Wednesday, 2 December 2009

Let's kick it up a notch

Two things today.  First, thank you for all the comments from both sides of the fence.  I do read each one, and that's what prompted my post yesterday.  I receive several posts and PM's each week with stories of life devastating losses from day traders.  These emails are from people who have lost all their money, their wives, families and homes.  There are others who are contemplating suicide because they've lost everything.  I personally have known traders who have committed suicide because they just couldn't be profitable. Please don't think of yesterdays' post as criticism, but as a necessary wake up and smell the coffee moment for those who might need one.

Now for the good news.  As you know from the blog, I trade and am teaching Kiki to trade order flow.  I use indicators, which I have programmed on my charts that measure volume and strength of order flow. I'm always reading, studying and talking with other traders about how to improve things in general and improve my trading. There is a program called MarketDelta which you have probably heard of. MD specialises in volume based analysis as well as the usual technical analysis. They have a great Market Profile too. Over the week-end I will switch to Market Delta and try and replicate my existing setup in MD. I will happily share the template for my settings as soon as I work out how to do that. I am also going to use their programming language to create other volume based indicators to track order flow.

I started talking to Trevor about a week ago and have looked at Market Delta well before that, as I was looking for something where I could have a single charting platform. The interesting thing also with MD is that they are initiating Chart Trading so you can just click on a chart to trade and the trades appear on the chart. That's something I referred to in a post a couple of weeks ago.

Now for the extra bit of information, Trevor, who owns Market Delta, has offered to host a webinar for Electroniclocal readers on how to use Market Delta with my methodology. If you want to try this program out before the webinar, mention Electroniclocal and get a month's free trial with no strings attached.  Mentioning Electroniclocal will tell Trevor whether there is enough interest in producing the special webinar. MD can be found here. I have posted a sample chart of what it will look like. Its not yet properly configured but will be by Sunday, I hope.

... Just to let you know, I am not charging for and will not receive any money from Trevor for this webinar.  If you find the webinar useful and want to give something back, please make a donation to my favourite charity, the Macmillan Cancer nurses here and then to donate, here. Or Kiki's favourite, the micro credit charity Kiva. here.

Now for today's trading: Quiet day with a bit of chop.
Click a chart to enlarge


  1. Hello
    yes I know MD I had trial maybe 2 years ago (I think for 2 weeks) it was short time and I didnt find any useful way to use it during this time,but software is nice . Of course I have interest for webinar.

  2. Tom,

    first I would like to thank you again for your effort and willigness to share. A webinar would be great of course.

    My question for today :-) is on timing. From what I read it seems that you use the fast CCI to trigger your trades. This seems to keep you out of trouble - means entering too early. So mostly you enter after a retest when market is ready to take off. In fact everything seems to come together based on the interpretation of the tools.

    You also mentioned that you enter more agressive then Kiki. Do you refer to an anticipation of the CCI crossing the zeroline?

    Am I right in general?

    To conclude a bit, you wait for:

    - Price approaching predefined S/R based on MP/VP
    - Order Flow tells that a side is weakening or control is about to shift
    - Setup (bar close in the direction of the trade, CCI)


  3. E-local,

    Proud user of Market Delta for over a year here. Best combination of software and customer service to be found on the net.

    I'll let Trevor know that I'll be at any webinar he would host for you.

    -be the ball

  4. Though I will add that I am modestly offended that you saw fit not to post my comments on the previous blog post...I can understand screening comments for marketing and vulgar content, but screening them based on whether you like them or not is not in the spirit of the 'net.

  5. You are a beautiful man.

    This is very generous of you. You not only seem to be a great trader, but a wise man as well in knowing the power of good Karma. Everything goes around comes around.

    “the best investors and traders, as a class, have an attitude of charity and generosity towards their fellow man” – J. Peter Steidlmayer

    Did Trevor happen to mention the easiest way to let him know if we are an Electroniclocal follower? I did not completely fill
    out the trial form, but on the initial page it did not have a space for a referral mention.

    This is an interesting link that shows a few MD chart setups.

    Thank you,


    Ps Investor/RT (Their sister station) is just finishing up beta b5 that should be ready Thursday morning. (according to Chad) It has where you can do a volume composite of what is on the screen like TT’s X-Study. ($1500 mo for X-study)

  6. timokrates, you are in the right area but are being too mechanical. There are so manym what in the old woodie room, was called a "nuance". The difference between profitability or not is that nuance.
    betheball, I posted all your comments that appeared. I would not censor anything unless I found it offensive. Diffeences of opinion make a market. Glad to hear you like MD. Good news for me and Kiki.
    Rino, if there is no other way, I think an email to Trevor or support would be great. Thanks for the link and the nice comments.

  7. ElectronicLocal Webinar:
    If you want to tell Trevor you are interested in the webinar you can Skype (trevor.harnett) voice or messaging, phone or email him.

    I will also be playing around with the Footprint in MD. I tried it a couple of years ago but it did not add anything to my trading. I know someone who uses it successfully so I want to have another look.

  8. Tom,

    You are truly "One of the Good Guys".

    Thank you for doing all of this and I expect nothing from you and take full reponsibilities for my action. All I've ever asked for in life was a road map that works but I never asked anyone to do all the walking and hard work to get to a destination.

    Rest assured that when I make money with this style I will be donating big time.

    Thank Again

  9. It seems everyone likes Marketdelta. I like it, too. But I find it expensive. For a beginner, 200$/month is about 2400/year. And an advanced trader won't need it. If you really need MarketProfile there are cheaper alternatives like finalg.
    As great as this software is to play with (to trade, too?) I don't like the idea paying a monthly fee. I generally don't like the idea of software services.

  10. Thanks Steven, much appreciated.

    Johnny S, fin-alg MP is great. Does the job. So does MultiCharts. I'm now using MarketDelta because it gives me what I had before in one platform PLUS it gives me a whole lot more - the ability to extract more information about volume.

  11. Thank you so much for sharing your knowledge. My greatest wish would be that someday my son or daughter would ask me to mentor them in trading. I am still struggling and under capitalized, but my efforts and passion for trading provides me lots of hope. I wish I could express how enthused I am to have come across your blogspot, (thanks to Dr. Brett Steenbarger's mention at his website). I want to implement the range bars with my style of trading. Thanks again!


  12. chefjeff77@yahoo.com6 December 2009 at 22:05

    Where could one go to learn more about range bars and how to implement them into one's trading?

  13. chefjeff77, I don't know anyone else that talks about range bars except this blog. Read the blog from the beginning and you will find a lot of information.