Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Dogpile

"Back in 1986 Pete Steidlmayer wrote about needing to wait for the first 4.5 hrs..."

Recommended Posts

alleyb wrote: "Back in 1986 Pete Steidlmayer wrote about needing to wait for the first 4.5 hours in ES to pass before establishing a trade and as per usual I contend nothing has changed over the years"

 

I wasn't aware of this. Market Profile trading per Steidlmayer generally waited/waits this long before doing a trade?

Share this post


Link to post
Share on other sites

Dogpile, I remember speaking to Pete and he said 30 minutes. He was looking for price rejection/acceptance, but that was over 15 years ago.

 

With markets of today, I often trade within the first 5 minutes if the setup is there.

Share this post


Link to post
Share on other sites

We used to wait for the initial balance to take place before we considered trading the order flow imbalance out of it... so that would mean that you would wait an hour... but the entire subject of initial balance is not invalid because of the 24 hour markets.... when the market only traded in chicago, all the overnight orders were in the hands of the pit brokers and they would open the market to their advantage to fill the orders that they held... and it would take the initial balance to work out where the value in the market really was and any price movement out of that area was caused by order flows that came in after the opening... so we were really blind at the opening when you were looking for the condition of the market from the overnight orders... now we can see them because they traded and we can evaluate the exact imbalance that is offered to us on the opening...

Share this post


Link to post
Share on other sites
alleyb wrote: "Back in 1986 Pete Steidlmayer wrote about needing to wait for the first 4.5 hours in ES to pass before establishing a trade and as per usual I contend nothing has changed over the years"

 

I wasn't aware of this. Market Profile trading per Steidlmayer generally waited/waits this long before doing a trade?

 

 

Dogpile

If I may be so bold to interpret

what Pete was trying to suggest was to isolate the Initial Auction versus the Secondary Auction. He started out life in the Bean pit and the curtailed trading hours versus the Stock Indices meant that one had less time to establish the IB. Less time to isolate what he referred to as the Other Time Frame Participant or in terms of English the more dominant guy with the longer time frame / horizon.

He observed that in Stock Indices their (OTFP) influence was early (and patient) in the Initial Auction and therefore frequently was responsive in nature where they would attempt to influence the auction. This influence had far greater impact later in the day where anxiety was introduced into other traders who started to clock watch and therefore the OTFP had greater influence and by default less patience and more initiative in nature.

 

The interpretation is that one wants to be on the side of the dominant trader who frequently is the commercial and therefore identified as CTi2 in the LDB and therefore be in the direction of the trend.

Clearly within the 24 hour market one needs adjustment, flexibility and evolution. The issue for many is their need to trade and trade often and the degree of volatility, which really needs to be refocused and renamed velocity (maybe more about this another time), is forcing traders into the minimum trend almost in a copy cat version of The Algo. One should as in real life learn from the mistakes of ones peers rather than copycat. Stepping back from the voodoo chart as I have frequently referred to the 5 minute chart can produce a bigger picture scenario that identifies the 5 point trade rather than the 0.5.

 

Pete effectively suggested that less is more in terms of waiting for the trade that had setup and probability stacked heavily in your favor and this becomes more important within a world that is demanding instant gratification rather than tantric reward.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • @sxiqxx, Well done on making your first post a promising strategy. @everyone, post up if you want this coded into an EA. Although I switched to TradeStation, I still have an active MT5 demo with MetaEditor. I can code it without referencing object oriented programming which should be retroactively compatible with MT4. Let me know...
    • Please allow me to retort (in jest): RESPONSE 1 : Get a job supervising others where you're in control of performance reports and ride those others 100%. This makes your performance 100% with little to no effort.   RESPONSE 2: Feel free to piss off your boss but stay nonviolent. When the side effects of his viagra and testosterone boosters cause him to physically assault you, you have the legal upper hand. This can result in a boatload of trading capital.   RESPONSE 3: Feel free to have intimate relations with your boss if she finds you attractive. Rest assured that mum's the word because once again, you have the legal upper hand. This can also result in a boatload of trading capital.   RESPONSE 4: Don't be fake friends with any enemies... unless you need information from them. Being fake friends with everyone will cause you to become an empty shell of a person with no direction in life.   REPONSE 5: Get your boss to become reliant on your performance (really, just the performance of your subordinates), and then plan an "overheard" conversation wherein you fake an interview with another potential employer. You'll probably get a pay increase or a promotion.   RESPONSE 6: If you can give your 75% percent to a project, give 50% and rely on your legal upper hand(s). Learn to write trading algo's during your other 50%.   RESPONSE 7: Take all of the office boys out to nightclub where you merely sip soft drinks on a weeknight. Upon your return to the office in the morning, inform the security guards that all of the office boys are intoxicated. Your boss will love you for it.   RESPONSE 8: Never try to prove your client wrong or find faults in their processes, but do secretly collect their information in case you jump ship or "someone you know" decides to start his own company.   RESPONSE 9: Never stay in a firm for too long. Instead, use your ill-gotten capital to exit the rat-race and start trading.   RESPONSE 10: Trading pays more than your career. Interpersonal skills are now irrelevant. Use your technical skills for trading. Never stop learning and keep updating your technical skills.😁
    • There are a lot of trading strategies like elliot waves, wyckoff etc so we need to apply those who best suited to our need and are understandable too.
    • Scalping can be good during the high volatile markets however the new traders should be careful while entering and exiting the markets too quickly since they can make losses as well. If the broker support news trading we can make most out of the scalping in my opinion.  
    • In my opinion these candlestick charts are more easier to understand as compared with the other charts.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.