 Good morning traders. This is Bruce at Veloxpro if you can hear me and see my screen can just type yes in the questions And we'll get started All right. Okay. Great. Thanks everybody. Okay Today is the last day of our Professional webinar series we've had a professional trader each day this week present and hopefully This has been really good for you guys to see How other traders in a variety of different methodologies how they're using order flow within their their trading and then how they how they use book map within that environment so today we have Daniel Scalac and He's a E-mini S&P trader and he's been trading for about six years. He's full-time now for a few years and A follower disciple of a futures trader 71 if you guys are familiar with him. He was on on on Tuesday here and I'll show you the recording of that as well where you can find all these recordings. So Anyway, he's been looking at a lot of the RT investor and looking at volume profiles and Looking at the book to understand the order flow within his methodology of trading with the volume profiles Okay, so we'll get get into it here in just a second. Let me show you where the recordings are You will need to become a member here at book map calm come into this area here You can see where you can register for Other webinars here as well and then I'll have one up for next week here soon and then the recorded webinars here just click on the recorded webinar button and And you can see the one that we had from yesterday Thursday with Jason Love and Now click in the upper left hand corner and you'll get the playlist here. Okay on that icon and You can see all the different webinars that we had so Monday. We had the met a then on Tuesday We had a FT 71 On Wednesday. We had for on font Remental and then we had Jason Love yesterday on Thursday. Okay Okay, and if you want to give book map a try this is where you can find it. It's under the pricing tab at bookmap.com and Let's see you have the Free trial here for 14 days And then there's the basic and advanced versions. You can see the price here They are billed a quarterly and the big difference between the advanced and the basic are these add-ons and the ability to trade right from the chart Okay, so let me read the disclaimer Trading futures and options on futures involves a stencil risk of loss It's not suitable for all investors past performance is not indicative of future results more information at book map calm I went over the free resources and you can reach out to us at support at blocks pro calm So other than that, let's let's turn it over to Daniel and welcome All right. Thanks, Bruce Can you see my screen? Yes All right. Thanks a lot and good morning everybody. Thank you for joining me this morning Recognize a lot of you from interacting in the s5 chat or on Skype or on Twitter I'm very excited to have been asked to do this presentation for all my friends here This is my first webinar. So take it easy on me. All right It's the final day of this professional trader webinar series organized by book map and So this webinar I thought about what I would want out of it if I were in attendance and for me a lot of blogs a lot of tweets webinars we'll talk about Specific trades or trade setups and how to trade But something that was really helpful for me was a conversation with a friend about how important the hours are when the market is closed and How what happens in that time has a measurable effect on the decisions that we make once the markets open Okay, so Many of you have seen this chart before five stages of trader development It's a lot like driving a car on stage one You're 16 years old and you're like I got this right you grab the wheel and the instructor tells you to merge on to the highway And you're like oh Shoot and here's stage two. Okay conscious competence all of a sudden you realize you have no idea what you're doing and then a few weeks or months go by and You realize not everybody on the road is targeting you to become the beneficiary of Vehicular manslaughter and that's a very special moment That's when you say wow I can really just kind of protect myself Slash watch my risk and I should be all right. All right, so sometime later you realize you're starting to memorize the street names and You're getting confident you can get from point A to point B without putting anybody in real danger and I think that confidence is the key word here And then you have stage five autopilot Now you can listen to Britney Spears at whatever volume you want while drinking your large diet coke and text in your boyfriend And you're completely in control of your abilities to drive the family car without incident So let's let's take a quick poll. I want to see where you guys consider yourselves here. All right, let's see So I'll leave this open for a couple of seconds like I think about that. I've got about half of the people voted here. I Know it's it's hard. It's probably hard to understand if this is the first time you're seeing this but just to give you guys an idea of where you stand as as Compared to the other members of the audience here. Yeah, Daniel. Can you go over the descriptions again? Yeah, sure. So stage one unconscious Incompetence you don't know what you don't know you're totally oblivious to your incompetence as it relates to the trading Stage to conscious incompetence, you know that you don't know what you don't know Stage three is kind of the turn I suppose the moment that you start to understand that you can't predict the market that nobody can predict the market stage four conscious competence start becoming more consistent and able to control your emotion and then stage five Which hopefully some of you can tell me what that feels like because I'm not sure They're running on on autopilot all right, so Close the poll here and these are the poll results. Let's see. Can you guys see this right now? Yeah? Okay so a lot in the middle here a couple on the on the edges, this is a Perfect little histogram 32% stage 3 32% in stage 4 a couple stage 2 So just to get an idea. Thanks guys for Participating there. So let's let's continue here Who is this guy? Why should I listen to you? All right, and this is a this is a fair question Like many of you I do not come from a financial background. I decided to take on this masochistic venture of trading futures about six years ago red books Took classes on Wall Street. I'm not gonna name any names But what I really learned was what not to do and that was a very painful Expensive start to this journey as I'm sure many of you have experienced for yourselves Eventually my uncle introduced me to this online community slash brokerage stage 5 trading and specifically futures Trader 71 and I was immediately impressed with his efforts to educate traders like myself without trying to sell me anything explicitly so Now the books I was reading were about psychology and risk and not Stochastics and trade setups with clever names So I don't want to bore you with this whole bio thing. So fast forward. Here. We are today If you're a struggling trader trying to You know have better consistency and struggling to make the turn and I'm just like you all right I'm not driving a fancy car. My fridge is in stock with champagne Absolutely honored to be included in this webinar series alongside these true professionals like met a morad for on adjacent But quite simply I'm not in their class. All right. I'm here to show you That this really can be done. You don't have to be a finance genius or a stats guru, although I'm sure it helps if you are But I'm not here to try to teach you anything per se But as a peer to bounce ideas back and forth off of all right, so I'll show you what I do You show me what you do. Let's narrow it down and progress together So what are we doing here? The goal of this webinar is to show you kind of a day in the life of With the hopes that I may unconsciously just go over that little piece of information that makes it all click for you Something you can use like I mentioned before I think it would be a disservice to you to just show you a trade or a plan in a trade Without explaining where it all comes from. Okay, so I'll go over my routine and homework quickly Just leading up to the 9 30 a.m. Cash open I'll open a book map. We'll go through the morning and then I'll explain What I think is the most important part of the process and that's the weekly review that I do on Saturday mornings This is where I kind of step outside myself and go over everything that I did for the week really harshly grading my own performance and emotions and miscues and Have the opportunity here to make goals to measure myself against myself In order to continue to move forward towards tighter and tighter consistency So here's the plug for power of habit Charles do hey if you guys have not read it check it out if you have read it read it again this book has been paramount to my sort of Metamorphosis and has taught me a lot about myself. So these first two steps constitute what I believe to be my keystone habit or The one thing that I do that creates Domino effect to other areas of my life in a very positive manner Okay, so I'll make myself get up chug a glass of water make some coffee Eat something light like a banana while my body slowly just wakes up and I just set up for the day I might read the newspaper here or just pick up a book for a little bit But then I go jogging in time to catch the sunrise and jog back. It's very romantic This I believe Makes me focus more throughout the day. I make better dietary decisions. I'm more patient I'm in a better mood and all that's contagious. All right, so After that I usually have a little bit of time before 8 30 when I really sit down and I start to You know to hang out with the family a little bit Help out with my little guy and make my wife some coffee. Just say hi Okay, and then my my day really begins at 8 30 a.m. And this is Eastern time New York time Here 8 30 I'm in the driver's seat. I'm focused concise and efficient Straight to the point with my observations of the overnight market and my plans for the day And I'm done and prepared to trade by 9 a.m When as some of you know FT does his daily live trader pipe if you're not familiar with this He just does it 15 to 20 minute video on YouTube every day going over the prior sessions expectations What happened? Economic releases his hypotheses for the day I always learn something and he'll often go off on a tangent about risk or trade management or Psychology and these are some serious gold nuggets. All right, that gives me about 10 minutes after that I've just kind of silence and moments of breath and self-awareness before the madness that is the opening bill and Then it's game time So we'll go through some of that quickly and I'll show you how the trading day unfolds in book map and then At 415 the markets closed. I prepare everything I can for the next day as well as a quick recap of the completed session Always rewatch that day's trader bite and then completely disengage and that's really important to me If I happen to hit my daily loss limit, which gratuitously is not too often Or if I find that I wasn't aligned with the market for whatever reason And it's still bothering me I'll put my son to bed for the night and then come back to book map and IRT and replay the session to Try to gain some insight as to what went wrong So I want to linger too long on this because I know everybody has their own layout that they like and that's perfect That's great. I just wanted to quickly just give you an idea of what I'm looking at I just try to keep things as clean and simple as possible So this first monitor on the left This is the stage five member chat rooms open on the top left below that is a little pop out Called the real-time trade analyzer from stage five Which has actually been replaced this week with a theoretical average indicator in book map Hope we'll go through that for more insight on that one You can always look at the professional webinar series video from Tuesday with Moran That's the central topic of conversation there and he explains why that's key piece of information while campaigning around a position All right, and then pretty straightforward 15-minute candle chart with Delta and volume and the old trustee Ladder style depth of market on the s5 platform itself. I don't really use this anymore It's just a familiar and Easy way to take in a lot of information at a quick glance and of course book map This is my main and center screen so I can really focus on it. I use two different CVDs cumulative volume Delta indicators at the bottom there one for orders of 100 contracts or more Which I call large lap Delta and one for total Delta We can go over this in a bit more as we start to trade But this is an absolutely insensible product in my opinion and then my third screen the monitor on the right I have a to tick rinko chart as well as my daily trade log and FT 71's cash indices chart to see which sectors are moving as well as correlated markets and crude oils But this rinko chart I consider to be my second most important next to book map. It's just another way to see price action Validations impulse moves Developing profile just an overall view of the day so far Okay, when I'm trading this is the only thing on my desk other than my mouse and my keyboard on the left side you have economic releases as well as a summary of the prior day's action and three general hypotheses based on If we open in range above range and below the prior range And this is all completed at the end of the prior session so Excuse me at 830 when I sit down The first thing I do is take a look at the markets at the bottom in the footnote section and I update them And this gives me an idea as to overall market sentiment is money moving into risk assets or into safety assets Is it mixed? Is it unchanged with nothing new to value in? Then we have my trading goals for the week at the top right to keep me in check and remind me that each trade is part of a Larger data set All right the first small paragraph in the overnight section is Is it basically a quick overview of the footnotes markets? Just I want to know overall Are the global markets overnight indicating an appetite for risk or flight to safety the second? Paragraph there is just basically about what the ES has done overnight and we'll talk about this in the next slide Followed by the two hypotheses for the day which are derived from those So this is my overnight chart. Yes glowback session a 15-minute candlestick chart and I make it a point to always go through how we opened where the overnight high low and point of control are The price action the shape of the volume profile Whether either the high or the low appears weak with a sharp ketosis to the histogram or you know double top double bottom and And then finally the overnight volume relative to that time I always have to add the time in because it might be a couple minutes different just depending on where I am for that And the goal here is just to paint a picture so that when I do my review at the end of the week I can picture this all in my head again Here we go. This is what I mainly use the 15-minute chart for an educated guess on a higher time frame of what's gonna happen for the day Okay, I was just talking about this with my friend Peter on Twitter for the most part one goes up one goes down and In its essence, that's very simple one of them will likely play out and give me targets to shoot for But the idea here is that after these are in writing. I don't have to quote-unquote think so much anymore My goal is to identify which hypo is playing out as early on as hot as possible After the open and then just watch order flow and price action for narrowing down entries and exits and this does two things One it eliminates an entire direction So now I'm only looking short or I'm only looking long no flipping which immediately reduces risk for me Secondly if I lose a trade it allows me to see where I went wrong either a I identified the wrong hypo Be I identified the right hypo, but traded it poorly or see the hypo itself was wrong Okay, which then allows me to be able to just adjust My goals and I can fix whatever issue it was as long as I can define what the problem is I can come up with a strategy to curb it 9 a.m. Trader bite Every weekday if you're not familiar with this and you want to check it out go to YouTube and search futures Trader 71 You know how the internet works. This is a to tick rancor chart for February the 8th last Wednesday. That's the trade. I've chosen to recapitulate So I'll bounce kind of back and forth between this and bookmap to show you where we stand in relation to the other And I've already Integrated my notes from my daily trade log into bookmap so you can kind of see where my head was at as the day developed And like I said before I usually do this just kind of in the corner of a screen in Excel But I thought it would be more helpful to see both of these at the same time So this is my bookmap screen have my custom notes column a Lot of you see this in the stage 5 chat room each morning Just kind of outlining Interesting prices prior low a day prior value area high prior close You know micro composite volume point control for a certain range of time And here we are at 928 two minutes before we open The large lot Delta we talked about total Delta and these two will both reset right at 930 as you'll see All right, so so let's kick it off We'll see We'll speed it up a little bit here. Yeah, all right. Here's the open So obviously a ton of volume starts to come in And I like to keep my heat map at a pretty high Contrast as you can tell I just want to know where the big boys are playing So immediately you see this driving behavior to the downside. I'm questioning The OS isn't in yet. I'm not sure that this can be the opening swing high But it looks like we might have an opening swing low But I'm not sure if we continue further. We might have an open test drive type of open Okay, and this is all market auction theory stuff. Just be back up a little bit You see these guys below all starting to get aggressive here on the bid and You can you can confirm it with the liquidity over here a couple thousand over here versus still below a thousand on the on the offer But they're not really they're not getting too aggressive I kind of want to see these guys test and I'm not I don't know what we're playing here hypo one or hypo two yet What direction I think we're gonna go so the OS is confirmed as this rotates down This was a higher area where sellers stepped in so this is the opening swing high So that's where I log this opening swing high right here at the top opening swing low Right here at the bottom pretty straightforward Now I want to see what happens down here and you see buyers start to pull a little bit of liquidity here And the sellers are still getting aggressive We move this up a little bit for you And as this is happening as you would expect Delta is declining And we're knocking on the door here at 82 you still see sellers on the bid But they're unable to take that liquidity Okay, so this is a possible sign for me that hypo two might be in play without an extension lower Okay, so I'm I'm looking to remind you The second hypo here we're looking for an open test down to 81 half and then that's basically my reversal level for the day So we're still chopping around within the opening swing And we get a retest here of the opening swing high Which basically just confirms that level Excuse me. So as we start to move down here You see buyers start to pull this is fake liquidity So even though I'm thinking this might be my my second hypothesis for the day. There's no reason here to get long We have a higher low Which might be an indication of that but the deltas are still negative Which again is to be expected off of that opening swing and you see sellers sellers start to step in here And they start to move their liquidity down and they're flashing back and forth So we can't really put too much emphasis on that quite yet. But look at this This is all they start to move away as soon as price moves up here and that's telling me that if we do move up There's a good chance that they're just going to step aside and let this thing go So I'll move this a little bit quicker here. I really want an extension of either the opening swing high or the opening swing low to really Call out a hypo for the day You get a lot of volume right here on this push down and these buyers stepped out of the way So like I said, no reason to get long here. I'm not seeing anything But also no reason to really get in short because we haven't tested above the opening swing high So just waiting and watching Now we get an extension here to the downside Extending lows again Hypo twos on the table Now when this happens I started to place my targets. I want to get my targets out as soon as possible Okay, and I added a target here three ticks. I always front run my targets by three ticks and This was this was a level that was called out. It's a 90 level micro composite low volume node Which was called out by which was In the trader bite from that morning, so that brought that to my attention and fits in between My first and second target here. So as this starts to go, you'll see me adding targets immediately and So I want to be like Bruce says a lot of times This is a feeful market first in first out So I want to get in line as early on as possible See if I can move this easier when it's stopped So as you can see above all these targets start to go in boom boom boom boom boom, and I don't have anything on Okay, so I have to be careful if price starts to move if there's a news event I have to cancel these really quickly if I don't have anything on but I just want to be in front of the train and it also Makes me want to get another contract on and keeps me a little bit aggressive While I'm in the middle of the trade So here we go hypo twos on which means I'm no longer looking for shorts I'm only looking for longs even though we didn't really get an extension that I was looking for Let's fast forward this a little bit here So if we could get an extension here down to the close of this gap zone, then I would be looking to The order flow to add one on to start this campaign But we didn't get that test down so instead I'm looking for a A test higher above the opening Sorry the open swing high and then back to around the middle of the range for the day So here we go all of a sudden. I'm saying be careful with this this hypo to be careful with longs because I've got clean blue tips here Which is basically? Saying that buyers are not Aggressive We're not there basically exhausted in this area as far as I can see and I'm looking at the large lot tracker if you pause it here Look at these large lots. I just keep this on default. Okay, but look There's there's a large lot at least at every single one of these Offers and then only a couple on the bid and I just want to see these relative to these It doesn't really Bother me what the settings are to move a little quicker So you start to see a little bit of volume come in but this isn't really telling of anything a lot of this is just noise until we get Outside of this opening swing So now I see this 84 half level is starting to add They want to be short so this looks real to me These guys are coming up look look how bright white this is a 84 half of 1400 contracts all of a sudden and then As soon as it's tested These guys pull All right, and that tells me that this is even this is fake liquidity and even I mean maybe some of them Some of them still want to get short, but for the most part all this is pulled So that's another indication that longs are still in play here. We still have the Delta divergence So I'm reminding myself to just be cautious Don't get too aggressive quite yet And then we see extension to the high side and all these sellers look at this I mean these are buyers are still aggressive up here And nothing and you know these guys still pull Everybody on the offer so far has been pulling here here here. So I know that Most of this anyway is going to step aside for my long You do see sellers start to step in a little bit and push buyers start to move away to again a lot of this is just noise But I'm stalking longs okay around the mid which is this 83 level So I want to slow this down as it happens. You can kind of see why I entered at this level. So I'm looking for a long here But what I'm really looking for and we pause this I know that I can I can lean against This zipper back here. All right, this area of consolidation. I know that there's at least some interest here So if I want to get in here at this 83 level, which is the mid then I know I can put my stop Basically down where these sellers started to be exhausted. So 82. I'm wrong Which is which is only a four tick stop, but I mean I'm gonna let it run a little bit more than that I'd like to use a six to eight tick stop at least But I know I have this little back me up and then there's another one back here They can back me up So I've got plenty to lean on here for a long and now as price comes down to this 83 level buyers are pulling still So there's there's still no reason for me to get in long Okay, all I need is a sign. I want some sort of sign from the buyers and there we go boom boom boom as soon as they They jump in here and start to become aggressive. That's all I need It's one little sign around my area and I can get in long Okay, now you'll notice I don't put a stop in right away And that's because I want to add on down here. I want this to come and test this zipper So that I can get another one in long around. I don't know 82 81 half when it starts to Turn back around or when I see more aggressive buying start to move up and From there, I'll have two on I'll be able to scale something out. Okay, but Unfortunately slash fortunately didn't go against me very much. So I was only able to get one on here So I'm still looking to add Move this a little bit quicker again But there you go up go ahead and put my stop in and I would have loved to add here Where this has been consolidating above the mid moves up comes down But this just happened too fast for me We get a little bit of a push here and we know that all this was fake from before so we know that if this goes up it's gonna push right through and so I Put in my notes that we have a small collision here at 84 half But it looks for the most part like they step they step the side, but it might be an area Just to keep in the back of my mind, which is why I write it down. Anyways So we get this extension This is basically wasted on me Okay, because I wasn't able to get that second contract on to be able to scale out ahead of these new highs Okay, so when this starts to pull back I still want to add my second on long, but this is my theoretical average here I was not able to Help that out at all. So I want to reduce my risk at least somehow So I put this stop behind this lower low. We made new highs. We have a new mid somewhere around 8375 or so and I'm waiting for a pullback, but I'm still I'm wrong if this gets down here and it's able to make new lows I'm wrong. Anyway, that's fine with me Trade didn't work out same way as if this went straight up and took out my target with only one contract on That's fine. All right. I didn't I didn't trade it perfectly, but Just missed my my opportunity here So then we see this chop On low volume and it's Wednesday. So I have to be careful. We've got crude oil inventories coming out at 1030 All right, and this is the only time that I will trade my P&L Because I can't get a second one on We were five minutes until crude oil inventories come out So I'm not going to add another one on So if this comes down and tags the mid That's kind of a bummer because I'm not going to add on there, but it might just continue in my direction You see some volume coming out to the downside It's possible that you know, I could get stopped out of this, but right before the numbers come out I'm going to move my stop to break even because As you guys have seen with crude oil inventories I mean this can this could be a mover if this thing is going to move to 83 It's going to move to 82 half. All right, I'm going to be stopped So I want to see reaction what happens after the inventories come out and there's not much I mean we moved five ticks in two minutes here You know crude is going crazy And just kind of fluctuating So I move my stop back because I don't want to trade this P&L So still back behind the swing low Long clean green tips here Two ticks from the IBH We've got fake liquidity here. They pulled each time got another push down here. So this might be my opportunity See if I can slow it down again here for you So there it is that's all I needed that's all I needed to see we see a push down here we've got quickly a higher low and It starts to push and I see buyers boom boom boom just maybe flash signs that they might be aggressive that coming back down here And that's all I need. This is an area of Importance for me that I might want to get long and that's all I need is one little indication That I've got some protection As soon as I see that I want it And I always I split these two Stops okay, so I've got what I call my aggressive stop and my conservative stop which is Kind of counter-intuitive because my aggressive stop actually Saves me money if I get stopped on it my conservative stop is riskier, but that's just what I call it So I keep one there This other stop is in this area not because it's a certain amount of ticks or anything But because it is below this zipper this exhaustion again Okay, so if I get stopped out on that I might still have a chance with protection here To continue in the right direction even though I've I've worsened my theoretical average here by a tick and a half Until I can get a scale out. Let's be back up now that we're in Now again, I mean look at this Delta. We're still negative Delta down here and So this is still I mean this isn't an extremely confident trade I'm just taking the trade that I planned out for the hypo to see if it works now We've got a movement up. So I want to move my aggressive stop. Let me explain what happened here I move my aggressive stop to new swing lows here, okay? I want to kind of I kind of squeeze this with one aggressive stop and I let my other one fly at least until I can get a scale out and I can improve this theoretical average So what I did here was I moved my conservative scale To become more aggressive and I meant to move my aggressive scale So that is a dome error, which I need to log in my book But that's why it looks kind of funny here, but basically I just moved this up to ticks and so Speed it up a little bit more again here And we already know back here that this liquidity is fake So I'm expecting a flush if this comes through and that's perfect and it takes me out Pretty much immediately. I mean that's 16 times speed But I didn't have to worry about if it comes up and Maybe takes 81 contracts out of my target level. I will consider moving My target down a tick if it starts to rotate back down or two ticks even I give myself those two ticks To try to get a scale out and add another one on later on but For this one we got a push through and looks like we had shorts trapped here and just flush the stop run so That one was convenient So here you go. You see the theoretical average Just get crushed here and I love seeing that just pops all the way down here. So this is saying that My zero line is 79 half as you see here So for me to lose money on this trade price has to come down below this level and my stop My last contract is all the way up here So I know at least I'm making some money on this trade and this is still a very aggressive stop Okay, so I'm looking to add on again and as we move higher You know again if it takes this target great If it doesn't great because then it will come down and I might have another opportunity to add on and keep this going Because it's so much easier to add on than it is to find another clean entry because I'm not I don't have as much risk I mean my risk is eliminated here. I'm making money on this trade. So now that I'm in the black I want to push it and push it and push it and push it as much as possible and just be relentless with my additions All right, so this comes down now. I'm looking at where do I want to add next? Okay? And that level for me is this prior low of day Okay, so I have prior low of day. The new mid is down here. It hasn't been tested yet It's a little bit below. I think it might be right here around 84 75 or so and we can check that out So here we go coming back down The mid is right here. So yeah 84 75 Three ticks off of this 85 half that comes down to So you've got that confluence. You've got confluence the opening swing high is a big Rejection or support area prior low of day. We're already back into the prior range I'm expecting buyers to protect here, but what I did is I waited. I was too complacent here And I waited for this to come down and I wanted it to touch it and see what happened there looking for an area to get long, but I didn't see a reason to enter and This was my opportunity it came down. We got a little bit of rejection I've got plenty of space here I can I can there's so many things here to lean on for me to add on to but look at what happens here we start moving sideways and We're almost around 11 o'clock. It starts to slow down a little bit, but We're moving sideways. We're barely even moving the bit in the ask and These guys are just loading up buyers or you see these algos going off on the buy side And this guy steps in he wants to get all of these long and this is like one and two contracts at a time for 12 and you just this was this caught my eye and So a breakout of this area to the high side should be another edition Even if I missed this this come down and you know There's really nothing here like I said for me to add on to without a testing and seeing what happens down here But a breakout of this to the upside Should be another indication because then I can just put my aggressive stop right below here as soon as I see that Move it up a little bit So this guy moves down a little bit He's still seeing volume on the high side come down and test it chopping within four ticks I mean this is more noise. There you go. Here comes You have a move to the high side. There it is I would put my entry right there at 87 quarter is what I should have done in retrospect But instead I'm being too complacent because I'm already in the money for this day. So as that happens Takes off. We see a small pullback there. I Want to see what happens at this level, you know, if this bounces down this MCV puck level and they moved away so I know I'm pretty solid there and And that's it. Unfortunately, that's it for me because I can't continue to add on because I missed these additions If this if this were to continue, I mean, I've got this other one up here Right after that, we've got a couple more opportunities throughout the day to add on to come down but there's a very very big difference for me between an Area to add and an area to enter And that's that's completely based on risk So let's move back here to this Slide So after that That's it for me for the morning. I don't trade so well in the afternoon. So I basically try not to unless I'm already I'm still in a trade or you know, nothing's really happened and something new comes about In that case, I might make new hypotheses for the afternoon session. I'll just pause it where it is and You know try to do the exact same thing from the morning So the RTH sessions complete. We're done for the day Just need to prepare the next day's homework sheet with a review of this day's action So I print this out. That's why I like the background in white Unemployment calendar for the next day Are we in balance or are we in price discovery mode key areas to look for? We started in an open auction out of range and that turned into a normal variation day just to keep in the back of my mind And then just a quick review. We opened with driving force to the downside Pushed to the half-gap The OS we slowed down a little bit. So the driving force slowed down turned into an open auction The initial test was lower But they couldn't continue the selling pressure and we saw buyers take control to new highs 85 here as soon as we hit those new highs like this is all one move From lows to highs. So that gives this mid a little bit more conviction for me The the developing volume point of control is above it that helps out to give it a little bit more conviction And we've already tested lower. So I'm expecting this to be the impulse move. I'm trading this move All right, and you know hypothetically theoretically with another contract on there So basically here you go. We saw a textbook support at the prior low at a unable to get on And then once we were above that found support twice at the initial balance high the first hour's high of the day that's this orange line, okay, and Shifted up to the 88 acceptance area and created a weak high into the clothes You can see how we just dropped off on volume. You expect that to kind of soften up The closing swing barely came off a new highs We closed right on top of the the developing or the actual volume point of control for the session And I'm expecting this to resolve itself higher overnight Daily VPog movement despite holding in the 88 area, which is this little pink line here for most of the day Which this looks like a shorter amount of time than this But it's actually not these these white and gray painted bars are 30 minute intervals So this is two hours here two and a half hours, and then you see in here I mean these these four to take Renko candles held for an entire 30 minutes This can get really boring here, especially if you're waiting for something to happen So this is actually quite a bit of time, even though it looks like a shorter amount Expecting new all-time highs in the next few days, which did come to fruition And then my three hypotheses for the next day if we open up right where we are open shop Tesla or Fine buyers new all-time highs gap up responsive into the range Testing this prior VPog prior close prior MC volume point control here and fine buyers new all-time highs gap down Responsive into the range find sellers around this level this HVN here at the bottom To continue lower. All right. I imagine if it's going to gap down There's a reason to get down some sort of news event or something. We're gonna test higher and continue that Now I want to show you another indispensable tool that I use for my weekend review And this is the stage five historical trade analyzer. Let me pull this up. So you guys can see this here So this is what it looks like And this thing this thing's awesome. This is what I use for my weekly report card basically win percentages lost percentages MFE MAE. This was the week of February 6th through the 10th, so let's analyze it six trades. That's all I did Okay, not very active, but I'm okay with that. I felt as though I took the opportunities that showed up But we just aren't seeing the volatility in range that justify four or five trades a day for me right now The main thing that I took away from this was a hesitance or lack of aggression As you've probably Found the tone throughout this entire video so far So I'm upset that all of these these winners are max quantity of one contract I need to get a second one on one one one sure my this loss. I got two on there All right But so that that's important to me to not stay complacent After you get you start winning Okay, and so one way to define that is by using this okay I can see that here and I can use this max position quantity to set up a goal for the next week. Okay, so say For example my goal might be I want to see no more than one winning trade with only one contract max position Okay, for example anyway, okay, but no, this was a great week for me. I hit all my trading goals And You know this this historical trade analyzer this can be used for so many things this thing is incredible You can we can go back to the beginning of my relationship stage five up until today and see how my tick expectancy has progressed or What hour of the day I trade best during or what day of the week for that matter, which is always interesting, especially Like Jason Love pointed out yesterday if you start to see Habits forming that maybe every other Wednesday and Thursday happen to be lost days or something like that Okay, so You know this is just another product that stage five puts out that it really Enhances my ability to progress and then my favorite time of the week man Saturday review Nothing like a little bit of quiet time to myself Just taking my time go through each day how it was setting up overnight Whether or not the global sentiment was towards risk and it produced a bullish day How I traded where I did well what I missed and I take detailed notes with thoughts and ideas for following the week's goals and You know just try to sort of relive the trading day So although this was a quote-unquote successful trade There was so much more here that I could have done better and it's really important for me To point that out to myself and this whole going through the whole week takes about two hours or so But as you can see, I just I just mark up the chart you know Only able to get one on shame that I wasted this move up I got to get aggressive with the second contract came down sure and nothing to write here You know who cares no big deal great it moved up and took your target who cares No retest of the prior high a day we got within one tick, but stay aggressive man Look at all this you've got this zipper to lean on You've got a prior high a day the mid the view up the opening swing high so much. I had to get that And then you have a double top stat and that's after I'm already out So I'm unable to capitalize on that opportunity. It comes back I BH this is a perfect opportunity to add on long again scale out ahead of this Okay, it continues to turn sideways if I still have something on Great, I close at the end of the day. I close it for 14 and 45 seconds All right, so I know that you know this huge Delta divergence all day long was in the back of my mind And that's what made me a little bit more cautious about adding on to this move And especially like you see interesting things here like this huge Delta Barish candle on the clothes here and the buyers absorbed so just pointing out certain things But no, that's the idea so Some things that I want to leave you guys with Which have really helped me along the way Kind of aha moments right minimizing risk being more important than maximizing reward Especially with the first First two contracts are getting on scaling in and out that kind of speaks to that okay trading the market not my P&O I heard that dozens of times before I actually understood it and See each trade being part of a data set and like I said before this Influences my emotion or lack thereof Knowing that this this trade is just is just one I have to put it on Just like my hypo says and that's it if it doesn't work. It doesn't work. We'll figure it out later Grading trades tick expectancy a huge way to I mean this grading the idea of grading trades and Being able to make them relative to one another was key Following a routine habit forming I went through that deliberate practice you guys all know Asking questions. This is huge right S5 chat room. This is great because I can't see any of your faces when I ask a stupid question And I can ask that same stupid question every single day and even if 299 of you were rolling your eyes one person is gonna answer me that question and that's all I need I'm not embarrassed to ask anything. Somebody's gonna help me out. It's great. AMAs always ask a question I make it a point every single week Morad does a public AMA Two times a month every other week and a private one for the stage five members every other week So we have four a month one a week And this guy is basically saying I will answer anything you ask me There's something that I need to know right. I mean it's just I have to I have to figure out a question to ask him I think this past week there were like six questions or something. Let's load this guy up man. Make his brain hurt Books I mean we could talk about books for days Three of my favorites I mean you guys tweet me out what what you guys like what your books are your favorite books Minimizing emotion emotional verbiage and this this part comes back to the daily trade log right so I can Control F find and replace throughout my entire daily trade log I can just search expletives and find out where I was upset and why Why and how that affected what I did in the market and maybe affected the next trade One way or the other okay, so even if I have a successful trade after that is that really truly a successful trade or Is it giving me you know reason to emphasize my bad habits, right Learning to trust my in-trade self. This is a huge one this Especially as far as campaigning goes to be able to add and take off Contracts while you're in a trade. This has a lot to do with emotion and knowing that you're a different person Once you're inside a trade then when you put the trade on I think we could do a whole nother webinar about that This is this is a really important topic for me and then encouragement and help from the stage five community you guys rock Lastly challenging myself to step outside of my comfort zone. I think that can be said for anything in life really right so Speaking of challenging yourselves. Let's I'm gonna I'm gonna lay down a challenge All right, I want you guys to write down one thing at which you think you should be better or Of which you think you should have better knowledge. Okay, like Excel formulae or Reading order flow Maybe something like overtrading or becoming complacent during or after a winning trade. Okay tweet it to me I'll do the same and let's set up a plan and take the first step next week to conquering that. All right Let's get a discourse going. All right Also, I'd love to hear what you guys did before you became traders because that's always interesting to see how Kind of left brain right brain nuances carry over So tweet those to me also. Maybe let's set up a category like Hashtag when I was saying or something so you can see them all in one place or don't whatever Bruce what do you got man? Okay, now Lots of questions here. So I've been answering a lot along the way here. Let me input your great Twitter Link there. Okay So that's in the chat for everybody Okay and All right, we'll just start from the top here Let's see any other contact info. Do you want to put in Daniel? No, that's my main one if you want to reach me my email is Daniel Scalak at gmail comm if you want it If you want to hit me up my email, that's great, too Like I said man, I'm always open for conversation okay Let's see here Yeah, right off the bat here Chris was asking about so you've been with FT for six years and he's asking about your profitability and Maybe a little bit of background on that like how long it took you or a little bit more of your journey on that Yeah, okay, so I've been trading futures for six years, but I've been with stage five and FT for about three and That was basically from scratch that was you know those first three years of trading futures. I just chalked that up to learning something that was important that I don't do and so Starting from scratch not knowing anything about Volume profiling or market auction theory. That's where it was three years ago and up to this day I can say that I'm in stage three that that Eureka moment. I'm I'm still turning the wheel around the turn and I'm profitable, but I'm not profitable enough really to use this account to To live off of I couldn't you know the the money that I make isn't isn't quite good enough to just you know Have my broker send me checks every month And so I try not to touch that account anyways, but for the most part I'm just I just try to keep my head above water and As long as I I can keep an overall tick expectancy of three ticks per trade That's why I know I'm doing really well and for the most part. I fluctuate around that I go from anywhere to You know one to four, you know, that was a great week that was nine and change and You know when it when a when a week like that happens watch out for the next week because it's gonna bite you in the butt and And that is what happened to me this week and I knew that going in I said I have to be cautious That was one of my goals was that you know be cautious because you know after you have a great week like this You know next week we'll turn around and teach you something But the other problem with that was one of my goals was to become more aggressive So counteract those two and I was more aggressive But it didn't benefit me this week But all in all over, you know six six trades is a very small data set So over the course of the year, I want to be I want to have a plus three tick expectancy per trade Okay Let's see here some questions about your dot settings Okay Let's see. Let's pull it out So this is something all this Is something that I change constantly. I mean you guys saw me moving this around I don't like to keep this on auto Because I want to see what's above and what's below and I might want to zoom in to this level and see what's happening here or Or tighten it up and look back at you know, what happened back here. So I'm constantly Changing the scale of the heat map I I I also constantly change the size of the volume dots The transparency the pie display the rest of these I don't touch. I like to leave this on one Because I want to see what's happening on those tips. I want to see the algos computing and The dot size is something that I'll change Just using my eye You know, I want to see at the beginning of the day I don't want the volume dots to be too big again because I want to see these algos going off so I tend to Reduce this as we get closer to the middle of the day Sorry other way around increase this as it gets towards the middle of the day So that the dots become more visible and more consistent with what I saw at the open where you see those huge dots as well Okay Let's see. Do you look at other markets in book map as well other than the ES? Okay, no, I don't I know a lot of traders like to you know, look at crude oil or Nasdaq or the Dow or whatever and try to find You know find an opportunity at every moment, but and this is just personal preference I'm trying as hard as I can to learn this market and I don't want any of that to take away from that even if I do find Another opportunity in another market. I feel like that's inhibiting my learning of this market in some form or another That's just personal preference Okay Let's see here John is asking about how How does price action Factor in your strategy and John I'm a little confused on that if you can elaborate a bit I mean Daniel in my mind you've been you've been showing nothing but order flow in price action here Yes, but I do I do use price action for sure And specifically This to tick ranko chart like we talked about so I'm using the price action for these levels And let's pull back these hypos for the day. Okay, so this is all based on price action where these levels come from and So when it comes down to this 81 level, I'm interested This tells me that hypo two is likely on that this particular hypo is what I'm going to trade for the day right or wrong that's what I'm trade and So the mid is is is important to me I want to see the price action here and I use the order flow for the entry To just kind of narrow it down on as minuscule level as I can to make sure I mean if this would have flushed through We saw it begin to flush and you saw buyers start to pull When I was looking for this level, but as soon as they got aggressive that told me that we do have a little bit of help here so I mean that the IBH the all these levels that I'm expecting to hold the prior high a day once we get in the prior range I'm expecting buyers to protect Things like that and these zippers you see these painted zipper bars, too That's just something that points out to me that there was consolidation here So if it comes down to retest this that's another likely area that I can just put a stop back here and should be good Okay Let's see here Okay, so Chris is asking if your hypo is differ from more ads then then how do you adjust and do you adjust and or just stick to yours? No, I I do stick to mine I will add things if I see something on the on the trader bite like today. He he mentioned a Micro composites low volume node that was happening at 90 that I overlooked in Let's go back here So this is what he's talking about. I think it's just 90. No 90 here. So I Think he's looking at just these three days For a micro composite and he he put a volume profile around these three days and that Point of control was at 90 and that's something that I didn't see here because I'm taking it if I'm taking into account these three I'm also including these three because we have volume that traded there and so That's the one I was looking at. I wasn't expecting to that is one. I think that was targeting here in 1975 or so but So if I see something like that, I'll add it in and my my hypo's do often Differ from his and a lot of times they'll be reversed. I'll have You know his hypo one will be a bullish day and his hypo two will be for a bearish day But he also ticks into account a lot more than I'm taking into account mine I think is much simpler and Mostly because of his knowledge base just being much more so than mine So he might say, you know, this is gonna happen and then after we get down to 76 It's gonna pull up for the rest of the day So both of them will turn out to be bullish days. Maybe at the end of the day something like that, but This is just a basic I want this is this is based on the overnight Market telling me that we are we have a sentiment towards safety Okay, so that tells me I think we're probably gonna continue that unless for some reason we have Say this market pulled all the way down This is also something that was taken into consideration that this being a bearish hypo one was that the day before We had a huge move down. We had a pullback and we almost got the continuation, but we ran out of time so Something else that I'm thinking about is we might continue that move down today, and that's why this is the more likely hypo In my opinion Okay, I got a really good question here that I'm very curious about myself Daniel from from Jeffrey Daniel, were you as organized in your former life? If not, how do you get how did you get on this track? That is a good question I would say Man, that's tough. I would say partially I think that the discipline of Working at a three Michelin star restaurant and the Perfection that's demanded at every second had something to do with that and That discipline is a key word Being able to follow the hypo's and not get emotional about losing a trade or That's tough, man. I mean before before that I would say it came in in it showed itself a little bit here and there, but no I Not not particularly. I mean, I think that there's a little bit of Kind of improv that is taken into consideration as well, you know, that's the discretionary part So I don't know if I answered that completely or not, but I guess my answer is sort of Okay. All right. Sounds good Let's see here Franklin is asking For someone who is new to stage five and getting who's getting trouble or having trouble understanding the auction After watching the webinars. What would you suggest? I? Would suggest replaying The market actually if you want to understand the auction Obviously these these volume profiles are a huge help But and of course, this is a static screen. I can't show you this But if you say I think more I mentioned this a couple days ago if you take say 20 days worth of data and replay them at super high speed and and just watch where they go You know, it really is Something that attracts, you know, these these you'll watch it. Let's see. We started in this day You know chopping around here It formed to this high volume profile in this balance area the next day we moved down and tested lower and it formed This area. Okay, so now within these two days. We have It would look a little bit shallower than this, but you have a low volume node here So now this day we start in the prior High volume area and we moved down and we test this low volume node to see if you know our buyers really going to protect and they think that the Structure of the market pricing is efficient here again and They come back up and they say nope We're gonna, you know go back and retest this area and chop around and we found acceptance there and that's what happened so You know really really just replaying The investor RT data was something for me that helps With the market auction specifically Okay, no, I mean it's just excellent to see how Prepared and organized you you are in and you have your bigger plan and just to such a nice integration of The order flow and bookmap is that tool that you're using to view that order flow Within your bigger plan and it's giving you the answers you or that you know what you're looking for and you're just waiting Really really nice really nice Daniel Thanks Let's see here Just a lot of technical questions here. What are you using to write your hypo's and the charting the homework? what kind of software using for the Ranko and and I know you're using our RT investor or investor RT for the Profiling Anything you want to elaborate on? Yep, that's right. I use investor RT for the volume profiling the ranko chart the overnight chart and That FT 71's cash indices chart And I also look at a daily chart at the end of the day to just get a you know a broader spectrum of where we are, but that's all investor RT for my homework and Statistical studies I use classic Microsoft Office man Microsoft Word is what I put my homework in I just put it on a landscape mode so I can have it in that that style of organization and the That the hypo's the little charts themselves I create in Excel and I just copy and paste them right back into the homework file So that I can just have one printed eight and a half by eleven sheet of paper right in front of me with all the information I need to know to reduce thinking Okay, and let's see here one Someone's asking about Your relationship. Are you an employee with s5 or independent trader? Nope independent trader. I am a client of stage five. They are my broker That's it. Okay Let's see here Yeah, just a few more questions and then we'll wrap it up here one by Otto is asking about What are some of the things you use to Keep your goals and not get discouraged and and to quit Well one way is Just basically adjusting my goals. So if one week for example, I have a really bad week and My tick expectancy goal for that week was greater than three But it turns out I had a really bad week and my tick expectancy is negative three Then for the next week all I want to do is have I add a quarter of a quarter of a tick. That's it Well, if it's negative my my tick expectancy is I want a positive tick expectancy and then say it's one That week. That's when I add a quarter of a tick. So for the week after that I want 1.25 ticks, okay, and So that's one way. I don't just keep the same goals every week and so Whatever I did wrong the previous week. That's what is my new goal You know, like the one that we talked about there, you know, I wasn't able to Continue to be aggressive and I got complacent and that that was a problem in a you know If I'm making money in a trade I want to I want to capitalize on it and keep the pressure and And continue to push because my rest my risk is is Pretty much mitigated Okay, let's see here Okay, Nicholas is asking about your a total monthly fixed trading expenses You mean like how much you pay for data and yeah internet connections platform costs data, etc Probably around 120 bucks. I do like the DTN IQ feed for my data because even though I'm only trading the ES. I want to see several different markets and Let's see. I like you know everything that book map has to offer so I pay the extra 50 bucks a month for that complete package And you know like I said, I think that's indispensable and the amount of money that you know, that's gonna make me Just by having it as a big deal. I mean I that I can't I can't do without those Okay, sounds good. Let's see here so During the presentation, you're looking primarily at book map. Are you doing that during the day as well? Yes, I actually my computer is an all-in-one desktop Computer so the screen that has my book map. I need I need that screen to Run, you know as smoothly as possible and the other screens are just up for reference I mean, I want to see the investor RT as we get closer to Certain price action points of interest, but I'm focused directly on the book back platform for pretty much the whole time Okay, and then are you Reviewing and Providing notations within book map, you know at the same time or you just you you just do your homework without the notations Yeah, no, I do the notations on the side on my daily trade log And I just have it set up in the small corner there that you guys saw at the beginning so that I can just quickly Hit the time and my comment and get back to what I was doing because I don't want writing a comment to to you know Keep me from seeing something in the market or something like that So I just try to make it as quick as possible and then at the end of the week I'll go through and you know print all of that out for the week so that I have something As reference while I'm looking at the charts outside Okay, okay, let's see here Just some other questions that I They're more personal for you, but Based on I mean, it's more about your capital how you are How much you're putting at risk? percentage-wise How much you trade and then diverting the funds for longer-term investments or our options place I don't know anything about options I'd love to maybe that's something to look at at a later point in time, but this this is all I'm doing I'm looking I'm out at the end of the day. I don't hold anything overnight As far as what was it was beginning of that um Yeah, how much of the the the capital base you're using percentage-wise I'm using I have a daily limit of about two percent of my capital and I only like to risk one percent in any given trade But I don't even like to do that. So I like to you know, I put that first trade on and I want to be able to Move my stop as quickly as possible to mitigate that risk because even even if it starts moving against me and I add on to scale out at my original entry For example that drives me crazy that I'm putting on so much risk But it's a it's a necessary part of it I think because otherwise it'll just go back and stop me out for full one contract instead of having a better Entry really Okay, and let's see. We'll end up here Brian is asking about them Your if you're achieving consistent positive expectations is account size the only issue for increased profitability No, I don't think account size is an issue for increased profitability You know I like I said, I mean it doesn't matter if I'm trading with a $10,000 account or a $5,000 account All I need is is one or I really need two contracts. That's all I need to be able to be profitable and You know as long as your risk reward is set up correctly then you can Jason Love talked about that yesterday. You could be wrong 20 or you can be right 20% of this time and still be profitable So I don't think that Isn't taking into account really at all right, okay, okay. Well, I think that's that's it Thank you very much. Daniel. That was just excellent presentation And thanks lots of lots of good stuff I hope that you know everybody I hope that you've all been able to find something helpful in here There wasn't a complete waste of your time and I look forward to collaborating with each of you in the trading community And like I said, please feel free to reach out to me Whether it's online or over Twitter or Skype or you know, you want to get up for beers and sketch on cocktail napkins I'm always down for conversation like I said, so if you have any more questions like I said men reach out to me and Thanks again to Bruce and Sahi and everybody at bookmap for bringing me on. Yeah, lots of thank yous coming in so Yeah, much appreciated. Thank you very much Daniel. My pleasure. Okay. Bye guys