fbpx
eBook – How To Profit From Iceberg Order Manipulations

How You Can Profit When Institutions Try To Seduce & Induce You Into Risky Breakouts And Retracements

Isn’t it time you find out when to steer clear of — and when to trade with — the enormous iceberg order trades that drive sudden market moves?…

How To Profit From Iceberg Order Manipulations eBook

Chapter 1:
The Gigantic Trades And Traps No One Sees Games institutions play to move the market wherever they want.

By the time they saw it, it was already too late. Their fate was sealed, along with the other 1,517 people onboard.

Such was the horrible reality faced by the night watch at 11:39 pm looking of the port side of the Titanic.

The mile between the ship and the mammoth iceberg didn’t provide nearly enough time to change course. It was 

bigger than most buildings, and seemed to be put on earth with one purpose — to take down a massive ship.

Every day, every hour, iceberg orders are made in every futures market. The result? They take down millions of amateur traders in the process — while the institutions who placed the trade rake in billions in profits.

And the worst part? The hapless amateurs have no idea that they’re being played. That’s right. Played.

How so?

Institutional traders know that 95% of the trading public simply can’t see what they’re doing. They are fully aware that everyday traders are sitting in front of their screens making blind entries using time-based candle charts and hopelessly late price-based indicators.

All they have to do is set their trap, give the market a nudge with their massive volume, and rake in the profits. If this sounds unfair… you’re 100% right. It’s not fair at all — but it’s absolutely legal.

If you’re like many traders, there are two basic paths you can take:

  1. Hand your money over.  If you are attempting to trade price action reversals, trends or even basic scalps without knowing where the iceberg trades are — you should just get it over with and arrange the transfer of your full account balance. Hell, they’re probably better at spending it than you are.
  2. Trade with the institutions.  When trading iceberg orders happens, the market reacts. Price makes a move. And the dirty little secret? Instead of being crushed — you can ride shotgun and profit alongside the institutions.

The key? 

First you have to be able to spot and avoid the traps that the institutions set — which 99% of the retail trading market falls for.

And then you need to know exactly when and where to enter.

It all starts with having the right perspective.


Chapter 2:
Why 99% Of The Market Can’t See A Thing
The simple, yet deadly mistake most amateur traders make.

To say that it was huge is an understatement. The iceberg that sank the Titanic was bigger than most buildings when it was fully formed. What many people don’t know is that it was well known… the mammoth berg was born in Greenland in the same place that many of the North Atlantic icebergs come from.

So it was huge. It was known. And somehow, they still missed it.

The same is true for 99% of the retail trading public when it comes to having visibility to massive institutional trades. We’re not talking about the zillions of multiple contract orders that get filled every second. 

Nope. We’re talking about the massive positions with hundreds of contracts — sometimes thousands. When they are filled, it sends the market — and more specifically price — on the run.

The first problem that inhibits a trader’s ability to see this activity?

Traditional time-based candlesticks.

They occupy just about every chart in the world — and sure, they can be helpful… but when it comes to actually understanding and seeing real price action — they are utterly useless.

Why?

Because time-based candlesticks won’t reveal the aggressive buying or selling activity that drives price action. And it’s within that aggressive activity that you’ll find the institutional trades that you’re looking for.

Additionally, time-based candlesticks bring clutter and confusion to your chart.  Trends become very difficult to spot and trade. Big price moves often are only revealed after it’s too late to enter.

A simple change to tick-based charts will allow you to identify aggressive buy or sell activity with ease. This will position you to identify breakouts and trends — as they unfold — instead of after the fact.

Check out the below ES example comparing a tick chart with traditional time-based candlesticks. Not only is the direction of the price action easier to spot, it becomes more apparent earlier.

Ticks reveal price action. Not time! Stop guessing and start seeing the real direction of your favorite market by changing your perspective!
Ticks reveal price action. Not time! Stop guessing and start seeing the real direction of your favorite market by changing your perspective!

Ticks reveal price action. Not time! Stop guessing and start seeing the real direction of your favorite market by changing your perspective!

This is critical for price action day trading in any futures market — especially if you’re going to even see institutional trade volume, let alone find a way to trade with it for consistent profit.

Now that you can see price action as it unfolds, you have to be able to spot the massive iceberg order trades that drive it.

To know how to trade iceberg orders, you have to look in the last place you’d expect.  

Inside the candle.


Chapter 3:
Institutional Icebergs That Create Profit
The triggers for price breakouts no one sees until it’s too late.

If you happen to see an iceberg the size of a house — it’s considered small. In the north Atlantic, they are often around 600 feet long. The amazing part? Ninety percent of the iceberg is invisible because it’s below water.

You simply can’t see the extent of the power or damage — until you hit it.

The same is true for institutional iceberg trades.  

Once they hit the market, the extent of their impact on price action is felt by everyone. The other institutional traders know exactly what happened because they can see below the surface. They know exactly how big the trade was, and the precise direction it will drive price.

The rest of the retail trading public? They’re completely in the dark.  

They are watching what they can see… above the water. When price goes berserk, they are left panicking and wondering what just happened. The sheer size and force of the institutional trade is completely a mystery. The impact on price is totally unknown.

In the end, they are simply chasing the chop along with everyone else — and getting crushed in the process.

Here’s the key:  Just like an actual iceberg, if you can see these trades, you can trade alongside them. You just need to know exactly when and where they are hitting — within each candle.

Check out these examples.

Once you can see the massive iceberg trades, it’s a different story. Notice how price respects those levels… to the tick. Also notice how price responds and takes off. If you can’t see these moves — you’re flying blind… simply chasing price action without any idea of who is really at the wheel.

As you can see, icebergs have different effects on the market. In some instances there is a breakout. Others are met with a responding block trade from another institutional force.  

Regardless, these trades create vital support and resistance levels that any trader at any level can use. 

And that’s the key. You don’t need to be an institutional trader with a massive account to profit from the resulting price action.

You can make tiny entries… as long as they are the right entries.

Easier said than done. Now that you know the icebergs are there — and that more are coming — you need to know how to navigate them. You simply can’t expect to see a buy or a sell iceberg trade and make a blind move.

Not in a million years. No, you need to be armed with a series of entry strategies that will help you take advantage of these massive market moves — depending on the type of market that you’re trading.

This is a critical detail in understanding and trading with this strategy.  

If you are simply barreling into a trade once an iceberg has been spotted — without understanding what kind of market you’re dealing with — you’ll be in a world of pain. 

Fortunately, there are three basic trades you can make to generate faster, easier profits the second you spot an institutional iceberg.


Chapter 4:
Three Simple Trades Hidden In Every Iceberg
Basic setups that any trader, at any level, can use to trade with the institutions.

It’s worth noting that 1912 was an unusual year for icebergs. A whopping 1,038 were observed crossing the 48th parallel. This meant that the odds of hitting something were much higher. 

There is nothing unusual about the number of institutional icebergs that end up entering any futures market at any time. They happen constantly. And you can take advantage of them in a matter of minutes, with very little guesswork.

The instant an iceberg is spotted, you have three easy trades to choose from:

1. Directional Draft Entry:  Buy or sell alongside the iceberg. This will be a short-term entry with a stop placed just beyond the iceberg. Because of the immediate market reaction, these are often an amazing way to pocket a handful of ticks very quickly.  

>> The key:  Get in. And get out. 5-7 ticks and you’re out.

See the below ES example. Here we have back-to-back BUY block trades that are driving price on a continuing trend. In both instances, you have the pattern on your side — and the sheer force of 500+ contract trades to move in with.

Both trades are good for at least 5-7 ticks a pop… and all for less than a few minutes’ worth of work.

2. Responsive Reversal:  When price has made its run and the institutions decide to cash out, you can enter with the reversal as the market adjusts price back to fair value. This happens all the time and it’s a huge opportunity for easy, longer term intra-day entries that deliver lots of ticks.

>> The key:  Watch the successive icebergs in conjunction with the trend.

In the below ES example, you can see the institutions driving the trend down and cashing out along the way with three SELL icebergs. On the third sell you know that the cash has been taken off the table and the market is now oversold. Time to return to fair value. And guess what… you get some help along the way as the institutions start to buy again.

This responsive reversal is good for 30+ ticks over a 15-minute period.

3. Support Breakout:  Historical support and resistance levels are meant to be honored… except when an institutional trader decides to bust it with a bomb. When that happens, you can enter alongside for the breakout.  

>> The key:  Plot historical support and resistance using prior institutional icebergs as your guide.

Here is a perfect example of a support-busting iceberg that pushed price through a historical level. Patience and slightly wider stops as the market works through the back-and-forth will be critical for this entry. Notice that there was no responding BUY iceberg… the breakout was on.

And for a ton of ticks in LESS than 20 minutes!  

For each of these trades it’s important to remember the following basics:

  1. In-and-Out:  Even for the longer-term trades, you’re looking at a max of 20-30 minutes — and only to ride out the trends or breakouts. Much longer than that and the market has absorbed the iceberg and has moved on.
  2. Honor Thy Stops:  Never move a stop to give yourself more room to maneuver. Remember, these are heavyweights that are going at it. Your job is to profit from the resulting chaos… if you get stopped out, live to trade another day. DO NOT HANG ON.
  3. Play to the Levels:  Never enter without knowing where the support and resistance levels are. Prior iceberg zones provide a fantastic starting point — however in general, solid support and resistance should be easy to spot. Park your stops at support/resistance levels (tight) and plot your targets at support/resistance levels.

If you’re wondering exactly how you’re going to plot these levels, or even find institutional icebergs, don’t worry. There’s an easy way to see these trades in real time — while REMOVING THE GUESSWORK on how to trade them.


Chapter 5:
How To Plot Institutional Trades In Real Time 
Avoid being late by seeing major price action unfold with time to enter!

If you were posted on iceberg watch that fateful night in 1912 in the north Atlantic, you had two tools — a radio and a pair of flimsy binoculars. The rest was up to you and your comrades as the massive ship sailed down ‘iceberg alley’.

Amazingly enough, millions of amateur traders head into their futures market — small account at the ready — completely blind. They make their entries, falling for the price action chop that has no real hope of generating a profit.

And all along the way, behind the scenes, the institutional traders in the know — with visibility as to what’s really going on — are cleaning up boatloads of profit.

This doesn’t have to be the case.

With one simple tool, you can stalk iceberg trades. You’ll see them in real time on your chart, with a clear indication of what direction the market is likely to head — and what trading strategy you should deploy.

This will allow you to level the playing field. To profit from the price manipulation.

In an instant, you’ll know the exact price levels at which institutional traders are willing to buy or sell hundreds of contracts. You’ll see where the institutions actually have consensus and what direction they are looking to drive the market.

And the best part?

You’ll be able to deploy simple, fast, easy micro strategies that enable you to trade breakouts, reversals and short-term trends.

The impact on your trading? Instant. Possibly life-changing.

In addition to seeing these massive institutional trades… you’ll understand exactly what they’re doing to the market. And that positions you to profit with the right strategy.

More importantly, you’ll see the price action that you need to steer clear of. The institutional activity that you want no part of.

In a day and age where you can have real-time, GPS-level access to what’s going on in any futures market, during any time frame, you can’t afford not to protect your account and your trades with this intelligence.

Start seeing institutional icebergs in real time and start trading iceberg orders! Profit from the opportunity they present on a daily basis. Sail with the institutions and fearlessly navigate the massive trades they make for your benefit!