After quite a few requests from a large number of followers, I have decided to do another FREE substack post on my setup and what it entails. This can be used in conjunction with my other posts and substack posts to eventually create your own trading methodology and system.
Depth of Market, Tape and Volume Profile
Unlike some people on twitter, I do not sell you anything and actually have to trade for my income. This means that I have no reason to lie to you because I have no vested financial interest in selling you anything potentially relating to my setup so please do enjoy this post and make sure to share it with your peers.
Firstly , my depth of market as well as reconstructed tape are both of Jigsaw. I believe that Sierra also offer a very competitive DOM and tape but I have not looked into it and stick to Jigsaw for the most part. The setup itself is quite simple, I have my DOM in the middle with a buy tape and a sell tape. Now on the tape they have size filters to help filter out retail noise and this vary for me depending on the context like volatility , volume and other aspects but largely they are as follows :
During ETH / Half Days and sometimes less volatile summer sessions, I run a 20 lot filter .
ETH tape with a 20 lot filter During RTH and most of the other times, I run a 50 lot filter
RTH tape with a 50 lot filter Sometimes like during contract rollover periods , I run both a 20 lot filter on both tapes as well as a 50 lot filter on two different tapes.
On the Depth of Market aspect , I have already done a quite detailed bit and this can be found here. However, to simplify, I don’t use snapshot columns and do use the LTQ (Last Traded Quantity) as well as most other columns.
VOLUME PROFILE
My use of the volume profile can be narrowed down to a few scenarios.
Intraday - I use the volume profile during the session to potentially scratch entries and to help mark take profits and stop losses and for this scenario, I use a session profile as well as a daily profile. The session profile splits ETH/RTH and is something I recommend doing while also having a daily profile allows a more wholistic image of the session.
Session profiles for ETH and RTH Levels/Daily profile - Most of the levels that I post are derived from a daily profile of the previous day. Using some of the techniques I outlined in the below volume profile post , I am able to identify 1-2 levels and use these throughout the day and look for some initiation around them for the best RR.
Daily profile Weekly Profile - I tend to use this to identify levels for the whole week. I don’t use these intraday at all and only use them before the week to find levels that I may be willing to engage at in the following week.
Weekly Profile
Anyhow , take what you will out of this post. Just wanted to write it up to answer some of the common misconceptions that I am constantly being asked about. Make sure to share it and drop a like if it helps you out.
-Fader ✌️
Disclaimer - All content should be used for education purposes only and is NOT in anyway financial advice. I am not a licensed financial advisor and nothing I say or post should be taken as financial advice. Futures trading as well as stock trading is extremely risky and always involves the risk of capital losses. All images used are of the platform Jigsaw trading and I am just the end user.
Fader, you volume profile charts are from jigsaw? Or what platform?
Thank you for sharing this, much appreciated brother :)