Something About MP

[wloontan 10]

I am a newbie to MP, being search through the forum and having the conclusion as below, could somebody please help for clarification purpose

 

1. MP doesnt being offered as built-in application by platform provider like Tradestation, Ninjatrader ... etc but instead user have to writting their own sources code of MP.

 

CLARIFY me if I am wrong, please. If I am wrong, what platform provided the best MP to be used, notes that I havent got knowledge in coding.

 

2. The best alternative for someone doesnt know coding is Excel. Is there any other alternatives than Excel ?

 

Thanks a lot everyone, please kindly advices anything about my issues. Thanks.

[OrderFlowPro 10]

After studying and using MP for years and using all the software out there, I can say without reservation the best is Sierra Charts. Not only is it the "best bang for the buck" but it allows you to create your own indicators with just a knowledge of Excel. The number of advantages it offers, at times seems endless. There is a learning curve but for a serious trader it is well worth the time spent learning it.

 

I have no affiliation with them other than a very satisfied customer.

[Ceschiatti 10]

I would not consider any software but Investor RT for Market Profile.

[ValueTrader 10]

I am a newbie to MP, being search through the forum and having the conclusion as below, could somebody please help for clarification purpose

 

1. MP doesnt being offered as built-in application by platform provider like Tradestation, Ninjatrader ... etc but instead user have to writting their own sources code of MP.

 

CLARIFY me if I am wrong, please. If I am wrong, what platform provided the best MP to be used, notes that I havent got knowledge in coding.

 

2. The best alternative for someone doesnt know coding is Excel. Is there any other alternatives than Excel ?

 

Thanks a lot everyone, please kindly advices anything about my issues. Thanks.

 

You dont need to have a tick by tick updated profile to trade. Take a look at Don Jones' site @ cisco futures.com

There you'll find everything you need to know about MP.

I use have my own excel based MP charting. It can Run via a DDE link, but i prefer to update it manully, by simply inputing the h/l data gives me somthing to do when price is in no-mans-land.

[premal24 10]

Dear Friends,

 

For all of us who don't have access to MP based systems here is one solution I feel can be taken over to work for.

 

a) Please open 5 days -30 Min. Intraday CANDLESTICK chart in whatever software you use.

 

b) As you scan through you shall notice different 30 min. candles in RED or GREEN depending on the price in the last half hour. I mean if the price went lower then RED or if it went higher then GREEN.

 

c) THE STRATEGY : I have observed that when a stock or a market is trending whenever 3 SIMILAR COLOURED CANDLES are observed CONSECUTIVELY the price then keeps moving to that side of the trend ! Yes, this is most accurate when TREND prevails.

d) This logic states - A PRICE WHICH is ACCEPTED OVER the last ONE & A HALF HOUR of TRADE.

 

Well, to an extent MP is connected with similar system only exception being VOLUMES are also taken into consideration.

 

I would suggest all to try on this SIMPLE FREE STRATEGY and quote me a feedback.

 

Cheers,

PREMAL

[djohnsonhot 10]

That is a solid strategy, sir. I would also add that IF a trader is looking for a "roll-over" or change in the prevailing trend, and will take EITHER a pullback entry or a trade in the direction of the prevailing trend, one must look for three primary Price Action issues to determine a move in AND out:

 

1. What is your SIGNAL bar that tells you that you have bottomed, or topped in that day session (until a new resistance - - major, or support - - major, has happened.....)?

 

2. At what point is your trade nullified (your hard stop cannot be in just points, but rather based on SOMETHING that the Price Action is telling you)?

 

3. What is your ULTIMATE target level (your target cannot be in just points, but rather based on something that tells you that the run is over).

 

I used the same language for both two and three above because my personal strategy calls for EXACT signals to enter a long or short, NO EXCEPTIONS, NO RULE BENDING, NO EMOTIONS. And, the stop and target (notice I mention stop first) are based on SIGNALS to exit my trade for maximum profits, NO EXCEPTIONS, NO RULE BENDING, NO EMOTIONS,

 

Now, one more thing: one MUST have a scaling in and out strategy. When I first traded with a broker's assistance back in the early 90's (Equities and Options) we scaled out of 25% of our initial share count and we scaled in once a break-out happned as well.

 

In the ES, my primary trade symbol, I scale in on confirmations. This means that with your 30 minute bar entry, that has ITS OWN RULES OF ENTRY and FAST STOPS, I will scale in on the next bar, especially if:

 

1. The open stacks (same price) as the close of the previous candle occurs.

2. The open GAPS on the close price of the previous candles. In this case, traders are piling on and the open price of the new candle is at least a tick lower or higher (short or long) and this shows momentum.

 

Finally, stops are just as important. I would close a trade if a pullback occurs and the PRICE ACTION takes you back TWO candles of territory and the price hits ABOVE the mid-range of the 30 Minute candled that preceded the one you entered on.

 

Easy as pie. Hard to stick with as each entry takes and HOUR AND A HALF of wait time in many cases and then the signal does not happen anyway. I have gone DAYS without an entry, but when I do, I put in 10 to 40 ES contracts, again scaled and we are in the money.

 

Dr Dave, Trader Prince of Darkness (this part is a joke)

[GlobexTrader24.5 10]

Market Profile is a trademark of the CBOT/CME and the only truly official versions require an extra add on cost of approximately $30 for their true Mkt Profile version.

 

You can get similar Profile "knockoff programs" from various providers such as Ensign Software and I helped their programmer get most of the essential items into that software. Thus, take a look at their low cost alternative, also.

 

Tradestation has some good add-on programs for market profile and I would be glad to refer you to Don Disharoon as I have used his for years. The accuracy of his value area is the best. He provides a free trial. Unfortunately, Tradestation has a $99 platform fee but that can go away if the trader does ten roundtrip trades a month. In addition, TS requires you to pay the regular data stream charges from the exchanges such as $25 for EMini, $60 for Crude Oil, $60 for Bonds and Notes, etc so that can become a costly venture if you are trading multiple markets. But, if you are just trading the Emini SP and Naz and doing at least ten trades you should consider Disharoon's add on's for value and developing value accuracy. Believe me, his Tradestation add-on is visually great, very accurate, and a one time low cost. I know of a trading room that has used his profile value levels with Tradestation for years just because of its accuracy. And, I still use it to this day.

 

For the BEST of the market profile software I use Market Delta as it easily organizes my market profiles over multiple day with or without globex. My data to drive Market Delta comes from Zen Fire which is a great feed, free from my brokerage provider, and includes crude, euro, bonds/notes, SP500 emini, currencies, etc. Market Delta can provide on screen chart trading, also. Market Delta Market Profile also has an open code product option which I use. However, the Market Delta Market Profile basic version will provide you with the BEST in my opinion. The cost is a little more but you get what you pay for.

 

The Sierra version referred to by OrderFlow is decent and can be driven by free data streams provided by their futures broker. But, be careful there as some data is "bundled" by the brokerage firm. I reviewed the Sierra product and it is decent for the lower cost alternatives.

 

The BEST is Market Delta.

 

Excel will not give you what you want in my opinion.

[ValueTrader 10]

Market Profile is a trademark of the CBOT/CME and the only truly official versions require an extra add on cost of approximately $30 for their true Mkt Profile version.

 

For the BEST of the market profile software I use Market Delta as it easily organizes my market profiles over multiple day with or without globex.

 

Excel will not give you what you want in my opinion.

 

 

Depends what you excel programming ability is. My Excel Profiles give me multiple days, & overlays, of any number of days. As for the 'CBOT/CME official versions' You're splitting hairs really. I dont know of any proffesional trader ( employed by an investment bank or such like) that uses market delta.

[ValueTrader 10]

PREMAL... your 'SIMPLE FREE STRATEGY' is an old MP technique known as one time framing, and like any other strategy it is usless unless market structure is taken into consideration. I

 

f trading was this easy the markets wouldn't work.

 

When you've blown your account trying to get this to be consistantly profitable, send me a PM and i'll forward you some links of hundreds of equally 'simple' techniques that 'guarentee profits' .

 

Better still why not google 'emini trading systems' and give them a try.

 

Theres one born every minute.

[ALexLutiera 10]

I just want to have an additional information regarding market profile, here it goes:

 

A Market Profile is an intra-day charting technique (price vertical, time/activity horizontal) devised by J.Peter Steidlmayer, a trader at the Chicago Board of Trade (CBOT), ca 1959-1985. Steidlmayer was seeking to evaluate market value as it developed in the day time frame. Steidlmayer's charts displayed a bell shape, fatter at the middle prices, with activity trailing off at the higher and lower prices. In this structure he recognized the 'Normal', gaussian distribution he had met with in college statistics, (3).

The Market Profile graphic was introduced to the public in 1985 as a part of a CBOT product, the CBOT Market Profile (CBOTMP1) (2). CBOTMP1 included the new Liquidity Data Bank (LDB) data; end-of-day clearings, identified by the class of trader in the pits ( (1) local, (2) commercial, (3) members filling for other members and (4) members filling orders for the public). The Profile was proposed as a trading methodology for using these new data. CBOTMP1 advertised the Profile/LDB as the way to 'Improve Performance'. It is described as "the only variable-cost ticker service in the commodities industry."

 

Objective and Subjective Elements in a Market Profile

 

The objective part of a Market Profile is the profile display. This comes directly from the data itself, creating TPO's (either from LDB or tick data (11)). A key element is the Initial Balance, the range and price location of the first hour of trading.

Subjectively, Steidlmayer recognized a few behavior patterns or 'Day Types' in the early part of the day (tied to the Initial Balance), defining 3 types (CBOTMPG1, Pg 12) and later, 4 (CBOTMP2, PG 4, 12). Each type developed certain characteristics, telling which sort of trader is in control (short term traders, longer traders, etc.). Mind Over Markets lists 9 day types (9). See reference 10 for a discussion of this point.

Day types, of course is chart reading and forecasting. The well known problem with interpreting charts is the multitude of potential interpretations for most any chart. Mastery theory offers some hope for traders who are willing to spend the time and effort in understanding the auction market environment. But that path can well take 10,000 hours of training. A large part of CBOTMPG1 and more particularly, CBOTMPG2, is devoted to 'reading' the profile as it develops throughout the day. CBOTMPG1 suggests that it will take six months to a year to learn the Market Profile methodology.

 

I just hope this'll help for the people who don't know what MP is.

[squishy 10]

Tradestation has an indicator built in called "volume distribution" that works pretty well as a MP substitute. Also, the matrix is pretty effective during the trading day at producing an MP style distribution chart.