market profile 102

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Welcome to a CBOT® Seminar

MarketprofileMarketprofile®® 102102Presented by:

Alexander BenjaminSponsored by the MarketVu Show

NOTE: Futures and options trading are speculative and involve risk of loss. The information in this seminar is taken from sources believed to be reliable. It is intended for information and education only and is not guaranteed by the CBOT as to accuracy, completeness, nor any trading result. It is not intended as investment advice, nor does CBOT endorse or support any product or service represented in the presentation. The views and opinions offered by individuals or their associated firms in interactive seminars are solely those of the authors, and do not necessarily represent the views of the Chicago Board of Trade. The Rules & Regulations of the CBOT remain the authoritative source on all current contract specifications & regulations. "Dow Jones," "The Dow," "Dow Jones Industrial Average," and "DJIA" are service marks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by the Board of Trade of the City of Chicago (CBOT). The CBOT's futures and futures-options contracts based on the Dow Jones Industrial Average are not sponsored, endorsed, sold, or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of trading in such products. Information provided is taken from sources believed to be reliable but is not guaranteed as to its accuracy or completeness. The Rules and Regulations of the Chicago Board of Trade should be consulted as the authoritative source for information, rules, and contract specifications.

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MarketprofileMarketprofile®® 102102

Alexander BenjaminSeptember 7, 2005

The Small Print&

Disclaimers

U.S. Government Required Disclaimer-

Commodity Futures Trading Commission

Futures and options trading has large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This presentation together with any and all related documents, videos, websites are neither a solicitation not an offer to buy/sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this document or related videos or websites. The past performance of any trading system or methodology is not necessarily indicative of future results.

Commodity Futures Trading Commission

-CFTC RULE 4.41

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTSHAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRSENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Trademarks, Service marks and Trade Names where applicable are recognised

Specifically but not limited to:

eSignal, TradeStation®®,,

marketprofilesmsm is licensed to CBOT®®

COPYRIGHT

http://www.cqg.com ©2005 CQG,Inc. All rights reserved worldwide

Alex BenjaminAlex Benjaminbegan trading in 1975, trading multi currency Eurobonds for Grieveson, Grant & co.1978 employed by Euroseas Securities of Qatar as a Eurobond market maker moving on in 1979 to PrivatBanken of Denmark as an Assistant Mutual Fund trader. 1981 joined Arab International Finance a Luxembourg based investment bank as head of fixed income trading.1984 requested by Banque Nationale de Paris (BNP) to run a Government Bond arbitrage division. 1990 Chemical Bank, Frankfurt head hunted Alex to run the Futures Trading division. 1991 applied for a work visa from The U.S. Immigration authorities who granted this in June 1991 and Alex developed in conjunction with MP a proprietary trading module trading futures contracts globally based out of Chicago. 1992 Cantor Fitzgerald Inc requested Alex to return to London and subsequently move to Paris to organize its role in French Government Bond trading. 1995 Cargill Inc requested Alex to run its futures execution broking desk in London until September 2001 when Tradition Securities & Futures asked Alex to join its global futures execution division. January 2004 Alex returned to his proprietary trading module and is based in United Kingdom managing ALT Capital Management LLC as a CTA and runninghttp//:www.tradingclinic.com as his portal website

He has been affiliated with or consulted in a broking capacity for many of the largest Hedge Funds mainly based in or around New York.Alex graduated from Sorbonne University with a B.A. degree in Economics specializing in statistics in 1973.

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MP 102

• you just do not know what is around the next corner, or even where the corner is.

• The more I study the MP and LDB, the more it makes sense to me, and the more that I think to trade without it…. is like walking into a cave without a flashlight…

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MP 102

• MP101 looked at the setup, organisational structure and the different types of days that unfold within distributions

• MP201 will expand on the different types of days and look at a complete distribution to see how it gets put together to look at the Longer Term Timeframe dominance and its influence on the Shorter Term Timeframe

• We shall try to extrapolate MP price targets that will allow a degree of probability into ones thinking and therefore help with trade entry and trade location

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MP 102

What is MP

A dynamic analysis that evaluates the market on the volume of trades at each price point during the session constantly evolving with the changing market

Price + Time = Volume but more correctly ValueBy definition Value = 68.24% of Volume

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MP 102

• Decision Support Tool

• Anticipation rather than Prediction

• Probabilities

• Analysing the present in real time to be able to better understand the future

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MP 102

4 Steps of Market activity

• Move vertically

• Stop

• Distribute around a mean often meaning a secondary test of 1

• Revert to the mean

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MP 102

The market auctions up until there are no more buyers AND down until there are no more sellers

In other words price rallies to shut off the buying and drops to shut off the selling

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MP 102

From Low to High

From High to Low

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MP 102

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MP 102

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MP 102

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MP 102 - Normal Day

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MP 102 - Normal Variation Day

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MP 102 - Trend Day

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MP 102

Initial Balance – Daily Chart = First 60 minutes– Weekly Chart = First 2 days– Monthly Chart = First 2 Months

Stocks – MP year = Calendar Basis

Bonds the exception – MP year = Feb/May/Aug/Nov Quartile

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MP 102

So how to measure?

Normal Variation Day = look to double and sometimes treble the IB

Neutral Day = look for the symmetry of rotation from one side of IB to the other side

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MP 102 - Books

• J. Peter Steidlmayer– A journey through Trading Discoveries

• James Dalton– Mind over Markets

• Go to: http://www.tradingclinic.comand log into the MP references pagewhere you will find a huge library on Market Profile®

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MP 102 - Books

• CBOT– http://www.cbot.com/cbot/docs/handbook.pdf

• Donald L Jones– Value Based Power Trading– http://www.cisco-

futures.com/vbpt/VALUEBASED_POWER_PRINT.pdf

Alex BenjaminWho is he?

ALT Capital Management LLCTrading Clinic LimitedP.O. Box 93 , TN10 4JXUnited Kingdom

Tel: 011 44 7880 600 349

Email: [email protected] Skype or MSN IM: alleyb_ukWebsite: http://www.tradingclinic.com


Q&A / Contact InformationQ&A / Contact Information• Alexander Benjamin

[email protected]: 011 44 7880 600 349

• Chicago Board of [email protected]

• The MarketVu [email protected]

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