Trading lesson from Mile 22... less crowded ideas

What makes a good trading idea? Your imagination

The best trades in the live trading room are “less-crowded” trades; i.e. trades based on ideas many other traders are not aware of leading to reactionary movement in price as traders are caught off-guard.

Some examples of less crowded (and profitable) ideas we have come up with recently include:

  • Moves off VWAP in the AUDUSD when VWAP calculations commence after high-impact data events
  • The closing of gaps in the AUDUSD using low setting tick charts which are not visible in more commonly used chart settings
  • The long liquid lunch trade in the AUDUSD on Friday afternoons (see the previous video)

Click on the play icon to watch the excerpt from Mile 22


Real-time trade video: identifying and trading "unfair pricing" for explosive moves

Explosive price movement due to "unfair pricing" however watch the video below to discover numerous additional points of evidence validating the trade


Video: constructing pre-trading "prep" by reading the market's intentions

Written example:

No news = continuous uninterrupted trading which lends itself to a trend day.
Currently, we are trading within longer-term high agreement range between 0.7803 and 0.7846. Also, note the high agreement node at 0.7856. If price breaks the range to the upside then this is a profit take area.

Click on the image to enlarge


Video: a day in the live trading room

All of the day's trading in the live trading room highlighting how each trade is managed once a position is taken.


How we traded Friday's US unemployment data in the live trading room

Discussed often in the live trading room is waiting for the "irregular" auction to cease, and only trading when the "regular" auction returns.
After the initial unemployment data reaction, the market settles back into a tradable rhythm which we exploited as per the video below.


Considerations during a trade: real-time recording

Managing a trade in real time is when trading skills are most tested. The recording below highlights numerous considerations and actions taken during a recent live trading room trade.

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