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

07/16/2018 ES Trade Plan Worksheet

 Pre-market Commentary  Comments Off on 07/16/2018 ES Trade Plan Worksheet
Jul 162018

Markets are cautious ahead of a meeting in Helsinki between Trump and Russian President Putin.  Trump tweeted this morning that US-Russian relations have never been worse thanks to the biased investigation that Russia meddled in the US 2016 election which produced an indictment against 12 Russians accused of hacking emails on a DNC server.  Apparently, Trump has forgotten about the Cold War nuclear weapons buildup…  Today at 3pm EST starts 36 hours of Amazon Prime day.  Amazon will coordinate sales among all their assets as they continue to try to make Amazon Prime a feature in every home.  BAC and BLK beat earnings estimates this morning.  Deutsche Bank released strong earnings in a surprise release 10 days earlier than scheduled.  NFLX reports after the bell.  The economic calendar focus is Retail Sales and Empire State @ 8:30am EST.  Volatility is shrinking, but the Trump-Putin meeting could produce some market moving news.  No Size bias as overnight Size trading was almost non-existent.


 Posted by at 7:17 am

07/13/2018 ES Trade Plan Worksheet

 Pre-market Commentary  Comments Off on 07/13/2018 ES Trade Plan Worksheet
Jul 132018

Market focus is shifting to 2nd quarter corporate earnings as the big banks Citigroup, JPMorgan Chase, Wells Fargo, and PNC report this morning.  Many S&P 500 companies will post earnings next week.  Trump’s European tour will continue to be a wildcard for market sentiment.  Last night he broadsided UK PM Theresa May by telling the British newspaper The Sun that May’s Brexit strategy would probably kill any chance of a trade deal between the UK and the US.  The economic calendar focus is Import & Export prices @ 8:30am EST and Consumer Sentiment @ 10:00am EST.  Reaction to the big bank earnings should set the volatility mood for the day.  The earnings could spark a directional move or be in line with expectations and the ES could hang around 2800 waiting to see if some market moving statement is made by Trump.  Size bias into the US session open is leaning long on light overnight volume.


 Posted by at 6:40 am