Who is Kai Whitney?
Kai Whitney began his Wall Street career in 1994, with Phase II Capital, a boutique venture capital firm. Later years were spent with investment-banking giants, Swiss Bank, UBS and Bear Stearns where he worked with middle market Institutions offering trade services and advice to hedge funds, pension and large corporate accounts.
In Dec 2006, he foresaw the writing on the wall and successfully left Bear Stearns with his retirement intact and went to the proprietary trading firm Sungard Capital Markets on their Assent proprietary trading desk.
When CNBC's Jim Kramer (click for video) famously told investors Bear Stearns was not going away, he was instructing the desk to aggressively short Bear Stearns with everything they had until it traded down to $2. So, how did he know to short BSC when the CFO of Bear Stearns and Jim Kramer said differently? By following the Order-Flow of large Institutions. "Do not as they say, do as they do"
Since 2009 Mr. Whitney has been trading futures and stocks for his own account using market profile, auction market theory and order flow. In fact, in 2012 he created the first and only professional grade order-flow algorithm which allows traders to follow the large institutional order flows that control the markets.
Where I went wrong:
"I was a "know-it-all" because I made calls that were completely against the firm based on technical analysis and order flow, not fundamental analysis. I made equity calls to CEO’s on their own stock that would more often than not be the right call versus the CEO and our firm's analyst opinion. As a matter of fact, because our firm had a banking deal with the company and therefore a strong buy on a new IPO, and I told the CEO of that company to sell the first chance he got after going public, I was forced to resign at UBS. (I was proven right when the company failed 5 months later.) I knew then, it was all about order flow.
"If you can learn from my experience, you can avoid making the same errors"
Sir Richard Branson
In time, I became so versed in order flow and technical analysis that I taught Berkeley and Harvard Finance interns at Bear Stearns Securities. I gave presentations to my institutional investors and hedge fund clients about the market to raise money and I self-authored market timing newsletters that went out to all of my prospects and investors. So I thought I knew it all.
In 2008, It was time to trade my own capital. That’s when I froze and couldn’t make a good decision if my life depended on it. In short, I failed miserably. It was much easier to trade OPM. I took time to raise my new son and tried to forget about the markets through its continued sell off down to SPX 666. I finally gained enough confidence to buy into the market March 6th 2009, which ended up being 3 days before the bottom of a 5+ year rally.
To make a long story short, In 2009 I continued my studies but now to include futures. In the end, I may have struggled longer than many of you when it came to trading my own money because of my career with the Wall Street firms and my arrogance not to accept a mentors help because I was a "know it all". Now, I have the inside scoop on how the markets really work, coupled with 15 plus years of “inside baseball” that I enjoy sharing with others.
To get an idea of my life story, this Dealbook article is as if I was interviewed: Click Here
I am a wholesale trader. I trade price action based on an imbalance between value levels in the markets. I buy when prices are at a discount to fair value and sell when prices are at a premium. I watch order flow to confirm what I am seeing in real time. I am willing to close out my position if I see no confirmation.
In 2012, I developed the first professional grade institutional order-flow algorithm for the retail market called OFST- Order Flow Sequence Tracker, NOFT, Ghost Blocks and a revolutionary reversal algorithm. This cutting edge algo system identified and records exactly WHERE, and at WHAT price institutions are being active and more importantly, allow the trader to trade alongside the large market movers and not against them. I sold the algo package to a software company, in May 2016.
Why am I doing this?
My intentions are to actively seek out opportunities to assist others and consistently strive to improve myself.
The only way I can accomplish this is by being highly transparent and giving back so others don't make the same mistakes I have made. I am a true believer in what Tony Robbins suggests as the secret to wealth...
"The secret to wealth is simple: Find a way to do more for others than anyone else does. Become more valuable. Do more. Give more. Be more." - T.Robbins
Videos from Kai Whitney