Painting the Tape – Episode 10: Trading With Delta

Hosts: Leo, AJ, Stowe

[00:00] Introduction & Banter
The hosts catch up on life—babies, moving, rough trading weeks, and self-help books—setting a relaxed, humorous tone before diving into the topic of Delta.

[10:30] What is Delta?
Leo introduces Delta, defining it as the difference between ask and bid volume, and explains why it’s a key tool for futures traders. The group discusses how Delta reveals market aggression and passive participation.

[17:00] Delta in Practice
The hosts break down the three main ways to view Delta: by price, on a footprint chart, and cumulative Delta. They debate the usefulness of each, with some strong opinions on cumulative Delta.

[25:00] Session Profiles & Passive Participants
AJ and Leo explain how session Delta profiles help spot passive participants and absorption, and why these clues matter for trade management. Stowe shares stories about scaling out when big sellers appear.

[32:00] Real-Time Delta & The DOM
The group discusses using short-term Delta profiles on the DOM to make sense of fast-moving markets like NQ, and how these tools help with entries, exits, and avoiding getting run over by aggressive order flow.

[51:00] Trap Traders & Market Reactions
AJ explains the concept of “trap traders” and how aggressive participants can get caught at highs or lows. Leo offers a nuanced take, focusing on the role of passive participants and liquidity in market turns.

[1:00:00] Icebergs & Unusual Order Flow
Leo describes how to spot iceberg orders using Delta by price, and why the market’s reaction to these big orders is more important than the orders themselves. The hosts share anecdotes about seeing big players get “nuked.”

[1:05:00] Twitter, ICT, and Trading Lore
The conversation shifts to trading communities, Twitter drama, and the humor (and occasional value) in trading lore like ICT. The hosts reflect on the importance of finding what works for you and not taking things too seriously.

[1:15:00] Wrap-Up & Final Thoughts
The hosts wind down with reminders to keep things simple, stay chill, and enjoy the process. They close with gratitude for listeners, a few more jokes, and a lighthearted sign-off.