I want to take 100 trades using just sound as input. No DOM, no charts, just PriceSquawk. The idea is to put on some headphones and listen to the order flow, with audible cues for entering, managing and exiting trades as an exercise. The goal is to execute 100 trades using an audible stream of market information which will provide me all the order flow information needed in order to execute the system mechanically.
In the Trade Like a Machine trading drill I proposed a strategy for trading mechanically in order to overcome mental hurdles and think in probabilities. I want to apply this concept to help traders adapt to audible trading with PriceSquawk. The market sounds will represent changes in the market, and will NOT be black and white instructions for when to buy and sell. Intead, to execute the strategy you will need to listen, correctly interpret the audible signals and execute. This exercise will provide a framework for truly tuning in to market dynamics with your ears, developing a feel for sound when trading, while also developing the mindset discussed in the trade like a machine exercise.
The Catch
I don’t actually have this audible system developed yet. I want to develop this trading exercise in the open, exploring different ways to integrate the PriceSquawk audio into a strategy. In the 12+ years that PriceSquawk has been available commercially, I have witnessed countless traders use it’s audio to earn their living from the markets. However I have only been privy to parts of their strategy and I am confident most of these traders still depend on visual tools such as the DOM or charts to provide context.
In this drill I want to use sound exclusively to form a mental picture of the market and drive trade decisions. The trader that successfully completes the drill will have confidence that sound is not just a valuable proxy for the market, but a unique and powerful edge they can build upon for trading succesfully. I expect that the system will not give you a profitable trading strategy on its own, but if executed well it will pave the way.
Why Do This?
I want to put some skin in the game and show you that sound is an edge. Instead of taking my word for it, I want you to discover it yourself. If you are skeptical that sound can be an edge then I suggest you listen to the @2yrflipper podcast episode. Then listen again. Every trader is looking for an edge whether they are new to the markets, or experienced professionals like 2 year. Many have seen their edge come and go. Most ‘wannabe’ traders are looking for someone to teach them a successful strategy. If you have done the work of the Prop Shop Trading Drills you will know that successful trading is a process in which you learn the skill of trading, adapting to markets and finding your own way to make money consistently enough. Listening to markets is a proven tool in getting there, and I think this audible trading exercise will help many realise it. After years of building app.pricesquawk.com I also want to get back to its roots.
This could go horribly wrong and I execute 100 losing trades, but I don’t think it will. At worst it will help document what doesn’t work, and generate ideas for what may work in future audible tools. I may need to call in some help too.
What’s In It For You?
This is going to be the most raw, direct path to understanding PriceSquawk and how it can be leveraged in your trading. I am going to transparently explore how the different configurations of PriceSquawk can be used to drive a strategy. I am going to openly share the process, the settings and the strategy so that you can repeat this exercise. If you complete the exercise you will have unique skills that could define an edge in the markets.
Lets Go
So this has wound up as a declaration of the coming series of posts. I will explore and identify specific settings of PriceSquawk to build an audible strategy, and then use it to execute #100Trades. If done well it shouldn’t cost too much (in losses) and I can tweak the strategy and repeat. Along the way we will have a well documented process for developing one’s audible trading edge.
Follow Along
Follow along over the coming weeks as I build the audible strategy and then complete the exercise. I’ll aim to post updates every Tuesday and Thursday, with the first strategy test in about one month.
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- #100Trades
- Join the discussion in our Discord [#100trades channel]
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