Capflow 32 market profile software

[robb 10]

Does anyone have any facts about Capflow 32 software? What it does, why they use it, is it worthwhile, etc?

This comes from profile trading websites by authors of Steidlmayer on Markets.

Any facts about this book versus Daltons set?

Thanks.

[onion 10]

Dalton explains everything better. Steidlmayer On Markets is a nice read, but it wasn't all that informative. Also, I think CQG offers the best MP charting i've seen. It's expensive though.

[mp_trader 10]

CapFlow 32 is designed to capture the "run, pause" nature of markets using more modern market profile techniques. From what I've heard, most CapFlow users are position and swing traders - not daytraders.

 

The more modern market profile is described by Steidlmayer in courses on how to use CapFlow. I think Alex Benjamin and JPJ trading are using traditional MP. I think Tom Alexander may be teaching modern MP, though I do not endorse him. Ray Barros teaches both, according to his site, and Reza of profiletraders.com may be as well. Don Jones talks about the run-pause nature of the markets, but I have not taken any of his courses.

[mike_ITL 10]

Maybe Steven Hawkins still lease Capflow, but heard it's quite expensive (around 10.000 USD per year + data feed, if I remember well).

 

There are a few notes about the software itself on Steidlmayer's website and there's a yahoo group on it (but seems dead).

 

I would like to hear more about it, if anyone ever used it.

 

Mike

[alleyb 10]

Capital Flow 32 was developed from 1998 to 2002. It Uses Market Profile™ as the input and allows the trader to "dial in" parameters for the timeframe to be traded. This creates the code based upon the degree of horizontal and is represented by colored balls and vertical lines representing market activity. The segmentation and coding generate a directional bias together with a volume overlay database. This then is used to harness computer scanning power across markets for the best opportunity and therefore the generation of cash flow.

 

The database is therefore using the input to scan for every available opportunity based upon that input criteria. A list is then produced with a bias and weighting representative of the cash flow.

It was with this in mind that for over 10 years Pete Steidlmayer has been trying to get an exchange interested in what I would refer to as MP+. IE a basket of product to be traded as a unit. EG: 100 IBM Plus 1 SoyBean plus 1 currency Plus 1 Crude contract. The concept then would be relative performance for not all securites move vertically in the same degree nor direction

 

The software is of use to those A. that can afford it for it is an expensive lease B. running say a fund whether CTA or Hedge Fund C. those that wish to run a dynamic multi strategy multi currency multi product global macro approach.

 

I could post the help manual but A. its 3.69mb in size of a pdf file last updated in 2005 running to 128 pages and B. No part of the manual may be reproduced or transmitted in any form, in part or in whole, by any means, electronic or mechanical, for any other than the lessor’s personal use.

 

If you have additional questions please fell free to ask and I will endoeavour to do my best to answer but in summary the CapFlow software is really an institutional tool

Edited May 26, 2008 by alleyb

[alleyb 10]

I think Alex Benjamin and JPJ trading are using traditional MP. I think Tom Alexander may be teaching modern MP, though I do not endorse him. Ray Barros teaches both, according to his site, and Reza of profiletraders.com may be as well. Don Jones talks about the run-pause nature of the markets, but I have not taken any of his courses.

 

I think its time I responded to the comment of Traditional MP vs Modern

 

Those that refer to me as Traditional MP have little concept of what it is that I do or preach. Many people believe that Tradional MP theory has little place in the current modern environment. But that is almost to hark back to the mid 1980s when the floor traders believed that MP might take away their edge. Nothing could have been further from the truth for you cannot mess with the bell curve and its mathematical/statistical functions.

Yes I take the so called Traditional MP theory and I have since the day I met Pete back in 1987 adjusted it and developed it to a modern advanced and evolving world where many of the concepts that were taught have been adjusted almost dramatically. EG: the descriptions for analyzing the day type need to be re-worked or what consitutes a day and where it begins and ends (and I have done so in both these cases made dramatic adjustments and much more in other areas of MP).

The original concepts had little in the way of entry let alone exit strategy and even less taught about risk managment. All of these are alive and evident in MP if one digs sufficiently under the surface. Yes it is a tool for organizing the data but in that respect as a Data Warehouse the information extracted can give probability scenarios which are still valid for P/L in excess of 80% in Stocks and 90% in Bonds. Percentages that Pete suggested back in 1989 when the 2nd CBOT Handbook was written were possible but he additionally stated that if you wanted a systematic approach by rote then you were almost doomed to failure. Now again imho I believe that those words are a bit strong and over the top for it is normal that the human requires rules. Rules = understanding = justification = measurement. To state that Tradional MP has little bearing/influence/out of date and many more adjectives does not understand that the original 2+2=4 can be adjusted to 2*2=4 or 9-5=4 or 16/4=4 or -6+10=4. ie you cannot screw with the numbers

and it is through evolution and adjustment that the Tradional MP is still a valid tool.

The Data Warehouse being a dynamic tool is frequently the downfall of many for they approach trading from the basis of wanting it all now where they have only skimmed the education and they use references like "I trade the VA" which is a bogus concept for surely the concept is to buy below VA and sell above VA. Even Pete Steidlmayer wrote something like that somewhere and is that not the basis of all auction market theory whether that be the price discovery of an airplane ticket or the purchase/sale of cars/houses or trying to get that extra tomatoe thrown in for nothing at the green grocers.

Addendum- (Yes there is a previous CBOT Handbook version written in 1985 which I have and which imho is not just a much easier read but a better manual) -

[Guest forsearch]

Addendum- (Yes there is a previous CBOT Handbook version written in 1985 which I have and which imho is not just a much easier read but a better manual) -

 

Is your copy available in .pdf version by any chance?

[Guest forsearch]

Don Jones talks about the run-pause nature of the markets, but I have not taken any of his courses.

 

Don Jones has a good explanation of MP, as he sees it, with a discussion of the distinction between MP and VA:

 

http://www.cisco-futures.com/marketprofile_valueanalytics.html

 

-fs

[alleyb 10]

Is your copy available in .pdf version by any chance?

............yes.....

[subq 10]

I'm not so sure it is modern vs traditional more than it is applicable vs not applicable...since markets do change.

 

I have seen semi-recent writings of Steidlmayer and he doesn't even look at the "value area" anymore. The focus seems to be on dynamic profiles and POCs.

 

Much of this is logical if you look at when MP was being developed. For example, do you really think the IB has the same significance now as it did then (in relation to markets that now trade nearly 24 hours a day).

 

Market Profile is merely a tool, how you (or other people) use that tool can vary dramatically.