 the YouTube stream. Good morning Marius. Good morning Stephen. We will start momentarily. Want to check YouTube is working. Good morning everybody. It's 8 a.m. on Wednesday the 10th of January. Welcome to a Wednesday hour of power. Breakfast hour. Hope everybody's having a good week. The markets have an unusual flavor in January and I don't think that would necessarily come up on the back test so we'll chat about that a little bit later. Let's do the disclaimers first. Okay. All book map limited materials, information and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations. Trading futures, equities and digital currencies involve substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. Okay and that is the live picture there. I did a screenshot which was to show these sell icebergs as a target that's in the Discord channel. The caveat on that which I have mentioned I think last week or the week before is that when you get multiple of these it reduces the probability of getting this one filled or in fact getting all three filled. Sometimes it happens it definitely did happen at the London Open but it seems to reduce the probability if there's one only there's a good chance that the whole thing will get filled and maybe they'll go a little bit higher and again I only use these as long targets. I don't use the opposite which is by ice as short targets. Anyway as the market chops around and it's on a nice little down run at the moment after it had a stonker high let's go through the slide show so we can put some context behind what we're going to be watching today during our hour and there is no real news so let's anyway let's do the slideshow and welcome to everybody by the way on YouTube. Let's get that up and running. Good morning Chris. Good morning to you. Okay so let me get this microphone smack bang in the middle as well. I'll try and speak slowly. As you can see on the news I'm pretty sure that is there let me just check on YouTube that's showing. Yes it is. Okay there is some news at 10 and at 10.30 this is Eastern time New York time. It's the final wholesale inventories and crude oil they're both in the yellow not the orange or red i.e. the lower priority importance so we'll take those with a pinch of salt whether they'll add any volatility and note that there is or there are no economic releases during this hour so we're just going to get the usual just nighttime games or breakfast games but nothing news related I expect in this hour so that is the news let's move on. Okay right the ES daily I put this on the candlestick sometimes I do sometimes I don't again I'm not a candlestick trader but sometimes it's nice to see the tails of a rejection like the rejection at the low there. What is important here is that on the daily for ES which is what this chart is that we got down to that previous high and that we strongly rejected and we had a very strong Monday session trend up day that has taken off or the couple of days since Monday and Tuesday have negated more than 50% of the rally you can just do a mental estimate just looking at that chart so that is important and the next one which is the NQ even stronger so definitely over 50% since the NQ really led on the way down it is interesting to see how strong it has been on this way up so all bearish thoughts we had of having a really really bearish month are currently out of the window so the better trades this week have clearly been longs you know Monday was one of those days where if you'd managed to get in early you could have just left your trade on and gone and had 15 cups of tea or coffee and come back and you'd still have been absolutely fine so it was one of those trend days so things have changed basically this week is what I'm saying if we have a look at today's ETH session you can see this great big rally up to up and through the yesterday high in NASDAQ and up and touching or just taking out with an upthrust yesterday's high in ES so just showing you that they were quite a bit of range and that the usual dance routine which was chop around to go down slightly in Asia and then when London or Germany opens they firstly tag settlement and then they have a really really good rally and this one went all the way up to yesterday's high and I just want to talk about that on January and I'll do that after the slideshow when we get on to the TPO's so let's keep going this is yesterday this is the RTH session across the market I just want to point out NVIDIA and Apple I suppose NVIDIA in the last few days remember during the the big down move at the beginning of the year NVIDIA was one of the culprits it really sank but in the in the last week it's back up I think nearly 8% the so then one day is nearly 2% but over the week 8% so the AI fueled rally from last year is well and truly back a foot Apple had some antitrust downgrade issues at the end of last week but they had some good news on Monday before the market opened they announced their Vision Pro this new semi virtual reality headset and that seems to have contributed to the the good feelings all around in the tech sector and the bullish moves we've had this week so just bear in mind those two stocks there I mean you can see all the other ones in Amazon etc but those two really have been in being the the flavors driving the market down and now up and just a quick look at the relative volume so you can see we've had 100% plus all day and you can see in the ETH range ES has had about three quarters of its range NASDAQ had five sixths but 100 points in ETH so far that's very very good and it does mean some tradable type action okay let's finish that one and let's go over here and whilst ES has now had a little turn or a spring and it's now moving back up again towards those three sell icebergs we can look at the TPO and we can we can talk about January as well so if we get to the TPO and I might need to squish this one in so this is the trend up session I mean let me just draw that that's the Monday trend up session in ES it's got its automatic time I think which is very annoying so let's draw it again that's the session there so there's something I do want to point out and this is actually directly related to it both in ETH and in RTH in January I'm still disappearing on me let me see why is it doing that okay we're trying to draw it one last time let's hope it stays there this time in ETH and RTH in January the markets although we don't have much less depth I thin this in the actual order book than we do in December in the lead up to Christmas you get very very different moves if you do sort of random back tests of January and you look at ranges and stuff this would not become totally apparent you actually got to live trading regularly in January to notice that this can be a completely evil month and by that I mean that they really use this lack of depth of the order book to make huge moves so I think it was a couple of years ago two or three years ago and there was a big big down move through most of January they had some stellar days you know where it went down three or four percent it's strange because it's not much thinner than December but it's just they choose this maybe because they've wrapped up their end of year books and they're working on a new year this is the big guys I'm talking about they just seem to choose January to have some of these huge moves and you know bearing in mind if I draw over here that just under these tpo so the market is either doing that which is balance you know that kind of action of balance or it's going up or down right this is more pronounced in January so you know you can have really really choppy spells and then you know like at the open today in Europe or the open rth in Monday you'll just have these rips you know where I think it just ripped now is that rip 300 points basically non-stop once it got going just after the open on Monday and you have to be aware that that is the nature of January it is horrible if you are wrong-sided so what am I trying to say I'm trying to say this is one of the easiest months in which to break your account right if you do not off if you do not accept semi-randomness and you do not accept that you cannot predict the future and thus you do honor your stops or if you do honor your stops you're fine if you don't honor your stops there is a tremendous amount of danger this month I can't understate that one you know in fact just look at Monday look at this session mate we're going to go back to the London open today because this is mainly a technique session and we have lots and lots of time today so we're going to look at the fact that they can drive and one other thing that I do need to say in relation to that is that when it's in this choppy phase this is the best time for some of your technical edges to be used you know for example small unfinished auctions or small poor highs and small poor lows when it's in this crazy drive up or drive down move in January all of those little technical edges tend to get thrown out of the window you know they might come back to into play after they've had these huge moves but your account's dead at that point so you just got to be aware that the you know once these moves start don't overstay your hand if you're trying some of your own technical edges which you've done some good back testing and have worked well in choppy in choppy sessions they they're not necessarily going to work well in January and if you are a day trader unfortunately you have to experience all the different types of markets that you're going to have to trade in it's not one type of market so this one is quite different anyway that's my rent for this morning so let's just get rid of that and let's look at the TPO properly and what do we want to do here let's just blow up yesterday's rth so this is one of the things that we would like to point out which is that the afternoon session is essentially this right this is this is the um es afternoon rth session and if you look at you know you can see that there's not really a balance in me it's it's like a double balance you know double distribution in the in the yesterday's afternoon but if you look at what value that gives you for the eth session coming into this breakfast hour yeah let's say we cut off this eth session around about 8am new york time basically the time i start talking but if you you know if you'd have been practicing looking at what kind of distribution that it is or was in play in the afternoon session of the rth beforehand that often gives you a lot of a guide you know both in terms of how far the range can get extended and you know where are the the lightly edges or boundaries in that and obviously it helps if it's a really lovely distribution more like that but this one again you know it can work even when there isn't such a beautiful distribution so that just something to bear in mind that that's something that i do talk about regularly but it does come up regularly and it's it's one of the reasons why you know if you're waking up and you're doing your prep and you're trying to trade asia or europe it is worth doing your homework on what happened in the second half of the rth session okay let's get rid of all of that and reset that chart okay so we came down essentially in asia and we've bounced and we're just chopping all over the place in this and we'll have a look at you know we'll drag the heat map back towards the german and london opens and look at that okay nasdaq we can do the same again i don't think it played out as well so it's not nothing's perfect in these markets or in any markets but we can have a look so what can we see from the nasdaq afternoon session what can we see we can see this right and until the breakout past yesterday's high that's where it did play and then you know with these extended moves you get in january it went on a run and kept going for quite a bit further and again you know if you're not honoring your stop you can suddenly rack up a huge negative balance on your account so just bear in mind that this can give you some guidance but it doesn't necessarily mean that they're going to turn around there even though we're back in this um yesterday afternoon balance now um it went a lot further and let's let's expand this so ditch that go back to this drag it down a little bit so um if yesterday's high was around about that 16 8 16 6 16 8 6 8 um yeah went up another 50 points that's enough to cause real damage to you and by the way i do apologize i've forgotten to change the settings of the font in the heat map so for some people it wouldn't be very legible my apologies probably the second time i've done that this month there you go so it's all should be all legible and easy to read for everybody now okay let me just check there's no questions oh wow somebody's come over from Uganda well welcome to the youtube channel um yeah this is not one of those scammy channels this is a channel where we accept the randomness we accept we can't predict the future and we just try and do the best job that we can in light of that so that's what this channel is really about so let's reset all of that okay so um all the levels marked um you know the basic levels and things like the gap will appear automatically in the cloud notes column of um of the heat map so you know if i scroll all the way up you can see that gap up there at 16 9 40 and you can see some heavy liquidity on the way to that gap if we are in a really bullish phase now as it looks like we are then sooner or later we'll get up get there not necessary today but sooner or later we'll get up to that gap most likely again we cannot predict the future okay so i think this is one of those occasions where we do actually have a chance to now we'll we'll spend a couple of minutes firstly looking at where we are now and then yeah let's go back in hindsight and look at what was available and the types of trades that would have been around in the first couple of hours of the german or the london open and also because it's a little bit slow this is also a good session for asking any questions that you want you know if there's anything in particular that you want me to cover so yeah there's two points i've covered already which is just the nature of january just with these extended moves or heavy chop and then very extended moves so basically accentuating what you might see in a normal month but the thinness making all of that even worse and harder to trade than it ordinarily would unless of course you're lucky and then you think you can magically win every trade whereas the rest of us are more accepting of the nature of what trading is really like there's something else as well that i do want to cover when i'll get to that a little bit later which is just the types of order i know previously i've i've stressed that most of my trades in eth in nasdaq have been market orders i'm going to go through all the types of orders that are available to us and talk about some of those just in case some people don't use them and why you know it might be worth researching whether any of the other types of order other than limit and market might be useful to you in trading a thin market like nasdaq in eth or even a thicker market like es in eth okay so i think the first thing we can do is drag back es so let's start shrinking it this is the unfiltered heat map and just quickly recapping the columns yet there are no dots i'm yeah i've stopped making too many comments about them feel free to put volume dots or delta dots on your own heat maps i just choose not to i've got lots of tools for looking at volume and i prefer looking at naked heat maps right so let's go back so we've got a a chart volume profile on the left you've got a delta profile on the right which is simply the r sub volume minus the bid volume you've got the order book on the right of that which is just the numbers in the order book and you've got cloud notes which is every shaded level that i drew by rectangle on my tpo i know either es or nq appearing over here this is the es one and for nq it's over there so that's what these columns are in a nutshell and the silver gray line is just price and because book map goes down to the absolute millisecond several nanoseconds we can see all those sweeps and every other nuance of the price action really really well in book map and for this purpose it's even clearer because we've got we're not obscured by any dots okay so i have scrolled too far and let us get into here okay all right the first thing i want to highlight and i'm just going to drag this across so you can see one o'clock am new york time so this is before the german open i'm just going to show you when a couple of by icebergs appeared in the market and the type of action to get there so the very first by iceberg appeared here 151 so that is the pre open for the decks so it's the german pre open by the way we can watch the live action over here in in nasdaq and you can see this heavy liquidity this is the filtered heat map so this is only showing static orders and you can see this block of liquidity at t plus one which is yesterday's settlement so you can see price chopping its way back down there anyway the first thing i just wanted to point out with something that i've stressed that i don't trade because i've never seen a particular edge in it and this is these by icebergs being used as targets for any kind of short right remember when if i scroll back when there was any of this kind of action and if you know if this has a name it's of a price action it's obviously a head and shoulders you know you've got a shoulder you've got a head and you've got a shoulder that's all hindsight stuff so it's completely irrelevant um ditch all of that go back to this okay so when when this first appeared um this price action you know if for example you traded this up thrust here so this is one of the supply and demand trades that i look at which is a failed breakout into a block of liquidity so that is is there when that trade was available which is right here between one 130 probably about 115 um this resting by iceberg did not exist this only came into play at 150 a.m right so that's just one point i need to to make before we get to that iceberg okay and then if we come across we have two icebergs that appear very very close together four seven eight six and four seven eight seven right just get rid of all this other stuff okay what i do not use is these by icebergs as a target for a short so we've got price here we've got some liquidity there we could say shopping around there we imagine some kind of short with a target of these two you know taking out both of them you know firstly you'd have to have a risk-reward ratio i think i showed on that spreadsheet last week you really need something greater than about 1.16 otherwise you're not making one to one after commissions but anyway uh what i want to point out is that you know you get this you get this liquidity there it goes through it and and then it stops so you think you know maybe it's a double top here or it's into this supply zone here and and you've still got at this point let me just go back here at this point here let me just draw this point you've got essentially a nice little double top into a supply zone which is this little zone there and you've got two you've got one and two by arresting by ice and you could say why don't i use that because i use the the opposite which is the the sell the sell ice as a target there are a couple of reasons and i'll go through those well the first one is that on all my back testing there's no edge in fact is less than 50 50 of these will get hit so why would i do secondly these are equity indices and if you look back over time since the you know since the beginning of time that the Dow Jones or whatever you know all the predecessors to the nasdaq 100 and the sb 500 have been trading they tend to drift up over time so now even if you go back to the beginning of the 20th century say 1900 and you just look back you know they do have down things but over time they drift up right so if the market drifts up then if you've got a technical edge technical edges that are on the long side of the trade are always going to be better than technical edges that are on the short side that's a general rule but on this occasion it does apply based on my back testing let me ditch all of that right and the other danger is that you know we looked at the daily action we looked at the big bars you know the huge uptrend day on the Monday the relatively strong session yesterday in rth and the fact that it closed in its upper half and you know that on those kind of sessions the the key levels that are most likely to be tagged in eth are likely to be settlement and yesterday's high just because it's more bullish than yesterday's low although there are lots and lots of exceptions to that i'm just talking about as a general rule so what i'm trying to say there is that if you're shorting down towards these two icebergs and you've got settlement which is just here oops wrong tool just there and you've got yesterday's high just up there you could get yourself into a lot of trouble and if you look back at the eth session in terms of by the way nasdaq is chopping around but slowly slowly slowly getting towards of this if you if you look back at the opening ranges i suppose i'd call it of the dax open and then the footsie open in other words the 2am and 3am new york time you'll notice that the biggest moves you know if you go back the whole of last year and look at every single individual move the biggest moves or the scariest moves were the up moves you know that didn't necessarily have huge volume but they just kept going like that all right and that is what happened in this session you know sometimes the cell moves will have huge volume you know if you have your volume dots or whatever like the one on on monday there's plenty of volume getting it to it's friday's rth low but some of these buy ones don't have that in eth don't have that huge volume but still go up and up and up and up and never stop okay um so just compress that a little bit just to clear clarify what it was that was coming up which is this yesterday's high there so you're playing towards these and say you've got to stop here and then you don't honor your stop what happens right so you've got some liquidity there that you can see and remember we can always zoom out and get this picture that you often see on some of those channels and you get this ice here when this ice moves and you see it move and just that's a sweep by the way in nasdaq that's a lovely suit some of that should come back on an 80 percent probability basis it should come back maybe not all of it but it should come back facing the only negative that is that we had a sweep down and now we had a sweep back up so i doubt i'm not sure whether all of it will come back anyway um i'm talking about two things at the same time like i did the other day and i must stop doing that um but if i focus again on these buy ice when you see a buy ice which you're seeing there patiently for quite a few minutes and then jump and it absolutely jumps from 4787 to 4790 50 this is the initial jump so that is 3.5 points um that is a strong indication of which side to be on okay so there is edge that you know there is no edge playing towards these on the short side that i've seen but when they move like this that i have seen is a strong indication of immediate current direction not not necessarily going to last forever but you know on this occasion i think it lasts for a good 30 minutes to an hour so then if you go through what happened now we have something that does have an edge on the ice side these two these as targets all right and then a third one i get a bit nervous when i see three of them because it reduces the probability if there was just one there the probability is over 80 i believe that it'll get tagged or within one tick of it being tagged but when you see three that goes down a bit um and then we just watch what happens you know if you're going to play towards them you don't just put on a long a limit or a market or whatever and we're going to go through those order types in a bit you wait for some setup and if we're looking for a setup here is a good example this is a spring there is no great big liquidity bank there and now nasdaq is going the opposite direction from that so yeah the fact that you had this sweep there kind of negated this sweep over there so i hadn't seen that sweep there when i started looking at this one so i was being blind sometimes you have to look a little bit further to the left after you see a sweep to make sure that it isn't just a reverse of a previous sweep which it was in that on this occasion anyway um so these are the targets and this is the entry which is a nice little spring and a tester spring so you've got one and two so you know you could have either got in there or you could have got in there so you got two really good opportunities you had nasdaq really really strong at that time and you had some resting liquidity being magnets up above now that is a good setup you know regardless of the fact that we didn't have nice heavy liquidity protecting us so let's ditch all of that again and we're just seeing what happened and then they absolutely ripped up so i'm just saying that if you back test this and you can only back test it on one platform and i'm not i'm not here to try and sell or spruke anything but i can't find a platform that you can um you cannot you can back test this in a way that you can do with replay in bookmap i'm doing a static replay now but you could do exactly the same thing with a replay of a session that you've saved i recorded in bookmap these npo's will appear to my knowledge that's what happened to me the other day when i did replay them they all do appear again so you can see these and you can make your notes when you're replaying a session much later so that is a good indication that it's like to continue up you've got this lovely liquidity here and it rips right through this you do not know it's going to do that all right you cannot predict the future all you can know is that it is likely to take out these resting ices and then if you've got something left after you've hit your main target you trail it as long as you can okay on this occasion we keep going just finding where it did actually end up yep so it ripped all the way to yes days high as we saw on that 10-minute chart and now we've seen by the way nq this is um so i'm going to switch over so you can basically we've covered this um the buy iceberg move the sell iceberg targets and the rip up into yesterday's ice we've done that one meanwhile i'm missing live action to talk about so what did i say previously i said we had this magnetic resting liquidity what happened on the way to that magnetic resting liquidity is typical of this time of the year so what i'm saying is it's absolutely horrible choppy action um and the the best setups to get when it's really really horrible uh type action is a double top or a reverse spring or up thrust so if we zoom into this and we take our pen and we draw across yeah that's either a double top or a one tick up thrust and that is usually um the best kind of um range bound type short action that um that you can trade when it's really really really choppy so just and even that you know if you'd have taken that you know you may have you know you may by then have moved your stop um right at break even and you could have been taken out there because there was an even better two tick or three tick up thrust right over here and that was the one before they absolutely bombed it back down to that resting liquidity at settlement so you know what has happened here with this horrible choppy action um this is different from what we looked at in December even during our news releases so it's something that you know should be born in mind that this type of real chop or or extended vertical moves and that's not vertical but something like that is almost vertical are indicative of this month and you've just got to be wary of them occurring because they occur a lot during january okay right i'm just going to do a time check 8 33 okay i'm also going to do a quick question check nothing there just a good morning good morning good morning veck uh check that there's anybody with us yeah there are quite a few people with us so i'm very welcome to those of you that have joined us for a fairly quiet session today we haven't got any economic releases excuse me for coughing um and one of the things that we tend to do as well which i've forgotten about in the session is also to zoom out um so one of the beauties of the filtered heat maps and i'll just get to the filtered heat map for es is that i mean how i normally actually have it set up for myself is that i'll have the filtered heat map zoomed out at the moment what's that 4828 down to 4761 so you've got 65 or so points there whereas if you're using this one how i normally have the unfiltered and i'll have a hot key which is just a key on my keyboard to toggle between the two if you're not aware of the keyboard shortcut in bookmap it i've i've taken them out of separate windows and they're grouped together by separate application but it's the same shortcut for me it's controlled tab to to move from one heat map to another so i've got that in this application called groupie which is just a dirt cheap little utility that i use when i want to group applications together and it's quite useful for this webinar as well um okay so i'll normally have the filtered heat map really really far out vertically so you know 65 70 points can be can be quite typical for me just so i can see a really wide range of where that liquidity is sitting in the book and then on the unfiltered one i'll be down to about the a one minute separation on the actual heat map so be something like that and then only 12 or 13 points on the actual heat map so something like that uh and then on this occasion because it's is relatively dark in the middle i'd increase the liquidity a little bit just so that it was more visible you know this is more for um a second to second entry stalking purpose and this one really is a completely different timeframe type of view and it gives you a much bigger overall snapshot of what the market's been doing during the day okay and it's also another good example of showing how these sweeps can work on another timeframe so what we'll often do is we'll look at some of these sweeps these little vertical sweeps yep there's a vertical so you can see it just trades through three price levels with straight up without any trading trading on the intermediate steps those are most often retraced in ES that's too small in my view to to do the fade the retrace back even though it does virtually get there but you can get some really good examples in ES and some amazing examples in in queue um but essentially that's how i like to have them together um a lot of people do like the dots so you know if you are scalping one of the ways of doing it is to have the volume dots visible and if you have it on this kind of timeframe which is five minutes or so with a one minute separation um those volume dots with the the pie the pie showing the delta separation you know that you can see slightly more buyers or at ask then at bid on that one and lots more on that one they're quite visible at this time of the day i mean when you get into rth you you'd have to you know you have to zoom right in for those not to be annoying but um i mean that's not too bad but i hope people can understand why i don't ordinarily show them because we don't normally watch the market on a second by second basis like some of these youtube people present okay but i can leave it on there for the rest of this 30 minutes so that is how i normally have it this filtered heat map i find most useful for nq um i find that the magnets are really really effective in nq and the sweeps are also just as visible on this um zoomed out heat map as they are on the um on the unfiltered one if we get into unfiltered one i've said before you've got these algor bands which make it very very hard to have a zoomed out picture and you really really have to zoom right in to sort of like two and a half minutes um maybe even like that for them not to be painful to the eye and the painful in the sense that they don't interfere with what you can perceive and remember when we're discretionary traders and we're using things and we're using our discretion um Adam Grimes who's one of my mentors said that the more color or the more the more things that you put on your chart um the more that your visual purity has to perceive in other words the less you put on your chart the better for in terms of actually discretionary stuff because it just means you have too much to look at too much to process it with your brain so that's another reason why i don't often put those dots on for this purpose okay right um education time or just another little um chat about something that we ordinarily do on Wednesdays so i where have i got it i've got this okay um and we can keep watching this live yep we can keep watching um yes over here and we can talk about this action over here at the same time that we talk about each of these okay and before i go through all of these i just want to highlight again to people why it is um and let me just go back here um how vicious nasdaq can be to get a limit fill so what am i saying i'm saying that there is a lot of vertical and semi vertical price action and remember this is book map where you can actually scroll down to the near nano second so that you know if you're trying to get a small show i'm i'm just doing an imaginary example here it's very hard to get a limit fill and if you get a market fill you might be a point a point and a half down um i showed some results of the um the apex thing that i did a couple of weeks ago right i for most of the that um that the the week and a half that i did that one um i entered at market right and the fills were absolutely dreadful and this is why we're going to go through those auto types in the second and when i say dreadful i mean that um let's give an example here that you know i might try and enter market here which is eight two seven zero zero and i would get filled at here so i would be getting a spread from rhythmic apex of two sorry that's a very bad two two points right which is minus eight ticks before you even you know before you before you even give your trade a chance to work for you so you're right at the get go the very very start of your trade you're down eight ticks and if you don't believe me um try entering at market when the nq is volatile really thin like this during a european session and then i think you might believe me um so that is not necessarily the best way to go forward why did i always enter at market right um in terms of where my scalping origins come from i've done a lot of scalping in other products and i've scalped es and i've also scalped a lot on crude oil futures right with crude oil futures and the scalping strategy that i pursued um you had to enter at market and you normally had a spread of one tick so it was entirely viable i'm talking about the it was really this breakfast hour it was about from about eight o'clock to about ten past nine just through the crude open um that was that was the kind of time maybe a little bit before eight o'clock but maybe seven thirty um but the market the market entries were about one tick wide via via spread but when it's minus eight um that is huge it's absolutely huge um and that also impacts how you get out of this trade um so yeah without further ado let's go through some of these market orders and talk why it's it's worth doing some research on those to find different ways of doing it especially if you are interested in any of that um that prop challenge rhythmic semi-sim stuff or is and really um and they may well approach i don't i don't use rhythmic for my my live live trading um i i use another service so i use rhythmic really i mean to illustrate all this mbo stuff and these stops and i suppose it's absolutely great for that but i wouldn't necessarily say that rhythmic sim or rhythmic prop trading is very very good for fills and longevity of a career in small swings in nasdaq in fact i doubt it um let us move on let me just get rid of all of that okay so let's go through some of these order types where are they okay so um i'm going to say some very very very obvious stuff uh when we quickly skim through this list and i'm not going to talk about all of these different types and there are more and i know there are more i'm only covering a few of them because one we've got limited time and two some of it's not overly relevant and some of it's really more about targets um once you're in the trade then then necessarily getting into a trade which is what i'm really focused in on this discussion okay so what did i say let me give my pen again i said that the most frequent entry that i've i've been doing for scalping especially in crude is market so if you've got um here we we have markets say if i was in es right now and i was buying i would be buying at four seven nine two because that's where the sellers are right that is not necessarily true in nasdaq because the spread is so wide like that so um so you with with the market long it's it should be where the um the lowest or lowest um at ask price are you where the sellers are willing to sell the cheapest they're willing to sell at um with nasdaq because it moves in a fraction of a heartbeat you can't actually watch this because it will have moved already so you know i could have said always at four seven nine two but with nasdaq it would um that seller price would already have moved about 15 times in about two or three seconds so um it's hard to say it's it's the price at which the the sellers are willing to trade out because nasdaq it's the price at this absolute instant in time but do i actually think that is the price that you get filled on those prop challenges i'm not so sure i'm being a little bit cynical but i'm not so sure um when i watch the dom so you know you know if i if i'm watching the dom in book map or in seara wherever i'm doing and i've watched it for absolutely years and i'm talking about for m e s and m in q and e s and and n q um the most i ever see in terms of spread other than during a frantic bit of news is four ticks right that does not explain and it's usually two um sometimes three this isn't this is nasdaq this is not es in m e s because it really is it seems to have as much liquidity as es these days it's one or two in es m e s um so it doesn't seem consistent with getting a market where a market filled where your minus eight so you know why are we going through this list to talk about other ways you might get in to reduce the fact that you're down eight ticks within one millisecond of entering into a trade so let's focus maybe and go and keep talking about this okay so we've done market limit is just you know if you've got a limit order at four seven ninety to buy it's you'll only be filled at four seven ninety okay that that one is simple a stop is uh it's either a bicep or a cell stop that's normally at market um where it doesn't have a word after it normally means at market so if i draw that back in stop without the without the word market normally means it's a market stop so a buy stop you know if we're here at four seven eight seven five a buy stop at four seven nine one fifty means that you'll enter a market order when price gets to there um normally if your platform is fast enough you will get in at that price sometimes your platform or the market may be too fast and you'll get in at the next price in es in nasdaq if you enter into a market order for when that comes up here you could still find yourself minus four five six seven or eight ticks down so that's what a a stop is it's a it's a buy above or a cell below the market okay um and yeah let's get on to the ones that have more relevance to how we can actually deal with nasdaq being a beast okay the next one is i'm just going to highlight the ones that have some potential here it's these two that i think i should spend especially since we're coming up to 10 to 10 10 minutes to go let's focus on these two orders and how they might help your strategy of getting in at less than minus eight ticks in nasdaq and i'm talking about worst-case scenarios okay so the stop limit and we use the es dom again as an example right so you might be setting your stop to buy at four seven nine two fifty so it is completely dormant until price gets there right and depending on how that actual stock limited structure and it depends on what your what your um platform gives you by way of options you might be entering by way of limit so you might actually be entering in at this price the the best bid price once price has traded at four seven nine two fifty so you might actually get in one tick lower if it was es so that's what the stop means it means the the market has to go and get to that level which will be above if you're going on the long side and then it'll be a limit so you you're entering a normal limit order either at the best buy or it might be limit you might have a stop that's activated here and you enter in at a limit of say minus three ticks you know you can structure them in quite clever ways um if i you know if i went through all the keyboard shortcuts for example that sierra gives you to get you know to customize things like that stop limited it's it's not funny there is a plethora of options and the one um the other one that i really really want to talk about which is the one that i'm looking at a bit more at the moment is this limit touch chase and i might um let me get this i might actually read a definition of it as well just to remind myself as we go through it but let me just ditch all of this as well i do apologize if this is boring people from what we normally do which is look at my new action on the order book um a limit touch chase if you're on the long side imagine this is nasdaq and so nasdaq is doing this kind of action right and say you are interested in going long when it gets to there right your problem there is even if you are waiting patiently there and you and you and you're the right there and it gives you the exact set of triggers or single trigger that you're looking for and you press your market button you might be long there right so you might be long there and price may really still be around this bit it's just the nature of those fills in nasdaq what this limit limit touch chase does and there's a couple of really good videos on youtube about this so so please please feel free to google about this specifically or go and read up about it as well you know go and read written pages or text pages they're just as good is that you know once um once price touches this level that you you know it touches this actual level that you're watching that you set it as your limit touch level um it will quickly chase so you can say i'll if it touches this price let me chase say up to three ticks right so that you will then get a limit order one two there so that they will either get filled there or there or there so that the worst that you'll be filled is say two ticks above your you know ideal price you know you might get filled at that ideal price but um the platform will quickly as in instantaneously move your order your limit order from here to your limit order to being there to being there to being there so that um so that um you know so that you still get filled at a really really good thing so you're basically talking about minus two say if you've done it that way versus minus eight right and you may say well you know um i had a great entry it's a great um you know it's gonna it's gonna go miles the nature of this market is it is choppy and it is random and that minus six tick difference might get you might get you in terms of your stop it might get you in terms of not getting you the um the R multiple target that you want to achieve you know just just that six differential in ticks so that's why it can be so useful you know and why i am encouraged i'm not recommending because i don't recommend anything but why i'd encourage people to spend some time to research the the different types of orders that are available to you to deal with really thin nasty choppy markets especially when we're in this January phase so that was my quick version of that and as cmj's just said in the discord channel you can also use it to um for your target so say you got in here so you got some magical price here right and you're targeting um up here right um and price you know grinds its way up there right um and you want to get out with your sell here right but price immediately rejects that like that so you could have that as your target so that you could say i'll have a limit touch sell chase or a limit touch chase sell order here right and the maximum chase is three ticks so that you know it touches it touches the sell ice but immediate rejects go straight through three prices and you will hopefully if your platform is fast enough you'll either be filled right where you want to be or the next level or next level or next level down so the worst you will be off is is three ticks off your desired target level and that's how you'd use them both as an entry mechanism and as a target mechanism and again i mean there are two things i mean there are lots of things that can kill your trading right but two of those things will be commissions and slippages right and slippages is a four you know i mean whether we ignore you or not there is a level of manipulation in every one of these trading markets and uh i'd be rather surprised if there isn't some level of manipulation in terms of the the poor fills that are achieved in some of these um some of these prop challenges but it is perhaps me being a little bit cynical but that is my experience from that those eight days i did that challenge for and i think um you know from talking to some of the other people around they've had very similar experiences of the the poor fills you get on market orders so it's just just something that you might want to investigate if you're trading nasdaq futures in eth and also in rth but in rth when it's this thin and choppy i mean es may be your better bet for rth because es normally moves in january and it'll probably give you the kind of range in rth that would mean that you do not have to trade and the crazy beast that is nasdaq futures in rth i'm just saying that it should not be one of those months where in rth es only moves three or four points for the entire rth session that is not the case at the moment in fact if i look over at my um my relative volume statistics or not relative um range statistics um for rth for um yesterday the last 10 trading days that includes december is 41 for es for the whole of rth and yesterday it achieved 37 so i think you know as i said on monday nasdaq was something like 335 350 or something like that so i'd rather trade the market that was the 37 points than the market that was in the several hundreds it's just um that uh what nasdaq doesn't eth is is great but when it moves to rth it can get extremely dangerous okay now a question in um youtube do most brokers offer thrust exotic or sometimes it's actually the platform you know um this is a question from ralf ralf bud um ralf you know we just talked through the limit touch chase order as far as your broker is concerned you know i'm giving seara as an example because i can enter it on seara and i can do that description straight off seara for you but um your broker will only know that you entered by limit he or she or they will have absolutely no idea that you used what you call an exotic order in terms of the brokerage it's just a simple limit order um what they what they would have seen you know if they'd watched you like a hawk was that your limit order moved instantaneously through three ticks to make sure it got filled as a limit order but it's still a limit order it is not anything other than that so you know if i if i if i don't have had time to go through all of the different types of orders i mean most of them are you know i mean if we look across at nasdaq you know there's only two ways you can enter here you can enter at market or at limit so the a lot of these exotic orders if not most of them are just um convoluted or clever ways to you know to get the best price possible you know at limit uh and they're structured in in such a way that they use a slightly algorithmic or program programmatic approach to get you that best price okay or the best price that would be available for you given the light of the beast um you know the the choppy market that you might be trading um i hope that answers your question t46 what are my dot settings i don't really um use the dots t46 but i'll show you what's in yes i mean i'm i put these dots on because if i was using this more as a scalping flat form and i i think i explained the with nasdaq t46 i'm mainly looking at it on the filtered heat map so i'm looking at it like that and a lot of the time in es i'm also looking at it like that right so that the dots are only going to obscure things but if i was going to use this on a one two three four five minute basis you know so the entire span of the heat map was say five minutes yeah i'd have these kind of dot settings which are let's have a look at them wrong thing let's have a look at the right one okay sorry about that okay so on this one i i've turned off all the clustering um so there's no clustering um yeah i don't fully understand the algorithm and i like understanding algorithms um i love coding so i like to understand any form of smart clustering or aggregation and if i don't know exactly what it is i don't tend to use it but this is just filtering it down to only 50 displayed volume so there has to be uh 50 volume in a dot for it for the dots to actually appear and these are volume dots not delta dots and that's why you get this little pie segment like a pizza on each of those dots um the problem that you're going to find is that um as we get into rth and you know if i let me turn this off let me let me show you what i mean rather than anything else so you can see the whole of es there and again maybe we should just blow it up so it's it's the entire thing okay so you so you've got it and we'll zoom out as i go down and we get more and more and more and more and more and more of these dots whoops i keep going down i keep going down i keep going down i'm going down all the way to one and these are volume dots right and we can always turn them on to delta in a second um i lose perspective on what it is that i'm seeing and what i was saying was that when i'm a discretionary trader and i'm trying to see something rather than being a purely objective or algorithmic trader um i need whatever it is that i'm looking at to be absolutely crystal clear and i find that in that filtered heat map when we zoom out and without the volume dots that is pretty darn clear to me but when i'm having a look at this i'm not under percent sure i'm not that sure of you know on this little upswing here um you know it looks like most of it was buyers but that's just me saying that i get that information from the delta column or the volume profile column which is the total volume i get a very very good picture so you know if we zoomed right out on this one you could see get right into this one you can see that this is nearly all sellers or vast majority of sellers on this little section of heat map but i'm not necessarily getting as much clarity from the dots itself sometimes it really helps when you see those huge trades coming in there you know maybe they're absorbing those buyers there and um or maybe the buyers are getting on board for a big push up i don't know because i can't predict the future on this occasion they did um but that's why i i don't tend to use them um i i have set processes that i follow for what i'm doing by way of getting in on trades entering on trades and and um you know i love book map i love a lot of the features about it but um you know um a lot of the other people that did do some of the streaming for book map you know really love these dots and maybe it's better if they answer that question for you rather than somebody that um you know i have other ways of assessing volume um that i'm quite particular to me so hopefully that answers your question so the answer was they were volume dots with a minimum of 50 and you can see again as we as we go down like you know if we went down to about 40 42 you get these these these big buys down here but you don't get um the massive number of dots you would otherwise anyway i think i've gone past nine uh i've gone past the hour so um thank you very very much for coming um thank you everybody and um i wish you very good trading for the rth session and i better hang up now so thank you again