In response to changing market conditions, Pete Steidlmayer has developed a new method to analyze the markets. Steidlmayer presents his recent research discussing the importance of understanding how price and volume databases as tools for market analysis have changed with the advent of electronic trading, and how these changes effect trading methodology. Pete himself, admits that the Market Profile legacy analysis of price and time has changed, and is not as effective as it was in the past.
Pete's new method is called Volume Strips, developed in response to changes in order flow, due to electronic trading, HFTs, algos, etc.
The volume strip application currently interfaces with T4(will be adding TT by the end of the year). Currently the annual lease is $350(will be going up in the future I believe) which can be paid via paypal or a credit card. There isn't much educational material (1 document covering key strokes of vol. strip and one document going over some of the theory), observation and self discovery will be your path to success. They don't offer any trials or an interface for sim trading.
Last edited by tigertrader; October 27th, 2011 at 04:55 PM.
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Some things can't change, namely market character-based methodologies. That is, there are some things so fundamental to what markets are that they are existential (they will always work). Sadly, very few understand this.
'Edges' are things you can fall off of
Last edited by zer0; October 27th, 2011 at 04:38 PM.
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I think J.P. Steidlmayer has evolved more than Market Profile. Being in the thick of things (Chicago Board of Trade member for over 40 years) and knowing what changes may be in the pipeline, in how the exchange(s) handle the data, might give a guy a little more lead-time to come up with Avant-garde techniques.
From what was allowed to "leak out" on Volume Strips since last summer to date, I don't see anything new. The best I can ascertain is, J.P. Steidlmayer may believe he has found a way to trade the jack rabbiting peak volume prices (PVP) or points of control (POC) of his Market Profile or the generic price/volume histogram consistently on an intra-day basis. If he has, he will indeed receive my respect, although I will refrain from dancing in the street until "the book" is published.
There are many questions floating around the web about Steidlmayer's Volume Strips and very few answers, I for one would like to see someone actually post a screen shot of one of these mysterious strips. I'm beginning to believe I may see a bigfoot walk across my back yard before I see an elusive Steidlmayer's Volume Strip posted on the web.
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All fun aside, Thanks zer0 for posting the Volume Strip.
My minimal understanding of the Volume Strip is, it's a front-end application that allows a trader to trade predefined/user defined volume levels rather than price levels, with a simple click or two of a mouse. A crude example may be, submit an order to initiate a long position on an already know and charted PVP or POC (with volume of 5000 contracts) on a price histogram that was generated from the start of ET Session (note: price is "unimportant") and at the same time enter a sell order to close the long position at any price >(N) (note: price is "unimportant") when the volume exceeds 5000 contracts (next PVP/POC).
To do this, a trader must step outside the price chart and think of the market only as a volume on price histogram or something similar (not necessarily Market Profile) and devise methods of ascertaining movements of volume or maybe better put "areas" where new volume will enter the market and create a new high volume area, PVP/POC. I believe Steidlmayer's expression "the size/scope is huge" comes from his vision of converting legions of traders to think outside the price chart and get on board with his Volume Strip pasted on desktops around the world.
I think it's great!
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