See Stop Runs and Iceberg Orders in Action with Bookmap - YouTube

hello traders it's Douglas on trading today is an update of how my funded

account has been going. so I've been focusing on that and haven't been making

very many videos lately so it's time to give you an update. and also we're going

to show you a good trade on oil today so stick with me and we'll get right to why

I took this trade. now with the funded account I started

out hot, was up six hundred dollars pretty immediately and then I almost

tore my account apart alright, so I dropped down quite a bit maybe like

fifteen hundred dollars or something, I was very near hitting my drawdown the

trailing drawdown okay so once you hit that they pull your account from you, we

don't want that to happen so I was trading with two contracts and since

things went kind of sour for me for a minute I had to get my head on straight

so I backed it down to one contract, that's what we've been trading we've

been fighting back and we're currently down about 700 right now okay so we are

down in the account but we've been fighting back, not dead yet that's the

important part live to trade another day, so let's take

a look at this trade today over here on the right this is my chart and we're

looking at a thousand tick chart today and I like to take trades around the VWAP level it's kind of a good measurement of of where some nice

movement might happen alright so we had price approaching back to the VWAP

level here at about 33 94 now I got in a little bit too early I jumped the gun

and had to sit through a little bit of pain so I'll show you that but I think

maybe the reason why I did that is if you come back here to like six forty we

had already kind of bounced off that level

that area before and maybe I thought I was gonna miss out or something but I

did not so over here we've got bookmap and bookmap was gave me the setup or

the confidence to take the trade I never take trades based on the chart the chart

is just a visual representation of where price has been and where it's at it's

easier for me to see that in the chart versus bookmap but in bookmap that's

where the setups happen alright I never take a trade unless the setup is

actually looking decent in bookmap so we're gonna play that out for you this

happened at around 7:15 a.m. central ok so let's get this rolling and you back

this out a little bit this highlighted area up here is a little bit of sellers

waiting around in the book and then below you've got a little bit of buyers

but there's you don't see that big solid line down here so to me the buyers

looked a little bit weaker we were coming back to that VWAP area which

means I'm starting to get interested in looking for a set up ok I'm not taking

it off the VWAP just because it's view up I'm looking for a set up in that area

and the most important part if you come back here this is you see oh this is an

ETF ETFs are a lot bigger in volume than futures so a lot of times ETFs can give

you sort of a preview of where the areas of interest are gonna happen that the

futures cannot alright and so if you look in here it is clear that in UC Oh

at around 23 37 23 35 that is the area of interest there's 13,000 almost 14,000

sellers waiting in the book right there you don't know if they're going to win

out and push price down or if they're gonna get beat but you do know that

that's where they want to trade that's a huge advantage and another reason why I

think I jumped the gun is I was thinking that maybe this was

just gonna push price down through this level here and I might miss out on it

okay because you got 1200 traders down here at the 23 dollar level in UCO so

let's go back and we're gonna look for something very specific here this is an

extremely unique indicator I don't even call it an indicator because this

indicators don't give you real information they just are formulas based

on like Candlestick patterns and where price has been in the past that's not

real information that's why I don't really use indicators okay but this is

telling you where stop runs happened and where iceberg orders happen now this is

real alright this is not some formula of highs and lows

this - that if you've ever looked at the formulas for indicators most indicators

that people use you'll realize that they're they're kind of nonsense and

this is real information this is reading a very unique set of information called

market by order information it's only available with rithmic data feed and

it's only available from the CME alright so if you're trading Forex or something

like that you cannot get this information everybody knows that the big

boys are running your stops right but you don't get to see it this with market

by order with rigna with rhythmic they give you the data on where stop orders

happen and where iceberg orders happen if you don't know what icebergs are

those are hidden orders that aren't actually showing up in the book okay so

big boys get an advantage of having iceberg orders where they can actually

hide their order from retail traders but what they can't hide is once they

execute so we can't see them in advance that would be really cool but we can see

where they get executed the same with the stop runs okay we can't see where

the stops are waiting but we can see when they get run and if you come back

here you see this big red dip here so we had this price movement down it ransom

stops there was a little iceberg order up pushing up

and that's kind of where price stopped and then started moving up now it's not

that simple you can't just just because you see a stop you can't take an order

right it's got to be a place that you're looking to go an area that you want to

execute you know it's it's not it's not an indicator of an entry is what I'm

trying to say okay it is an indicator of what is actually happening okay it's an

it helps to know that a bunch of guys got knocked out here that doesn't mean

pull the trigger and but I didn't really take my own advice here so when this

stop run happened here you can see I got in this the shows you right where my

order happened this is my stop up here this is my target at 15 ticks down here

and my my stop is 30 ticks away I never take the full 30 ticks that just gives

me some room to breathe to reevaluate what's going on and so I saw I wanted to

get in already and I was ready to jump the gun so as soon as this stop run

happened I pulled the trigger and like I said that was too quick I should have

waited so we're gonna speed this up and let this play out because I got in

kind of in the middle down here of this bar and I definitely should have waited

till we got back to where I liked to play which is the view op and then if we

scroll over a little bit you can see what's going to end up happening and

then you see this big stop run happen right here okay so like I said it's not

an indicator of where to pull the trigger right so if you saw a stop run

happen down low you can't just assume that you buy and then you know go for

a run on the buy side alright but what it does mean in this particular

situation we came and we stopped out this area here and I believe that that

pride provided some momentum like it cleared out those orders comes back at

retest that exact same area comes up to this little area of sellers this little

highlighted area bounces off that and then we go on the run I ended up pulling

my target up from 15 to 10 and I actually had to leave so I don't see any

of this happening I left I had to leave to take my wife somewhere I left around

7:30 ish and so I didn't get to see any of this happening just came home and it

worked out nicely for me which is which is always a good thing if we come back

to you see oh you'll see what happened here is I told you about those 14,000

sellers that we're waiting here well they get taken out which is fine because

a lot of times what they want to do is they want to get filled okay they want

to get filled so they get filled and then price comes back kind of retest

that level and comes back kind of retest that level again and then they're ready

to have price move in their direction so let's go back and I'll let you see how

this plays out unfortunately there is like a hundred more ticks left on the

table but that's just the way it goes and I have to be happy about my 10 ticks

so price bounces around bounces around and then we go on another run down

and there it starts going

and then it goes down even further from there so that's all I'll show you on

that for now the rest of that's not important but if you look where I got

out so I got out around what 33 I can tell you exactly I got out of 33 75 at

this point we're all the way down I mean the low at this point it's 33 10 and if

we come over here where did we end up going down to I mean goodness goodness

goodness goodness you know we come all the way down we come we did below 30 to

40 so that was a heck of a run I got 10 ticks out of 100 or more but if we come

back to the you see oh if you recall let's see here let's get this this level

here was what I was talking about oh no that's not even the level how it's

talking about this level way back here so this is this is the level we were

looking at and when it came through you know it bounced it to retest to that

level multiple times comes breaks that lower level of traders comes back kind

of plays around in there some more and then starts eating through some more of

these guys but I think I had the proper setup because there was room between

these traders and these traders and it gets a little bit if you look in here it

gets a little bit Messier like you can see it bounces off those guys gets

sandwiched between those two fills and then they're ready to push through and

then kind of takes out these guys so I think I think I had the good spot

even though I jumped the gun a little bit but this would have been a harder

area to play then than what I played so if you got any questions about what

happened here let me know in the comments below but that's the video for

today we're still kicking still surviving and hopefully one of these

days I'll actually be able to tell you about making a withdrawal how about that

alright traders that's it for me I'm out