Wednesday, 29 September 2010

The Buzzwords this Year: Context and SIM

"Context" is the word of the year. It is good to see that all the things I started writing about and teaching Kiki have filtered into the forefront of many peoples' consciousness. Trading in context is the difference between CP and not.
There are two seemingly identical setups on the bar chart. One becomes profitable and the other is a loser. The difference is the context, most of the time. That is why automated trading systems do not perform as well as a competent discretionary trader. It's almost impossible to program the context into an automated system. The result can still be a very profitable system, but should not be compared to discretionary trading.

The other big thing in the last year has been greater acceptance of SIM trading as a critical tool for learning, to perfect your trade without losing a ton of money while you do. To me, it has been a no brainer. Why would you not perfect EVERYTHING, except the feeling of risking your money, in SIM? No, it's not exactly the same as live trading but it almost is. And you then only have to resolve the one difference when you go live, after you KNOW that you can be consistently profitable.

Trading the Euro FX again. This market is still going places. It had another pop this morning in London. And then it turned. It's important to keep listening. The overnight Profile provided the setup for the upmove. Price then broke back into value of both the overnight and the last distribution of yesterday, which had about equal VA. That was the clue to the breakout when the bar charts timed the entry. Same picture in a context that fit.

There is still room at the Chicago seminar, so come along if you want to learn how to do this stuff.  I'll be teaching it in real time.

Here are the first three trades from this morning, London time.


  1. Thanks for posting the screenshots. I liked the videos but somehow I find static images easier to study.

    - you haven't posted any losing trades in a loonng while. Is that because you omit them voluntarily or because you manage to not have any?
    - is there a recording of the recent webinar available online?

    Thanks! -J.

  2. J, as the guys I work with know and as you can see in the DVDs, I am really hot at the moment. There are guys who I trained recently who are hitting that win rate after 2 months. Teaching helped me a lot to focus. I have a win rate of over 80% at the moment. I trade in the morning and the afternoon. The pics show part of my day. Everyone has losing trades. If I have a loss that teaches something special, I highlight it. I'm trying to get the recent webinar ready - there are some technical issues we are sorting out.

  3. hola,acabo de conocerte pero viendo los resltados eres un gran trader,enhorabuena,ese es mi sueño,vivir de esto y no depender economicamente de ningun jefe
    saludos amigo