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Steidlmayer's Market Profile Evolves: Volume Strips
Started:October 27th, 2011 (02:37 PM) by tigertrader Views / Replies:17,907 / 55
Last Reply:October 24th, 2013 (10:54 AM) Attachments:7

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Steidlmayer's Market Profile Evolves: Volume Strips

Old October 29th, 2011, 08:43 PM   #11 (permalink)
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Or Steidlmayer could just use GomMP

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Old October 29th, 2011, 11:38 PM   #12 (permalink)
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Your assessment is correct. That, indeed, is Steidlmayer's point and purpose. It is all about volume and immediacy. The here and now if you will. What are traders doing right now? That is, within statistically significant quantities, of course.

In extreme reductionist mode: A collective of traders make their bets at a price or small range, then after volume (liquidity/service) dries up, price has only one option - move. When price begins to accelerate, those traders that were wrong will need to close their positions and the market self-generates from there. New momentum orders enter the market driving it further; far away from the previous island distribution.

The next cycle begins, with the memory of a goldfish....


Cashish View Post
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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Old January 6th, 2012, 10:29 PM   #13 (permalink)
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recent update on volume strips


thanks to 'tigertrader' for the contact information and update ... I contacted Stephen Hawkins today and he indicated that they were not ready for 'prime time' as they continued to iron out issues in the T4 API; he did ask me to check in with him at the end of the month (I am assuming he was hopeful they would have worked out the kinks by then) ... a while back, Nate at CTS had given me Pete Steidlmayer's contact information and told me to contact him directly re 'volume strips'; I tried contacting him a few days ago & have not yet received a reply, so stumbling across the information posted here (through a Google search) was very helpful ... Stephen was very prompt in replying to my email inquiry.

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Old January 13th, 2012, 07:02 PM   #14 (permalink)
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volume strips (steidlmayer) ... continuing the conversation?

(not sure where this should be posted, but … ) would anyone have interest in further discussing Steidlmayer’s volume strips: concepts around, further intelligence about, similarities / differences with market profile, other volume studies, etc., etc.?

I have viewed his CME presentation (posted mid-august 2011) more than once and in the absence of the software itself (not ready for prime time according to Steidlmayer associate, Steven Hawkins) I am attempting to formulate a trading strategy around his ideas. JPS himself says that one should be able to trade at least 1 market using volume strip concepts without the software … at one point in the video he said (paraphrasing): nothing new to this idea, it’s not rocket science.

Once concern (of mine) is that the software is till not ready, despite JPS’s assertion in the video that it would be available by end of August, combined with (my) perception that the guys at CTS don’t appear to have any insight into what’s happening with the software (and they are supposed to be the launch partner; and Cunningham himself is on the patent application with JPS). Would anyone have any further insight? I spoke with Nate Ostrye, maybe there would be a better person at CTS to talk to?

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Old January 25th, 2012, 08:49 AM   #15 (permalink)
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zer0 View Post
A screen of one mysterious Volume Strip.

Thank you for the post.

Whats up with the green highlight price?

I may have misunderstood what the strip is showing, but it looks to me to be a simple volume at price count? If so, this information is already available on MD Trader, CTS, OEC and other DOM displays.

Am I missing something? I will review the notes I made of the CME vid.

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Old January 30th, 2012, 02:31 AM   #16 (permalink)
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Welcome to inside my head ...

Thanks for posting the link to this video. While I'm not a Profile purist, I do incorporate elements from volume/market profile into my own market perspective, so I'm always interested in presentations like this one.

Okay, Tony Robbins he is not, but I enjoyed the presentation. Sure it felt like I had tripped on that corner of the rug that is always curling up and then fell into one of Steidlmayer's thought clouds, but that's okay. He knows exactly what he's talking about, even if I (or his audiences) don't. I actually think I came away with a rudimentary grasp on what he was suggesting. I'm interested to see it develop and if my understanding is accurate.

Pete also played to my market interests that go beyond the X's and O's, or in our case the bids and asks. I really enjoyed Pete just talking about markets and trading and the pit and losing money on technical errors. Good times

One of my favorite comments: "The rest is self-explanatory." So says the guy who formalized Market Profile and has been trading for 50 years.

Some of the most insightful comments came very late into the presentation (the video is about 1hr 25min long):

(about 01:17:48 into the video)

Steidlmayer
Knowledge comes from losses, not gains.

(about 01:18:20 in)

Steidlmayer
Most of us make money because we survive how bad we are.

(about 01:18:25 in and continues on that thought until about 01:19:40)

Steidlmayer
If I did 10% right of all the things I knew, I could still make money ... I was trying to be as bad as I could be and make money. And try to get that lower ...

Good stuff and thanks again for sharing

Take care -

Omni

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Old April 17th, 2012, 11:32 PM   #17 (permalink)
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I apologize for the non-response. I don't visit often currently; I suppose that is likely apparent. In case it matters to you any longer, here is my answer:

VS is, as you say, 'volume at price' count at its core, but it adds a couple of ingredients to the mix. It normalizes the volume (the '99' program) to aid with perception, as well as allows users to zero-out volume counts at any time. It also allows one to trade directly from the strip.

While there is little question that value can be found within these ideas, they are hardly novel. As you astutely concluded, if anything, VS is only a variant of what has been available for some time. I had/have only academic interest in the concept and did not and do not trade it personally, although I do have the software.

Just being clear....


TheDude View Post
Thank you for the post.

Whats up with the green highlight price?

I may have misunderstood what the strip is showing, but it looks to me to be a simple volume at price count? If so, this information is already available on MD Trader, CTS, OEC and other DOM displays.

Am I missing something? I will review the notes I made of the CME vid.



Last edited by zer0; April 17th, 2012 at 11:38 PM.
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Old April 21st, 2012, 11:29 AM   #18 (permalink)
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Lornz View Post
I just wanted to clarify that Volume Strips is very different to VP. In the presentation he clearly rejects the underlying principles of both MP and VP. His new approach is more related to emergence than the the old static approach.

Absolutely agree, and excellent point. Thanks for your comments Lornz.


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Old April 27th, 2012, 01:45 PM   #19 (permalink)
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zer0 View Post
A screen of one mysterious Volume Strip.

As well, my thanks for your posts on volume strips. I was a late to the game and by the time I was in a position to license Steidlmayer's software (January of this year), it was no longer available. In the meantime, I have re-connected with an old biz partner of mine and we are in the process of building a software front end that attempts to implement the ideas discussed by Steidlmayer in his CME presentation of last year.

Did you see in the version of the Volume Strips software you have how Steidlmayer's idea of bracketing the high volume price was implemented, if at all? He also seems to talk about 'cutting the high volume number' as the trading session progresses; any indications in the software of this concept?

I am happy with the way we are generating 'high volume numbers' in our development to date.; but am struggling with the best approach to bracketing high volume numbers. Steidlmayer seems to point towards using a bracket that simply might represent the loss you might be willing to tolerate on nay one trade, but he's not clear on this point or really any of the finer points, but, that's the fun of it.

Any thoughts anyone might have about what else he might be attempting to do in his software or with his approach in general would be greatly appreciated?

I also would ask if anyone has heard whether or when a "new" version of volume strips (might be) available? (My last couple of emails to Steven Hawkins have gone unanswered.)

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Old April 27th, 2012, 03:23 PM   #20 (permalink)
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tpbyyc View Post
I also would ask if anyone has heard whether or when a "new" version of volume strips (might be) available? (My last couple of emails to Steven Hawkins have gone unanswered.)

fwiw, I have experienced the same regarding communications with Steven. In mid-Feb he advised to check back at the end of the month. I did but received no reply.

Maybe I should have asked "The end of which month?"

Btw, kudos on the effort and progress on your own implementation. Interested to see how it progresses

Luck is what happens when preparation meets opportunity. ~ Seneca
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