Thread by @SPX0DTE

I am still asked "how I trade" all the time. I'm going to do a general write up here and just reference this tweet from here on out.

How I trade: I more or less strictly trade #ES_F now. I love SPX 0DTEs but I'm at the point where I need more liquidity.

My setup:
One monitor and a laptop. I just buy the highest end laptop available every 2-3 years. Laptop runs my trading software and nothing else. I shut it down every night.

On the monitor I have:
4HR and 15M chart in one corner. 4HR is where I do my macro TA etc. 15m has the volume profile. On both of these charts I have various SMA, EMA, VWAP etc. I can toggle on. I rarely use them.

2000 Volume with cumulative delta. 0 indicators

200 tick entry chart.
The tape.
500-2000 tick/volume chart based on the volatility.

On my laptop screen I have Bookmap running to see liquidity levels and the DOM.

I only watch ES_F. I don't watch any correlation etc. My focus is 100% ES_F price action.

I'll fire up the computer and take a look at where we are at on the 4hr/15m. I'll take note of previous OHLC, Value area levels, and obvious macro TA.

I'll gauge the overnight activity and make a gameplan for the day.

I'll start my day trading smaller size to get warmed up. Typically in pre.

Here's where things get a bit more confusing... and the part most of you are interested in.

As you may or may not know I trade fairly large lot size for a retail #ES_F trader.

Of course I'm not just marketing in full size. I rarely even get to my "full size" trades.

My trading will change based on how the market is delivering price. If the day is ranging... choppy.. etc. I won't even consider adding to positions. I'll more or less scalp.

When scalping, my position sizing is determined by the DOM. If the book is thin, my sizing is less. If there is a lot of volume/orders.. i'll go a bit bigger. I don't want to get to a position where I'm clearing anything with market exits scalping.

If I expect the market to trend. I'll attempt to build into a full position. All this means is I'll start the day "scalping", but rather than fully exiting.. I'll manage my position fluidly.

If we are approaching a level/line... stalling on the tape... DOM being refreshed etc. I'll trim a XXX contracts... but hold some. At the next pivot I'll add more. Each cycle I'm building a larger and larger position until eventually it is quite big.

Ideally the full size coordinates with an important break. Some days I get lucky and the market consolidates nicely into a break. I'm able to get a full position in the same zone, and I make a ton of $.

Other days are a battle trying to get ahead of these moves and get to a full position. Important thing to note is I'm always on the side of caution. When I'm up to full size my PNL can fluctuate 10-15k a point. I'll never go there unless I have full control of my trade

Everything I talk about (control, patterns, repetition, patience, etc) comes into play... but I cannot simple wait for a single pattern and take my full trade size. There would be far too much exposure.

As you come into your intermediate/advanced trading years. I recommend you experiment with fluid positioning AKA working around a core.

clear as mud? Perfect.