The ES started the session with some quick chop as traders paired off to decide direction. The first 30 minutes easily gave way to stronger trends for the balance of the session. Learning to trade without emotions seems to be the best methodology when stepping into the world of algorithmic trading. You can’t care as to the who, what, where or when of any rally or decline. Nor can you pre-decide the strength of the buying or selling taking the market up or down 8 ticks or 48 ticks.
Trading is controlled by a myriad of computer programs on steroids. The sheer volume of algorithms running complex equations and trading at the speed of light, (fiber optics) should not come as a surprise. Understanding this makes it vividly clear that the old saying, “If you can’t beat ’em, join ’em.” remains valid for day trading in 2015.
Check out the chart below for today’s trades. Again, I trade using the Diversified Trading Systems and DTS Trade Manager as an execution platform.