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2007 Aug 07 - Tue

Trading Site of the Day -- Market Delta: See Inside the Chart

I am now, quite simply, amazed. I knew what I was for and was thinking that it wasn't truly original, but I had not been able to find it. Until now. Of course, it was already there, but I just didn't know what to look for.

In a previous post, I discussed the sequence of events I encountered in realizing the power of the Market Profile, and that it will yield good information about a symbol's meanderings. Market Profile is mostly about price brackets over the course of a period of time, which is typicall a day's duration broken down into 30 minute intervals.

But knowing that volume has much to do with interpreting market activity, I knew that Market Profile needed that 'something extra'.

Market Delta takes the Market Profile concepts, adds volume information at the bid/ask/trade perspective, and provides versatile and flexible mechanisms for viewing the data in any volume related market (which excludes straight forex, but includes forex futures). Market Delta demonstrates dramatically the concepts that I knew to be possible.

Market Delta's web site has excellent training and tutorial materials. There are video presentations as well.

Market Delta works with feeds from Interactive Brokers and IQFeed, as well as others. One of the others is a broker called CQG, one that I have not heard of before, and gets a variety of reviews at www.elitetrader.

In an article called Market Profile: A Best Practice in Trading, Brett Steenbarger makes a good point that is useful in overall trading that I like to keep in mind: "be aware of value areas at one level larger than the timeframe being traded". In an Amazon review of the "Markets in Profile" book, he further enhances this by quoting from the book: "If you can correctly identify which timeframe is in control of market activity, and you have a good understanding of how the individual timeframes generally behave, then you are in a stronger position to trade, invest, and effectively control risk." I'd like to add that the same holds true for keeping track of what occured in previous time frames. Points of Control (POC), which are price points at which highest volume occurred, are good sources of support and resistance, and are an example of points of information available from previous and larger time frames.

He also makes reference to a site called WINdoTRADEr. The page to which I have linked has some interesting screen captures of the market profile in action and how previous time frames relate to following time frames.

As a side note, in a previous message, I introduced 'proprietary trading firms'. Brett says "the best strategy for finding solid proprietary trading firms is to go to the futures exchanges themselves and obtain a list of their clearing members. You'll find major prop firms within such a list. The CME education dept maintains a list; they're quite helpful--".

As another side note, of marginal interest, to make something painfully obvious, some traders build bars from ticks, rather time. And in building tick bars, they will use tick counts of 233, 37, 610, etc. And until I looked it them up, I didn't realize those are actually Fibonacci number series elements.

Anyway, to wrap this up, Market Profile and Market Delta appear to have the concepts for which I've been looking for: showing how the markets move, and offering insight into making the best use of the information relating to bid/ask/price and volume, at each price level.

[/Trading/SiteOfTheDay/D200708] permanent link

GenAlgo: Genetic Algorithms

I found a link to through a link at the Google group They advertised themselves as a site for people to publish their 'rejected papers'. I suppose one could be concerned about the quality, but I think there is enough substance there that it is a decent site with content relating to:

  • Genetic Programming
  • Artificial Intelligence (mostly fuzzy logic)
  • Data Mining
  • Neural Networks
  • JAIR Articles
  • a lightly loaded forum

Based upon the date of publication of their first newsletter, it looks like the site has been around since Aug 2006.

Probably 'THE' bibliography for related papers would be The Collection of Computer Science Bibliographies, where the Bibliography on Genetic Programming shows 5748 references at the time of this writing.

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Disclaimer: This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.