Friday, 30 April 2010

That Ah-Ha Moment

I have received a couple of emails from people asking whether they need training and mentoring or whether there is enough information in the blog to become CP.

The answer is "yes" and "no".

I could reprint over a dozen emails from people who told me that they had become CP by reading my blog. So the information is here and for some people it was enough.

For others, they need more. What? and Why?

Trading profitably requires a number of things including designing setups and triggers. Once you have that, you need to work out how and when to exit both profitable and losing trades. You also need to wrap a money management strategy around that.

After you have done that, what now comes the hardest part. Recognising and acting on the above in a timely manner. This is where my training comes in. We will cover the first parts above in just a couple of days. We then spend the next three weeks plus another 90 days training you to recognise the setups, relate them to the context and decide whether to accept or reject the setup, all in a matter of the time it takes to complete the setup bar.

Getting setups is easy. The internet is full of people offering trading systems. And a lot of them actually work. The problem is that you can't make it work for you.

The methodology I use is timeless and not tied to any particular market or volatility. It's pure order flow in context. The benefit you will get from the training is that I will teach how to learn to make it work for you. I will go through all the thought processes I go through when I am trading, how I place emphasis on different things in different contexts.

This does not mean that I am sure you will become CP because in the end it's up to you. But what I am saying is that I believe that everyone can become CP if they follow the structured method I have laid out and if they can really accept that there are and will always be losing trades and really not care.

Once you align order flow with the context, the whole trading environment changes for you. You really become part of the market and not just an on looker trying to read indicators. It's this integration and envisioning that I think will take you to CP.

Today's trade was very much out of the book. ES in RTH opened and traded down to yesterday's VAL, bounced from there and traded up to the VAH. All quite predictable. The break came after the orderflow turned at the VAH. You can see the auto reminders on the chart. The CCIs also clearly showed the change in momentum . The only mistake I made was that I tried to catch the knife at 1197.50 when there was delta divergence. I'm still kicking myself as I usually don't take those without more confirmation. In this case the confirmation was an oversold 45CCI but it wasn't until the third divergence on that indicator that the market rallied. Of course I missed that and only bought 1200.00 which really only gave me a little milk, no cream. I'm still short into dinner and want to cover at my Fib around 1192.00


  1. During the training, will you share your actual setups and rules for entries/exits? Or do you expect students to do this part themselves? This is not clear to me from your posts or the training blog (but then, I am not the smartest guy around).

    Best Wishes,

  2. TB, yes, I'm sharing everything. We will go through how to create a setup, triggers, backtesting to validate and the thought processes I go through at during the bar when the setup has come together and evaluating it against the context to decide if it should be triggered at the close of the bar. I'll also show how to create some signals so that the computer can alert you to some of your requirements so that you can be more relaxed during trading.

    TB, you've got to be smart, you're reading this blog :-)

  3. To know when to enter the trade after a bar close trigger is apart from exits the main issue I'm still working on.

    Tom, do you refer to general market conditions (range/trend) or intrabar volume readings and of course S/R levels nearby?

  4. timocrates, its the context - basically the who picture at the time the setup appears. Fairly complex to try and write about, almost a book in itself. This is what the training will spend a lot of time on. Why a setup fails in one context but succeeds in another and how to make that evaluation.