 The broadcast is now starting. All attendees are in listen only mode Good morning traders. Welcome to the book map pro trader webinar series today. We have Kevin touch and Really special trader here. So this should be a fantastic webinar. We had one that years ago with Kevin He's longtime book map user And and now we're really lucky to have him here back again He's a futures trader the Interesting part here is the microstructure specialist He's been consulting internationally for 20 years or over 20 years and experience a lot of experience in medium Liquidity fast-moving futures contracts. He prefers these markets the lower liquidity Higher volatility markets and looks at order book trading strategies and you can see some of the instruments here Gold crude DAX, etc. Let's see Yeah, he's also consulted with you know Barclays icos and proprietary trader and desks and and and lots of quants as well so Yeah, his approach is mainly based on reading the behaviors of the liquidity providers the market makers And the high frequency trading activities using the order book and book map Okay, I got I need to go through the risk disclaimer and I want to go through some contact information For Kevin and then we'll give the presentation to him trading futures equities and digital currencies involves the central risk of loss and it's not suitable for all investors past performance is not necessarily indicative of future results and Here are all the different links social media website, etc for Kevin And also special offers for book map from Kevin is here as well And don't worry. I'm gonna put all of these into the chat periodically throughout the webinar So that you guys have access to them and you should be able to click on them and copy and paste them Into your browser, etc. Okay, so let's turn it over to Kevin and we'll take it away Great Hi, Bruce. Can you hear me? Can everybody hear me? Yeah. Yeah, okay. So what do you see right now? Which screen because I have eight here. So I'm not sure which one Okay, so I gave you the presentation so I think you need to You'll select a screen. Okay. Yeah, I'm saying okay. Normally now you should see a full Page slide of the presentation we do Wonderful. Okay. So we're going to start Hi everybody, I Hope everybody's fine. So Bruce did a pretty exhaustive introduction so I've been trading for quite a long time I started to do consultancy jobs around 2007 2008 And so I've learned a lot because I'm giving training to I gave a lot of training to institutions and usually when I'm doing it I learn as much from them as they do learn from me, which is which is very Very enlightening sometimes and I've learned There are a lot of misunderstandings when it comes to institutions and institutional trading and market making liquidity providing and so on and so while I was Giving trainings on the practical aspects of trading I learned also how those guys actually work and I saw the business evolve because Nowadays the the last funds I have done consultancy with most of the coins They don't have any market experience. So basically some of them They come from a completely different field and they specialized in optimizing and working with series of datas. So it's interesting because some of them When you put them behind a notebook when you put them to trade they have absolutely no idea and they work for the major international funds, so I'm gonna go over this really quick because in fact well, Bruce Almost summarized everything I needed to say And we're going to jump Right in the presentation so First of all one key concept in my trading is liquidity So the first question I will ask you guys is how would you define liquidity? And Bruce, I think me I don't have any feedback. I cannot see the answers So maybe you can just summarize some of the answers we have To that question Exactly. Yeah, what's How would you guys define liquidity? How does it impact your trading today? What what are you are you looking for? So I just gave you access to the questions as well, but I will read them out. No problem. Great Great So I'll let everyone not sure if anyone already replied Let's see here Price and a lot of transactions here say a lot a lot of answers here, so Let's see Limit order and balance this is liquidity willing buyers and sellers Let's see the limit orders Tight spreads the amount of orders which operators are grateful to sell or buy Wonderful. Okay. So some very good answers here What have we seen those last those last weeks? What have we seen in the order books what happened in the with the spreads if you take a look at the E-mini SMP Which is a contract that I usually don't trade It's a pretty good example I started to trade the E-mini SMP exactly like if it was the DAX ten years ago because the liquidity Decreased so much that the way it moves the way it behaves the The the the microstructure moves you can see the the resting limit orders in the book are very very very Different from what they were like ten years ago. I'm not sure if anyone here I'm pretty sure some of you guys have known the SMP for quite a while now when I'm talking about the SMP I mean the future CME E-mini SMP of course and it has changed Dramatically and we will discuss how and what we can do with it. So I will go here through Some key points and after that I have something very fresh from you guys because I know you guys want to see what I'm doing today. So I have videos from yesterday for about the whole day yesterday I've taken some trading videos that I'm going to share with you and I also have videos from the 31st of March which is two days ago. So you can see that what we're going to talk about here is fresh It's what's happening now and today and you know The trading you do when you trade The liquidity just evolves with the liquidity that is provided and you just adapt the type of strategy you have Okay, and that might sound a little bit abstract for now But as we're going to go over the videos, you will have a more clear idea of how it looks like So a lot of traders do not understand that liquidity is the most important concept in other book trading and in trading. Okay Understanding liquidity to me is understanding the market If you do understand that you won't move The for example, let's say now the euro stocks 50 that trades on Eurex The same way you're going to move the NASDAQ which is known for being very volatile Then you're probably going to go in into a lot of trouble. Okay so How? Would we define volatility now because there is a very tight link and this is something that most people don't get There is a very tight link between volatility and liquidity. So, how would you guys define volatility? That's that's the second question. I'm asking to you guys Okay, let's take a look here Average true range Speed the price moves variance Standard deviation The speed and the and the the amplitude of the move because it can be fast But usually there is a link with the speed of the price action and the vol and The liquidity and the volatility absolutely rate of change less liquidity higher volatility Yeah, less liquidity that's key That's very key and this raised a lot of questions And also on a regulatory standpoint in the last weeks because you have some people that need to provide Liquidity on the market because they they sign the contract with the with the exchange those people are called the market makers Okay, but at the same time you have some people that provide Liquidity without having the obligation to be there 24 7 those people are referred to as liquidity providers Okay, and the problem is that those liquidity providers they are there when we need them the less and when we need them the most Usually they're not there anymore and this is what we have seen in the in the stock in the stocks to a lesser extent But we have seen it a lot Those days in the big DAX for those of you that follow the big DAX Eurex. It's like there is like a six seven Tick spread even sometimes ten tick spreads. I was joking with a Hong Kong based trader a couple of days ago He was telling me like it's like the bid says to the ask come to me and I said no I'm not coming you come to me, but it's it's funny, but it's exactly what's happening. Okay, you can see it also If you take a look at the mini though The future mini though that used to trade side but now see me side, but It's the same the spread is open when you look at the SNP since it was one of the most liquid ones Well, it's not that bad as what you can have on the on the on the big DAX and on the dough But still the liquidity has nothing to do with what we have seen like Even two or three years ago Okay, so that's a very very important aspect also. So how would you define? Volatility Mia will come up here with With some some some insights when we're going to to take a look at the videos And now the next question I'm going to ask but I pretty much answered it a couple of a couple of seconds ago What happened lately on the liquidity standpoint? I'm not sure. What are you guys trading? What contracts are you guys trading? I'm sure we must have a little bit of everything Are you mainly trading like big contracts or small contracts like me when I say small contracts I mean with the thinner liquidity with not enough not as much resting bits and offers As what you can have in the in the ticker contracts So what are you guys trading not sure Bruce? Yeah, Bruce what the answer is saying the stock index is a crude and CL but eat the ES or the S&P many is the the most popular by far most Okay, me. I'm going to tell you the truth. I've never been in outright. I've never been a E-mini S&P trader. I was mainly mainly trading the fast contracts like Russell the dough crude gold Dax and so on but I started for the first time in my life to do most of my volume on the on the E-mini S&P Due to what happened. Okay, so what happened exactly is that? The fact that the liquidity decreased Made the contract way more volatile as it used to be and what I personally Personally observed and I saw it yesterday like the videos. I'm going to show you are from yesterday. Okay Now due to the fact that the liquidity is not that big anymore an average to small player when I say average to small player I mean probably It's a relative concept, but I I mean someone that trades between 100 and 200 lots on the S&P can manipulate it Usually it took way more money than that And you will see in the video examples I have you will see a lot of Situations where one single person is manipulating the market and when I say one single person don't get me wrong It's I'll go assisted, but I mean it's one entity. Okay. It's a moral person. Okay, so big change in the liquidity Big change in the volatility. Of course a good way of tracking it as you guys are I'm sure fully aware of is the CBO evics so it's a pretty good way to have an idea of How big the volatility and how team the liquidity is going to be? What is another thing that happened? There is another thing that happened pretty Pretty often those last weeks that is always a good sign as well I'm going to give you the answer. I'll leave you two three seconds to think it over and try to To identify what I'm talking about, but I will give you a little hint It's broker rise. What did most brokers do when this happened most broker? Most brokers and what did the exchange do? On the on the broker standpoint most brokers that we're offering special competitive intraday margins They raised the margins due to that increase in volatility and that increase in risk on another standpoint the exchanges they started to introduce some some Limit limit up and limit down moves to prevent this volatility and why is the market so volatile because the Liquidity offered in the order books. I'm repeating it a lot But I really want you guys to understand that because it's really important and since you guys are clients of book map I'm pretty sure you wear how important that is but the thing is all those Those things are sign The assigns clear signs that you for example if you were trading a contract like the NASDAQ It might be a good time to stay on the side If if you're trading a ten lot then you lucky you will just decrease the number of size you trade by the amount of Volatility increase and that will give you about the same risk, but still In those conditions the problem is that small to average players can start to manipulate the market Which is not possible when the liquidity is good And and the other little problem that it might create is that the predictability Is is affected why because the market is the sum of different people working together And different people that are The fact that all these volumes it is coming in the market make the level of Control of one single person difficult Okay, unless of course you are a market maker then you are pretty much always kind of in control and a Very good example that I'm always giving I'm not sure if you guys remember when MFG When bankrupt When MFG went bankrupt you had a lot of futures exchanges that closed just because M is MFG as a as a prime broker and As a FCM was responsible for like 90% of the liquidity in the book I have a lot of studies made by made by regulatory agencies that shows how much liquidity It's provided by one single player usually when you trade a market like that Well, you know that you need to cope with the market makers behavior because he's pretty much the He can do pretty much what he wants in the order book Okay, so very important to keep that in mind Because a lot of people don't really a lot of traders don't really realize the the quantity The percentage of market makers orders in one book and there is plenty of evidence of that a lot of many many When that subject is discussed. It's mainly because of regulators so like Any national regulatory agency of any country with a good stock stock market or futures market is making studies on that Because there is a lot of control in the hand of only a few people but in this case What I was saying is that the volatility that we currently Having in most cases it affects a little bit the predictability of the market Okay, so liquidity providers are out of the market and market makers are widening their spreads Okay, you just need to take a look at book map and At the order book So we're gonna have a quick recap here, and I'm not sure if I can use every little tool to write On the screen. I'm not sure if I'm gonna be able to use it Bruce do you see What I'm writing on the screen. Yes, it's working Okay, wonderful. That's great So this is what we used to have. Okay. This is what I I How I classify the markets or it looks like it's a little difficult to use when I'm using it I have some some messages. So I'm just going to do it with the mouse So the ES used to be and used to be a very liquid market The 6e average liquidity the ym average liquidity the DX Which is the dollar index that trades at I see us has medium liquidity The low liquidity markets are the DAX The Russell the crude the gold They are more but that summarized it pretty much and here you have a most treasuries shabboon bubble or 30 years Bonds five year notes 10 year notes your stocks that tend to be more liquid. Okay so The stock say stays liquid It's not as liquid as it used to when you when you watch the number of Resting bids and offers by price levels, but it stays fairly liquid. Okay The biggest problem is the DAX. It's not even possible to trade it anymore Golds now spreads are tightening a bit, but still the liquidity on gold Is pretty low and we know that statistically you can find some research about it pretty much everywhere It's one of the most manipulated markets crude with what's happening between the Saudi Arabia and Russia Plus the fact that China due to the COVID-19 crisis is not really Not really costuming crude because it's the first world crude oil consumer Crude is a little bit. So it's something that you need to take apart Mia. I'm I love to trade crude I'm not trading crude anymore not right now Okay, and and it's pretty quite if you watch in the book there is not much to do I mean on a intraday scalping order book scalping standpoint So the ym It starts to get very hard to trade it the ES it moves from here to here Those they're not even here here anymore. They are we like I won't say like penny stocks But like you see the volatility you can have in those American penny stocks. Well, it's it's not, you know, I'm Think that to kind of to make a joke, but it's similar like the the the type of volatility and open spreads You have makes it quite hard to trade it You can still trade it but it needs to be part of a multi asset strategy like a spread or kind of an Arbitrage between two assets with a high correlation factor and those kind of things Okay, so that's one of the main changes. I see so And I would even say that the ES Now it's getting better since the beginning of the week because we have seen a pretty drastic Decrees in the VIX not drastic but a good a Couple of good down days on the VIX, but I would say that the ES was even here Like two weeks ago like ten days seven days ago and now this week I will put it somewhere here Okay, and this is why I'm starting to trade it because I haven't read the ES like I've never loved it too slow So now I'm gonna tell you what I because after of course, I know you what you guys want Wants to see is the trading videos, but what I will do now is explain you what I'm doing and what I'm following Because of course you you are only going to see the capture of one screen but I'm following other things at the same time. So first of all again, thanks to book map for for having me to summarize my history with book map I started to use it in 2015 which is pretty much when I believe when it was created I'm not sure exactly which year it was created and then since then I've been I would say a good friend of book map I love the tool and it's very Very visual way to understand some of the manipulation some of the the The situation where you can see visually the importance of liquidity in various markets So I use it for research. I use it for Visualization and I use it as a confirmation tool when the market is fast and you guys are lucky. It was the case those last days So you can identify Spoofing and react you can do it with another book, but sometimes it's very fast And so sometimes you really have some others that are flashing in the book and then disappearing But remember and this is something I won't ever emphasize is a lot enough is the fact that the context is always very key Okay, you guys need to keep in mind that There are a lot of strategies you can do when it comes to microstructure. Most of them are highly profitable I mean like the The profit factor is very very good, but where it's very hard It's that any strategy is to be used in a specific context Okay, if it's a market making context When you see your book map with a lot of colors on the top and below and those Those big declines are not even moving. You see this kind of when it's like about like this You have the orders on the top you have the price here that is playing and you have the orders below This is a typical market making market maker market Okay So if you start to do directional strategies in this type of market Well, you're going to lose a lot of money There's a lot of money to be lost in those type of things if the market is like this and your strategy is working well So it's a market maker market But there is a shift because there is a news because the volatility increases Then it's the same as soon as the context the general market context context. It's changing. It's changing. It's going to get very Hard to make money if you're using the wrong strategy. This is why context is key Most of those the strategies we use in the book are pretty simple but the difficult part is to know what type of strategy to use and so it's a An assessment of the volatility of the market conditions Is there any what's the focus of the market? What's the team of the day when I say the team sometimes now Of course, we really focused on on on on the global Sanitary crisis like the the COVID-19 crisis. That's the main focus Okay, but on top of that like today We had the jobless claims which were of course in this context bad that's not a surprise But it was way lower than what was expected Well, that's what's the focus of the market Okay, so you always need to understand that each market context has an appropriate set of strategies Okay, so that's very important to keep in mind So yeah, it's it's a very good way also to have a view at a glance of the complete book because when you watch the DOM usually you watch the inside level 0 to 10 from each side of the market It's very interesting for me when I give Trainings on other book dynamics. It's interesting to show it in a visual way And it's very interesting also to show and explain the different order book strategies So that's that's very nice. Very nice to So what do I follow I follow the values order book dumps I follow book map I follow the tape from times to times when I refer to the tape, of course you guys. I'm sure I'm pretty aware of it I'm talking about the times and sales Okay, the times and sales depending on the markets with a filter, but book map is doing it at a glance, but Sometimes I still take times and sales and I have a news feed also so How do I trade specifically actually I treat high to medium frequency I take trick on or trades on order book Temporary imbalances market correlations. I have specific high probability strategies But again, the difficult part is to even identify what strategy to use at what and in what time like for example It was absolutely not possible for me to trade like I'm going to show you at the end of the presentation like for example Two years ago on the SP absolutely not even one year ago Okay, it's it's really important to pick the right strategy on the right market with the right liquidity And and this is the only way it can work Okay, if you wrong on on the end to have a good Understanding of the current volatility Okay, and this is something you can do watching book map or this is something you can do watching the order books Following the market correlations is also one of the most important things to do if you have the Let's say the the DAX doing a new high and it's not confirmed by any one of the of the of the other Correlated markets the other indexes. Well, you know that it's probably a new high that you can sell But if you have the E-mini SMP the stocks The dough doing a new high together with the DAX That's something completely different. Okay, so it's very important to keep a look. I Mean in in my style of trading at all the markets at the same time Okay, and when I say all the markets at the same time, it doesn't mean that you're watching All of them to trade them so you're not looking for setups But you have a leader ID where they are in the range. Are they making new highs are in range extension mode or are we? inside the Range of the day because it's a market making markets and and those kind of things So From there It can be yeah, of course it can be Spreads or outrides are many trader outrides for now. So which mean a single directional strategy on one instruments And I treat multiples and I'm going to talk about it in a couple of slides But I mean it's very important when you work Scalping strategies to be able to trade more than one contract if you don't have the capitalization required to trade more than one contract Then maybe you can just move to a micro or a smaller instrument Okay, but the problem is that if you trade only One single contract you're going to be right or wrong if you trade two contracts You have more margin of of of working to you don't need to find an exact turning point You need to find an area and the more contracts you can trade the more easy not easy because it's never easy, but the the more You can be a little wrong not completely wrong, but a little one Okay, so it's it's it's important to have an appropriated amount of contract that is Linked to the size of your account and with that you will be able to play with the quantity of contracts You're going to trade. Okay, of course if you play for example let's say One Reversal setup you won't be able to catch the exact low or the exact high So the fact to scale in a little before the reversal and or little after the reversal After you penetrated your level, I mean Well, that allows you to have an average an average feel That would be more interesting than just to pick one reversal point. Okay And anyways, if there are questions, I will be very happy to answer them after so From there Yeah, this is what I was talking earlier What I was discussing earlier so during the COVID-19 I moved from the the DAX I wasn't really trading the DAX as much but it was my main contracts for about 10 years But I moved to the small DAX the the small DAX tend to be the new DAX and I was discussing with a couple of traders And with gentlemen from TT the fact that We might See the the big DAX disappear Due to the fact that the underlying value starts to get too big And this is also something that was discussed a couple of years ago. I had tweeted something about that In the beginning there was like a poll among high-volume traders to discuss from Eurex to discuss Are we going to keep Having the DAX or are we going to move to the mini DAX or are we going to keep both or are we just going to keep The DAX like it is and after that poll they decided to create the mini DAX and now I think with what's happening on the big DAX with this Tentic spreads It makes it very cost inefficient to hedge on it because it's mainly used for hedging purposes and hedging strategies So yeah, this is pretty much what I was what I was saying earlier, so I will move So from there those are the questions that I asked myself all the time when I'm scalping this is important Very important So there are two groups that are fighting in the markets and this is a question that I'm asking to you guys What are the two groups that we do have in the markets? like We have and most specifically in the market microstructure. So when you watch when you watch another book When you watch book map, you watch two groups that are fighting together Okay So not sure if Bruce is around to Yeah, to let me know what the answers buyers and sellers Is what most people are saying? Yeah, no because those groups are not really fighting But buyers and sellers and liquidity providers Bears Who with who market makers and liquidity providers with who a market maker is fighting with who guys When the market makers start to fight with someone and they are fights occurring in those other books so Inform traders retail traders long-term traders Okay, institutional traders It doesn't really matter the fact that they are Institutional or not it doesn't really matter in my it matters a lot, but in my example, it doesn't really matter What I was trying to to remind you guys is that you have Liquidity providers and market makers that are fighting with market takers Okay, so the market takers are those those that are initiating the trades the market makers and the liquidity providers are those that are providing the liquidity To allow the other group to trade and due to that the market the reaction of the market maker And this is why and I started the presentation with that, but this will conclude the concept and the and the key concept of the relation between liquidity and Volatility the fact is that as the market if the market maker is Populating the dumb with a quantity of limit orders and he sees that someone keeps eating his liquidity He will move the market either lower if someone is Selling or higher if the market If the market taker is buying and why does he does that? Yeah, you're going to say you're genius You're telling me that when someone is selling the market is going down and when someone is buying the market is going higher I don't need you to know that no what I mean is that sometimes It's a market making market So the market is quite and you don't have any moves on any other market Remember my example when the DAX is breaking the highs alone Okay, but the thing is that the market maker will increase the market impact And when he will increase the market impact He will do that so he can increase the average Price of the position of the trader that is either buying or selling and at some point when the price becomes too low or too high the market maker will reverse the Machine and start playing with the liquidity to put himself back in positive territory because remember that Every time someone is selling the market the market maker is accumulating a long position So as soon as the the institution if it is an institution that is selling And that is taking liquidity is done the market maker will do whatever is in his power to put the market back Where he is in profitable territory? He will log the most volume he can and he will move and this is something you can see in the microstructure But this is somehow something you can see in the microstructure But when he's happening in the mass microstructure, it's more sophisticated You have hedging techniques and and things like that, but mainly that's the core concept So the two groups that are fighting On one side you do have the liquidity providers and the market makers and the other side You do have anyone that it's using liquidity Okay, but remember the people that are using the liquidity They have a specific goal, which is a trading goal. It can be a hedge It can be part of it can be for example a big fund that need to To rebalance his fund and that do have a partial hedge on futures because it's part of the model of the phone but but It can also be like a small trader that is just initiating a trade. Oh, it can be let's say An intraday trader that sells because it's part of a multi asset strategy. It doesn't matter, but They on one side of the trade you will find most of the time someone with the need a real trading need and on the other side Of the trade you will find someone that is there to provide liquidity Okay, just because he signed an agreement with the change and he's paid to provide liquidity and he received some Special it can be like in some markets. You get some rebates, you know Doesn't matter, but I really want you if you take something out of this presentation It's really that the two groups that are fighting at every time are the liquidity takers and the liquidity providers And and the liquidity providers they try this is why you always have those associations in the market It's never they try to put the market back in profitable territory to unload their exposure And this is why you always have those moves in the in the in the order book Even if the market is going up you pretty much have moves in the order book up down up down a couple of ticks You know, unless the liquidity is gone But again the good thing and the interesting thing to do will be when you have a big price move to look What really traded inside the candle because you have if you have a very big candle of like Let's say, I don't know what the 30 ticks for example, okay? You have a big candle of 30 ticks But when you look inside you will see slippage slippage slippage slippage slippage nothing traded Okay, and then you have those unsight traders coming and saying how you needed to buy there and sell there Yeah, but there was no liquidity to buy there and sell there, okay So this is something you really need to to start watching because it makes a huge difference in the way You're going to see the markets after this presentation So who is in control is the market maker in control or are the market takers in control? Okay, when you have a big new seven the market makers try to try to protect himself As soon as you see the the liquidity displayed in the order book disappearing Well, you see the market maker is protecting himself when the market maker is opening the spread 10 ticks And when I said the market maker doesn't mean is one specific Guy, but it's a group of banks acting together and provide providing liquidity for a specific exchange And and they sign an agreement to do it so they need to be there, but they will protect themselves They will open the spread the exchange as soon as there is a special event They really say yeah now it's a It's a it's a high risk environment. So you have the the the right to Give less liquidity and open the spread a little bit, but the market makers are there to keep an orderly market That's very key So, uh, yeah, so the question I asked myself who is in control market makers or liquidity takers What is the impact of market takers Okay, do they have the high market high market impact or not And then I define the appropriate trading style and I decide the strategy I'm going to use. Okay Uh, and that's it That's it pretty much. Uh, now you're done with uh hearing a guy with a french accent Talking a lot and I'm going to move to the examples. I'm pretty sure that's the thing you the most interested in Let me just Bruce cannot post showing the screen during the the time where I switch Uh, so yeah now I see is these um, um files here the video mp4 files Okay, I'm going to switch uh, and you're gonna you're gonna tell me okay, so this is from yesterday The let's put it in the list Okay, first of april Uh Yeah, mainly first of april because it was pretty busy Okay, so can you okay, let me switch to the other screen um Maybe you can bring it over to the screen It's a vertical screen. Yeah, something I forgot to tell you guys, uh, due to the high volatility Uh, when you trade the high volatil uh instrument Uh, it's always okay. I think it's this one you're seeing like a dome with uh, yes Okay, bookmarks. Okay, so this is This is The close uh, this is thursday 31 March so it's two days ago at 316 And this is a specific situation where I'm expecting a Short-term reversal, but I want the market to be a little faster You see it's just flirting with the with the lows and me. I want some kind of acceleration So I was expecting this for a long time. I was both And you should see the time Here. Yeah, so that that's the european paris berlin time. So it was nine 25 uh eastern time Okay, so here I'm starting to see uh a little uh a little rejection Yeah, of course the the market is not due to the video capture. It's a little um You don't you don't see it as well But it takes hours because it's very a lot of things happening So it takes a long time to produce the videos But you see here I'm trying to scale in You see at the book map side of things We went inside the order of any pretty much dried out, which is exactly what I saw in the book as well And we have a lot of uh tape wise when you see the green balls You have on those By the way, this is the alpha version So you have uh the grill the green balls are the positive delta Okay, and look look how it's starting to push and look here you have those and you can see it on book map very clearly You have those big orders that are pushing it And to me look you see this is an algo working on the left to me. This is not the market maker The market maker doing this market maker won't keep like a very They they keep they try to keep kind of a similar number of orders to each price level when you see a big concentration of orders at one specific price That's not the typical market make market making uh behavior You know, so it's it's really like uh here psychology behind this Uh market was close to the law. It's the end of the session. It's a very very um very uh an uncertain market context So i'm expecting covering and i'm expecting short squeezing Okay, and it's conferred by the order flow. So i'm i'm willing to uh and you can also um Uh to take along and and try to belong and and i've been working alongside that day for for the much pretty much of the day The the most part of the day And you can see why scaling is important because you see it's not I work like I'm coping with the orders in the book. I'm confirming on book map. You can see the the yellow order now on the On the book map at the price 565 and a health you can see the big order that is showing 66 short sorry 500 and you see it's moving when the market is moving down it's moving uh, it's moving down as well But the one that is anchored Is the the 66 65 and a half there Okay, so it still looks good and it's very slow for clothes. It's a very controlled market There are a couple of guys that because you know those guys that are playing those games right there here They won't have the guts to do so if it's high volatility and if there is real flow But not sure if you guys have watched i'm sure you have watched book book map a lot But if you watch the dom the way it moves you can see it's very slow And it and funny thing is that for the last 10 to 15 minutes I stopped I was already done But since it was the end of the quarter a lot of orders came to hit the markets There is a very big volume spike during the 10 to 15 minutes to all the people that still needed to To put orders in started to to trade but before that During the last 30 minutes. It was pretty pretty quiet And you can see always always quoting when it's a market like this Always trying to To quote to put limit orders To expect to be filled and to put the exit And you see here I used On the on the right here. You see the big order that is at 570 I used it to to put myself a little bit in front of it Because I believe I believe it will be hard for the market to cross that order And i'm trying to add because I also believe that the market market tends to You know, there are a lot of bots that are there to find liquidity and so due to that They tend to when you have a big order to go and see if if the order is there because if the order is there It means that the accumulation algorithms They used to go and probe to see if the the liquidities will You know So kevin, are you are you putting in stop losses or just just take profits? No, i'm hedging if I if i'm really getting in in Only limit orders Why do I use only limit orders because it allows me to make sure that i'm not trading with any liquidity provider or any market maker That is doing the same as I do Okay, so so what you can do because I understand that We feed on stops. Basically. It's what we do. We feed on stops What I will do first thing I do when I come in front of my Of my desk is try to locate the stop If I have a good price if I found a good price in the in the book Okay, if I found a good price, it's hard for me to get filled Very hard for me to get filled if you put a limit orders and a limit order and you filled immediately You're probably not doing doing it right and it will probably be a losing trade because to find a contact path When you walk a good price, it's hard. It's hard to find someone that is willing to to take you at that price So the best place to to to put your limit order Is in the areas where there are stops and this is why here In the end of the day, I'm willing to play the shop squeeze because I know that they are all those weak Those weak shops that are having the The the the shop position in place and some of them they have tight stops Because they need confirmation, you know, we the other book and book map Together you always ahead like if you're watching it close like if you choose like I do you always ahead of things You might you might not catch a reversal, of course, but but you might try to catch a three four or five six time Seven times, but at some point you will be able to do so Okay, so it just cost like every time it's like what five six six Four ticks five ticks the best thing we try to do and this is something that allows you to trade multiples will do what we try to do usually is to to to To use the multiples so that So that you will Be able to work a zone Okay, so you work you work a zone and and and you try to exit and to re-enter and you stay in the market If you feel comfortable you're making money you feel comfortable You will take four five six six and once in a while because you dare and sometimes There's just a big trend starting once in a while you get you get a runner That can happen Okay, or sometimes because because you need to okay me. I see like the the the general analysis like the the major Support and resistance that everybody is following and I use usually volume profile to identify it because I see volume profile as something that summarizes the supports and resistance of every time frame trader the trader that are trading any time frame Well, what you usually will do You will take that price and you will know where it is So it will give you a context Okay, a general context. Okay. Now you see it's 90. So it's 3 30 exactly 3 30 eastern time and so you will take the Sorry, Bruce. I lost what I was saying. I'm watching the video at the same time What was I go? What was my points? I told you I have that all the when I'm talking about market. I'm so passionate it opens a window that opens another window And I'm not sure what what what I was explaining right now Um, I I can't recall. I was actually formulating a few questions for you. Uh, so, okay, great Okay, great. But okay, just to to to squash this, uh, the thing is You you you might uh Take us a crash stop if you feel more comfortable But the easiest place in the book to find a counterpart are the very inappropriate place Is in a stop zone Okay, and what we try to do we always try to do to trade the market when it's overextended It's like an elastic. Not sure we me when I'm watching the book here. It's very clear to me Okay, but I'm not sure if it's clear to clear to you guys, but it's like The the market will go in one direction then reverse in the other direction and it will keep going like that and And and so on and so forth. Okay. I'm maybe going to close this vid Uh, it's basically I'm going fast forward, but you see it's always the same kind of the same concept You entering you exiting you work with the volatility you adding to a position The thing you will have a very high a very high ratio Of of win when you do something like that But the the key thing is to use the right strategy. This is kind of a directional market making type strategy You know, and so the the problem with those is that you really need to be able to identify the right market conditions If you use it and I will always try to scratch If I see something is wrong, I will try to scratch or to minimize the the loss But if the market is pushing in one specific direction And that you in the wrong direction, what you can do is trying to hedge on a on a correlated Or you just take the loss and you will if you have time usually at the beginning of the of the Of the training day you're very aggressive And then when you come closer to the end of the day you what draw your Aggressivity a little bit because you know that you won't have enough time to remake it But as soon as you identify the the market conditions, well you pretty You you will do pretty good if you use the strategy as well But the problem is that once in a while you will get a stop loss And that's a big stop loss a big stop loss will take like one two Sometimes three days of profit depending on how big but it doesn't happen often because normally you Should be able to to see what's going on and to and to manage Okay Yeah, that was exactly the question. I was going to ask Because I you are you are putting on risk throughout And then what if it goes against you? so But but you're you're constantly also reducing that risk by taking your Five to six tick profit and then looking for pullback and getting back in Yeah, it's like it's like sometimes sometimes look here. It's like a pure scalping thing I've seen a bot that is at 850 and another one that is at 8150 and I think I've played that like Six seven times in a row just just with one single contract because you see most of the time I have maximum four five contracts in those type of of markets, you know and It's something you do when you have a really tight market and the more you keep doing it The more you keep doing it the more you add to the profits And at some time it will move it will move Against you and then you will lose a little part of the profit But but the key is that it needs to be Look here. I just took a loss of of like three ticks, you know, because I felt like Like it was not doing what I was expecting it to do But yeah, that's it pretty much any other questions before I move not sure how long You know when he talks about trading I can stay for Yeah Let's see. I mean we have lots of questions coming in. Um, why don't you move on to another video? We've almost made sure in an hour. Um, so Okay, okay, maybe I should I will move I have a lot of videos yesterday. So I'm not sure what you what you guys prefer I have some in the beginning of the day some in the end of the day I have videos. Yes. I don't actually I know it's not very interesting to see because you guys want to see the action And but me to me as a trader the videos that I'm the more interested in when someone a fellow is Showing me his trades is the videos when there are no trades You know what the most interesting is is when someone that is able to trade very high frequency decide to do nothing Because he feels like it's not appropriate to trade You know, and I have videos like that, but I know it's maybe not the The the thing you guys are interested in but I have also, I don't know. I have early early afternoon So early afternoon Europe is like the morning session in the emini. I have the clothes in the emini Look, this is early afternoon here Let me move the video to that screen Oh Kevin, um, yes. I do Tomorrow at the same time. Do you uh, have time to present? Maybe we'll do a part two to this Oh guys Tomorrow will be a little difficult. I'm exhausted. I've been trading like for for for for weeks And you know, I was very happy to do this, but I didn't anticipate the fact that we will have the market that we had and uh, and so maybe maybe a couple of a couple of days I need to rest a bit. I I I sleep like four five hours per night Monday Monday, maybe not sure if it's it's a specific day. It needs to be on uh No, uh, we we can we can do it monday. Um, or or tuesday, maybe, um It's up to you what it tell me what's best and I'll change it right now No, we can do it monday, uh, uh, and yeah, of course I won't be able to do again new videos because those videos are from yesterday that I have like Probably six seven videos from the day of yesterday. So it's fresh. You can see exactly Because I think, you know, a lot of people they come up with videos that are one year one year and a half ago It's not really relevant, you know, and I don't want to pick anything specific that I want to show you So you see everything you see some traders are losses some trades are Good trades and sometimes the volatility is high. Sometimes it's slower and and this is what I wanted to share with you guys But I want if we do another one monday I won't have time to try tomorrow and and make new videos because it takes a lot of time Just to produce the video. It's like every time like one hour one hour in the hell for the production of the videos Oh, that that's okay. We can just go over. I saw you have several there. So, uh, um, We can just go through the ones you've already already created Sure, sure, sure. Yeah, that will that that that that could that would be great. Yeah. Okay. All right If you guys have more questions, then we can uh, we can do it Um, and and do you want uh, bruce? Do you want us to address a special Q&A right now or? Um, let's uh, let's let's do this. Um guys, um, I I have lots of questions coming in. Uh, and if if We'll try to get to them. Uh, maybe a few of them here, but uh, uh, let's let's do this Maybe kevin continue on with another video. Uh, and uh, and we can, um, um, you know address some of these other other questions, uh, on on monday Okay, sure. No problem. Let's do that. Okay. Let's finish with this one. It's nine minute 23 Of course, I don't remember much of the trades because like it's a lot in in in the day, but here it's like quite open no direction Uh, lower volatility Yes, he's stronger than the ym. So I took a little note. So I'm not sure if you can see them here And Is the video can you see the screen? Uh, let's see. I see the no, I think my I think my screen is frozen. Yeah, I think I have a little issue Hold on. Let me do a control. I'll delete I think the screen here, uh, with the video player is frozen Okay Sorry, it's it's always opening opening on a different, uh, screen. Okay. Now it looks like it's fine Um, you see I'm I'm when I'm trading usually I'm listening to personal development things So you can see so that's nothing to do with the topic but Yeah, but it freezes again. Uh, as soon as I uh, as I share the screen, I I put it on the screen. The video is freezing Okay, hold on. Let me restart again Or maybe I will uh, I will change the screen and go back to that screen Then go back to six There we go There we go It's moving now, right? You can see it moving now. Yes. Okay, wonderful Uh, if you are kind of um, yeah, it's a view up kiss, but I'm not interested in it. Okay. Um Do you want to go over another example or uh, no, no, it's it's going to it's going to go You know, I took the videos like pretty, uh, row. So, um, look here. Yeah, look here. It's interesting because you have like those, um High liquidity areas. We're trying to kiss them You see we we start to see weakness On that level and you can clearly see in book map how how the level is holding and you can see the the slight market maker Layers on the top and the kind of role we have So I started to um to put some order based mainly on that on that info and I started to get aggressive because I see that It's picking a little bit of steam Um You see it's pushing a little bit against me But you still have the quantity and you have a little bit of flow if you look to the dots It's pushing a little bit to the upside But I'm expecting the the order there to to to hold pretty much and you see you have two other layers behind So what I'm thinking is pretty much I might add to it Uh, if if needed You see now we're pushing and now that we you know, sometimes those orders when they reel Uh, you always believe that if they reel and you see that look more you see a big you saw the big order 590 flashing Someone that is trying to pushing to pushing it back back down. Not sure if you guys saw that. Yeah. Yeah Uh, so I probably have bailed this thing if if this trade if if this was not flashing Uh, okay, but 590 it seems that and I don't believe that the guy is is long Uh, uh, uh, he's uh Sorry, I don't believe that the guy Is trying to short. I believe you see I'm putting my mouse over it And the the 500 quantity like at at 499 you can see it in bookmark very clearly how it appears like the the The yellow thing at 499 it's very clear to see And I don't believe that that guy is actually willing to sell anything I believe he's pushing people in like the classical spoof that you can see all over the net I believe he pushes people in into his buy orders. So I'm a little stressed out Not quite stuck In that trade you see I'm not adding to it because I don't really know Where this is going I might think of I don't really remember the trade. I'm analyzing what I'm when doing but I remember Uh, a little bit of the the guy that flashes 580. Uh, so that was yesterday, right? Um, and still waiting for it to push and what I believe see there is another anchor at 495 under I believe that the market will go and check this out You see I'm showing it with my mouse The anchor at 495 there we are Okay, because the market will try to go and see because some bugs they need liquidity Because if they don't find if they don't find a counterpart, they will have a too high market impact Okay, so here I'm looking if we can if I can get anything out of this But it looks like it's not going anywhere and you see it's very different if you compare to the other video I'm not adding to it. I'm not doing anything. I'm just trying to get out because I'm stuck I've no something I always keep in mind. I know I have a risk lack of about 10 So I know I have paid a risk of 10 To being destroyed So I wanted to to to get something out of it because if not, I will have a negative risk risk reward And now I'm thinking of exiting at the at the entry. You see I'm trying to scratch it and I scratched it But it looked that I yeah, I had two contracts actually I thought I had one but I had two You see now I'm still I'm still expecting it to Now I'm trying to by doing this by adding another contract scratching at the entry and adding another contract on the other side But I'm trying to do is to have a better average price so to have a higher short average price So that if we go and push again in 900 400 sorry 94 Well, I will be able to get at least something out of it You see one contract and this is what I was expecting. This is what I was waiting for You see how the acceleration when you have the acceleration exhaustion. It's done You know, the party is done No need to to to unless it's a key long-term type of of price where you expect a reversal, but Usually me and sometimes I miss moves. You see it went a couple of ticks further, but I stick to what I do to what I know. I mean in what I do. Yes, I'm not sure if yeah, you're still a couple of minutes remaining Exactly what I was looking for pretty incredible to see that in 2012 In 2020, sorry Uh, so yeah 2020 in the s&p seeing a manipulation like this like if it's like a small liquidity contract is pretty incredible It's what I meant because it was really you really saw like Someone manipulating the the market on the top probably having an order down pushing the person the people in his His order below and then the market is going in the other direction and he's playing and and having a big weight on on the market And you can see it's one player because the order disappear from one side and appears to the other side Okay, look now pushing at 491 75 it's really good to be me Of course, I don't have the time to to I watch book map for confirmation But I don't keep my eyes on book map. So now I have my eyes on book map and it's really interesting to To see how visual it is actually because you see the price level now. They start to disappear it became Blue kind of blue again and again, it's And now it's done. Look market market market condition changed I when I say yeah, the market condition can change you see different market conditions Okay I'm looking here for a short but now it's more based on on something that I saw specifically in the other book And you see I tried first I tried three and then I changed my mind I put another one higher And I remove it I changed my mind a lot when I when I'm trading It's always trying and you tweaking you tweaking your trading style. You're watching book map You see I put in the order there Actually, the book map that made me change my mind because I put in the order low and then I saw that there was the 499 level and I thought that was a good a good level to add But I'm already out now because the market never had the chance to to go there Okay, great a great example there. Uh, lots of changes back and forth there, uh, and um Yeah, the market conditions. This is the the good thing about book map. You take a look and you have an idea on the market conditions of it In fact, you take a look for two three minutes And after those two three minutes You confirm you see and you start to get the feel and from there it opens your toolbox and you think about What type of strategy am I going to use in that specific market context? Should it be aggressive? Should it be defensive? Should it should it be directional? Should it be market making? Should it be and yeah, it's wonderful Wonderful tool. Uh, excellent excellent. Um Kevin, um, let's see. We've been going over an hour here. Um, and we've only gone through a few examples But um, uh, let me let me explain a few things. Uh, guys, so I have made a new webinar. I have put it into the chat Uh, we will we will, um Do it again here on monday part two At the same time 11 eastern So register there in the chat and I will have to send out I guess a new a new email etc to you guys as well so Take a look again in the chat. I just repost reposted it in there All of kevin's contact information a link to special offers and book map and then the the bottom one is the Web a new webinar link so you can register now for um monday's webinar with kevin But uh, I mean, this is just really really great stuff. So, um the Fresh from fresh from the box. Well, and it's so great to see like you working your strategies and talking about the different strategies like on the fly and See your actions within it. Um, and and you're very precisely describing your actions Yeah, yeah, and and the the the thing is that even for me, it's interesting to see Because I of course, I don't recall half of it when you take 300 350 500 crates in a day You don't you don't remember all of that some of them you do But uh, but not all of them, you know, so it's interesting and it's also interesting because I can watch The book map chart at the same time Without watching the book because me what I watch the most is the book and then I look confirmation I watch bookmark for the context. I watch the book and so back and forth, you know So so yeah, it's very nice. I have uh, bruce. I have a thing. I'm planning to send like videos on maybe Weekly weekly basis. So I practice my english Not sure where I should put it or if if there is anywhere where Uh, where I can put the the opt-in box Um, uh, there's a chat box there if you want to put this into the channel. Okay, I can see. Yeah. Yeah. Yeah, we paste it Absolutely. Um, Kevin just just one question. There's been a few questions regarding, um, the correlations I think you answered it. You said that uh, If you're looking at the es then for example, you're looking at the other stock indexes as well Um in the dax as well Um, or what I watch like the correlation. I'm watching. Yes. What which correlations are you are you looking at and um, okay So so usually I uh, I I put risk assets and quality assets in two separate in two separate, sorry, uh Places in my screen. Usually I put the risk assets on the left and the quality assets on the right I mean in with the order books What I'm going to watch is Depending on the context as always what I'm always watching is the the the bond gold crude indexes Now regarding the indexes it depends of the context like for example now Uh, another example of the context I started to watch so the future on italian bonds because I had the training with the trader That I think should be there today, uh, and uh, he told me about it and I started to watch it and it's an interesting indicator From there I started to watch the french debt as well the future urex futures on the french debt So it really depends to the context. I always give the same example in 2008 They were a lot of people doing the carry trades not people but funds large funds doing the carry trades on the dollar and the yen And so the yen had become the best leading indicator You can get why because a lot of people had to pay Margin calls and due to that they were liquidating all the other position They had to pay the margin the margin calls they were having in the in the yen and because of that It was the key indicator to watch intraday. Now when I'm watching a lot is the dollar index I'm a big I don't trade it But I watch the dollar index dollar index that trades on the icus I've always been a big fan of it because there is an inverse correlation inverted correlation between the dollar index and uh, and the indexes And it's very useful because when you watch all of them You can identify if it's a fake move on one single isolated market or if it's a global Change in the market conditions. That's very important to me Okay, excellent. Um, so, uh I guys I think we got to end it here. It's about hour and 15 minutes I've I've sent you the link there a bunch of you have already signed up for it, which is great and We'll we'll reconvene again and do part two. Kevin really great stuff Thank you Sorry for tomorrow, but I'm really exhausted. Oh, no No, no problem at all um, uh, so any parting words of wisdom before uh, uh next webinar Oh context is key guys It's the only thing I can say And uh, we'll be very glad to see you guys back. Uh, that's when uh monday, I believe monday Monday morning eastern time. Yes, exactly 11 a.m. Eastern time Uh, okay. Uh, thank you very much. Kevin and we'll see you on monday You welcome. See you on monday guys. Okay. Bye. Bye. Good trading. Bye. Bye