Good morning traders. Welcome to the book map professional trading webinar series all week long. We're gonna go Have interviews here with professional traders today. We have Walter Lester car He's been a trader for over 10 years and for seven years he's been focusing primarily on order flow and book map and And takes trades only in the liquid market such as the ES the CL and the and the treasuries He defines his his lifestyle or life. I'm sorry His life defines his trading style when he reaches his goals He quits a very passionate educator who has created lots of fantastic content With order flow and book map. So we're really pleased to have him here Got to go over the risk disclaimer here trading futures equities and digital currencies involves substantial risk of loss And it's not suitable for all investors past performance is not necessarily indicative of future results And you can see our contact information here for book map if you like Just a few more things on Walter. I will put his information in the chat if you want to reach out to him He has a website here his Twitter handle his YouTube channel. You can reach him on Skype as well And there's a blog interview on book map if you want to review that really nice interview we have with him and then this is his link here that he offers You can get some specials through Walter if you click on this link here So I'm gonna put this into the chat and I'll do it later as well So that those that came in late can still access this information. So there you go. It's in the chat For reaching out to Walter. Okay, and thanks very much for for coming Walter. Let me turn it over to you Yes, thank you Okay. Hello. Hi there. Thank you for being with Me and Bruce this morning or this afternoon depends where you are I really start with my presentation here profitable trading with book map and how I'm using it Allow me before I'm starting to Show you what I'm I'm planning for this short hour. We are together I'm glad to present my approach to profitable trading based on the other book reading. I have learned the past years Allow me to start with quotes from dr. John Kepler In my eyes, he wrote an remarkable book about how to profit in market profile I've picked two of his quotes the first one is trading is not gambling or a game of chance It is a skill and discipline that can be learned and the second one is Consistently profitable trading cannot be accomplished without a coherent understanding of the market and how it works Based on my experiences, I believe Firmly that trading is not a game of chance I have prepared a few points for this afternoon or this morning Um, I will which I want to present and maybe discuss with you at the end of this presentation I would like to say some a few words about me. Then uh, why I prefer data visual visualization Um, the systematic approach I looking at every day Insights into the audiobook and the auction. I will do a Replay example the replay bay is based on the s yesterday's s on from one day the fifth of november And um at the last few words about education as a chance um in august this year the german traders magazine tested book map and published an article about book map in their in their magazine They wrote those Who trade on the markets in the short term do not have it easy They fight against professional market participants fast algorithms and lots of noise In order to obtain a true picture of the supply and demand situation It is advisable to consider the audiobook next to the chart itself and making a decision The correct visualization of the autoflow is the a and o This is exactly what book map has set out to do and created an outstanding tool so far. I know They were not paid by book map for this For this article they put in their magazine in august This year. Yes, it was august this year Allow me to say a few words to me. Uh, who I am. I'm not a tipping service This it's quite important to say my goal is to have every serious trader to get a deep and objective understanding What trading is and how it works Um, important to say is also that I'm independent independent not paid by any organization Prop service bank or other institutions or other companies, even not by book map um, I'm trading on my own with my own money and I'm see Trading as my profession and it's not only a hobby I'm doing now and then um in the first years of my trading I think this was around 2001 2002 I started as everybody else following charts indicators some gurus which promised the best for me And of course you can imagine it was my money. They wanted And they get at the end some years later. I quit this non profitable business Because I didn't make any profit Watching charts and following some indicators And of course I was simply disappointed a few years later I was in in the ok and I visited a trading floor At an institutional bank where I learned that professionals work with price letters with other books depth of market and so on completely unknown and up to this point to me This attracted me a lot seeing how professionals are working or trading in this case and I began to rethink my previous decision to quit trading completely um Luckily at the time Luckily at the same time Peter davis launched his jigsaw trader from from jigsaw trader, excuse me for ninja trader Which at that point was affordable to me. I didn't understand the principle at that time, but I've Felt that how to say I would occupy myself with trading again. It was something I should have a deeper look at The good message was that Peter davis did a lot of writings, webinars, promotions, articles to make his order book more popular The bad message to me was that it was hard to understand at least for me I didn't see any shortcut to understand the order book overnight um, the point here is that learning the order book is not an Easygoing development at least it wasn't at least it wasn't for me um, it took me a lot of time to it took me a lot of time and There was no how to say structural structural approach to learn it Uh, I couldn't find any educators who were able to explain and demonstrate what an order book is good for To shorten the story it was the beginning of a new attempt where I felt that this could be more profitable than my trading time before um, this was or this is a picture of my former Trading trading screen. I had I had a ninja trader. I had my connection to my interactive brokers trade worker station and this was the jigsaw trader, which was um, I say I add on on indicator for ninja trader um Leaving the history now today we have more modern and high sophisticated platforms to bring everything together The order book and historical data from the book um, this approach Help us to develop a more how to I would say systematically understanding about the market I will show on this slide why I think combining both both worlds Well worlds real or actual data with historical data could help to be successful in trading um, what we see here Is the book map book map platform. I'm using every day This is my screen or screen shot of my my platform of my screen here uh, I would like to go to the components of the order book often of this platform of book map because um book map can be Confirmed configured highly flexible. That means you can adjust it to your needs as you want But what I did is uh, as I came from jigsaw trading from this Peter Davis order book Uh, um approach I configured it like the jigsaw trader is so that I have both worlds the order book And the visual part of this platform in front of me This what you what you see here limit order book. This is this one. It is absolutely the same as every other limit order book in the world you have My my this is what this one is configure configured like the jigsaw trader This is the bit column. This is the ask column. I have the traded volume column here um, I have the so-called snapshot column on both sides. It's, uh called delta column in In book map. Uh, it is the price the traded price actually traded price on this side to the other component components I will show it a little bit later now, um Putting this on the on the map. I have also a visual traded volume Part of the screen where I see what is actually happening. I see liquidity I see the actual traded volume here, which is also um updated in this traded volume column I will show you in the example how I'm How I'm using and how I'm reading um And how it can help you to or everyone who understands how to read an order book um to profit of it Then the historical data is this one part everything what is happening here is um marked or is Plotted in the in the historical part of the chart so that every decision can be made based on the historical part of the data It is the complete recordings of historical data based on this one of this part of this order book uh liquidity is one Is the most important part because without liquidity we can't we wouldn't trade or we make we wouldn't make any make any trade uh liquidity is being highlighted according the Available contracts in the book on each price level You can see liquidity in this case as support or resistance um Yes, and we call it also a possible real support and a resistant source We have also volume volume is displayed as Big dots or small dots dependent on the traded volume in these areas Uh, you can zoom in into microsecond levels or you can zoom out to have one or two hours on your chart Of the traded instruments or instrument you are you are trading um The only one indicator really the only one indicator i'm uh obey and i'm watching it is the volume weighted average price It's the daily volume weighted average price um I watching it closely in if you understand the meaning of the vweb understand that institutional banks and other institution Are using the volume weighted average price as an entry point for their activities Then you will understand that vweb is one of the most important Indicators uh in the trading world The volume profile is located here In this area, it is the complete volume profile with paired point of control Marked as this yellow line Uh High volume you can read out the high volume notes the low volume notes um It is how to nothing Else to say that the the volume profile is like That that one which is teach by dawton or dr. Keller and others um You have also this information here to read out. This is a normal distribution day a double distribution day or whatever You can use it in addition to make to understand what the market is actually doing what this planning to do and then I have or we have uh in this On the screen the api's application programming interface, which allows to add additional Indicators on The chart for example, this is an atr Average to range for my stop management Okay, um On this screen here. I see what is happening just in time. There is no lagging information here Therefore, I think that today it is much easier to understand how this all works together In comparison to a candle chart, for example And that's the reason why I said before that this approach help us to develop a more Systematical understanding about the markets um The reason for a systematic approach as I understand it Is that the order book is always working the same way and it is based on same Let me say unshakable principles It works the same on all markets worldwide. There is no difference as As long as you have a two-sided option You will always save the order book with the same mechanics in it. You'll see here on this picture. I will come Um, I will explain it a little bit more in detail. You have the bit wheel You have the bit uh wheel here the gear wheel you have to ask gear wheel you have the market Gear wheel you have the aggressors who are hitting hitting the the asks the hitting the bits here and everything works Like a mechanism perfectly together um Let me show what I mean let's assume We are we let's assume we are here together to design and assemble a risk watch Um First we should know the principle of a watch how it works what physical rules are necessary for a watch to work Um, I think I am not a watchmaker But but I think that we need then the right parts to assemble all this together the gear wheels drivers springs as And so on and so on and so on And at the end we must have the same understanding and the same language before we can design a watch and If you take this analogy then It comes it becomes more clear that the same principles Of building a watch or assembling a watch applies to the order book too. It's the same mechanic We have an ask a set bit. We have the market part here of it and we have certain Tummin, sorry terminology In this in this case, we have liquidity What liquidity is the blood of the market? We have volume which indicates market swings and price acceptance at a certain price level We have the order flow which is between bid and ask between bed best bid best bid and best offer This makes the wheel turns around and by the way and besides of this This this this impulsive market of this impulsive blood which is flowing through these wheels here. We have other wheels which are As well important like absorption, which is this red one Here absorption means complete absorption of traded volumeter price level If this happens then something important is happening at this price level. We have to watch closely on the other side I've put the exhaustion wheel here Which indicates that there is no interest in further trading on certain price levels So there is no interest on in in further other prices We have book flipping which shows the intentions of market agents which direction to manipulate the price We also have sweepings fast and fueling breaking of price levels, which are Which are leading that these wheels are Turning very fast in force for seven seconds for some seconds for for a moment And last but not least for example, it's not this picture is not complete but last Last but not least we have I think one of most underestimated Wheels here that the stacking and pulling which means shows that in dynamic I call it dynamic of limit sides and of the on the bid side Which is the snapshot column for example or the delta column in the order book And on the other side we have the stacking and pulling on the ask side as well Now we can in in certain market conditions In nowadays it's a little bit hard because es is quite thin We have Stacking pulling on the ask side, which means just that it shows also the dynamic of the limit sides on both sides. Now The order book is A mechanical approach and and a firm mechanical approach or accounting mechanism of the markets It is valid for every as I said it is valid for all markets and I I am learned it to read to understand and to To get a lot of information out of of it when I am making or when I'm planning when I'm planning and trade and of Of course when I'm placing it trade But not every watch as I said before must have the same look everyone is Every trader everyone is responsible for his own design But at the end we will manufacture a sample a watch which shows the right time hopefully Look here book as I said book map Is highly and flex highly configurable In assigning different information on the user interface on the screen you are trading I have organized myself to have the jigsaw like or jigsaw like order book in front of me And I will show shortly how I utilize the limit order book with visualization Before I do that I will come back to the auction The auction is the foundation for every price no auction no trade A few weeks ago. We had our first seminar in educated interested people for german speaking countries based on Book map in reading the order flow and understanding The impact on the order book The auction was and is an important exercise in the seminar. It is a simple Yes, it's a simple open outcry game The goal is to show to every participant what it means to bid life at an auction To pay attention to the price to make profit to control his own emotions Further on I think to see what happens in the order book and how it is manipulated and based on that manipulation And based on that manipulation making then their own or his own decisions And of course To experience physically what we can never experience on the pc with a candlestick or Similar charts in front of us for example The whole game is not about winning or losing it is About understanding the overall concept of the auction the open outcry and then and then gradually Transferring transferring it to the order book The results were quite interesting. Look here. We have I was I was I was the auction here or auction here other than how to say The market Market matching engine here. I meant I have this order book in front of me and I manipulated it in Where I was thinking it It is the best to learn how it works We every participant Got $2,000. I mean 2013 it was plain money. It was Hollywood money I ordered it at amazon for trading and a participant participant or student could buy a contract at a traded price Yes, it was actioned auctioned by me or the actually out of matching engine And look here The results are quiet. We are quite interesting Everyone this rather participants here In our seminar everyone got $2,000 Blake play money, of course To repeat and only three of them got a profit out of this of this Funny game and the rest was below the $2,000 here At the out and the end of the day You know the What we learned what we learned and I will show you in the next slide at the end of Day everyone we do nothing but compete with other traders Where we are selling it or buying from Are selling it or buying from the lesson is that we should be better The lesson is that we should be better than our opponents and that led us to the question Why are we allowed to trade? Why are we allowed to trade? I think that this is an essential question every trader should ask himself now and then Why I am allowed to trade we are we all are a part of the zero-sum game Of course in order to survive you must understand Our market works and what moves the price During the last months I had the opportunity to talk to a lot of interested people who are traders or want to become better traders At least it was my impression very fast. They want to be better traders very very fast Questions like how I got to questions like how can liquidity help me to trade? What is an auction? How does it work? Don't know what all the book is and so on and so on Um, I think that everyone can learn how trading works, but there are no simple solutions I'm convinced that that are no simple solutions. The humans are naturally looking for simple solution. That's that's in our nature Uh, for example, show me how trading works and I will start immediately or tell me how this indicator can make me rich Similar similar discussions you will get on this if you discuss with ongoing traders My conclusion and my experience That's part of my art biography Is if anyone is telling you that there is a simple solution for trading Don't waste your time and money on his promises on his promises Um, simply run away and there's a famous movie, you know for his gump run gump run for his run That's that's not true. It means it means you have to invest a lot of time and knowledge into trading in case you enter Interested to learn more about how we react as humans in certain situations and why we act as we act I recommend reading the excellent book Of daniel kenerman thinking fast and slow I think should this book should be essential part in the learning process process of every trader Now as the time progresses, let me come to the replay example. As I said, it is um, yes December contract November 5th Let me put this on the screen Oh, yes, I think you got it on the screen now Um, yeah, okay Um, I have picked I have picked only two samples. There are a lot of samples There were a lot of samples From yesterday's trading. Um, I'm When I have time to trade because this Yeah, the answer in questions and so on takes a lot of time takes a lot of my time Then I'm treat I'm I treat all my most not all but some trades on my Twitter account To see what I'm doing and some time from time to time. I also put my my status I put my how to say my trades on on the What I did or pasted on the other screenshots. So My statistics are that I missed it what statistics my statistics is on the screen So that you can see what I did at that time Um, I've I've jumped this I will reduce two samples. The first one started at 345 my time. I think it is 945 new york time And the second one is about absorption a little bit later on No, this was this this was the status of this of the yes Yesterday it is extremely thin as you can see in the order book. This is my order book here Okay, I don't have to raise a pointer here. Anyway, this is my order book.  This is a traded column A very important one and that's the most of what I said most underestimated gears in this mechanic This is the delta column or snapshot column. It shows me shows me the pressure to the upper to the downside Then this is the volume profile volume profile based on the session in this case. I can have it Put it on the chart session as well and I have the Quotes counter here quotes counter. I don't want to go in detail here We don't have the time to do that But it acts like like an open outcry if you're watching it and if you're following it So this is my Standard setup for book map because it gives me the most the best the best information what is happening here No, I will start the replay here and when I start when I see this Behavior here when I see liquidity below we when I see that this level is not traded anymore I'm putting This case in the rectangle Just as as a reminder for me to see Usually what where I am and what the price is going on We have good support Of the liquidity here and the 24 level the 24 price level Let me let this bit if you because we don't know because we don't know what is happening next, of course Can't see the future This acts as a good entry for a long position, of course I have good resistance below In my articles, I'm talking about floor and ceiling but take this as support And take this as resistance or liquidity on this 24 25 level Let's see what's going on. I make it a little bit faster because of the time we have together here Yes The point here is that if you put this trade on if you go long in this area because of the liquidity below Then it wouldn't be a loss in this case 26 25 50 wherever you get a fill here you can get One two three points may be out of this trade The the more the message here is the message here is That you won't get a loss here. I I've never Let them running I let never let a profitable trade To to stop me out never ever What what you see again is let me get a little bit forward Is that the liquidity is Wannishing here that the liquidity is cancelled at this point. I will show you what I mean and what I am twittering Sorry, what I put in my tweet message um Now quite nice trade here so far allow let me to Extend this one Please note that the liquidity Was cancelled here and please note also that the equity liquidity is coming back here on this 24 25 level Which means we have three more than 300 contracts 300 30 contacts 340 contracts on 24 25 5 sitting and then something happens What you can observe every day day in day out is that This was a quite a silent support for the price for the traders here above and suddenly the uh liquidity banished The cancel all the liquidity you see we have an extreme extreme ES future here 100 contract is nothing 200 contracts is nothing on normal days. We have 500 for 500 500 contracts on each on each limit side Then um The price is coming back You can also speak tech technically if you are technical analyst This was the support and if the price breaks too, then the support becomes resistance Let me speed it up This is how I How I act when I when I'm when I'm focused on trading when I'm trading I'm trying to to mark my levels and to see what's going on now. This was broken. I If you if if you put if you go along here, that's absolutely very trade even if you stop Would be stopped out here in this in this area But it is not advisable to Go along when there is no liquidity. There is no support below Go what I want to show you what was quite impressive and I put Twittered it yesterday Because I was short 23 something So Let's have a look at this area here above 27 25 And let's have a look here on this level. I will Delete the traded volume with a double click That allows me to have a closer look at At this area 27 25 above I will make it a little bit slower For us to see what this is going to happen Now the price is coming back to 24 25 Yes, let me let me again double click and make this volume clear to see Exactly what's going on to demonstrate what we can see in this level A little make it a little bit slower. So the price is hovering liquidity is coming up here And note that the liquidity which was before 25 75 25 the quarters is was lowering to 25 25 25 one quarter Oh, that was too that was too fast. So um, let me go back Let me go back one second Yes, that that's what what what I wanted to to show it's Impossible. It's impossible to see What mark what the market is doing if you don't have the right platform to see everything It's you can maybe you can if you're trained and I was a follower student of John Grady He is trading only with the dome only with a jigsaw to trade our order book If you are trained to see that and if if you are focused and you stay focused you can see a lot of of movement you can conclude your actions then based on the other book But it is hard for me to follow numbers flickering. So I need both parts. I need the visual part which relaxed my eyes a bit and Um, I need the order book to see what is really happening here. Look here. We have under 24 7 24 430 434 contracts sitting there immediately coming in they jumped in they want to be hit. Let's see what is happening then Okay, it was too fast. But anyway, they have Then have been taken out And the result was that it was evident because of this liquidity Following it's you can also call it's maybe a kind of spoofing because they lowered the liquidity to form 25 75 to 25 0 um And based on the high liquidity at 27 24 that they want the price lower And now see what is happening. They're pressing pressing pressing in the price And there were no buyers who are trying to buy this level up and On the other side Please watch simply visually Without any reasons what is happening on on on the traded volume The traded volume is increasing is increasing here. The red side is dominating the price Movement This a little bit faster Okay That I think I I sold his yesterday 23 now we have had here The liquidity they spoofed the liquid at the price down on on this level 25 there Press put up the pressure on 27 24 0 and that was it's of course, it happened to be Later the the entry was here But it's the evidence for every trader that the price is going down There's no chance that the price goes up at the in this in this scenario for example And what I'm doing all the time if you are following My my tweets. I'm Declaring this area as business done There's so every day so much evidence to see what is what what happens in the book what happens in the on the visual part on the book and That's the that's the the proof that they have That the the tension of the market makers was to press the price down So that was it and I think it was the 70 area where bought back and closed my trade There are a lot of Interesting behaviors if you are skilled to watch an order book On this side and to combine both worlds the order book the numerical part and the visual part together Let me show you very briefly a second example. It is It happens at I picked one at 5 44 Let me 544 it must be here It must be here Yes, let's try this one No, yeah But that was too fast. Let's try to go one second back Oh, no Only a second And again, I will I would like to Oh, I will double click in the traded volume to see actually what is happening at 24 5 11 I'm sorry for that. I got an error poos. That's bad, but Uh, come on Um, luckily, let me say that luckily I have I did Yeah, maybe you have some screenshots or something. Yes, I Thought I have one, but uh, unfortunately, I haven't Um, that's that's really that's a mess. So I'm I'm sorry for that guys. Um That's what I want didn't want to show is Um because I wanted to show the absorption but what uh, which was was happening at At 5 44 my time and I think it was 9 44 your time. It is It is really evident how absorption works and I'm sorry for that. I don't have I have prepared the screenshots for that, but I don't have the screenshots of this of this event So that's uh, yeah, that's that's not okay. But anyway, um, what I wanted to show is that the combination of an audiobook together with With the visual part it makes you stronger. It makes you more self-confident to decide what enters you You can choose you should choose To make you a better trader to make you a better confident to make you a confident trader um Besides knowledge and experience I think the right platform the right platform is essential Our advantage today is um that we have a broad variety variety of trading platforms I mentioned jigsaw trader for example I personally as you saw love to work with book map You can have your own platform. It doesn't matter the the most important part is that you are profitable Day in and they are you shouldn't underestimate the data feed I'm coming back to this to this chart here to this slide. Um, as I said, you Uh, you shouldn't underestimate The quality of the data feed It is absolutely essential if you want to objectively observe the market and especially uh, especially with with visual platforms By the way, the jigsaw trader day trader has also a visual part There shouldn't be any compromises retail Aggregated or slow data are not sufficient enough to understand what the market is actually planning to do And you should know you should experience you should feel what the market is going to do If you don't feel it if you don't see it Sit on your hands and wait until you get the right signals not only from the chart, but also from your From your yes from your mind um Then how is the information being interpreted? Is it structured meaningful? Does the data presented make sense in my trading environment or in my trading context? Uh for myself data visual is visualization is of big advantage because um I can use a systematic approach to observe my traded instruments and possibly better understand What the market is actually doing It makes me more patient And uh, I am waiting until a level of interest appears to be watched closely as I As I am demonstrated with this the other area if there are enough informations for me to put a trade on I do it I execute it And I said before I think as I mentioned it before I switched from a numerical dawn to bookmaps visual approach because To me it's demanding watching numbers flickering and what I can't I can't concentrate enough over the over the trading day as mentioned before Logits key if you know what is happening then applying and executing comes next And the circle starts again Folks folks. I know well Uh, it is easier to talk about than executing. It simply takes time to get everything together Uh, who it concerns a bit advertising at the end of my presentation We are good in time because I couldn't show you what what I wanted to do with absorption Uh, we are planning to addition seminars in Germany in frankfurt in december in january December 7th 9th december 2018 and 25 to 27th january 2019 next year You can get more information about my website. I'm right if when I have time I'm writing a lot of articles about visual trading about bookmap how to How to not design but how to Uh, come on. I lost the word How to configure how to configure the bookmap and so on And I'm Answering a lot of questions during the day over my account or my tweet or even skype So thank you very much for listening. If you have questions, um, please I'm I'm pleased to answer it Yeah, yeah, we've got some questions coming in Already and uh guys get your your questions ready for uh for walter Um, I well first off walter. I'd like to see Your example. I think you have some content on absorption From another content piece that you you put together, uh, which I thought was fantastic And Then let's see here. Uh, some questions about different markets here Uh, you know, typically these uh examples with the es or the nq Um and resting orders, um are very different compared to for example the uh currency futures Uh, if you trade some of the currency futures, how do you look at the order book? Uh, and uh, How how do you uh use bookmap? Uh We know that those markets are very different. Uh, they're heavily hedged. Uh, for example, therefore the order flow Is different as well Yes, um I have I have traded the 6e uh the euro For for time I'm looking at a book map at at at the book map at the same in the same manner like es like Like other instruments. I have looked at but the point with, um 6e or for with yen or canadian dollar is that these markets are high High illiquid or they are they have They have not enough liquidity The point here is that, um, I think order book makes sense to read if you have a market Who allows you allow allows you to have time to read the market properly if you have um, if you trade, um If you trade markets with Extremely didn't liquidity like look look at a and q for example Um, then you have maybe five or 10 contracts on a price level It is extremely hard to follow the order book then The only part I I would like to recommend if you try trade 6e or 6p is to watch where Where very huge liquidity is sitting on It's very hard, but what what we what we we are doing in the education. We are not only talking. Um, we are not only talking about, um We are not only talking about Liquidity we are talking about absorption exhaustion. We we are we are defining strategies One strategy is for example a reversal strategy when that does the reversal strategy applies We are talking about the breakout strategy Who is trading after after me? Um, uh, I try to find solutions for this strategy. We are trading, um reversal We are fine. We are defining, um reversal strategies for example um Reading reading the order book in extremely fast markets. I don't have a recording here now Maybe you'll see the my screen again. I restarted this um Yes, I have this yell here the oil future It's uh, it's a nice market to trade of course. It's a little bit thicker than than other Forex futures If you have such an extremely thin market I said here in q or f tax It's I think it's for me. It's hard to hard to trade I would like then for strategies like reversal strategy You'll see big volume here. The big volume is retracing Maybe you can take this area to go long then or to mark this area and put a long position if this If you feel that the market is going on The visual part of book map helps you to identify these areas and Based on the based on the traded volume and then to mark this area and then I act according to your strategy As to summarize this it's hard for me to trade 6e or other Forex market. It's possible, but then I would like to see if there's Huge liquidity somewhere sitting and you can observe it in the 6e and the euro Also very very often. I don't know the 6b. I don't know the yen for example because I don't trade it Then I switched I switched back to I switched back to Because of this I switched back to a yes s and p soybeans treasure is Excellent excellent instruments to trade.  I try to find the level of what I wanted to see to show the Uh, okay. Sounds great. Um, well first things Walter, I'm sorry, you know, I apologize for the the crash that that occurred This is Well, Walter is testing Some add add on indicators, uh, and we're developing You know, we have a very robust api right now and we're testing a lot of different things The the crash we've already looked it up here and it's related to You know some of the uh new Indicators, so That's that's the reason. I mean because book map is is quite quite stable Yes Just due due to some of those things. Uh, sometimes those crashes occur the another point You know, we've been doing some of the educational webinars looking at the nasdaq e-mini for for quite a number of months now and Although I I agree with you that it's it's very hard to read it in the order book The order flow, uh, you know from from the dome, but from the heat map We found it to be very very effective. Uh, even Because the vol you know because you can zoom out, uh, and you can really look at the Levels of liquidity in the heat map Not necessarily the order book is moving too quickly for that But but looking at the the heat map, uh, can be You know really effective. It's it's one of the benefits. I I personally think a book book map offers on that front Yes, I agree. Absolutely. Uh, Bruce, what you said that that and uh, of course, I forgot that because it was a little bit stressy moment for me. Um, I'm I'm I'm this is not the normal release. I'm testing here. I have a little, um Development release here and that that happens from time to time because I'm testing several apis and several indicators um a real time and uh, that's not That's how to say that's not the normal way Book map reacts. So that it happened now. So just just to confirm you it's a development release What I have here. It's uh, it's not a stable release. I'm working with Um, so I wanted to show the atr other indicators, but I don't we don't have we run running simply running out of time but I agree with you if you have the nq here and You'll see you'll see this this this liquidity on every level. It's really hard It's really really hard to watch but look what is happening here Look what is happening here and if you see that and that's that's what I what I wanted to say is, um You have to have some Some you have to have you have to establish a process you have to have Uh, for example to understand what is uh, where is the big volume clusters? You see here Excellently that we are we we do to have an how to say and Divergence here between this point and this point We have a big liquidity up there now It's up to you where to enter the This level and this is where it also for very thin instruments like yen or Euro dollar or whatever pound or whatever you are trading the forex market It works really it it works really reliable But the point is I'm I'm Trying to say is you should know what you are doing You should understand that this is a big volume cluster You should understand what this liquidity means on this level here For for for a q and if you miss this trade if you are not short here, for example Then you should make and reversal trade maybe on this level There's a lot of opportunities to to embrace to to use this This visual map here this visual part of the book map to find excellent and profitable and low risk trades So um other questions. Yeah, uh, let's see here Uh, do you trade from the uh from the book map? Uh chart there No, no, I don't trade simply because I'm testing here a lot of wrong and I'm not sure whether this would work You know, um, when I started I started with ninja trader. My my broker is Up to now up to today Interactive brokers They have a very old-fashioned platform called trader back to workstation and I have I have bought I think 10 years ago whenever I can't even remember bracket trader Which isn't simply entry system for the tv s and that's so robust Because when I started with ninja trader seven It's uh, I tried to change an indicator and it broke down and it crashed but whatever So I'm running my tv s on my laptop and I'm entering my trades Via bracket trader. It's really old-fashioned, but it's rock solid So I have never had a crash or whatever um So I'm not trading from either not from from ninja trader not from book map and so on but at the moment I will do so in in the future. I'm I'm planning that to do so in the future, but not at the moment Okay, okay sounds good.  Uh, or are they in german or recorded in german? No, uh, this was the first this was a pilot one, but I don't hesitate to to if we get an audience about It makes sense to have 10 or at least at least 10 people then Interested people in this education then we can do it easily in english It's it's not a problem to do this in english But we started first in germany because in germany. I think uh, it is For most people hard to understand what what an audiobook is and how an audiobook works. So it is a really Playing field we are playing playing in that But if there's a demand for international causes, it should be it shouldn't be a problem then Okay, okay sounds good Uh, let's see nick here is asking about how many uh trades you typically make a day In the average winning percentage I'm doing uh, you know, um, when I'm when I'm remind when I Reach my goal when I do one two three good trades then I quit um my motto is that the My life is too beautiful to sit the whole day in front of PC and in front of a chart and and try to make some trades or try to Make money It's absolutely sufficient for me to Do some good profitable trades where I have fun To make them to see that my strategy works and then I quit. I'm absolutely consequent in that I'm going out and do some exercise, uh, whatever There's a lot of other Especially in the last weeks and months a lot of other Tasks to do to help other people to understand what is going on But I'm not trading junky Which is sitting all the day in front of the pc and doing my trades here Yeah, I think that's a really good point. Um, I I like that very much that you had written that in your bio Just a real nice balance between trading and and life living your life Really really important point Let's see here. Do you have a trading room not looking for a trading service, but uh, like-minded traders using bookmark Um, no, I don't um, yes No, I don't have a trading room for now, but During the education in the seminar The participants asked for a trading room Um We are thinking about but I for my experience from my previous experience I would like and my colleague lie would like to do to have only on the participants or members or Trading fellows who are educated in who are who are who know what is happening or who know Simply we want to speak the same language and if you have one who is Who is starting with trading who don't know how an order book works and what an order book is and what absorption is what Exhaustions and so on and so on and so on then it's it's absolutely disturbing So our decision my decision is if we start a trading room, then we want to have people in Who understand what is an auto book about who understand the book map who understand Who have the same terminology? So for example, so that we are concentrating on the on the trades And if the trade works to commend the trade and say what what's what what was good what was bad and so on but not how to say Not how to say to to teaching people in the trading room. That's not my goal and it that won't be my goal Okay, sounds good. Uh, let's see here. Um, so, um Um about learning book map, um, you know, what was some of the Methods or like, how did you learn book map? How long did it take? To get kind of up and running and what what do you recommend for? beginners here I would like recommend to beginners to first learn what how an order book works because That that what we see here and this display here it's only Transferred to this area to this visual area I would recommend to learn what an order book is. I would recommend to Um, understand what an auction how an auction works. Maybe you can place there is also I think in america is an Open outcry circle You can join the circle you can join you can play An open outcry you will very fast then understand What an order book is good for and how it works. It's a count. It's a counter mechanism For every trade which is which is done in this area Then if you understand this Define look at the technology like like anything else you Should know what absorption is what like Uh What exhaustion is what book flipping and so on spoofing layering there are a lot of Of these terms which should be known that you have a complete understanding what is happening here in this in this area Because this what you see here with the dots and the bubbles and and this red and green lines And this this area says nothing else But what what what what is happening here in this area? So if you start start understand the order book start understand the auction then you can transfer your knowledge If you understand the auction, you know what what is happening Then you can trust train in the order book. You can watch the traded volume You have to you should look at the snapshot column. What is happening then and it's best visible in in a very High or thick markets like yes, like treasury zp 10 30 years 10 years treasuries for example Uh five years treasuries, of course, so he beats whatever Do it with instruments who are not extremely thin like and q Some forex markets Then if you know what is happening here, you can watch it here And it makes much easier then to combine to put together all the knowledge between all the book and the visual part of the book map Okay, great question here about What is your uh, your win ratio? Um, and uh, has it changed since using book map? Uh, it it is yeah, yes, it has changed. It is much much better. It is much better than before because I'm using only I am stick to my process. I stick to my To my uh, strategies, which is uh, which I showed before It is much much better. I don't what it is. Uh, really, I can't say the numbers, but it's much much better I'm absolutely satisfied because Let let me show this example. Uh, this example here. Maybe, uh, I'm I found us the time just only to show you that one This is what what here what happened here. This is only one example for One short example of yesterday's yes trading what I wanted to show is Look here. This is a classical absorption point at 20 27 24 50 This volume was absorbed. It is visible in the cumulative volume delta. For example, you see this, um this vertical Let me see drop down or this vertical line here in the bottom You see it at the very big volume. You see it also that 220 91 and 176 contracts are traded in 24 25 24 50 for example here Nothing is bought is was bought on on the ask side and let's Look a little bit further. What happens then? um It's absolutely normal. You're if you if I look at this day in and day out It's absolutely normal that the price is going up for a moment because there are no sellers at this point There are no sellers below 24 25 and 24 zero So let's see what is what is happening here I don't want to make it faster. Please be patient a little bit Now we see here stacking of of liquidity 285 contracts on the 24 24 quarter The price is coming back of course because um, you you will learn that some of the of the players here of the traders Are thinking oh the price is going down if you look at the candle chart Uh other charts you will see oh there that they are thinking. Okay. We have here a small Uh retracement and then the price is going further down But they don't see these levels if we don't see these levels and of course they don't see what is happening in the book In this case have a look here. We have 63 contracts traded on 24 50 and this That there's slightly how to say started to buy this is another absorption at and um As soon As other participants look here liquidity is coming up as soon as other participants are smelling smelling that there is This was the end of this move See the absorption point. You see us flight divergence here between this point here and this point and the other book is showing that Buying is increasing buying is increasing buying is increasing here Let me do this a little bit faster so what I wanted to show here is um It's not the perfect example, but it's a good example from yesterday's trading Uh, I think I was Long I was not sure. I did two trades It's a good example how reading the order book how observing the volume how observing what the volume is doing I hope to have in the community volume delta and seeing Really in the order book that uh buying is increasing its wizard. It's visual It's present. It's visual present So for the eyes, it's easy to watch Then it makes you more self-confident more assure assure that you did the right Decision in trading that you are on the right side of the market. I think That was it Right, right. No a good nice nice example there Yeah, a lot of examples, but we don't have the time to go through all these examples. Unfortunately, but anyway, um Do you have other questions? Yeah, I mean we're over an hour here. So we'll finish up. I think with one more question here Regarding the importance of the close delta column that you had mentioned earlier Yeah, and how you how you use that or read that information um I'm watching this information in cases in case of of very And at extreme let me say at extreme points because um If you watch at a quote center, you'll see that That the numbers becomes red when the pressure is up and um This is very fast This becoming when when a number become became red here It is loud. It is it's similar. I compare it to an open outcry There are people who are crying to buy. There are people who are crying to sell for example, so I'm Not watching is very it was very very closely But i'm putting in on my chart because it gives me sometimes sometimes it gives me additional information about the movement About about the intention of the market makers what what they want to do. It's not it's not the absolute how to say um indicator for me, but I say it it's an open outcry mechanism which is working for me in my in my In my mind and i'm watching it and to see what what is happening really at the extreme points when the price is moving towards this liquidity here Yeah, I'm sorry. Walter. It was more uh, regarded not to the quotes column, but the quotes delta column Ah, okay. Sorry. I'm sorry for that. I misunderstood. Sorry um The quads delta column this this snapshot column here is an Partly it's extremely important. I watch it every every time when I when I see what what is going on Look here. It's an it's not the best example here, but uh, uh, stop here. You'll see that This is the difference between we are trading for 59 we are trading 59 contracts at 27 30 and We added or the market added 54 contracts to this 59 content. It's a it's a it's a quite simple mechanism behind It adds or subtracts the contract which are traded on this side on either side on this bid side Or on this ask side. So that means if Because this this flickering here that this changing of these numbers is so fast It's impossible to to follow sometimes. So what is really going on? They can they can cancel this 59 in in second and add 200 for example on on on on this on this price level But the quotes delta or the step shot column shows you exactly what is going on What this means at the moment is that the market or that they are stacking they are stacking um Adding or there's adding additional contracts to these price levels. Let's see what is going on Further, it's not the best example of here for for now, but you should know that the delta column here It's extremely important. You see there's still pressure. They are adding 60 The delta 60 to the 27 27 30 and a quarter here um in Last past past weeks when the es was in a normal condition You could see if they want to go up. You can see here 300 500 400 500 500 500 In the sum the pressure was on the upside the pressure was on the upside There was no chance that the price is coming back This is the information of the of the delta column here Or snapshot column or whatever your Other instruments may may have uh, it is quite important information What the market is likely to do and where is where is it heading to Okay, uh, I think uh, I think that's it. Um, I will email uh, walter the remainder of the questions here There's not a whole lot left. Um, but um, uh, sorry if we didn't get to it though And we'll we'll wrap it up here. Uh, thank you very much walter. This is uh, I've been an excellent presentation on understanding a variety of different things and what you're looking at there in terms of uh, really understanding order book and and market mechanics Thank you very much bruce and um, if any questions you can reach me We are my website and I'm a little bit glad to answer it as I can when I can Okay. All right. Thank you everybody. Thank you. Bye. All right. Bye. Bye


Hello and welcome to the session. Let us understand the following problem today. Given a non-empty set x, let's start the function from p of x cross p of x to p of x. We defined as a star b is equal to a minus b union b minus a for all a b belongs to p of x. Sure that the empty set phi is the identity element for the operation star and all elements a of p of x are invertible with a inverse is equal to a. Solution p of x is the power set of x. The x is a non-empty set. The set is the set of all subsets of x. The operation on p of x union b minus a for all a b belongs to p of x. Let us name it as 1. We have to show that the identity element for star, for star on p of x. We know phi is the identity element in p of x is equal to a which is equal to phi star a for all a belongs to p of x. But any a belongs to p of x, we have equal to a minus phi union equation 1 which is equal to phi dash union phi intersection a dash because phi is equal to a intersection phi dash which is equal to a intersection union because phi dash is equal to u which is the universal set. It is equal to a union phi which is equal to a. Now, a is equal to phi minus a union a minus phi which is equal to phi intersection a dash union a intersection phi dash which is equal to phi union a intersection universal set u which is equal to phi union a which is equal to a. Thus, a star phi is equal to phi star a which is equal to a for all a belongs to p of x. Therefore, phi is the identity element in p of x for the binary operation star on p of x. We have to show that elements of a of p of x invertible versus equal to a. Now, a belongs to p of x, we have equal to a minus a union a minus a which is equal to phi union phi which is equal to phi is invertible versus equal to a. I hope you understood the problem. Bye and have a nice day.


Welcome back. What we have seen is a consequence of the basic statement of first law is this integral must represent change in some property. Now the question is which property is this? We define this property to be the thermodynamic energy or simply energy E of the system. And the formal definition will be notice that it represents change in some property. So, we would be defining in a differential format, the differential of energy is minus the differential of herbetic work. And in the integral format, the difference in energy delta E12 which will be defined as energy of the final state minus energy of the initial state, this will be defined as minus integral 1 to 2 dw adiabatic. The first law says that since it is adiabatic, we do not have to worry about the path. For evaluating this integral, we execute any convenient process which is adiabatic and which starts from the initial condition 1 and ends at the final condition 2. Now, one thing we will notice is that we have used a negative sign. This negative sign is a matter of convention. We have come across one convention already that was the convention for work interaction. We said that let us consider the work done by the system to be positive. Here we put a negative sign so that whenever a system does work, that means when the right hand side integral is positive, the left hand side, the change in energy would be negative. And this is just to be consistent with our personal feeling that when we do work, we feel exhausted, our energy levels go down. But remember that it is a matter of convention. There is no thermodynamic principle involved with it. Now, one thing which we should note is the following. We should note that e is defined using its differential D e or its difference data e. This means only differences in energy between two states of a thermodynamic system are significant. And this automatically implies that actual values are meaningless. Are either meaningless or we can replace this are not meaningful because we will never really use absolute values. We will always be using differences in energy or differentials of energy. Thank you.


So loose hinges are the most common problem that books end up with. When the hinges get loose, it puts a lot of stress on these endpapers. Right now, the only thing holding this book together is this little piece of paper. So if the books gets used and opened in red, it's just a matter of time before this page rips and then you have to do a cover replacement or reattachment. So it's really quick, easy, and cheap to tighten up the hinges. All you need is some PVA, polyvinyl adhesive, and some barbecue skewers. That's really the, those are the only things you need to do a hinge tightening. So the first thing you do is you position your book, you hold the textbook, text block with one hand, and then use your other finger to expose the hinge like that.  Once you do the one side, do the other side. Not every book is going to have loose hinges on both sides. Sometimes you're only going to have to do one side. When you stick your skewer down, you don't want to force it. If it's getting hung up on glue that hasn't failed yet, just don't, don't force it. Let that glue stay intact. So you do one side. If you're careful, you should be good, but if you got a little sloppy, wipe off any excess glue with your fingers. Flip it over. We're going to do the same thing from the bottom now. This one, the whole endpaper is coming away from the cover. So for this one, I'm actually going to take a paintbrush and put extra glue. That's not the norm. Most books aren't that bad. But this is a really cool little book, so I want to make sure we fix it right the first time. So got a little extra glue in there.  We don't want to accidentally glue the book to get to itself. So we're going to take some sheets of wax paper, insert them between the endpapers. It's usually good to fold it so you have a nice straight edge. We reuse these sheets of wax paper many times, so they're a little ratty. And then that's it. That's all there is to it. Now all we have to do is set it up to dry. So for that, you can use, we have these nice plexi rods. We don't have very many of them, but we'll use those until we run out and then we'll just use more barbecue skewers, which are nice and cheap. So we have plenty of both. We won't be doing huge batches of these at any one time.  Make sure the weight wax paper is all the way in there. And then all we do is we dry it under wait. And typically we're going to use these large blue boxes for our wait. Library of Congress subject headings are also really good for weight for drying books for hinge tightening. And then that's it. And the only other thing you have to do is you have to give it a quick look and make sure your book is sitting straight because if it's slightly cockeyed or off-center, that's exactly how your book is going to dry and it'll be like that forever. And that's it. That's your hinge tightening.