light overnight volume into the US session open.


 Posted by at 7:23 am