Trading with Market Profile
- Thread starter They
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I've been asked this about 100 times over the years however our tools require historical data and MASSIVE tick data. We could use IB's data but the tools we have that REALLY work wouldn't work without historical data and we'd just be offering slighly better looking charts than our competitors. If and when IB offers historical data we may consider it. We cache tick data and could cache bar data as well however if you don't trade one day you'd see gaps in the charts and our statistical tools wouldn't work for possibly weeks until you built up enough days to get a good average. I usually use 20 days to avg. eSignal has a very nice Forex feed with 20+ banks and forex dealers on it. I have found it gives me a lot of confidence and would hate to go to a price feed that only shows one level. We have a special deal with eSignal that is 50% off their quoted rates. With the leverage of forex just one or two nice trades can easily cover the additional data cost. Today if you took 5 pips profit on every signal and a 10 pip stop you'd have made 12 winners at 60 pips and one loser netting 50 pips. That's $500. Quite easy to cover data feed cost. Also many of the moves hit 10+ pips so this is conservative. My partner who trades the forex takes 10 pips on most trades with a 10 pip stop.
Topgunsoftware,
You statistical average price study looks interesting. Is it set to a specific lookback period, or do you optimize it somehow for individual instruments?
Runningbear
You statistical average price study looks interesting. Is it set to a specific lookback period, or do you optimize it somehow for individual instruments?
Runningbear
Yes we let you adjust the time frame and number of days to avg.
By the way on another thread we're discussing potential profits in trading currencies and most people seem to think its nearly impossible to pull 30 pips out of a currency each day. Today's chart shows low risk trades that net about 50 pips and yesterday's is even more impressive with up to 90 pips profit.
Here's the chart
The trades are our squat bars, our new Trend Reversal tool which we just put in this week, and our 60 min statistical high/low areas. If anybody needs any assistance with our trial and/or how to setup the charts to see these indicators during live trading just let me know.
Chris Donnell
Quote from topgunsoftware:
Yes we let you adjust the time frame and number of days to avg.
By the way on another thread we're discussing potential profits in trading currencies and most people seem to think its nearly impossible to pull 30 pips out of a currency each day. Today's chart shows low risk trades that net about 50 pips and yesterday's is even more impressive with up to 90 pips profit.
Here's the chart
The trades are our squat bars, our new Trend Reversal tool which we just put in this week, and our 60 min statistical high/low areas. If anybody needs any assistance with our trial and/or how to setup the charts to see these indicators during live trading just let me know.
Chris Donnell
Did you guys ever make your software compatible with IB?
Same collection of Market Profile charts but now 2 weeks later. Is Market Profile working in these markets? If so, how would you trade it? I'm interested to know if anybody took any of those MP trades in the last 2 weeks.
I took the ES long (3rd chart) off the VAL on Wednesday (12/28) which (luckily) turned out to be the low of the day but I held it too long and gave back some of the profit on the final partial at the end of the day.
(4 different markets: ER2, YM, ES, and IBM. The bars on each day are painted a different color to allow you to easily distinguish each day and the 3 lines on each day are the Market Profile Value Area High (VAH), Point of Control (POC), Value Area Low (VAL). The point of these charts is to encourage discussion about how the market reacted to these Market Profile levels and create working strategies for intraday trading of these markets using Market Profile. Comments encouraged....)
I took the ES long (3rd chart) off the VAL on Wednesday (12/28) which (luckily) turned out to be the low of the day but I held it too long and gave back some of the profit on the final partial at the end of the day.
(4 different markets: ER2, YM, ES, and IBM. The bars on each day are painted a different color to allow you to easily distinguish each day and the 3 lines on each day are the Market Profile Value Area High (VAH), Point of Control (POC), Value Area Low (VAL). The point of these charts is to encourage discussion about how the market reacted to these Market Profile levels and create working strategies for intraday trading of these markets using Market Profile. Comments encouraged....)
If you're new to Market Profile then you'd expect a Normal Day to be the most common day type that you get. In fact it's the rarest day type that you see. A normal day is when we spend the day inside the IB.
Today was almost a normal day but the last 20 or so minutes we made a new high and broke out of the IB that we'd been stuck in all day. Here is the MP graphic followed by a combo chart/MP graphic image. The final developing value area which will become tomorrow's value area is in green and the point of control blue.
[1287.50] R
[1287.25] R
[1287.00] R
[1286.75] QR
[1286.50] EFQR
[1286.25] EFGQR
[1286.00] EFGHJPQR
[1285.75] EFGHJPQR
[1285.50] EFGHJNPQR
[1285.25] EFGHJNPQR
[1285.00] EFGHIJNPQR
[1284.75] EFGHIJKNPQ
[1284.50] EFGHIJKMNPQ
[1284.25] EFGHIJKMNPQ
[1284.00] EFGHIJKMNPQ
[1283.75] EFGHIJKMNP
[1283.50] EFGHIJKMNP
[1283.25] DEFGHIKLMNP
[1283.00] DEGHIKLMNP
[1282.75] DEGHIKLMNP
[1282.50] DEGHIKLMN
[1282.25] DEGHIKLMN
[1282.00] DEGHKLMN
[1281.75] DEGHKLM
[1281.50] DEGL
[1281.25] DEL
[1281.00] EL
[1280.75] EL
[1280.50] EL
[1280.25] EL
Today was almost a normal day but the last 20 or so minutes we made a new high and broke out of the IB that we'd been stuck in all day. Here is the MP graphic followed by a combo chart/MP graphic image. The final developing value area which will become tomorrow's value area is in green and the point of control blue.
[1287.50] R
[1287.25] R
[1287.00] R
[1286.75] QR
[1286.50] EFQR
[1286.25] EFGQR
[1286.00] EFGHJPQR
[1285.75] EFGHJPQR
[1285.50] EFGHJNPQR
[1285.25] EFGHJNPQR
[1285.00] EFGHIJNPQR
[1284.75] EFGHIJKNPQ
[1284.50] EFGHIJKMNPQ
[1284.25] EFGHIJKMNPQ
[1284.00] EFGHIJKMNPQ
[1283.75] EFGHIJKMNP
[1283.50] EFGHIJKMNP
[1283.25] DEFGHIKLMNP
[1283.00] DEGHIKLMNP
[1282.75] DEGHIKLMNP
[1282.50] DEGHIKLMN
[1282.25] DEGHIKLMN
[1282.00] DEGHKLMN
[1281.75] DEGHKLM
[1281.50] DEGL
[1281.25] DEL
[1281.00] EL
[1280.75] EL
[1280.50] EL
[1280.25] EL
I've created 5 Market Profile Video Playbacks from the ES for this past week. Each playback is for 1 day of the week and shows a 5 minute bar chart developing side by side with a Market Profile graphic running at 90X speed. This allows you to see the development of a Market Profile graphic and compare and learn how the market data builds it in real time and in a few minutes see a whole day's action - perfect for those of us with ADD.
Please let me know if this helps you and how it helps you - this will enable me to make more stuff like this if it's useful to you.
Please let me know if this helps you and how it helps you - this will enable me to make more stuff like this if it's useful to you.
Those charts look great!!! Are they available on eSignal yet? I'm using the MP from the Daily Notes website and have been trading them successfully. Many Thanks....