Learn to Day-Trade the Emini S&P Futures

CME Market Data Conversion MDP 3.0 – Trading Video – May 14, 2015

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This video is designed for educational purposes only and to show some of our trade plan setups to reinforce our daily trade plan review.
To Successful Trading,
Good afternoon traders, this is Brian with TraderShark.com, an educational website to learn how to trade the emini S&P futures. Today is Thursday, May 14th, 2015.
The market opened up this morning here at 2107. Got a pro-range reversal to the short side, just a quick 4 ticks. Not much in trading the opening 15-minute range. Then we were watching for a potential hook pattern for a burst higher. We did gap up by over 12 points this morning. That was indication for a tidal wave trade.
We did not get a deep enough pullback. We did find support on our first Shark band. As this thing pulled back, no hook pattern developed. Again, the first hook pattern actually developed in the lunchtime trading zone, which you don’t see here from 12:30 until about 1:15 Eastern Standard Time. If you were able to tag that in this case, the hook pattern setup, entry price 2110.50, first target 2111.50, 2112.50 and final target 2116.50. Then finalized over here towards the end of the day around 3:15.
Now what’s most important is we’re starting to talk about the CME data conversion that’s going to be occurring here in October. For those of you using CQG data feed, you will see that they have already made the conversion over. All platform data providers are supposed to be doing this by October 2015.
Let’s take a look at some of the research I’ve been doing to find out what we can do about it. Many people use different trading platforms such as TradeStation, NinjaTrader, Sierra Charts, TOS. I currently use TradeStation. They’re using the current data. I believe NinjaTrader uses CQG data feed and they are going to look a little bit different than our charts in the room. With that I think it was necessary for us to address it.
The MDP 3.0 market data conversion, what can we do about it? If you use CQG data feed, currently you can divide the tick data charts by 2.618. In other words, let go use an example right here. If you use a 1,000 tick chart and divide it by 2.618, you should now be using a 382 tick chart on CQG data platforms. All other platforms remain the same until they change.
We’ve got to watch and observe it. I mean once you get used to a certain system, as they change we will have to adapt with them. I’ve also found this as a great example on the NinjaTrader forum and here it is, “The data is not missing in this new format, however it is bundled together to create what the CME sees as more efficient. For example, currently if a 3 lot order is filled against 3 one lot resting orders, 3 filled messages get sent to the exchange. With the new MDAPI, one message will be sent with a 3 lot with the 3 one lot orders against it in the message.”
That’s just simply saying we’re going to less data. We’re going to see less data. They say it’s in the name of more efficiency. To me it looks like potentially covering up larger orders from what the market makers were able to place before. We’re going to see less. We got to be a little more alert and trade what you see, not what you believe.
With that being said, we have a free trial day tomorrow. Come join us. Visit us at TraderShark.com and go to the Home tab. Click down to Next Live Webinar. On that what you’ll do is scroll down. We’ve already had the Festival of Traders yesterday. Scroll down and you should be able to see free trial for tomorrow.
Look forward to seeing you all. Have a great evening. Have a great weekend. I’ll see you in the Shark Den in the morning.
The information herein has been prepared solely for general information and educational purposes and is not an offer to buy or sell, or a solicitation of an offer to buy or sell the securities or financial products mentioned in the content, nor a recommendation to participate in any particular trading strategy. Please consult your broker for trading advice. All trading requires risking money in pursuit of future gain. Do not risk money you cannot afford to lose. Past performance is no guarantee of future performance. The instructor is not a broker or a licensed investment adviser and is therefore not licensed to give trading advice of any sort, nor make specific trading recommendations.