Market Study Boot Camp: Part 1 – The Newlywed Game

Way back in the day, so far back in fact that I only vaguely remember it as reruns, there was a TV game show called The Newlywed Game. It had a pretty simple but entertaining premise – put several newlywed couples together in front of the cameras and ask them some silly and embarrassing, euphemistic questions about their domestic life to see which couples knew their spouses the best. Winning was pretty simple too. Answer correctly and accumulate points. Rack up the most points to win a new fridge, microwave, or washing machine. Domestic bliss indeed…

You may be thinking what’s this have to do with trading? Well, in a word, everything.

Over the years I have become convinced that in order to succeed at trading anything well over the long haul you must come to know your particular instrument(s) and its behaviors just like you would a sibling, spouse or significant other. Some of you have heard me say it before, and I am saying it again now.

If you were called onto a game show which asked you some pointed questions about your favorite trading instrument, would you stutter, stammer and stumble over your answers? Or would you answer with the calm confidence that only comes from deep understanding?

In this new series of posts I am going to explore some practical ways you might use to get to know your instrument, quantitatively, as well as create some new market studies and publish them here. In truth, I think there are two kinds of knowledge in this domain: qualitative/intuitive; and quantitative/hard facts. If you haven’t guessed already, this series will focus on the latter.

So, What Do You Want to Know?
All formal inquiry starts with curiosity, articulated as a question and then wrapped in a hypothesis. To that end, we’re going to explore the process, step by step, of trying to understand essential price, volume and time-related characteristics of several instruments individually and in relation to each other. Many instruments, especially the futures, have very distinct personalities. So let’s discover and quantify those distinctions. And hopefully we’ll increase our chances of taking home that snazzy new dishwasher or refrigerator-freezer combo like the couples on the game show.

So until next time… trade ’em well.

Live Q & A Topic – Order Flow and Volume Deltas, Part 2



[iconbox title=”Unable to attend live?” icon=”x-office-presentation-template.png”]Not to worry, the session was recorded. Members can watch it now.[/iconbox]



Let’s talk about that great mystery known as order flow... again! Hands down, this is our most requested webinar topic. So let’s dig into what it is, what it’s not, what it can mean and even when to ignore it. We’ll split the discussion into 2 parts:

  • First, we’ll compare and contrast the various order flow and delta tools
  • And, finally, we’ll take a look at their practical application on several classes of instruments
If the popularity of Part 1 is any indication, we’re sure this is one you won’t want to miss.

Topic: Order Flow and Volume Deltas, Part 2
When: September 13, 2012 – 2-3:15PM PDT


This is a free event for Rancho Dinero members, and y’all can register here. If you’re not yet a member, you can become one in just a couple of clicks.

Rollover is Coming… Are You Ready?


[box style=”rounded”]

[iconbox title=”Updated: It’s all in the details” icon=”process-stop.png”]If you’re a continuous contract user, what needs to be done at rollover is a perennial source of confusion. So it’s critical to know which type of continuous contract you are using – provider adjusted or not provider adjusted.

It could be either depending on how you have your account connection set up. But you only need to take the steps below if you are using a continuous contract that is back-adjusted by your provider. If you’re using a dated contract or a non-adjusted continuous contract, there’s nothing to see here. Just go ahead and keep right on truckin’. ;-}

Want to know how to configure your connection for provider back-adjustment? Click the link in the first paragraph below.[/iconbox]



If you trade futures you probably already know about contract rollovers. But if you use a back-adjusted continuous contract (it will end in ##-## instead of a date) did you know you need to take one extra step after the close on rollover day?

What is that extra step? You need to delete all your stored data and refresh it using Ninja’s Historical Data Manager. Why? Because the new adjusted price affects all previous prices for all previous contracts.

Sound scary? It’s really not.

Here’s how to do it:

  1. Disconnect from your data provider
  2. In the Ninja Control Center, click Tools > Historical Data Manager…
  3. Click the Edit tab
  4. Find your contract in the list, then right-click on the symbol
  5. Click Delete
  6. Reconnect to your data provider
Historical Data Manager - Continuous Contract Data Delete

Historical Data Manager

That’s it! You’re data is now fresh, clean, correctly adjusted and you can continue on your merry trading way.

New Market Study – IB Breakouts by the Numbers

Folks, this is one I’ve been meaning to publish for some time now. But it’s been incredibly busy here on The Ranch, and these kinds of market studies are very time-intensive to prepare, narrate and publish.

But enough excuses! It’s done… enjoy.

Read it now »