Thursday, 10 December 2009

Pete and Purdy

I first met Pete Steidlmayer when he come to London in the mid 1980s. He came to teach Market Profile in London for the first time. These were the days before CQG when the only Market Profile available ran on those early non colour Macs. I can't remember how exactly it happened, but it ended up that my Mac was the seminar display of MP. I was kind of in awe of Pete but when I met him I saw a great down to earth guy wearing chinos and old penny loafers (with the penny in them).

While we were chatting, Pete told me that while he was in London he wanted to buy a particular shotgun that was being sold at auction. Now Pete is a very, very successful trader and I had visions of him just bidding until he won the gun.

The next afternoon he was back at the seminar venue and I asked him how he liked his new Purdy shotgun. Pete said, "I didn't get it". I asked him why not and he said that there were too many initiating buyers and the price got so much above value, he would have rather been a seller than a buyer.

And that taught me a practical application of Market Profile.

And now for today's trades.

Click chart enlarge


  1. Hi

    Great blog. Thanks for taking the time to share. In an earlier response regarding the MomDots being a "displced" MA, how much is it shifted? Or is it a descriptive term being exactly as Drummond's PlDots?


  2. From the P/L, it is evident that X2 of Trade 3 was for 2 lots (entry says: SLD 1). What criteria make you decide to scale out of 2/3rds for some of the X2's?

  3. Anonymous, the formula I use is in one of the comments a couple of days ago. I think its the same as the one I got from Drummond in the mid 1980s but have lost the pages he photocopied and sent to me.
    Geo, typo. Its from looking at the CCIs, VB and MomDot. Its not mechanical. I'll explain it in the webinar much like I did to Kiki.

  4. Thanks for your insight...I really appreciate the info you provide. Quick question, what time zone are you trading in? I'm having trouble figuring out your charts in relation to mine. What time is the US market open on your charts?

  5. Hello Boss,

    That is a great story on auction theory.

    Sometimes thru simplicity the most complicated things are brought to light.


  6. Anon, my charts have the RTH open for the emini at 14:30, 5 hours ahead of NY time.

  7. FYI - the 2nd trade shows 9.5 pts on your last scale rather than 8.5 pts

  8. Thanks Jay. Typo. I'm glad I trade better than I type :-P