Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Slumdog who wrote (19840)	9/1/2017 4:57:24 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

Hi Slum, sorry I took so long getting back to you this post lays out that we were in sept, and Oct Message 31244143 September was a real rocket ship and we closed out of most of it early on Friday.... but the entry level was so nice........ John

To: Slumdog who wrote (19840)	9/1/2017 5:57:36 PM
From: John Pitera	1 Recommendation Recommended By mary-ally-smith Read Replies (1) \| Respond to of 33421

Hi Slum, you are exactly right the nymex crude is $420 a cent and it trades in 1/100 of a cent increments so each 1/100 of a cent is 4.20 Gasoline really jumps around even when we don't have an event like harvey. I'm kind of an errand boy for a bigger entity or a series of them.... I don't even know how to describe it ...and it's way over my pay grade..... We've got the wize old gentlemen who do the real deep strategic maneuvering My schedule fluctuates and I also end up doing a lot of stuff at hours that vary from Sydney trading times..... to Frankfurt, Zurich and of course London..... ...... I think I was writing that post to bob at 3 AM and was tired and also doing some bond and 10 year note and 30 year bond stuff and those are in 32's and are $1000 a big figure.... from 156 to 157 the sept bond is 156 20/32 at the moment we've got walk forward analysis algo systems and some of this and Lots of Python coded stuff. I thoroughly recommend Kevin Davey's book.... Building winning algorithmic trading systems... seriously.... buy that book and you can see what the algo's are doing even if you have no intention of doing it yourself. (i'm putting the Editorial reviews of the book at the bottom of this post. amazon.com but when the markets get off the tracks ....... you actually have to adjust and adapt the parameters and with big spikes in volatility and black swan event... which this sure was for the Energy market..... especially the distillate part such as gasoline. the Gasoline contracts are 42,000 gallons because that matches, that matches 1,000 barrels of oil and also heating oil is 1000 barrels a contract and so they all align so that the commercials can trade and hedge the crack spread.... which blew out like crazy these week as well........ There was boat loads of money to be made on the crack spread widening this week.... but being straight out long gasoline was not such a bad deal either. The Matrix takes a lot of the calculations out and you can look up and down the price scale and see what you position is going to be at different price levels... Plus you have a break out of volume and most importantly we can generate time and price sales to see if some one is coming in and buying small lots or coming in and picking up bigger contract quantities at a pop. With a bigger order you actually have to pick it up in pieces put up bids or sells and then pull them to psych the other traders out..... on Sunday night there was a tremendous amount of cat and mouse trading going on with the bids and asks zooming up and down with a fairly wide spread..... but the market was pretty darn thin last Sunday evening and during the night......... The commercials came in on monday and really pushed the market in one direction (north) and a you can see from this screen capture there the bid ask spread is very tight Editorial Reviews Review "Winner, 2014 Trading Book of The Year - Superior Trading And Resource (STAR) Award" - TraderPlanet.com "Winner, 2016 Trading Book of The Year - Superior Trading And Resource (STAR) Award" - TraderPlanet.com "Kevin Davey has a unique understanding of systems and the markets I have only seen in a few people over the years. 90% of trading books written today are useless. This book impressed me. This book is a must read for anyone who is interested in trading using a systematic approach. I put this book on my list of the top 50 most useful books on trading of all time. " - Murray A. Ruggiero, Jr. - Chief Systems Designer at Tuttle Tactical Management, Contributing Editor of Futures Magazine, Author of "Cybernetic Trading Strategies" and "Using Easy Language 9.X." Great Eye Opener for Anyone Getting Into Automated Trading "I typically don't buy trading books anymore having read 100+ already. Why? Because most are the same regurgitated thoughts, patterns, analysis and strategies. I recently met Kevin on LinkedIn. After swapping a few emails, I quickly realized that he understands how to build and trade systems. His book is a simple and quick read even if you don't know anything about systems or programming. If you want a true taste of what its like to build trading systems you should read his book. " - Chris Vermeulen, Founder of AlgoTrades.net ?This is a great book to get a much better understanding of what in really involved in system development and help on your journey from someone with a lot of real-life trading experience. For those already working with systems, it may challenge some of the approaches you use and help you to become a better system developer and trader. From my perspective, the chance to look over Kevin?s shoulder and see the concepts and full code from some systems he has been using in his own trading alone would be of far more value than the cost of the book.? ?Tim Rea, Proprietary systems developer/trader; 1st place winner, World Cup Championship of Futures Trading (R) 2011 ?Part Reminiscences of a Stock Operator and part Market Wizards, Kevin Davey has written a superb book for the modern trader. Not only does Kevin provide a step-by-step plan on how to develop algorithmic trading strategies but he actually reveals the strategy he used to win The World Cup Championship Of Futures Trading (R) along with two additional euro currency systems. I have no doubt this will become a popular and often referenced book amongst traders. Readers will find Kevin?s humble and engaging voice easy to follow and grasp. They will also find his personal journey from aerospace engineer to beginner trader, to a championship winning trader and finally to a full time professional trader insightful, entertaining, and inspiring. Wiley should also be congratulated for recruiting a real trader who trades real markets with real money to write a trading book for people aspiring to become real traders. I highly recommend this book to anyone who is serious about developing a successful and sustainable trading career.? ?Brent Penfold, professional trader and author of The Universal Principles of Successful Trading (Wiley 2010) ?Few trading books on the market today are written by those who actually make their living from trading and those that are frequently suffer from being unintelligible to the layman. Kevin Davey has the authenticity of a real trader and the ability to distill complex ideas into a format that is easy to read and, at times, brutally honest. For those aspiring to trading success, Kevin gives a step by step guide on how to approach systems development as well as outlining many of the pitfalls to avoid and throughout the book he provides a wealth of information and tools that will prove invaluable to novice or expert alike.? ?Michael Cook, Founder, Katmai Capital Advisors; World Cup Championship of Futures Trading (R) 2007 ?Of all the trading books that I?ve read, this book takes the cake. Kevin Davey brings us a realistic perspective in an industry full of dreamers. I suggest that all traders drop what they?re doing and read the incredibly valuable lessons summed up in this book. This book is the quickest path for a new trader to stop dreaming and start succeeding.? ?Peter Hagen, Citracado Capital, LLC Read more Review “This is a great book to get a much better understanding of what in really involved in system development and help on your journey from someone with a lot of real-life trading experience. For those already working with systems, it may challenge some of the approaches you use and help you to become a better system developer and trader. From my perspective, the chance to look over Kevin’s shoulder and see the concepts and full code from some systems he has been using in his own trading alone would be of far more value than the cost of the book.” —Tim Rea, Proprietary systems developer/trader; 1st place winner, World Cup Championship of Futures Trading® 2011 to wi“Part Reminiscences of a Stock Operator and part Market Wizards, Kevin Davey has written a superb book for the modern trader. Not only does Kevin provide a step-by-step plan on how to develop algorithmic trading strategies but he actually reveals the strategy he used n The World Cup Championship Of Futures Trading® along with two additional euro currency systems. I have no doubt this will become a popular and often referenced book amongst traders. Readers will find Kevin’s humble and engaging voice easy to follow and grasp. They will also find his personal journey from aerospace engineer to beginner trader, to a championship winning trader and finally to a full time professional trader insightful, entertaining, and inspiring. Wiley should also be congratulated for recruiting a real trader who trades real markets with real money to write a trading book for people aspiring to become real traders. I highly recommend this book to anyone who is serious about developing a successful and sustainable trading career.” —Brent Penfold, professional trader and author of The Universal Principles of Successful Trading (Wiley 2010) “Few trading books on the market today are written by those who actually make their living from trading and those that are frequently suffer from being unintelligible to the layman. Kevin Davey has the authenticity of a real trader and the ability to distill complex ideas into a format that is easy to read and, at times, brutally honest. For those aspiring to trading success, Kevin gives a step by step guide on how to approach systems development as well as outlining many of the pitfalls to avoid and throughout the book he provides a wealth of information and tools that will prove invaluable to novice or expert alike.” —Michael Cook, Founder, Katmai Capital Advisors; World Cup Championship of Futures Trading® 2007 “Of all the trading books that I’ve read, this book takes the cake. Kevin Davey brings us a realistic perspective in an industry full of dreamers. I suggest that all traders drop what they’re doing and read the incredibly valuable lessons summed up in this book. This book is the quickest path for a new trader to stop dreaming and start succeeding.” —Peter Hagen, Citracado Capital, LLC He's the real deal he has done a webinars for tradestation and he was commenting last year that he has a one computer that he leaves on 24/7 and it is continuouusly grinding away running the parameters and ranges on all of the permutations of different trading systems because the drivers of the markets are continually changing.... just think how back at the end of 2015 and the start of 2016 the SPX was trading in lock step with what crude was doing....... and now the market does not give a whip about what crude is doing...... the EUR/JPY crossrate was the axe...... that was the risk on risk off driver of stock prices back in 2010-2011. Your run the numbers and see for a fact the hard data of what is correlating with what and what are the current key drivers of the market.... JP