daVinciLite

I think a combination of an artificial intelligence language like Prolog and a sequential language like C++/C# would provide a framework for a workable 'expert system'. This would be a long-term project of at least a few years. From my experience a good programmer makes a terrible discretionary trader and a good discretionary trader makes a sub par programmer. In order to create an 'expert system' you also have to be an expert to begin with. :-) I wonder how many good traders know enough programming to put their subconscious rules into a set of programmable rules? dVL

I don’t know if you are trading any of the CME products, but if you are, what you think are market orders area really limit orders. The CME implemented these changes in late 2009. There is no way on tracking large market orders on any of the CME products that underwent any of the changes. Is It Bots Or The Exchange Engine - PriceActionRoom's library -dVL

You bet. Although a better name is "swing charts" as opposed to point & figure. I don't use the X and O format. My charts either have volume information inside of them or are simple bar charts that use color instead of X's and O's. The ES "6 tick swing chart" has a following. -dVL "That sounds like over educated and under intelligent" John Gotti NY Mafia

My criticism is not just for criticism sake. Here is a screen shot of the web site and another from my chart. The advantage this morning was at the overnight low. It coincided with the lows of the 5-5 and 5-16. It was also near yesterdays close. Yesterdays close was also near the close two days ago, making 1325.25 a price a lot of people were looking at – at least a lot of professional traders. No indicator will tell you that. As we approached and breached that price the selling order flow dried up and buyers moved price upward. Once you recognized this, you could have went long with a one or two point stop depending on your skill. Look at the stop and entry for the site. Their stop is much more than two points and the entry is just ridiculous. If someone wants to become a trader, then they have to learn how to trade. There is no easy way around it. Indicators are not going to cut it. I wish they could. Good luck. -dVL "That sounds like over educated and under intelligent" John Gotti NY Mafia

Buy the high and sell the low. WOW, never heard that one before. Where do I sign up for the free money? -dVL "That sounds like over educated and under intelligent" John Gotti NY Mafia

You’d be surprised what can be done. Programming languages do not change just because you are a retail trader. All you need is a quality data feed and a flexible programming language interface. I am using a dog of a software package but I can code a lot of what I need. dVL "That sounds like over educated and under intelligent" John Gotti NY Mafia

I heard it from a trader that I trust. I'll have to do a little research if I get the time. It does not really affect me one way or another, but I was under the impression that most brokerage houses could not handle all the data. If you have better information than I do, then I stand corrected. dVL

Interesting site. He looks like a real trader to me. I can learn something from him. The 'guy in the cowboy hat' is Ken Roberts. Took his course in 1998. I completely agree. It all comes out in the wash - especially if you are using a footprint. dVL

The CME also bundles orders. So if 100 one lots get stopped out at once, that process can show up as one 100-lot order. That's not to say the T&S is no longer valid. I wouldn’t mind learning to scalp ticks with the DOM, but someone is going to have to teach me one on one. The transaction costs would also have to make sense. dVL

I think there is a point that many refuse to acknowledge. Most people that are classified as “rich” started off from humble beginnings. The US Trusts conduct surveys of the wealthy. Well over 80% of US households that are worth over one million describe their upbringing as middle class. The same type of research was done 100 years ago with the same result. Check out the book “The Millionaire Next Door.” People are being brainwashed to think otherwise to their own determent. If we are going to have a free society, everyone has to be allowed to fail or succeed on his own merits. So the rich do get richer and the poor get poorer. Yea, that is happening. But everyone has the ability to improve his situation in a free society if they decide to do so. It troubles me that D.C. is accumulating wealth because D.C. produces nothing. It is just making the poor even poorer. I will get off my soapbox now. dVL

A little knowledge can get you in trouble, but here is an example from the ES today. The point and figure chart took out all the noise in the market so I could see when buyers really stepped in and drove price higher. Then on the pull back (an entry point) buyers came in at the same level and pushed prices back up. We could retest the high again. The market profile told us to go with any breakout today, either a breakdown or breakout. The P&F chart would of told you to stay in a long position as price never down ticked more than six ticks until 1346. No opinion on volume bars. I try to keep it simple. If an am going to compete with institutional people like Steve, I need a real edge. LOL. Sorry Steve.

I learnt how to read the footprint from http://www.ioamt.com. Some other helpful sites are Discovery Trading Group & L2ST - www.inthetradingzone.com - L2ST - www.inthetradingzone.com. They all use a footprint chart. Market profile sites: http://www.cmegroup.com/education/interactive/marketprofile/handbook.pdf Market Profile Articles by James Dalton | Free resource to understand Market Profile and James Dalton’s approach | James Dalton Trading The footprint is most productive at key price levels. I use bar charts and point & figure charts, but the footprint is my final entry tool. Keep in mind that reading order flow is an art form that takes time to master. I do know someone who used a small time frame chart to learn the patters, but why bother with that when you have good teachers out there. Also, take everything you read on the trading forums with a grain of salt, including this post. dVL

This should help. Check "show specifications." CBOT Soybeans (ZS, ECBOT): Daily Commodity Futures Price Chart: July 2011 Traded ags10 years ago. Corn was a great way to get in the game on the cheap. Know any good spread books? dVL

Yes, 30 days when the cash markets are closed and 7 days when they are open. Market Delta will save the data for you. dVL

My Open E Cry has an accurate Footprint chart, only problem is that their Market Delta chart is like 5 years old. Hope this Sierra Chart helps.

Here is a 5 min footprint

I have heard through the grape vine that most of the broker feeds do not have accurate bid/ask data real time, including Zenfire. I included a screen shot of my Sierra Chart with Iqfeed on a point and figure 6 tick swing. Keep in mind that Sierra Chart number bars are NOT 100% accurate, but it is close enough for me. Discovery Trading Group has screen shots of Iqfeed with market delta on a point and figure chart. If you want accurate bid/ask data you are going to have to pay up for it: Iqfeed, Esignal, CQG…

The only automated tape reading I've seen is at Schooloftrade.com | Learn How to Day Trade Futures, Crude Oil, Gold, E-mini. He has something called the “speed of tape”. I use a footprint chart and cumulative delta to "read the tape." Good luck, dVL

Don Jones had a free webinar in the IOAMT chat room promoting his new software. Someone can correct me if I am wrong, but Mr. Jones admitted that he stopped taking live trades in the late 80’s. I was in Tom’s chat room for its inaugural week (it was free). He took trades. Dalton likes to explain the current inventory levels as too long or too short. I have found the cumulative delta method taught by FulcrumTrader VERY valuable in determining inventory levels in real time. IOAMT is a great chat room to learn the footprint chart, although I only go in when it is free. I take a little from everyone. Being married to one methodology can be hazardous to your health in this business. I learned that the hard way. Good luck, dVL

Placing a limit order at the current bid or ask will usually get you filled. That saves you from large spikes. If the order flow is strong, you just have to get in at what ever price you can or wait for a pullback. The problem with limit orders is that I will get filled on 100% of my bad trades and miss some of my winners. It is a catch 22 situation, as you know. No easy solution. If the market is at a level where I would expect a good return for my risk, I have the habit of just moving my limit up or down to get a fill. dVL

Well, if you are one of the 10% of small traders that makes money, you'll be rolling in it. Don't you think? Ninety percent of the money goes to ten percent of the participants. Sounds fair to me. I'd have to find something else to do if it was otherwise. dVL

The Euro is making new highs. Dam europeans. If this keeps up there is not much chance of going lower.

Market was held in upper range this early morning to get the suckers long. Looking for test of recent lows.

Will look for shorts below 1333.