Welcome to The Discovery Trading Group

 Announcements  Comments Off on Welcome to The Discovery Trading Group
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

05/11/2021 ES Trade Plan Worksheet

 Pre-market Commentary  Comments Off on 05/11/2021 ES Trade Plan Worksheet
May 112021

Fear over inflation and the eventual Fed tightening brought out the technology bears on Monday which say the Nasdaq lose over 2.5%.  Futures continue the downward move overnight.  The Fed continues to try to reassure the markets that inflationary pressures will be transitionary and rate changes and asset purchasing tapering would come slowly.

The nagging inflationary fears will raise the importance of Wednesday’s CPI data.  In the meantime, JOLTS is @ 10:00am ET, and the Fed has a slew of speakers today: Williams @ 10:30am ET, Brainard @ 12:00pm ET, Daly @ 1:00pm ET, and Bostic @ 1:15pm ET.

Earnings include EA, PLTR, U, KGC, FUBO, and SNDL.

Volatility is on the rise and should remain elevated today.

Size bias is short into the US session open on the largest Globex volume we’ve seen in a while.



 Posted by at 6:15 am

05/10/2021 ES Trade Plan Worksheet

 Pre-market Commentary  Comments Off on 05/10/2021 ES Trade Plan Worksheet
May 102021

Weaker than expected employment numbers on Friday has calmed market fears over the Fed raising rates anytime soon.  Tech shares gained as it appears work-from-home will go on a little longer.

Oil prices are up after East Coast pipeline operator Colonial Pipelines shut down a major pipeline due to a cyberattack that included a ransom to enable Colonial to restore their systems.

Cryptocurrency Dogecoin took a 40% plunge after a Saturday Night Live skit which included host Elan Musk as the “Dogefather” who jokingly called dogecoin a “hustle”.  Dogecoin is bouncing back Monday morning while Ethereum is now over $4000 after rising 38.7% over the last week.

Ford (F) has announced a recall of 661K Ford Explorers over a roof rail retention pin that could fail.  The recall covers 2016 to 2019 Explorer models.

Earnings include OXY, COTY, TSN, SPG, WKHS, NLOK, MAR, NVAX, and SDC.

The economic calendar is bare.

The Fed’s Evans speaks @ 2:00pm ET.

Volatility remains steady as US stocks continue to press new all-time highs.  No Size bias as Globex volume was too light for significance.


 Posted by at 6:38 am