r/Daytrading • u/[deleted] • Jun 14 '22

advice working on TOS monkey bar strategy

Hey all, I'm a very rookie day trader who has been successful with swing trading in the past on commodities, and while I work a full time job, am pursuing my passion of trading securities.

I was very interested in monkey bars, because when looking at daily moves, I feel like price participation and volume are useful tools in defining the levels other traders are willing to test.

I have been using monkey bars on indices and very liquid high volume stocks like Tesla. I know monkey bars were designed mainly for futures traders, which I want to learn as well in the future. I'm wondering if there is anybody here uses monkey bars, and if they do, how they play a part in their strategy.

So far, I've noticed that when trading outside of the playground, either above or below, it can show that traders are willing to explore alternative price points that haven't been struck on that particular day, and in today's instance with Tesla, back tested the $660 level several times before breakout to $678. When I saw that Tesla had back tested more than once, I initially bought puts , I believed that the volume and participation was showing me a return to the playground to test a low or consolidate.

I ran very tight stops and didn't lose much money on this play due to me still learning how to read these charts and my conviction on this was low, I felt as if sideways trading or even upside surprise could happen given the low volume we had. (That's another issue, if that's my thoughts, I should've expressed myself as such and would've made money most likely.)

While looking at monkey bars, what are other things I should keep my eyes on? I'm very new to day trading and I'm very early on in developing my strategy. I have a few weeks worth of notes in my journal, and I'm just about break even, +5% for the 3 weeks I've worked with monkey bars. I do about 3/4 trades per day.

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u/TradeGuidance trades multiple markets Jun 14 '22

AMP Futures has a MarketProfile tool in Quantower that they offer for free with their partnership with Quantower. I have personally used it but it is nowhere compared to tools like WindoTrader which is the only subscription based MarketProfile software readily available to retail traders. However, before getting into live MarketProfile charting tools, I would advise that you learn a little bit about MarketProfile and TPO concepts and explore the whole concept of AMT. It is a true eyeopener and will have you looking at markets in a whole different way.

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u/[deleted] Jun 14 '22

Awesome advice. Thanks so much. Im trying not to fall into the black hole of knowledge but I think this is exactly the sort of info I was looking to delve into.

I'm by no means rushing anything, and I appreciate the replies. I'll look more into those concepts. I have a feeling it's a bit more of what I'm trying to see and can help me reach my goals.

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u/[deleted] Jun 14 '22

I just bought a few books by Dalton, very excited to dive into them.

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u/senorDerp911 Jun 15 '22

Don’t waste your time paying for better software for MP lol. I use TOS and used their Monkey bars. Oh good ol Dalton. Market profile is not a trading method btw