TradeMaven’s Inside Edge is a comprehensive trader’s education forum focused on e-Mini S&Ps and U.S. Treasury Bond Futures that will help you learn the skill sets required to become a successful trader. We focus on the essentials: trade location, trade management, and trading as a business. TradeMaven’s Inside Edge features all of the necessary analytics and execution information in one place to speed up your decision process, keep you on the right side of the market, and eliminate so much of the noise that surrounds trading today. This unique forum is the brainchild of Charles Cochran – a trading pro who has spent the last 15 years fine-tuning a proven methodology that eliminates extraneous information and concentrates on the market activity that matters: the combination of price, time, and volume will indicate the market's next move.

Welcome to Investor’s Inside Edge. Now that we have submitted our provisional software patent application we can offer you a glimpse of our new Investor’s Inside Edge Software. There are four screens available for use. These four are the ones we have settled upon as the software was developed and tested over the last five months. The four screen layout shows how we sequence the flow of internal market information down to the execution of the trade.

The original concept behind the software creation and development was to get all of the pertinent analysis and execution information down to three to four screens, so one didn’t have to continuously scroll back through multiple windows to extract or check for information. Once a trader arrived at a buy/sell decision we combined all the information needed for trade execution, management and exit onto one screen---F4. We also used color coding so one could see at a glance what was happening as opposed to having to stop and interpret each screen. We can now cover multiple markets with ease, or monitor one market without the normal intense focus on screen activity.

The 4 screens (F1-F4) in the attachment show the following studies and timeframes:  

F1 Screen

The first screen, F1, is a monthly market profile screen and the data can be split and saved by the user. The long term distribution on the right of the screen holds up to two year's worth of data, which is usually more than enough to capture the long term trend and market’s most recent move. This long term distribution can also be colored to show the number of contracts traded per transaction allowing one to differentiate between small speculators and large institutions (can show three different lot sizes in each price/volume bar). We’re confident that our unique “save profile split feature” is not offered by any other vendor and this one feature alone should make it a consideration for a profiler. It will save a trader a lot of analysis time. The monthly timeframe was chosen to make sure the trader was aware of where the market was, has been and is pointing at a quick glance. Now you can easily integrate the day and week into the very long term and know whether you are early or late in a move and adjust your strategy accordingly. 

F2 Screen 

The second screen, F2, is the standard 30 minute market profile that allows user splits that can also be permanently saved to speed the analysis/setup process. The distribution on the right of the screen is the long term distribution with up to two year's worth of data. This long term distribution can be colorized to show the number of contracts traded per transaction allowing one to differentiate between small speculators and large institutions (can show three different lot sizes in each volume bar). The long term distribution can show actual contract volume or number of trades at a price or price changes (when contract volume isn't available) to accurately depict the distribution for the periods selected. The volume can be shown at the side of the distributions or superimposed over the distributions. We prefer the superimposed feature, because you can get more history on the screens, which helps one maintain the proper perspective. 

F3 Screen

The third screen, F3, is a colorized 30 minute bar chart with volume attached. Red and blue show the prices outside of the value area. Yellow represents the value area. Green is the mean of the volume and magenta is the actual high volume number of the period, when different from the mean. The distribution on the right hand of the screen is the volume distribution for the entire day with the same color scheme as the individual bars. This shows the most recent activity and closest relevant price points, where one should expect opposite activity or a pause. This screen keeps you closest to the market profile information that drives the activity of the traditional market profile user. 

The fourth screen, F4 (below), is a 5 minute "equivolume" bar chart that shows the volume in that individual bar on the x-axis and price on the y-axis. The chart reveals a bar's volume relative to the volume of the other bars on the screen; the wider the bar the more the volume in that bar. The bar is further coded to show the volume done on the offer (red) and bid (blue) so you can track the side of the market getting the most volume in any bar. This is a quick fix on the current buying and selling. The chart includes a long term distribution on the right side of the screen to help track the high and low volume numbers affecting the trade. At the bottom of the chart is a bar histogram that tracks the cumulative buying and selling for the day allowing one to monitor the cumulative buy and sell pressure in the market. The greater this number the harder it is to reverse a trend. 

F4 Screen 

In F3 and F4 we have developed a library of proprietary studies for potential trade recognition (location). These indicators capture the trade setup, the phenomena that trigger a trade and the entry. The four indicators show the following:

1. The letters L and H show whether the market is trending or not.

2. The black up and down pointers isolate and show each rotational high or low for one's defined timeframe. This emphasizes rotational highs and lows that are the market's edges so the trader doesn't miss them. Furthermore, it greatly speeds up the analysis and study of history in the data base.

3. The pink/blue squares show potential turning points or edges in the market by measuring the acceleration and deceleration in market activity over the number of price increments selected; the shorter the timeframe the fewer the price increments.

4. The green circle shows when the market is retesting a previous rotational high or low within as many ticks as the user has selected to accommodate a particular market’s personality and timeframe.

Each of these studies can be adjusted to fit the user's timeframe and trade sensitivity, thereby increasing or decreasing the number of trades to be considered. The proprietary studies are real time, allowing you to take a trade in the signal bar, or after the bar closes like all other technical studies. This real time feature improves trade location over time and is usually the only way to get within a tick of the actual high or low of a rotation. These studies are not mathematical as most technical analysis studies are, but measure raw data, or what is actually happening in the market.

Now that we have revealed what the software is, can do and have described its most important current features we will now tell you what it is not. It is not a black box that makes the trading decision for you. It does channel your thought process to analyze those things that count in a trade and then tells you when conditions are right to execute that idea. Our software allows integration of multiple timeframes and studies that bring a trader to the buy, sell or flat decision.

The creator of Market Profile, Pete Steidlymayer, always emphasized that at any given moment in time a trader could do only three things---“buy, sell or do nothing”. The driving force behind this software is the same---to help the trader eliminate 2 out of the 3 possibilities in his trading decisions. It is hard to unconsciously be on the wrong side of the market, if you follow the information on these four screens. This should improve any trader’s performance.

Our partner, Charles Cochran, has spent the last 15 years trying to come up with an approach/methodology that eliminates extraneous information and concentrates on the market activity that matters: the market activity that foretells the market's next move. Investor’s Inside Edge Software is the result of this quest. It speeds the decision process, keeps one on the right side of the market and eliminates so much of the noise that surrounds trading today. We are excited to show it to you and introduce it to the market, and are anxious to see if you come to the same conclusions.

To succeed in the trading business you must be willing to learn and to accept new ideas and concepts. Successful trading is no different from any other business: capital, discipline and knowledge are the keys to the kingdom. We invite you to learn more about our unique trading software.

To receive information about our next FREE introductory webinar please contact Josh Kelne at 312.521.7347 or sales@trademaven.com.