Chart Fanatics
August 23, 2026
20-Year Market Maker's Institutional Trading Strategy for Retail & Prop Traders
TL;DR
A 20-year institutional market maker reveals how retail traders can use options flow and institutional order flow analysis to achieve a 75% winning rate, similar to how $1.5 billion in institutional trades move markets.
Key Takeaways
- 1The strategy has a 75% winning rate and generates only 1-2 trading opportunities per day, requiring precise entry timing.
- 2A market maker hedging $1.5 billion in positions moves the market significantly, and retail traders can apply similar principles by following where 'the big guys enter the market.'
- 3Options flow analysis allows prop firm traders to make $6,000 per move on 10 ES contracts by understanding institutional order flow.
- 4This base-level knowledge of how institutions trade can increase any retail trader's winning rate without requiring them to completely change their existing strategy.
- 5The strategy reveals how Goldman Sachs and other major institutions enter and reverse positions, providing signals that retail traders can follow.
Notable Quotes
“This is the weapon. This is how institutions trade.”
— Freddy Siento
“I realized my edge is to enter the market when the big guys enter the market.”
— Freddy Siento
“I was hedging $1.5 billion. With that big amount of money, I moved the market.”
— Freddy Siento
“You don't necessarily need to change your strategy, but it will help you to increase your winning rate.”
— Freddy Siento
Chapters
1. Introduction to Institutional Trading Edge
Freddy Siento, a 20-year market maker, introduces a strategy with a 75% winning rate that shows how institutions trade and how retail traders can apply these principles.
2. Trading Frequency and Opportunity Window
The strategy generates only 1-2 trading opportunities per day, making it critical to understand the specific market conditions that create these setups.
3. Market Moving Institutional Positions
Freddy reveals how hedging $1.5 billion in positions moves the market and describes how major institutions like Goldman Sachs reverse their positions based on market conditions.
4. Options Flow and Prop Firm Application
The strategy uses options flow analysis to identify when to enter, allowing prop traders to make $6,000 profit moves on 10 ES contracts.
5. Accessibility for All Trader Types
This institutional knowledge can be added to any existing strategy to increase winning rate without requiring a complete strategic overhaul.
Key People & Entities
- Freddy Siento
- 20-year market maker and institutional trader; guest sharing options flow strategy
- Goldman Sachs
- Major financial institution whose trading signals are used as indicators by the market maker
Glossary
- Order Flow
- The sequence and volume of buy and sell orders in the market; institutional order flow shows how major institutions enter and manage positions.
- Options Flow
- The movement and volume of options contracts being traded; used to identify institutional positioning and anticipate market moves.
- Market Maker
- A trader or firm that provides liquidity by continuously offering to buy and sell securities, profiting from the bid-ask spread.
- Prop Firm
- A proprietary trading firm that trades with its own capital rather than client money; traders must pass funded account challenges.
- Hedging
- Taking positions to offset or reduce risk in existing trades; used by institutions to manage large exposures.
- ES Contracts
- E-mini S&P 500 futures contracts; liquid derivatives based on the S&P 500 index used for trading and hedging.