method

my trading truths


  1. Trading is based on probabilities
  2. Probabilities produce random results but over time, predictable patterns/KPIs
  3. Your KPIs, be they good or bad, will always tell you what to do (how to improve)
  4. The only way to reveal your patterns/KPIs is to build your numbers up (place trades inline with your trade plan and record their numbers and stats diligently)  
  5. Success: Is finding out your patterns/KPIs (because once you know them it is very difficult not to improve). Failure: is simply not finding out what your patterns are!


my method


I like supply and demand. I try and buy low and sell high. To do this I monitor the strength of each currency so I am selling weak ones against strong ones or buying strong ones against weak ones as often as possible. For setups I use supply and demand zones from a time frame higher,  IE if trading the D1 timeframe I would only trade price off W1 S&D, for me the setups are stronger. I define technical S&D by retracing strong momentum moves to their origin and then highlighting where the momentum overcame prior highs of lows. 

I approach my trading as the tortoise. When I first started many years ago I had an initial run of good luck and felt invincible almost as if it were easy. I hindsight it was luck, yes I managed my risk and followed my plan but in reality, I was a trading a deep pullback trending strategy in a volatile trending market, so this suited very well. After 6 months it all went slowly wrong, then wronger. I messed around for years trying to reinvent the wheel then got a coach and things got better. He looked at my setup and risk management, there were no numbers to speak off at that time and said, " you need to cut your losers faster". I always had a stop with good risk management and obeyed it and thought that the trade was still valid until the stop was hit. He explained how it wasn't. This small piece of advice made me a break-even trader almost overnight. The point is my coach only knew this because he had seen hundreds of numbers to strategies similar to my own and knew that my hit rate would be around 30-40% so yes I needed to let my winners run but as much as possible but more importantly as I was going to lose 70% of the time I needed to kill my losses faster and earlier to make my average loss smaller. 

Now I see my trading as simply an exercise in managing risk and building my numbers up / learning my KPIs.  


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