Archive for the ‘MarketDelta Trader’ category
Identifying Trapped Longs and Shorts
April 22nd, 2013 8:20 AM UTCMarketDelta Trader 2.0
April 15th, 2013 1:28 PM UTCToday MarketDelta released a totally updated version of its popular MarketDelta Trader but this version has what version 1.0 should have had.
- The ability to hide/expand the Footprint that is embedded in the DOM. This is really nice because if you are using MarketDelta Charts you can just collapse the Footprint in MarketDelta Trader and use the Footprint in Charts. However, for anyone with just Trader it provides a free Footprint chart and free data feed.
- MarketDelta Trader now implements several of the TT (Trading Technologies Intl) patents because of license agreement the two companies just signed. This is fantastic because MarketDelta now has a static price ladder, drag and drop order, single click buys and single click sells. You can also “sweep” the order book to get in and out of trades.
A more thorough overview, upgrade instructions, and a video can be found on MD’s blog.
Here is an annotated screenshot MarketDelta posted to their support site that provides and overview.
Correlated Markets
June 11th, 2012 6:56 AM UTCRecently with all the hoopla coming out of Europe the Bund (German 10yr bond future) and the 10 YR Treasury Note futures have provide a nice barometer for the ES. Lately there has been a pretty nice reverse correlation where the credit instruments will trade at a new high and the stock indexes will trade at a new low.
For anyone new to the markets, don’t expect it to be tick for tick, but these types of related market correlations can be very helpful to understand and keep an eye one.
These correlated market concepts are being taught in the new MarketDelta Trading Room. It is worth joining in and learning how to apply.
Here is a screenshot of my 3 DOM’s from MarketDelta Trader this morning.
MarketDelta Adds a Trading Room
June 8th, 2012 1:05 PM UTCFor anyone interested in learning more about the Footprint and especially how to apply it to trading, MarketeDelta recently launched live trading room.
The room is moderated by a professional trader and someone who has actually been trading for a living for over a decade and is a member of the exchange. These 2 things give the room a lot of credibility.
http://www.marketdelta.com/products/tradingroom
The room offers is very well suited for anyone looking to learn more about applying the Footprint, see and hear how a professional trader analyzes the market, and how a professional trader manages a trading position. For $99/month this is a great value.
When buyers dry up
November 14th, 2011 11:03 AM UTCHere is a simple example that demonstrates what order flow looks like when buying interest decreases. When you have two subsequent attempts for the market to move higher, but the amount of buyers declines, you can expect a good decline, as we got here.
Nice example of supply and demand
November 11th, 2011 11:31 AM UTCHere is a simple example that shows how Supply and Demand compete with each other to move prices up or down. When the Demand grows weaker and the supply grows stronger, what happens? Prices fall. And a Footprint chart lets you see this in real time.
When volume dries up
November 10th, 2011 10:48 AM UTCHere is a simple example that reveals how buy-side volume can dry up on a new high, while sellers quickly take over.
It is a volume-based interval:
Identifying Reversals after Trends
November 9th, 2011 10:50 AM UTCHere is a simple strategy to follow using Footprint charts.
After a trend, either up or down, as soon as a bar closes with net order flow (Delta) in the opposite direction of the preceding bars, consider a reversal at this point.
This is a super easy entry trigger that works more often than it does not. It is best to use it on an order flow based interval, not a time-based interval. Because this is a signal generated by order flow information, we want to remove the arbitrary measurement of time from the equation. Thus, do not use it on a 1-minute or 5-minute chart. Instead, use it on a price-based bar interval like a range bar, or use it on a volume-based bar like a volume bar.
Here is a screenshot from MarketDelta Trader using the Volume Bars available in that particular program:
As soon as the Delta changed after a noticeable decline with all-negative deltas, there was a good bounce of several points. Works on any interval and is a pattern that repeats several times a day.
Scalping Strategy – Sweeping the Book
November 2nd, 2011 1:36 PM UTCBefore I begin, this is a Footprint strategy intended for scalpers. It is aggressive, but if used when the market is approaching a predetermined level, it can be a very powerful confirmation tool and provide unbelievable timing to trades.
THE SETUP -The market has been in a short term trend (up or down). After trending for a period of time there is a sweeping of the order book. The moment this occurs or there is a counter reaction in the opposite direction, go with it. The market has probably reversed in the short term and the sweeping of the order book pattern is evidence of the “last person to get in” for that move.
If you are not familiar with what “sweeping of the order book” is, it occurs when a large buyer or seller places a large market order and takes out a bunch of resting orders at multiple prices. This can also occur if a stop order get triggered. A Footprint chart captures this information by showing all the volume on one side, either bid side or ask side.
REQUIRED TOOLS – To spot this pattern a Footprint chart is required. The reason for this is the history of the trading is immediately captured and displayed. A DOM (depth of market) just doesn’t cut it. Everything fills in so quickly and there is no way to tell really how much traded. The screenshots below are of MarketDelta Trader, the new trading interface by MarketDelta. MarketDelta’s native Footprint chart will work as well, but having this information coupled with the trading DOM and the fact you need to react quickly to these opportunities makes MarketDelta Trader a little better suited for this particular strategy.
Here is another example that occurred while typing this post. I was able to get long at 1222.50 and the market immediately moved in my favor and took out my profit target in the move higher. One of the benefits of this pattern is the risk/reward. Stops should be pretty tight.
Please comment if you have any questions. I would be happy to provide additional insight based on your questions.
