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

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06/25/2019 ES Trade Plan Worksheet

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Jun 252019

The US announced sanctions against Iran and White House officials downplays talk of Trump and Xi progressing towards an agreement this coming weekend at the G20 meeting in Japan. In the light of these risk factors it seems equity market bulls are on the side lines for now while “risk-off” assets like treasuries and gold are buoyed. Fed Chairman Jerome Powell speaks today at 1pm ET.

Earnings: Micron Technology (MU)

Companies: FedEx (FDX) sues US Gov. Tesla (TSLA) granted waiver on 10% tariff on aluminium imported from Japan. Amazon (AMZN) Prime Day starts July 15.



06/24/2019 ES Trade Plan Worksheet

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Jun 242019

China’s state run news agent confirmed that President Xi would attend the G-20 summit in Osaka, Japan, beginning Friday, with a possibility of Trump and Xi resuming trade talks there.    With the geopolitical risk associated with Iran and the upcoming G20 summit, volatility to upside is likely to be muted.    Overnight size bias is short.

Looming US sanctions against Iran seems to buoy oil prices.

Earnings reports: Cal-Maine Foods (CALM)

Companies: Eldorado Resorts (ERI) to merge with Caesars Entertainment (CZR)

Germany’s Daimler (DMLRY) issue Profit Warning