In this video, learn a simple way to use Robinhood users data to make a quality trade. Robinhood traders have become important players in today’s market. Using data, in this case Robinhood users, to make better discretionary trades is worth adding to your PlayBook. Let’s get to work on sharing this important trading idea to help you grow your trading account.
View Video Transcriptin this video learn a simple way to use
Robinhood users data to make a quality
trade Robinhood traders have become
important players in today’s market hi
I’m Mike Bellafiore co-founder of SMB
capital and we’re a proprietary trading
firm located in midtown Manhattan and
I’m also the author of the trading
classic one good trade and the playbook
click our subscribe button so you don’t
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for you in the trading community using
data in this case Robin Hood users to
make better discretionary trades is
worth adding to your playbook let’s get
to work on sharing this important
trading idea to help you grow your
trading account here’s the trades hook
on htz on June 5th I called this trade
the Robin Hood imbalance and this was a
big dog setup so intraday fundamentals
for this trade so htz is a vehicle
rental company that recently filed for
chapter 11 bankruptcy chapter 11 is
important note because under the US
Bankruptcy Code all the companies the
best must be paid in full before
stockholders recover anything roughly 15
billion a purchase total 19 billion debt
pile these linked to the financing of
its vehicle fleet simply because the
company has so much debt to negotiate
and satisfy with major lenders the
likely outcome is that regardless of
what happens current shareholders we
likely wiped out and left with nothing
about you but for the bullish case so
Robin Hood saw a staggering three
million account stream in the first
quarter there are 13 million accounts
total further American Airlines Group
said Thursday that plans to boost
flights by 74 percent month giving
investors this thing that could be time
to scoop up shares of beating down
transportation stocks if the worst of
the Cove in 19 in pact is behind us
there are also rumors that JC PQ could
be bought out meaning that to speculate
HTC will be next and it also called icon
liquid his 1.8 billion dollar position
this to mean there’s no longer a heavy
selling pressure in the stock examples
are like with Delta and Buffett and then
Friday morning the US on an unemployment
rate
beat analysts his expectations as it
fell at 13% in May the averaged around
should have been around 14.5 to 16%
compared to the 20% expected as he
calmly gained 2.5 million jobs so for
Robin Hood holders this is a match
I’ve been looking a lot more into and so
Crider bankruptcy filing roughly 43,000
robert-houdin accounts owned shares of
hertz the number has nearly doubled to
seven three thousand as of friday
robin has two interesting rules there’s
a limit to the amount of trades that can
be taken in a week if your account is
125 thousand and its start time for
buying is that 9:00 a.m. we can also
track volume changes with this website
the link below
acz searches hit all-time high on the
day of the trade by 9:00 a.m. and the
eventual all-time high
a so ty yes sir so walk me through go
back to the slide on robin hood track
okay so I guess it’s Robin track net yes
that’s the site that that tracks
positions from Robin Hood users is that
correct that’s correct
but to be honest it’s kind of slow data
so basically Robin Hood track they
connected to the API Robin Hood and they
had like a whole file that you can like
take those stocks information from but
again it’s kind of slow installing it
like faster information yeah for this
Robin Hood track you can get information
like how Robin Hood holders are
increasing their positions are
decreasing okay and so why are you
pointing this out at the beginning of
the slide I love this by the way but I I
want to know specifically well I love it
because really important to be using
data to make better trade decisions you
guys are super skilled you’re gonna be
super skilled traders and if you can add
on data that end of itself gives you a
little bit more edge that’s gonna make
for some super trades so what are you
thinking here about pointing this out
well it’s to me you guys can see Robin
Hood didn’t really come in until it’s
very low because of the fundamentals of
the company it’s very bad so I know
there’s gonna be a lot of short sellers
in this stock but for me I’m thinking
you know is there a way to basically
catch shorts offside and that’s
something I’ve really been like looking
a lot more into in finding out you know
if I’m like a bigger trader how can I
like clay bigger moves where I know like
resale could help me out
if that makes sense whether it be no
catching shorts offsides or like buying
a rumor selling the event type of play
and we saw those two times today in
other stocks so I’m trying to like
record those as well yeah I think it’s a
really important note if you can have
retail and know how to play them and on
your side it can set up for huge trades
okay so the idea is the more Robinhood
account users who are interested or will
be interested that can be a variable
that you use as to the stock to be more
likely to go up yes sir and also how
they react when they’re down and so on
but I’ll get later into that if you want
to learn three real world setups that
our traders use including the simple
setup that we teach all of our new
traders and the setup that turned one of
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money earner check out the free webinar
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online education okay so now that we
know Robin Hood is holding in stock how
do we know how to get into a stock
before they’re in it and you know the
fastest way to know what someone’s gonna
do is to understand their thoughts and
so one thing I like to use a lot is
something called Google search metrics
and it and this shows how many searches
happen for a particular keyword I’ll
show you guys later another third-party
site you can use which is even better
but for on the date of this trade I knew
there’s gonna be heavy retail involved
because by the time I took this trade at
9:00 a.m.
search might reach the all-time highs
that tells me you know come 9:00 again
if the majority of Shang of Robin Hood
we can see an imbalance basically and
then eventually I all-time highs would
be hit when priced at $6 the people are
searching for a stock doesn’t mean
they’re gonna buy it
and so another metric I put in was shy
buy hurts talk now and I put on like a
weekly basis from the Declaration of
bankruptcy
we see that there wasn’t from May 17 to
the 23rd no one was searching that but
after bankruptcy filings that’s when
like those search message for should I
buy her stock now
hit all-time high as well so
fundamentals in game plan Hurst was
currently training at two dollars and 53
cents
had an ATR of zero point six in our bowl
of ten an average daily volume of
thirty-two point five million it had
zero institutional ownership market cap
of three hundred seventy three million
I had a forty six percent short float
tells me there’s gonna be a lot of these
guys that are like really trying to
short this stock there’s a hundred forty
two million shares outstanding and
there’s a wide change from yesterday a
seventy one percent support was at two
five two four and then two thirty one on
the bomb the daily range and two
eighteen resistance at two fifty seven
two eight three four in three states and
so for my game plan in entries this is
not my main watch this is experiment
trade I want to document and see if I
can find an edge in these variables I
need to watch at 9:00 a.m. when Robin
Hood can buy and see how airlines react
to the jobless numbers I feel like I
have a good entry in my position I’m
only risking one tenth of my daily
stop-loss exit years in risk management
I would like to see a short squeeze and
retail buying into my resistance targets
this can set up for a great backside
trade eventually this company shares are
worthless at this point the only thing
that kind of sucked about this trade was
this was the day the jobless numbers
came out and they were or the
unemployment rate it had just blown out
a lot of expectations so it kind of
changed my whole mentality about going
forward for the next few weeks like what
could really be in play so my month my
main focus was on large cap during this
time here just like a higher time frame
on htz like what I was looking at this
zone is the area of influence I’ll be
watching it’s kind of like the bomb and
the range and I want to see if we
reclaim that zone and so htz was holding
a higher time frame support pre market
and I believe this could be the reclaim
of that zone where we could kind like
push up into the next resistance targets
so that 257 was the bomb that daily
range I was looking at and a higher time
frame technical level as y’all can see
we keep trying to break out of that
range and we’re consolidating trading a
bigger like wedge almost like a big dog
trade and so when I took this position
it was at eight about eight twenty it
was about timox before the news release
but what I saw was like bids were
holding up and we’re above BT walk now
entering its long only risking once into
my daily stop
plus we’ll the exit at 2:40 so I knew
life it failed and broke that range not
a mine losing for you know a bigger
trade idea and then at 8:30 the
unemployment rate posted blow out
numbers and airlines are running at this
point Disney spy and delts are my main
focuses I’m in with max size and so as
we continue you know I’m watching for
that 9 a.m. I call it a Robin Hood
imbalance and because this is a second
day play on it
and I thought there could still be a lot
more upside and so I 9:00 a.m. I’m
watching for the Robin Hood of balance
and then I put my stop at breakeven
I see the wedge pattern from 7:15 to
8:30 that you’re highlighting yes sir
and are you saying that’s the Big Dawg
pattern that you’re talking about that
that tight wedge pattern yes that’s what
I was looking at yes sir okay so yeah
that is a tight consolidation pattern
it’s in the pre market however so our
volume in the pre market is going to be
lighter now however on a day like today
with something like Hertz there there
can be elevated volume when we’re in
that tight consolidation and we come out
of it so when we first start to peak out
of that tight consolidation what do we
want to see elevated volume and what
don’t we exactly right exactly right
exactly right and what don’t we say not
see volume we do not see elevated volume
do we
no sir okay so you know so good that is
a tight consolidation pattern I like
that I like how you’re finding it in a
stock and play
I like your how you’re looking for the
entry that that’s all really good checks
against us for us to be thinking about
our one pre market the volume overall is
not a significant so just that wedge
pattern as it is it’s not going to be a
significant and then two we don’t get
that elevated volume when we come out of
there but let’s keep talking about it
I’m intrigued by how you’re using Robin
Hood and I’m intrigued that you’re
you’re using it for a stock in play and
and you know price is working so that’s
that’s something you know we bought out
of it out of the wedge it’s it’s going
up and it’s holding up so price is
holding up
we don’t have the volume though so again
like 9 a.m. I’m really trying to see at
this point like this again is an
experiment trade yeah I want to see how
Robin Hood kind of reacts and so I find
no like at 9 a.m. that area of interest
like right where I really want to be
watching
and so at 9 a.m. I’m watching to rob him
balance and then I see that kind of go
up and so then I just put my my
stop-loss at breakeven now I’m kind of
like flipping through charts on like spy
Delta and Disney but by 9:20 we’re
starting at that short squeeze and Robin
Hood buying continuously coming in and I
should have been watching closer
sure this get out of 3rd when you’re
going parabolic and the third on the
back side and I probably would have held
another like my rest at breakeven just
to see what happens at the open once we
break down and then right at the open
I’m back watching and we kind of kinda
get another like I don’t know if it’ll
be like shorts covering in some retail
buying all right so I won’t talk about
two trades so let’s say our thesis is
hey I want to see a buy comes in right
away at 9:00 a.m. there’s two trades
that we need to be talking about the
first is what are literally the first
ticks after 9:00 a.m. in the stock are
the first ticks more positive is the
stock start to trade up are they paying
the offers does it start to move up
right after nine o’clock and I can buy
that for an opening drive we’re not
necessarily open but use the opening
drive principle okay against the low of
the 9:00 a.m. start and and buy it and
try and catch the momentum to the upside
that’s trade number one we open at 9:00
a.m. it starts to trade up we get long
our stop is the low point at 9:30 at
9:00 a.m. it’s a tight stop and we try
and catch the momentum the second trade
is we see volume comes in at 9:00 a.m.
we see price action to the upside it
shows us the path and then we buy the
poen alright so we weren’t watching it
close enough at 9:20 we noticed that it
actually had a nice move up but we were
watching some other things we were
watching Disney spy in DL at da l great
no worries
but we’re gonna buy the pullin so we
wait for the stock to pull N and we wait
for it to start to turn back up and we
buy when it turns back up so here’s like
the bigger trade idea I try to put
options to the first time on day three
this is for a bigger trade idea but I
honestly don’t know enough to speak on
them so you know it’s kind of like
seeing you know a bigger idea like
there’s nothing fundamentally sound
about this we’re up over you know over
at the time when I was looking for these
like over a thousand percent since the
declaration of bankruptcy I started to
put in anchored be walks in the start of
these moods I wanted to see how
populated really affecting how Robin
Hood had really pushed the stock so
again I want to see how retail acts when
the large majority is winning or losing
and so on that day that we caught that
short it was kind of a breakdown but I
mean you’re rethinking people up against
what the start of popularity like when
the move starts and so I kind of want to
see like a change in character so if we
see June 4th there’s I don’t want to say
manipulation but it’s kind of like
there’s a change in how it kinda gets
propped up it gets on Robin Hood’s radar
I think there’s something that kind of
gets on their radar by percentage change
on a date one clay and that’s how
they’re kind of using like bosta both
sides of the trades like you know having
REITs on your side with a lot of like a
high short interest and so I’m starting
this anchored B walk from the start and
just trying to like playing it out to
see how the majority of retail buyers
are acting when they’re winning or
losing once I saw that that read claim
anchored B Walt on the second day play
it was confirmation like Kate like this
could continue go out there continue
continue these squeezes and read so it
could really continue getting bulk with
it and so you guys can see on this third
day play you know we’re still high in
shorts I think again we’re like 46% and
so if you go look at line on that day on
the previous line go back to
searchmetrics
guys can see there were more retail
buyers involved than ever before so it’s
kind of like having you know a high
short interest and a ton of Robin Hood
buyers that really are pushing this
stock up from that day we kind of got
this massive squeeze after hours and we
break the lower trains we go exactly
back into anchor be walk and so once we
failed
you know that’s where I’m really
watching that’s when the large majority
of retail is underwater and you guys can
see that’s when they sell and they sell
hard alright so I really like how you’re
using anchored view up I encourage you
to continue experimenting with that
obviously how you define your anchored
view up is going to matter there are
different ways to define anchored view
up and so you are you’re defining it the
day that it starts to get heavily in
play which is makes a lot of sense to me
and let’s see if it can hold that
support area from that period of time
and let’s use that a technical area as a
detector as to when momentum is still
intact or is waning and so if it’s still
above you up then the momentum since
when it was first in play is still
intact if it gets below anchored view up
then that momentum is coming out of the
stock and those Long’s may be on the
wrong side and we may see a move to the
downside so I like you doing that but I
like your think I just like your
thinking over all here which is this is
a good really good way to be thinking
about stocks you’re basically saying to
yourself what’s gonna cause a lot of
buying to come into the stock well a
high short interest
well retail traders and how do I measure
that and you know and then how do I use
some technical indicators that matter to
measure the momentum so this is a good
way to be thinking through a trade what
really comes as like the weekend work is
where kind of want to really hint on but
so for reading the tape you know once I
saw the bids hold up at 250 I decided to
get long and risk for the support at
under view öppet at 240 the tape was
critical at 9:00 a.m. when I had to see
Robin Hood buying was going to come in
and come through I regret not watching
the parabolic shove at 9:25 you know the
tape would have been critical examining
the weakness and the flush I used the
tape of the open and watch the bids hold
up in concert reversal at 9:32 and I
used to tape on my exit to watch the
film follow through and change a
character on the tape so here’s just a
trade review
I was disappointed myself enough
following this trade closer and leaving
money on the table
I believe I did a good job of looking
into both sides of this trade there’s
death there’s definitely an edge
understand in psychology retail thinking
when training these types of stocks I’ll
continue work on improving research and
focus on training these names
I’m putting working the weekend and I’ll
find more of these types of ideas so
here’s the weekend work so I made like
pre market qualifications going forward
like that one I look at and for this you
know I want to see you know search
volume spike this signals to me retail
can be involved at 9:00 a.m. it allows
me to identify the participants in the
stock I want a low flow you know fewer
shares equal higher volatility a
preferably a small gap up from the
previous day without news this perks
interest from retail investors research
recent examples are htz you want you on
EK and byc a higher time frame breakout
this gives levels to risk off of in
areas of interest potentially high short
interest high score interest should give
way for a short squeeze Robinhood
holders increasing after 10 a.m.
robin hood holders tend to buy in packs
and then an anchor b walk from the start
popularity we can see how a retail
reaction when majority is winning or
losing
here is utilizing Google trend metrics
and data science search might be short
leading indicator when looking for a
Robin Hood balance pre market trade I
need to know what retail is thinking if
I know the large majority Robin Hood
users can’t buy until 9:00 a.m. I can
see what stocks are thinking to buy with
the help of Google searches and Twitter
Sinemet once I have those volume spikes
I can go through the stocks float short
interest market cap filings future
catalysts is a day one or day two play
etc and and get a feel for what can
really run at 9:00 a.m. so below is the
overlay comparison with you 1b y FC and
June 10th searches and here again is
overlay comparison with coronavirus
stocks and I know searches so a lot of
times you know I think these stocks are
being moves by retail and if you can see
what retail is thinking before they can
do it you know that could be a really
big clay so here’s some of the search
metrics you know I’m like the alerts I’m
trying to build you know I want to know
the highest searched stocks from 4:00
a.m. to 9:00 a.m. I want to know if a
stock hits all-time high in searches
before 9 a.m.
I mean how did it trade prior with the
previous run-outs now I know that the
amount of searches for those stocks you
know I don’t care about increases from
like number like two to four users and I
want to see what websites they viewed
and so you can probably use an SEO like
eh refs calm and that just stands for
search engine optimization the first
step is to generate keyword ideas and
I’ll be using HX keywords Explorer for
this so I’ll start by typing in a few
broad keywords related to my online
store like computer computers laptop
laptops and PC next I’ll go to the
having same terms report which shows us
all keyword ideas that contained the
target keywords as a broad match and
there are well over seventeen minutes
so what I’m trying to look for is to
kind of find the volume you know I want
to know how many people are searching
for this stock and what websites they’re
viewing you know cuz if ones if I’d go
to well actually here’s perfect examples
so for like on HTC I knew there was a
lot of retail investors looking at this
stock based on Google metrics and so
what I did was like I’d literally typed
in HTC stock and Google and I read the
first two websites and neither one of
those mentioned bankruptcy I Lily ain’t
like that whole bullish case I literally
just copy and pasted like what those
like articles said from like seeking
alpha again they didn’t even mention
bankruptcy and so that kind of gave me
an idea of like if retail is really
reading this you know they’re they’re
kind of thinking again like seeing that
retail psychology and just like they’re
probably gonna want to buy this and buy
this you know a lot because it’s already
up seventy-seven percent it’s on their
radars and what they’re reading is most
likely it’s just complete junk and then
I just want to know like the catalyst in
the future and then here’s flight to
websites I found out I’m gonna start
using a lot more so here’s possible
filters
this is Robin Hood tracking so me and my
buddies we create an alert that tells us
the highest percentage change in Robin
users over the last hour I need to get
this data faster preferably every thirty
minutes we’re using on application
called docker to get around pinging the
API restrictions you know could we break
this up by market cap to kind of get
those alerts even faster and here’s just
the average example an alert you know if
you all seen anything else you know
could I add any other variables and I
need to keep back-testing to find that
sweet spot right now we’re kind of fine
you know if it’s like users over 800
where
like the most activities coming in like
where they starting from and then just
why is this important
um this allows me to see who the
participants in stock are who is moving
it if they’re continuously coming in and
the characteristics of how the stock
trade from robin hood’s filings hedge
funds such as citadel to signal
wolverine others are utilizing this
information and so here’s just like an
example of like another trade i was
looking at if you guys go to you one
there was a volume spike on google
trends for you one stock and Juneteenth
is two days away that was the catalyst
and there’s a microphone of 1.5 million
and it’s above that all-time high
technical level and you guys can see you
like right at 9:00 a.m. you know we kind
of have that volume come in and so here
there’s some like different alerts I got
through the day for like you one
like just shows like hey like there’s
ten point eight pin 10.8% increase from
users during this last hour and so I
know there’s a lot of users coming in
that’s just like when I was watching for
most the day and then just seeing those
higher lows and holding above beat wat
since the opening drive
and here’s just like a bigger play idea
I had and just from talking from a few
Robin hooders
I believe the majority get involved from
a feature in the UI and this is top
movers and so what we were saying a lot
of times is like you have this little
day one perk where increases and kind of
gets on Robin Hood’s radar and if it’s
like above all-time highs and it’s
against Lee Sang perk up is a Suzy here
was my day to play that I just showed
y’all and then here’s just like
utilizing anchored be wall and so after
the the run-up on day two I just came
back into anchored be walk from the
start of popularity I’m short covered in
retail contents which was stored and you
guys can see like going into the
catalyst on June team once price reaches
all-time highs I’m like a big market
player and I know like I have this mini
like retail buyers like they’re gonna
buy I’m gonna like sell those shares to
them so I’m thinking more of like a buy
the rumor sell the event play and then I
was just putting anchored be watch from
there you can see like how the majority
is acting you know once they’re
underwater I like the way you’re using
data here to tee up some good trades for
you I would ask you to think a little
bit more about the order flow so
basically what you’re saying is hey I
can tell
what retail traders are going to do by
taking a look at some search terms or at
least I can develop a thesis a plausible
thesis and then I can take a look at
some other data to determine if there’s
some people up sides and if more people
are gonna act on this thesis based on
short interest based on how many people
own Robin Hood I’m Robin Hood on the
stock and go from there
I would spend more energy watching the
tape after 9:00 a.m. and getting better
at reading information you’re getting
from the tape right at that nine o’clock
and after throughout the day because
that will give you a ton of information
as well that you can act on yes sir yeah
but your I would say this you’re totally
on the right track and so if you can
you’re on the track because you’re using
some pretty neat data you’re thinking
about trading in a unique I would say
unique way but but in a in a way that’s
very effective a way that could really
lead to edge and and and using data that
that’s that’s pretty nice I will say to
you that you could totally develop
profitable trades just with search
metrics Robin Hood data order flow at
9:00 a.m. and after that that is that is
that is that is those are trades you’ll
find you’ll be able to develop edge with
I would encourage you to keep doing what
you’re doing which is hey is there maybe
an another data input that would really
make this even better that maybe brings
even more edge into this so I just
continue what you’re doing and if we can
get some more inputs into this on the
data side
starts leading in the same direction hey
this should trade higher you’re really
gonna have something thank you
all right great good stuff here
appreciate a tie and we’ll talk to you
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