You really want to learn how to trade? You really want freedom? Show me. I’ve proven it to you, that I can win. If you don’t know that I win and I have proven it – then look me up. Now can you prove to yourself that you really want to win and change your life?
I win over 90%. I’m not bragging I don’t need to brag. It’s just fact. I record every trade, I alert every trade and I am the most transparent trader I can be.
I say this because 90% of traders lose. And I can teach you. What do I get out of it? I get to build a business I enjoy and give something back.
But it will cost you. Yes, to learn how to trade in the 1% category it will cost you. It will cost you a few bucks and some time. But in return you will acquire life long freedom for you and your generations.
Is it a smart trade-off? No thought in my mind.
This is just one of many tools I have to win. The more tools you have, the higher the % of wins. I win over 95% of crypto trades with 100 x leverage account capacity, I win over 97% of commodity trades, over 85% of swings and 80% of daytrades. When 90% lose. And that’s a fact you can’t ignore if you want to win more than anything. I can show you. Private coaching, newsletters, trading room – whatever works. Just leave your old self behind and thank me later. And then you can pass it on too.
Thanks for listening.
The video is boring but if you watch it – not just listen – watch it close – you will get one of my tools. But it’s only one.
If you can’t handle boring, studying, focusing on what isn’t exciting don’t even start the video. My excitement comes from being able to do what ever I want whenever I want.
Thanks
Curt
Register to free email list for trade set-ups, webinars, special events: https://compoundtrading.com/contact/
For Daytraders Learning How to Trade (and win regularly). This Video and Post Covers Intra-day Scalping and How to Daytrade and Win (being on the right side of the 1%).
A trading process is critical – this video and quick blog post will give the learning daytrader one more tool in their trading toolkit. Intra-day wash-out trading and what indicators to watch for.
This video is the raw daytrading video from Monday July 3, 2017. There are two $CARA trades that each last less than 4 mins. 2250.00 approx profit on the two. Also a small loss on $OPXA and a flat on $CARA. The $CARA trades are at 40:50 – 44:12 entry 16.25 5000 shares and out at 16.50 for 1250.00 profit and the second is at 1:06:19 on video in at 17.26 and out 17.47 5000 shares for + 1,000.00 profit. But I highly recommend anyone learning how to daytrade momentum stocks, market open trades, or wash – out snap backs (which is what this was) watch the complete video.
I don’t say this often (if you have watched any of my vids you will know I don’t) but I am telling you that if you are not winning regularly daytrading this is a video to study.
The reason a learning trader should watch the whole video are the inflections moment to moment are very important. How I identified the 200 ma on 5 min as critical and the 100 ma on the 15 min and how they played in to the 5 min candles as it related to price on the quarters and percentage gain intraday % on quarters and many other important moment to moment inflections.
Daytrading isn’t easy but there are systematic ways to do it. You just need to learn the moment to moment inflections and dynamics and what to watch for. You also need to learn your charting and have excellent emotional discipline. And most of all I believe you should have a coach like any good athlete or competitor. It is very very important.
Anyway, what you are doing when you daytrade is you are trading against the very best in the world. You are trading against yourself and your emotions – that is true, but you are most trading against the best in the world and they will take your money if you don’t have the skillset (the tools) and the training that allows you to execute with-out hesitation. You have to train and be able to execute like a robot – with-out the emotion, without thinking. Why? Because that is what the best in the world are doing at micro seconds in these trades. You need to be in and out when they are. You will notice after I leave this trade for the day that the stock falls off and doesn’t come back. I scalped the top and left.
What you are doing when you daytrade is you are trading against the very best in the world
The other important point in this type of trading is that this is how a small account trader can consistently build a small account. Now sure, this size of stock may not work (you need 1.00 stocks) but the discipline is the same. Take the indicators and inflections I discuss and be sure to cut very very fast if you don’t get momentum very quickly in your trade. Take the broker fee loss and just learn how to enter right before spikes (the power part of PTPTRR that I discuss in the freedom traders posts on our blog).
Best to you and if you need a hand reach out and I’ll do my best.
Part Six b) of the “Freedom Traders” Series: Trading Set-ups. Video Explains Predictable Winning Process.
This post is the video / blog companion to “Trading Set-ups. How-To Develop a Systematic – Predictable Process. Part 6 a) “Freedom Traders” Series”. It is a $STUDY for Traders Endeavoring to Trade With a High Degree of Probability.
Introduction.
The video below will provide overview explanations of the various trade set-ups I use with different types of trading I do (Swing Trading, Day Trading and Algorithmic Model Trading).
I endeavor in this series of posts to first provide an overview of my trading systems and through subsequent posts I will break-out the details of each trade set-up I use.
Check back to the posts in this section (section 6 of the Freedom Traders series) because 6 a. and 6 b. will be updated regularly with new set-ups added to the overview lists and the subsequent posts in section 6 will have more and more specific trade set-up videos and blog posts included in the series.
The Purpose.
As explained in the introduction to this series (in Part 6 a), the purpose of this part of the series is to assist traders in developing their own predictable trading systems.
A large part of a successful trading plan is having a predictable trading system that you can rely on – a “rules-based trading process”.
Finding at least one trading system that will work the majority of the time, that is easy to use, fits your personality, is predictable and easily reproducible is key.
Trading Set-Ups Overview: Overview Video Number One.
This video touches on a number of chart set-ups / indicators / disciplines specific to day trading and swing trading and not so much algorithmic chart modeling. It is approximately 30 minutes in length and it provides a working foundation (overview) of the type of trading I execute.
You won’t find high flying ideas, hot new stocks of the week or some other high flying idea here.
You will however find systematic trading principles that will return 80% + win rates. Very predictable set-ups that can be duplicated with a high degree of success. Below the video are some itemized notes reflecting the content of the video.
Topics in Trade Set-ups Video 1:
Description of types of trading I do.
Day Trading, Swing Trading, Algorithmic Model Trading.
Explanation of Mid Day Chart Reviews and Trade Set Ups in Trading Room.
Provides repetition for our traders in executing trade set-ups.
Provides new chart and trade set-up ideas daily to members.
Provides opportunity for members to ask questions about their own chart and trade set-ups.
Trading Set-Up # 1 – Price Breach of 200 MA on Daily Chart.
The predictable trade is at the breach of the 200 MA.
The 20 MA breaches the 50 MA, the 20 MA breaches the 100 MA, the 20 MA breaches the 200 MA.
Entering long based on the daily chart and taking sell triggers on lower chart time-frames (opposite action of moving averages with price below instead of price above).
Trading the bowl and break-out above the 200 MA.
Confirming the bottom play with the early indicator of MACD.
I rely heavily on MACD for swing trading platform.
Stoch RSI started to rise at same time MACD started to signal bottom.
Stoch RSI helps time trade.
Increasing volume is critical.
SQZMOM confirmed bottom with trend up.
Trading Set-up # 2 – Bottom Play Prior to Breach of 200 MA on Daily Chart.
Test of price to 20 MA and indicators cross back up then test of 50 MA etc.
Trading and testing through the moving averages until trade gets above 200 MA and then you’re in to trading set-up #1.
Chart Time-Frames and MA Action are Critical for Trading the Stock (Timing entries and exits).
Confirming your trade bias through looking at the different time frames including weekly, daily, hourly, 30 minute, 15 minute, 5 minute, 3 minute and 1 minute charts depending on your time-frame.
Fibonacci should confirm the moving averages as support and resistance points on the chart.
Moving averages are a modern representation of the tape.
Timing entries and exits based on indicators.
Price above MA’s is critical in bullish bias trade and opposite is true for bearish outlook on various time frames and exits can be timed in trade.
Example Long Set-Up at 52.05 on chart culminating in sell signal at 70.35 – a 40% increase before you get sell signal on chart.
Trading through the MA’s before the 200 MA breach is possible (bottom play – trade set-up #2).
Chart Resistance and Support Levels.
Fibonacci, Natural Horizontal Chart Resistance and Moving Averages.
Trading Earnings.
I rarely hold through earnings. I sell in to and re-enter after earnings.
Low risk trading is my goal.
Algorithmic Modeling and Fibonacci.
Basic algorithm quadrants and diagonal resistance.
$FSLR Chart Examined for a Day-Trade.
Moving through the time-frames and various places to enter your trade – what quantifies bullish and bearish and timing your trade.
A day trade hopefully becomes a swing or trend trade. 14% ROI on monthly trade example.
Enter on tight time-frame (after confirming your wide time-frames set-up).
Confirming your entry with “power”. Avoiding getting cut up with fast exits. Timing trades with power.
Price, Trigger, Power, Trade, Risk, Reward. PTPTRR. Being ready for the power trade with the moving average set-ups.
Legging in 20% at a time. Five leg principle in a move.
Knowing where your most likely resistance is in the move and exiting the trade.
Closing.
That concludes the video / blog portion of the trade set ups overview that accompanies “Trading Set-ups. How-To Develop a Systematic – Predictable Process. Part 6 a) “Freedom Traders” Series. Hopefully this series will assist you in building a rules based trading process.
As I mentioned at the outset, I will next post a series of articles to explain the fine details of each trade set-up I use. The videos will also detail many other indicators I use. I will also be explaining more in future about how our algorithmic model trading indicators are used.
Remember to check back to this specific post and part a because the list of indicators and the overview of each will grow with time.
Message me anytime with your story or questions. And if you follow me on Twitter and I don’t follow back so you can DM then send us an email to [email protected] with your Twitter handle.
Also in closing, I will mention again that I have had a number of people message me to get involved in our various launch initiatives – with moderating, coding and various other levels of interest. I will be writing back to those inquiries early June (in advance of our 24 Hour Oil Trading Room Launch).
After a Trader Learns to Limit Losses (with radical discipline), Obtaining a Systematic Trading Process is Critical to Long Term Success. Below I Begin Explaining My Personal Trading Process.
Part Six a. of the “Freedom Traders” Series: Trade Set-ups. How-To Develop a Systematic – Predictable Process.
Provided at the bottom of this article are Parts 1 – 5 of this series. Part 1 : My Personal Stock Trading Story. How I Blew up Two Accounts and Then Learned How to Trade, Part 2 : Trading Checklist – Rules I Follow Before Triggering, Part 3: Now I’m Inspired!.A Struggling Trader That Inspired Change, Part 4: We Want (Need) You! Apply to Nearest Recruiting Station, Part 5: New Trading Challenge 10k to 1M, Part 6 b: Trading Set-ups. Video Explains Predictable Winning Process (companion to part 6 a).
Introduction:
This article is an overview list of the various trade set-ups I use with different types of trading I am involved in.
I will endeavor in this series of posts to first explain my trading system and then through subsequent posts I will break-out the details of each trade set-up I use.
Please note, this is part 6 of the Freedom Trader’s series and because this topic will be extensive I am going to number them 6 a, b, c and so on and other sub topics in the series will continue onward with part 7. I suspect that I will be updating part 6 and its sub posts for many years to come.
The purpose of this part of the series is to assist trader’s in developing their own predictable trading systems (a rules based trading process).
A large part of a successful trading plan is having a predictable trading system that you can rely on. Finding at least one trading system that will work the majority of the time, that is easy to use, fits your personality, is predictable and easily reproducible is key.
Perfect a trading system that works the majority of time, is easy to use, fits your personality, is predictable & easily reproducible.
My Personal Objectives.
I believe the bar to my success is directly tied to what percentage of the traders in our trading group are successful on a regular and consistent basis. Not whether I can dazzle with home-run trades like some genie that comes out of the bottle daily.
But rather how well the traders in our group can reproduce methods / components of my trading systems for their own predictable gains and how well I can assist our traders in their trading success no matter where the system is found and then duplicated.
The bar (test) of my success is directly attached to what percentage of the traders in our group are successful on a regular and consistent basis.
How Good Can a Trading System Be?
Before I explain how good a trading system can be, I will tell you there are developments in the trading industry (specifically toward algorithmic trading) that very few in retail trading and even at the professional level understand. I won’t get in to detail here, but I can tell you frankly that if you peel back the layers of the onion you will find scientific evidence of trading models that are winning near 100%.
With that considered, I discuss a system of trading in this series that provides trade set-ups with 80% to near 100% win rate (scientifically, mathematically back-tested and proven).
BUT, a near 100% win rate requires perfect trade execution in accordance with trade set-up rules AND I do not execute trades perfectly, so my win rate floats between 65% – 90%.
I would be best described as a trader that is “base hitting to wealth”. I use my base hitting skills and add the compounding affect to my portfolio (more on compound trading discipline here) and this is my way of building my portfolio.
I do not execute trades perfectly, so my win rate floats between 65% – 90%.
Once you have a winning system, then your success rate is completely determined by emotional intelligence and discipline.
Three Categories of Trading I Can Offer Set-ups For.
I utilize three categories of trading; day trading, swing trading and algorithmic model trading – each has its own disciplines (set-ups). I was for years also an investor – I do not invest anymore because the other methods of trade listed provide me higher returns.
I utilize three categories of trading; day trading, swing trading and algorithmic model trading – each has its own disciplines.
I swing trade and day trade simply because day trading or swing trading can experience periods of lull (where returns can be limited). And if I require at minimum 100% ROI per year, I cannot have periods of lull. I do not invest anymore because the best returns I was able to garner (on average) was 10% – 14% per year (all holdings considered).
I am now also involved intensely in algorithmic model trading. What is that? I am not trading with “bots” to be clear. I am trading algorthmic chart set-ups that are human executed (with the goal of concluding our development with a digital dashboard for traders – or a sophisticated “intelligent assistant” for traders).
Algorithmic charts (in our instance) are charts that use historical data to provide the highest probability of trade success for the trader.
A List of Trade Set-Ups (Systematic Processes) I Use for Day Trading, Swing Trading and Algorithmic Chart Trading.
Day Trading Set-Ups I Use:
Day trading is by far the most difficult of the three categories of trading. It requires a skill-set and emotional discipline and intelligence that goes far beyond swing trading and even more so with algorithmic chart trading.
I use a number of day trading set-ups, here are a few:
Intra-day Halts. By far the most profitable set-up for my style are intra-day halts. Intra-day halts provide my style exceptional opportunity for return.
Extended Hours News. Pre-market and after-market news are second most profitable, but because I don’t have a lot of extra time (specifically to trade pre-market or post market) my returns lately in these methods are limited. But when I am trading full-time and not running a number of businesses these are highly profitable for me.
Market Open Momentum Trades. Gap and go style trades along with others at market open provide significant opportunity for profit. I will caution new trades to stay away from these for a significant amount of time when they first start trading. Too many GURU’s in my opinion sell this wayyyy to much to new traders.
Technical Chart Set-Ups. Chart set-ups are my favorite, least stressful, highest probability of success way to day-trade. Not my highest ROI category but definitely my favorite. I bring over swing trade set-ups from my swing trading discipline (that are based on weekly and daily charts) to my day trading discipline – I just trade them on tighter time frames (hourly, 30 min, 15 min, 5 min, 3 min).
And of course there are many others I day trade such as break-outs on the daily or 52 week chart, bottom plays, wash-outs with snap-backs and many other types.
Swing Trading Set-Ups I Use:
Swing trading (or power swing trading in my instances) is less stressful than day trading and it has a more predictable return on investment than day trading. All things equal, if you execute both with skill swing trading cannot match the return on investment of day trading – but day trading with consistency and not blowing up your account is radically difficult to master.
Swing trading comes down to technical and/ or fundamental set-ups. I am a technical trader so I lean on technical set-ups (on the weekly or daily charts) and use fundamental research to support my trade set up bias only.
Below are a few technical and fundamental indicators I use for swing trading:
MACD – I rely on the MACD heavily as one of my primary indicators in swing trading entries and exits.
Moving averages – Second to MACD I utilize moving average disciplines for my trade entries and exits.
Fibonacci – I rely heavily on Fibonacci to confirm my bias (I do however use Fibs in a way most are unfamiliar with because of our algorthm chart modeling component).
Squeeze Momentum Indicator – This is a custom indicator available on Trading View. I use it to confirm my trades.
Trade Volume – Volume is an important indicator in my trade considerations.
Stochastic RSI – I use the Stoch RSI to try and refine any given entry or exit.
Earnings Dates – I rarely hold a trade through earnings. I recently held Google and Amazon and a few others with success, but that is rare for me.
Insider Buying and Selling – I almost always have an eye to insider trades before taking a trade.
Short Positions – Short positioning is important.
Fundamental Research – Instead of doing my own research I have specific experts I defer to prior to trading (it saves time and they are the experts. They consider me a technical expert so they bounce their trade considerations off me first also – it works back and forth well).
Algorithmic Chart Model Trading Set-Ups I Use:
Algorithmic chart model trading is by far the most predictable, least stressful trading method I use – and if the models are good it can be the most profitable (in our case the models have been exceptional).
We have six models we use (Oil, Gold, Silver, SPY, VIX and the USD) – our Oil algorithmic charting is the first and farthest along in development.
Our oil algorithm is returning well over 300% consistently and has indications of being able to achieve 1200% (the profit and loss statements will be released to the world within 30 days). That far outperforms the 40% – 120% my swing trading profit/loss provides and the 80% – 240% my day trading profit/loss provides.per annum. And even better, there is zero fundamental research required and the chart set-ups are provided to the trader.
The question then is why don’t you simply trade algorithm charts? Well… we have a vision for democratizing the algorithmic trading discipline. Not the easiest path I could have chosen (democratizing our models).
If you research the topic (under the everyday thin later of research), you will find that our models are competing with the world’s best – and the world’s best are not available to the retail public. I have yet to find a high performance algorithm platform that is available to the retail public.
If the public decided or decides they don’t want our models, I will simply go dark and contract our models to dark pools – that option is presented daily. But that is not our mission. Heck I could just trade them in my own dark pool.
Below are a few of the chart set-ups I use in algorithmic chart trading:
Primary Trading Range Support and Resistance. Our algorithm charting provides clear support and resistance for the wide / broad trading range (wide quadrant range) prior to trade even getting to the date. In other words, it is future forward charting (unlike conventional charting which is charting what has already occurred).
Channel Support and Resistance. As with all other algorithmic chart models, our algorithms provide trading channels to our traders in advance of trade creating a channel. I trade support and resistance.
Time Price Cycle. Time price cycles are critical in our models and trading. Huge opportunities exist as time / price cycle come to conclusion.
Algorithm Targets. Our algorithms have specific targets for time and price future forward. This is something I consider but don’t trade heavily against.
Conventional support and resistance in channels and more. I refer to conventional charting simply to be aware of when conventional charting is in agreement with our algorithm models – it increases my bias toward a trade.
And of course in our work their are many other set-ups at work.
Closing.
That concludes my overview with reference to the various trade set-ups I use with the various types of trading I am involved in.
As I mentioned at the outset, I will next post a series of articles to explain the fine details of each trade set-up I use and noted above.
Message me anytime with your story or questions. And if you follow me on Twitter and I don’t follow back so you can DM then send us an email to [email protected] with your Twitter handle.
Also in closing, I have had a number of people message me to get involved in our various launch initiatives – with moderating, coding and various other levels of interest. I will be writing back to those inquiries early June (in advance of our 24 Hour Oil Trading Room Launch).
Trading Freedom and Freedom Attained via Trading Needs You!
I Haven’t Got a Lot of Time (I chew off way too much ya ya eyes bigger… bla bla) But HERE IS MY PLEA. I’ll make it short.
This is Part Four of the “Freedom Traders” Series – How I Learned to Get Over the Wall and What May Help You.
There are links at the bottom of this post to Part 1 : My Personal Stock Trading Story. How I Blew up Two Accounts and Then Learned How to Trade, Part 2 : Trading Checklist – Rules I Follow Before Triggering, and Part 3: Now I’m Inspired!.A Struggling Trader That Inspired Change, Part 5 : Learn How to Trade Stocks (Build a Small Account) Following my Journey.
Introduction:
“in January of this year, Tuomas Sandholm and Noam Brown from Carnegie Mellon University developed a poker player called Libratus, which beat four of the world champion poker players, and not by just a little bit. They played 120,000 hands of poker, and Libratus ended up with $1.77 million in poker chips. This is a big deal, because it signals…” See: https://www.wsj.com/articles/how-artificial-intelligence-will-change-everything-1488856320
Now, before you turn me off, hear me out quick! BTW, I meant to write the “How to Write a Trading Plan” post next but this was eating me alive so I’ll do that next.
This is about a freedom about to be stolen from you (the freedom to successfully trade at a retail level – your trading freedom) and what can be done and how you can benefit. Yes, there’s an upside for your service.
And if nothing else, I’ll guarantee you’ll be a better trader (unless of course you’re super trader already).
Here’s my best foot forward to what the H this post is about.
The Uncle Sam poster. Yes, this is the best way to explain this post.
Look, when this poster propagated it was during a time that people stood for what was they believed to be right (freedom) – so much so they would die for it. The whole country (and even the whole free world) rallied behind it. Now, of course I’m not asking for that haha, but I am asking for like minded individuals (people that want a better future that may or may not see the problem on the near horizon) to stand up and get behind what we’re doing – if even it is in a small way AND even if it only means you receive the benefit of becoming a better trader as the minimum objective.
Compound Trading Wants You to Disrupt Wall Street!
Uncle Sam (initials U.S.) is a common national personification of the American government or the United States in general that, according to legend, came into use during the War of 1812 and was supposedly named for Samuel Wilson. The actual origin is obscure.[2] Since the early 19th century, Uncle Sam has been a popular symbol of American culture and a manifestation of patriotic emotion.[3] https://en.wikipedia.org/wiki/Uncle_Sam
What’s The Big Deal?
Look, I know I talk a lot about this… singularity and algorithms and stuff (math is one of the few things I’m good at) and I KNOW that most of you just want to trade better so you can achieve some level of freedom in a world that’s stacked against all of us common people. I get that. And so I apologize for my nerd post, but you can get what you want and I can feel like my life was worth something (more than just being a decent trader and money and so on). And you never know, you may actually take up a small portion of the cause in the process.
Here’s the big deal; right now this moment there are large rooms of scientists (mathematicians and computer programmers) designing algorithms and artificial intelligence to beat Wall Street. How do I know? Because I cracked the code. Don’t believe me? Fine, I don’t care actually – I wouldn’t believe me either. Seriously. But we have documented it and if nothing else you can’t argue that some have cracked Wall Street.
You can’t argue that some have cracked Wall Street.
So What’s The Problem?
The common person (retail trader) has always had the chips stacked against them on Wall Street. But that’s getting to be very, very real and nearing the point of completely unfair. I know, some of us can still beat it, but only the best human traders consistently beat Wall Street.
Why? Because there are high frequency trading algorithms and various other algo type trading systems that are revolutionizing trading.
And THE REAL PROBLEM is that it doesn’t take a rocket scientist to figure out that over the next ten years (at very most – more likely 3 -5 years) this will become unbeatable. Look, singularity isn’t far off and I’m telling you that there are algorithmic trading operations that completely destroy our ability to profit. Soon, very soon, mark my words they will be telling you on TV that YOU HAVE TO GET IA TO TRADE OR DIE.
What is IA? An intelligent assistant. In other words, what we do (what we are developing with our algorithmic models) – and I’m not asking you to subscribe to our algorithms (I would develop them whether we had even one subscriber). The traders on CNBC you watch are already talking about how they can’t do without their #AI now.
So IA (an intelligent assistant) is the first level of acceptance at the retail level, because the human trader is in control and the algorithm simply assists the trader. But there will be a time soon where those “assisted” traders will move to full automation because there is no way to beat the machine. It’s all a process of acceptance.
Why is IA (Intelligent Assisted Trading) or HFT (High Frequency Trading) a Threat to Me?
You will be beat and you will have to subscribe to the future. And it is coming right soon. Think of me when you have no choice. Now, please keep in mind this isn’t going to be required (IA) for long term investing any time soon. I am talking about trading (day trading and swing trading).
You will be beat and you will have to subscribe to the future.
Here’s a CNBC video on Human Assisted Intelligence for example:
So what’s the problem then? I’ll Just Subscribe to the Future
You may, or you may not. Right now, the IA technology is available and there are algorithmic modeling teams that produce incredible results (heck, our inaugural model EPIC has been insane successful), but YOU WON’T BE ABLE TO BUY THEM.
There is certainly a trend toward increasing automation among financial firms. Preqin, a company that provides financial industry data, reports that 40 percent of hedge funds created last year were “systematic,” meaning they rely on computer models for their decisions. https://www.technologyreview.com/s/600695/will-ai-powered-hedge-funds-outsmart-the-market/
You’ll be able to buy the moderately decent ones, but you won’t be able to buy the world class models. And even if you could, you couldn’t afford them. Do you know what these models are worth? Insane amounts. Some of the richest people in the world have become so over the last few years because of them and they my friends are sitting on islands they own, sitting in 60,000 square foot houses overlooking a bay with their mega yachts in view. Sounds like a Bond villain – but true. Study it. It won’t be the common person that has them.
“I’ll Be Fine.'”
Sure, you’ll be fine as an investor and you’ll even be fine as a trader for a while. But you will as a trader be forced to subscribe to this future within 3 – 5 years or you won’t trade. That I can guarantee.
So What’s My Angle? Let Me Summarize Before This Post Gets Big.
IA and AI is coming. You will have to subscribe as a trader. I guarantee that.
We have published our work in modeling the algorithms over the last year for transparency. It would take you hours, but you could confirm that I am not a nut by reading our whole website and blog posts that we have in fact modeled what the machines are doing.
We have been challenged in various ways since starting this endeavor (trying to model what the AI firms are doing in the markets) and trust me it would have been easier to sell out. And I won’t explain how we could have sold out fast and easily and went to the beach.
My nature (you know the story about the toad and the scorpion), is the Robin Hood thing and I know it is corny, but it’s all about the common man for me. It’s all about looking at each other and jumping. I have a grade 8 education because I was bored in class, but I can calculate like nobody’s business. I’m an outlier, I get that. A nerd.
But I know math and I have done well in business for thirty years and everybody around me is screaming at me about how I’m so invested in this and not paying attention to my businesses (that they deem to be adequate).
But I am a common man that had to work very, very, very hard and I believe in and need as my nature the common man team thing. I am not a suit, I am not a Wall Streeter, I am not a corporate guy, and I am not a 9-5 type. I need by nature to stand for something and have to have my life to have been of some form of value. That’s just me (the scorpion and the toad).
So that brings us to now. Right now we at minimum have a trading platform that can benefit any learning trader and our clients will tell you that even advanced traders are learning and benefiting from our services. And because we’re already up and running I don’t need to sell you on it.
But there’s more (yes like the infomercials haha)…. we know how to model (crack the code) of the algorithms and we’ve proven it. Our mission is to democratize Wall Street. What does that mean? Make available to the common man what otherwise would not be attainable or available.
Make available to the common man what otherwise would not be attainable or available.
So What am I Asking For?
The vision I have for the future is tough for the common person. I see massive debt being moved to the middle and upper class in new and ingenious ways and we are allowing it and the elite getting richer. I see a difficult future for our kids and grandkids and their kids. I believe it is critical for this generation to get over the wall and I believe time is very short.
The wall to freedom (as it applies specifically to traders or aspiring traders) is the wall to predictable and consistent success so that our future generations can be given the opportunity to compete in a world that will get more and more elitist.
So I have a trading room that is already successful (when you consider the algorithm subscribers and swing trading subscribers) – successful in that we’ve got lift off and it’s a profitable endeavor already. The trading room is a little light yet and I would like to see more people in there but it is solid and has very good traders in it for newbies and experts alike and we are profitable.
So Why Would I Want More and What Do I Want?
I would like anyone that has a dream or a vision that relates at all in any way to what we are doing to get involved. We need good traders in the room, we need learning traders in the room. And yes I am saying we need subscribers to get beyond just a successful little trading enterprise. Let me give you an example.
The oil algorithm work we’ve worked with… EPIC the Oil Algo…. more than one million invested in less than seven months – in just time, forget the hard costs and various other costs. Algorithmic modeling, IA, AI, machine learning, big data – whatever you want to call it is massive.
So what we’ve done is we’ve secured early adopters to our offerings (the trade room, the algorithm charting newsletters and swing trading newsletters) to fixed subscription costs even as sub costs increase – and very soon the trajectory of those sub fess (to new users) will be parabolic – algorithms are expensive! Decent algorithms available are tens if not hundreds of thousands per month and our first algo is going to coding now and will be at that level very soon (EPIC is one of six and there are more in the works). And the institutional guys love it.
So what I am saying is that our work is costly and yes the everyday common person subscribing does bring that vision forward in a small (small in that it is bite sizes but adds up) but important way.
BUT MORE THAN THAT! We would love for others to get involved. We need learning traders to get over the wall to help others more than anything. The learning traders that succeed will be our best advocates when they become successful! But we need profitable traders too!
We need traders to get active in our room. We need traders that want to test our algorithms. We need traders that want to get involved in the marketing. Traders that want to help organize events. Traders that want to coach. Traders that want to document trades on video. Traders that will write blog posts and share our mission on social media and there will be so many more things that yes, WE NEED YOU FOR.
Why? Because we would really like to be the ones that make available to the common person world class algorithmic modeling so the playing field stays as fair as possible. And I personally would like to have lived a life of some value. Our middle class and even upper class is disappearing and keeping Wall Street a level playing field would at least offer a way for the common person to provide for their children and grandchildren.
That’s my sales pitch, my best foot forward – so if it at all meets your goals in even the smallest way… this is your call to action.
AND IF NOTHING ELSE – WE’RE A DAMN GOOD TRADING GROUP:)
And here’s my promise… I’ll do my best to stop trying to recruit ya’ll to the cause and focus on the trading – and hey, this Monday is the start of my two week double my account challenge so I’ll definitely not have time to sell y’all on our platform haha.
I just might take another crack at 2 week double my account trading challenge 🎯Live in room recorded 🎥 Slay that dragon finally🔥😲 #trading
Message me anytime with your story or questions. And if you follow me on Twitter and I don’t follow back so you can DM then send us an email to [email protected] with your Twitter handle.
Peace and best and enjoy your Sunday! Hug those loved ones tight, really, really tight.
I Just Received an Email From a Struggling Trader That Has Inspired a Change. I’m Pumped. Here’s My Guarantee and Yours in Return to Get You in to the Freedom Traders Club.
This is Part Three of the “Freedom Traders” Series – How I Learned to Get Over the Wall and What May Help You.
There are links at the bottom of this post to Part 1 : My Personal Stock Trading Story. How I Blew up Two Accounts and Then Learned How to Trade and Part 2 : Trading Checklist – Rules I Follow Before Triggering.
Introduction:
“To win consistently, a trader has to have a plan (a system) – that contains rules, controls losses (risk) and keeps emotions checked in at the door.”
Okay, so something big happened to me today while working on my charting set-ups for the week. A struggling trader sent me this email;
“Hi Curt I am trading for five years now with little success.I have continued my research which has brought me to compound traders doorstep.I have a decent understanding of the markets but not to the levels needed to trade successfully week in week out.Can I make profits using your live trading room/alerts bundle while taking time to learn your methodology along the way.I am a hard working student who learns quickly.”
WOW, what an email. Something clicked in me. FIVE YEARS! Unbelievable tenacity! And limited results? That should not be so I thought. Okay, but I can relate, I have had my own struggle. So here was my response;
Hi ______
You put 3 months in to our room (if time allows) and if not review daily room videos and pre and post market newsletters and I’ll guarantee you will become a profitable trader. But, you would have to follow the rules. You follow the rules (indicators) and you don’t make money I’ll refund you personally. And… you’d have to send me every entry and exit so I could check that you’re following the rules and preferably send me a daily trade plan (showing how the rules line up with your trade plan). There’s a video from Thursday mid day market review coming out in next 24 hours that explains the rules (indicator set-ups) clearly to follow.
Curt
Update: Here’s the video as an example of indicators – chart set-ups (and our next post in the Freedom Traders series will go in depth on the specific indicator set-ups).
So What’s The Big Change? The Realization.
So I realized a problem in my approach. When we first started Compound Trading we knew that we had very sophisticated big data mad scientist math figured out and that we had in fact cracked Wall Street. Yes I know, I know… sounds nuts but we can prove it. Anyway, the point is that this “cracking the code” or better described as cracking what the big trading firms are doing to bring massive returns (the ones that are).
BUT! You first need to understand how to trade the fundamentals. Our mad science stuff does absolutely nothing for the learning trader! The discipline and the know-how (the chart set-ups, the indicators) are key for the learning trader. That’s what first gets the struggling trader over the wall!
So how am I going to pivot to that? Let me explain in short.
Here’s My Pivot… A New Commitment and Format
So all the mad science stuff will continue because frankly we have many large traders and the like that rely on that and that’s now my life’s work. But that doesn’t mean I can’t pivot in that I bring a focus to the learning trader and the fundamental indicators and chart set-ups that cause a trader to win.
So here’s what I am going to do going forward:
I will be doing premarket chart set-ups (reviewing charting indicators) at 9:00 AM every morning in the room.
I will be trying to get as many of the chart set-ups for the standard indicators I preach about in my premarket trading plan (can be tough because premarket moves fast). Just getting a premarket report out in time is very hard.
I will be doing a mid-day chart set-ups review in the room everyday between 12;00 – 1:00 EST. Very specifically looking at the indicators I talk about all the time and specific chart set-ups.
In my post market report I will carve out and focus on the chart set-ups also.
So in other words, I will start to focus clearly for the learning trader specifically on these in a very detailed way and document the whole process.
And should a struggling trader work with me on it, I’m even gong to guarantee results (of course the trader has to reciprocate some accountability).
Here’s My Guarantee and Yours in Return
I let the cat out of the bag above obviously when I shared the email, but here it is. Sign up for our trading room bundle and print this and post it on your wall above your computer.
My Personal Guarantee
You put 3 months in to our room (if time allows) and if not review daily room videos and pre and post market newsletters and I’ll guarantee you will become a profitable trader. But, you have to follow the rules. You follow the rules (indicators) and you don’t make money I’ll refund you personally. And… you’d have to send me every entry and exit so I could check that you’re following the rules and preferably send me a daily trade plan (showing how the rules line up with your trade plan).
To do this (follow-through with the plan) review these regularly (can be done anytime because we publish all reports and videos of everything):
Premarket chart set-ups (reviewing charting indicators) done at 9:00 AM every morning in the room.
Chart set-ups for the standard indicators in premarket trading plan (as may be made available).
Mid-day chart set-ups review that will be done in the room everyday between 12;00 – 1:00 EST. Very specifically looking at the indicators I talk about all the time and specific chart set-ups.
Post market report specific to chart set-ups.
Send me your entries and exits on email [email protected] or by DM so I can review and preferably your trading plan (when you can) in advance of taking a trade for review.
That’s my guarantee to the new trading wanting to learn. It’s a huge commitment on my part and requires yours also!
So Sign-Up and Lets Get Busy
Here’s the link! And there’s a discount on the home page too that you can use (I think it brings price down to approximately 76.00 per month (or less if you register for longer terms)..
Below are the Rules and Checklist I Use Before Entering a Trade.
This is Part Two of the “Freedom Traders” Series – How I Learned to Get Over the Wall and What May Help You.
There is a link at the bottom of this post to Part 1 : My Personal Stock Trading Story. How I Blew up Two Accounts and Then Learned How to Trade.
Summary Introduction:
This is about the freedom achieved when one learns how to trade stocks with consistent profit.
Learning to trade is tough, but there is a significant reward for the effort.
I have observed, in working with newer traders, that many randomly trade “what they like” without a system or rules. As such, I created a checklist that trader’s could use prior to executing trades..
To win consistently requires a proven system that provides more winning than losing over a series of trades. This is a trader’s edge.
To win consistently, a trader has to have a plan (a system) – that contains rules, controls losses (risk) and keeps emotions checked in at the door.
You, meet You:
If you are struggling to trade for consistent profit this post and your effort to follow a rules based methodology will cause you to look in the mirror.
Trading for consistent profit is a war against oneself. It is a war against our inner need to be free from rules and discipline. Successful trading is boring, it is disciplined and it isn’t remotely like a Friday night at the roulette table. Successful trading requires confidence in a system that is proven to return consistent results.
Successful trading requires a disciplined, devoted and tireless commitment to study and personal betterment. If you are not prepared to study, and I mean really study, you won’t make it. You will blow-up your account.
Personal Reflection – Recent Interactions:
I talk to literally hundreds of learning traders every month in one form or another (social media, email, private messages, coaching etc). I recently asked learning traders to send me their trading plans in advance of market open on a Monday morning.
Here are a few things I noticed in many responses;
Lack of study. Lack of implementation or Consideration Toward Standard Charting Indicators.
For example, I constantly talk about simple charts, keeping it simple and basic indicators. I do this for two reasons; one – I can get too complicated for my own trading primarily because of the type of work I do in algorithmic modeling. And two – I believe learning trader’s should first keep it simple.
Anyway, my point is that most replied to my call for trading plans with-out even considering the simplest indicators that I preach day in and day out in the trading room, in newsletters on videos and social media. And I thought to myself, my lord, how do I get this across?
Simple indicators like taking a daily chart and considering the moving averages or MACD were not considered in near all replies. Most replies were, “I like this stock and I don’t want to miss out”. Oh boy oh boy oh boy. I was completely floored. I couldn’t care less if I like a stock and I definitely won’t base a trade on possibly missing out.
All of these traders have had access for some time to detailed docs I produce toward the subject, such as our swing trading service newsletters, our premarket and post market reports and the near weekly charts I produce called Keep it Simple Stock Charting (not even considering the algorithmic modeling).
Below is a recent twenty minute video (a snippet taken from our live trading room) of indicators I follow when considering a trade. The video isn’t great (near bad actually) but you’ll get the point. I drive this home (indicators) over and over because they work!
Standard indicators will provide you with a simple edge and a simple process – a place to start. There are many different trading systems used in the markets, this is just one.
If you truly want to develop an edge (a process) that will get you winning more than losing (trading for profit), then learn the simple indicators and use a stop! That’s all that is initially required.
Trust me, if you need it, here it is (at least a start) in 20 minutes or less (we actually have a better video on indicators in charting reviews from last Thursday that I will post when it’s ready and update this article because the video below isn’t ideal as mentioned).
Of course it then (your personal trade process development) goes on for lifetime there forward, but I think you get my point. It isn’t that hard to stop your losses and GET OVER THE WALL to profitability.
So learn your simple chart indicators! Some examples are; moving averages, MACD, daily charts, price action, and maybe some others like the squeeze momentum I use and a Stochastic RSI. (Note: Video was updated)
A Trading Process and Trade Rules are Critical to Successful Trading – the Legends Agree.
Here are a few examples:
Martin S. Schwartz.
“I always laugh at people who say “I’ve never met a rich technician” I love that! Its such an arrogant, nonsensical response. I used fundamentals for 9 years and got rich as a technician.”
It is widely reported that Marty Schwartz lost money as a trader for ten years. And also widely reported that once he developed a more rules based approach he never looked back. Martin turned 5,000.00 in to 140,000.00 in one year and is one of the most well known trading legends to this day.
“Real movements do not end the day they start. It takes time to complete the end of a genuine movement.”
Jesse Livermore used a set of rules, one of which was to identify “real movements”, because there is profit in a real stock move. A real move – not a low float pop and drop.
“Systems don’t need to be changed. The trick is for a trader to develop a system with which he is compatible”
“I would add that I consider myself and how I do things as a kind of system which, by definition, I always follow.”
“Systems trading is ultimately discretionary. The manager still has to decide how much risk to accept, which markets to play, and how aggressively to increase and decrease the trading base as a function of equity change.”
Ed Seykota, a commodities trader, had a conviction in Algorithmic Trading. He utilized the rules of technical analysis and it made him one of the greatest trading legends of all time. One of his trading accomplishments was that he turned $5000.00 in to $15 million over a twelve year period in one client account.
Seykota calls his trading process, the Trading Tribe Process. He describes his ideas and practices in his book The Trading Tribe (2005).
Okay, so we know the trading legends agree, you need a system and rules. So I have prepared a checklist for you to review before taking your next trade and before every trade here forward until you consistently win. If you have any that I have missed, do me a favor and send them or tweet them to me so I can update this checklist.
Some Rules in Trading. Checklist Prior to Entering a Trade.
Rule 1 – Take Responsibility for Your Success or Loss.
“A losing trader can do little to transform himself into a winning trader. A losing trader is not going to want to transform himself. That’s the kind of thing winning traders do.”Ed Seykota.
I tell our trading room and newsletter subs, “the shortest distance between you and the door is to blame myself or another trader for your loss”. Our systems, analysis, models or anything we say or publish, or anyone tells you or publishes is not the reason for your loss.
You lost because you lost to yourself or you lost because no trading system is infallible. This is without a doubt my rule number one. If I blame my lack of success on anything or anyone I’m doomed as a trader.
Rule 2 – Cut Losses. Use a Stop. Never Allow Losses to Get Out of Hand.
“The trading rules I live by are: 1. Cut losses. 2. Ride winners. 3. Keep bets small. 4. Follow the rules without question. 5. Know when to break the rules.” Ed Seykota.
“Trade with a stop, and know it before you enter.” Jesse Livermore.
“The most important thing in making money is not letting your losses get out of hand.” Martin S. Schwartz
Live to see another day. One of the most critical ingredients to success as a trader is in how long you are around to learn. You can always re-enter and the cards never stop.
Rule 3 – Ride the Winners.
“Let profits run. Close trades that show a loss (good trades generally show profit right away).” Jesse Livermore.
This is my biggest challenge. Always ride your winners. And once you learn that, you can then “hammer down” on your winning trends. This is where real profit is.
Rule 4 – Keep your Bets Small.
Take an entry that is at very most 5% and preferably closer to 1 – 2% of your trading account, and then when it becomes a winning trend, add as you see fit and the indicators tell you to do so. And yes, I know that I will take much larger trades, but that’s because of a host of more advanced (or refined) rules not included in this post and that trade is not my whole portfolio – it is a large portion of a specific account.
Rule 5 – Learn Trend Trading. Understand Your Charts.
“In order of importance to me are: 1) the long term trend, 2) the current chart pattern, and 3) picking a good spot to buy or sell.”Ed Seykota.
“Trade using the pivotal points. (Learn how to spot the pivot point from which a new movement will emerge; read Find A Trend With The Partial Retrace.” Jesse Livermore.
I call this “chewing around the edges”. If you learn how to spot trends or trend reversals for long term trend plays then you have hit the mother load and this is where serious profit is and accounts get built up fast. Read about pivot points. This happens to be one of the primary methods of our algorithmic chart modeling and why our algorithms have been so successful. Pivot points are powerful indicators.
Here is one Golden Rule trade example of what can separate you from just winning or wealth building. You find this one set-up in the indicators and you will win and win and win and really win. Below is the tweet and if you go to that tweet the chart that shows the set-up.
“When price trends up and Stoch RSI trends down that’s when you HAMMER down! Especially on a daily. #RULE $GDX $GDXJ $NUGT $DUST $JNUG $JDST”
Rule 5. Stay away from Momentum Plays. Pops. Pumps. Chasing.
I play morning momentum stocks for a kick. I play small and I play them smart. This is not a place for new traders. DO NOT join a chat room that plays momentum stocks as a beginner. Learn the predictable fundamentals of trading and become successful at low risk trades first. Do this for at least a few years before you try and learn momentum daytrading market openers and low floats and the like.
Rule 6. Buy in a Bull Market, Short in a Bear Market.
“Trade with the trend. Buy in a bull market, short in a bear market.” Jesse LIvermore.
If the market is red, be careful with your long trades. Now, if you know how to play by the rules and read a chart then red days are the days to study and prepare your shopping list for long trades. Then when the markets turn green or confirm you then have your hit list ready. And do not start your trading career shorting. I know, I know there are GURU’s that will disagree, but I fundamentally believe the best short sellers are those that first have the basics of long swing trading and even daytrading mastered. That is a personal “opinion”.
Rule 7. Trade with an Edge.
“Don’t trade when there aren’t clear opportunities.” Jesse Livermore.
Trading with an edge can be understanding your basic chart set-ups with moving averages, VWAP, MACD and others or can be with methods such as our algorithmic chart modeling work. Or, even with fundamentals or with news events and more. You have to understand what provides an edge.
I often refer to a simple edge traders can follow as PTPTRR. Price, trigger, power, trade, risk, reward. Trader’s that know how to win will automatically understand what I mean by each point in PTPTRR. The question is, do you? If not, study it out – study each part of that equation. Trading price provides what edge? What are triggers? What does he mean by power? What is risk – reward in trading? And so on. In a future post I will cover this simple formula in more detail.
“Price patterns, combined with volume analysis, were also used to determine if the trade would be kept open. Some of the criteria Jesse used to determine if he was in the right position were:
Increased volume on breakout. The first few days after the break prices should move in the breakout direction A normal reaction occurs where prices retrace somewhat against the trend, but volume is lower on retracements than it was in the trending direction. As the normal reaction ends, volume increases once again in the direction of the trend. Deviations from these patterns were warning signals and, if confirmed by price movements back through pivotal points, indicated that exited or unrealized profits should be taken. (For more read our Greatest Investors Tutorial.)”
Rule 8. Trade Strength.
“Trade the leading stocks in each sector; trade the strongest stocks in a bull market, or the weakest stocks in a bear market.” Jesse Livermore.
I almost always trade strength. Strength in price action, strength in sector, strength in timing, strength in volume, strength in trend, strength in momentum, strength in fundamentals, strength in news, strength in wash-out (fear) and on and on. Trade the strength that comes with inflections.
Rule 9. Trade with Chart Indicators.
Know your simple indicators. A profitable career can be made trading indicators only. We have proven in our work that simple indicators will return 50% or more a year with the instruments we trade (more on this later). But the point is learn your simple indicators.
We are posting You Tube videos more and more on this subject and plan to cover it intensely over the coming weeks in our newsletters and on various other media channels.
Some of the indicators to consider; moving averages, channels or trends, pivot points, chart history, support and resistance, Fibonacci levels, volume, power, risk – reward and more. When you know these you can then even move in to custom indicators (such as I do with trading view charting) and even chart bots and algorithmic models if you choose. But first learn the basics of charting and candles.
Rule 10. Trade Price Action. Price is King (and Queen). Know That The Market is Always Right.
“It can be very expensive to try to convince the markets you are right.” Ed Seykota.
Have a plan and when price action says different cut quick. Never assume the market is going to do what you think it will do. Now, I know in the algorithmic modeling work we do, we do talk about advanced near future charting etc, but even so, it is still harnessed in the realities of trading – that never changes.
Rule 11. Entries. Exits.
Know the zone for entries and exits. There are many rules within this one rule. Some examples are; enter long at support and cut fast if it fails, trail out long positions at resistance and add at support, enter long when the stochastic RSI is at the bottom (one of my favorites), go long when the MACD crosses up and short when it crosses down, know your time-frame, enter long at the bottom of the trending channel… and so many more.
Rule 12. Continuous Improvement. Journal for Success. Be Yourself. Don’t Follow.
Journal your trades. Keep track of your trades daily, take notes, learn from your errors and reproduce your successes. Study, study, study.
Develop your own system. Develop your own style. Be yourself. Don’t follow in anyone’s trades – learn, but don’t follow. Turn off the noise.
Study “Trade Risk Management Psychology” and “Emotional Intelligence”. We don’t have enough time here to go in to it.
Rule 13. Support Other Traders
Support the traders that shout out a win and try and pass on what you have learned to traders struggling. You will be surprised how this simple good will posture will help your trading. I won’t go in to detail and I’ll let you discover how this helps your trading on your own.
Rule 14. Check Your Attitude.
Never blame, never complain, never lack gratitude for the opportunity to learn. Be a good loser, dust off and move on. You will never be a profitable trader any other way.
Message me anytime with your story, questions or additions to this checklist. I will update this list over time.
Trading Stocks for Freedom. How I Learned to Get Over the Wall and What May Help You.
A quick post on my stock trading story – the pain I experienced learning how to become a consistently profitable trader and how it may help you in your journey to being part of the “Freedom Traders” club.
Updated July 15, 2018. We have come a long way since this article was originally published. Our first machine trading Generation 1 Algorithm Models are being released at the end of July – it has been an amazing 18 month journey. The last six months we have locked in win rates over 90% (recorded and published live for transparency) and the next six months will be a process of rolling out those new machine models that nearly never lose. And yes, you will have to investigate our results for yourself. The report will be released before the next gen models are at the end of the month (or simply ask for a private tour of our time-stamped, recorded, live alerted trading alerts).
My Trading History in Brief.
I preach never give up w/o hesitation because no matter how long it takes, even if you start back at zero, when you get it, you are free.
I preach never give up w/o hesitation because no matter how long it takes, even if you start back at zero, when you get it, you are free.
I started trading when I was twenty-one (so almost thirty years ago) – things were a little different, but the same too. I worked for a large promoter on the markets.
At twenty-one years old I worked with a team of thirteen that engineered IPO’s from ground up then doing road shows presenting to the investor community the offering. So my learning curve was quick – the inner-mechanics of the markets was intense. But that doesn’t help you “get over the wall” to learning how to be a consistently profitable trader.
I went on to various businesses and over time invested those earnings in to the stock market. “Investing” for me is easy, and should be for anyone in my opinion. “Seeking Alpha” or beating alpha isn’t difficult. Investing is not what this post is about.
Then I went on to Swing Trading with success (you will find my trading set-ups / calls / alerts top shelf triple digit annual returns – all publicly posted, recorded, time-stamped for transparency) – so this isn’t even what I call “that difficult”, although it takes more skill / study than investing.
I then went on to daytrading and algorithmic modeling and more recently in 2018 machine trading with significant success ratio, again recorded, time-stamped, live alerted results nearing high 90% win rates depending on the financial instrument (more on that on our website).
And more recently I have looked at taking on options and shorting more – but that’s a whole other topic.
What Got Me Over the Wall to Freedom Trading.
WHERE MY INFLECTION POINT CAME was when I started trading algorithmic model trading. In other words, I went from a 60% win rate (variable with wild swings in performance) to between 60% to 97% (yes near 100% in most categories and few instruments now less than 80%. With oil related for example I have a near 97% hit win rate, again all publicly shared for transparency, recorded and time-stamped).
So what was it about getting in to algorithmic modeling that changed my win rate?
Simple, it became vivid that having a “process” that I can “rely on” over a series of trades “always” had me on the winning side (over-all). That overall winning (over a series of trades) then provides the “confidence” needed to execute trades without “emotion”.
So it isn’t the algo charting that did it – it was the understanding of technical set-ups (the structure of the chart representing the financial instrument) that did it and knowing that if I compromise the “process” I would lose.
So I now have a process I refer to as PTPTRR. Price, Trigger, Power, Trade, Risk, Reward. More on this in a future post.
I Blew Up Two Accounts – Bad! Very, Very Bad and VERY Painful.
I will tell you that late in my trading life – long after I was twenty-one and a noobie, long after I was investing and swing trading, I blew up two accounts and I blew them up bad at a very bad time in my life. Learning how to day-trade was excruciatingly painful – my wins were huge and my losses even bigger.
Read somewhere that becoming a successful Professional Trader is akin to becoming a Brain Surgeon … degree of difficulty is very high
When I blew up two accounts it was during a time in my life where I couldn’t lose, I couldn’t gamble the nest-egg I had – but I did. I literally gambled my whole life (and the financial well being of my family). I was all in (at least 90% all in on the first blow up), and it wasn’t long ago. I took 90% of our wealth and gambled and lost. THEN! To make matters worse I took the last 10% and did the same. True story. Very painful.
So I had two choices, learn how to really trade (vs. long swings and investing which I know isn’t the wealth building vehicle I was looking for) or put my tail between my legs and go back to normal life as a loser (a loser as far as I’m concerned – I’m stubborn).
So I figured it out. And since then, I have publicly traded every trade with transparency to possibly help others along on the journey. It’s a karma thing for me. And I know I know I get people asking, well why do you charge etc… but if you knew the overhead in our start-up you’d be like… oh I get it. We’re simply trying to fund the lift of a democratized platform that we think will be increasingly valuable for the average trader not just for learning on their journey but we see a future not far off that will leave many behind (the rise of the machines). So it’s a bit of a Robin Hood thing. I know, sounds corny but that’s what it is (a give-back thing is our motivation – a few computer scientists and entrepreneurs).
Five years (mark this tweet) u will not find a winning trader that has not embraced #AI #IA Machine Intelligent Assisted Trading. It’s already here. And I’m not talking about the cheap rip you off bots retail can buy. Retail can’t buy the real service. They won’t sell it to you.
Five years (mark this tweet) u will not find a winning trader that has not embraced #AI#IA Machine Intelligent Assisted Trading. It's already here. And I'm not talking about the cheap rip you off bots retail can buy. Retail can't buy the real service. They won't sell it to you.
A quick note here… we have given up on the idea of the general retail market helping to fund our platform and mission to bring world class machine trading to the everyday investor… we are still bringing it, in fact we haven’t missed a beat… but retail isn’t coming near funding the costs (at best 2% to date). So how are we funding it? Refer to our win rates, investigate our win rates, roll over those rocks and then you should know how we are funding it. At this point… we are nearly never losing. We’re funding 98% + of this roll-out. And yes, if you’re a retail trader that wants access I believe you should at least put a foot forward (have some skin in the game, even if it is a nominal amount of money). Why? It’s simple, if you don’t have at least some skin in the game it has zero value to you and you should have to reach a bit for it – for it to have any value. It’s a reciprocation thing. And don’t forget, 18 months ago I was exactly where any retail trader is today reading this, we reached, we believed and we’re doing it. We’re just asking for folks to reach a bit. Mark my words here now… when our results are published before the first generation of our new machine trading models are launched at the end of July – everyone, and I mean everyone that looks in to our verified record of alerting trades will know that we just do not lose now – very rare
So in summary (as far as this quick note update today is concerned), we still believe we have a mandate to bring this to the general public but we aren’t trying to push that anymore. If people want to get it they can, if they don’t that’s fine, we’ve let that part go. We are publishing at the end of the month our 2018 results to date and then we are going to absolutely conquer our trading environment over the next six months of 2018.
When 2018 is complete, there will be zero doubt that our transparent roll out and development of competing against the largest most sophisticated trading firms in the world has been a success and we will have been the only team to publicly and transparently share the start up process and spawning and development of that complete process to the general public. None of the other firms in our work have done that. Every single group like ours has either gone dark right from day one or shortly thereafter. This has never been available to the general public.
The last quick note here is that much of our current work (the machine trading generation models being introduced soon) is not transparent – the technology and coding we are using, but the trading alerts and subsequent success etc is shared and the process is shared and always will be transparent. The specific machine trading technology is proprietary and will remain so.
Okay back to the quick story…
So I will spare you the very painful details of the story – but I can say without a doubt short of losing a loved one or experiencing a divorce it was the most painful part of my life. Changed almost everything.
But learning how to trade with consistency, knowing that you are going to be on the winning side also can change everything — it is literally financial freedom (and with that many other freedoms), even if you lose it all and start at zero. It is something nobody can take away from you and it is yours for life and that equals freedom – maybe not today, but freedom is then inevitable. It is only time.
“Money won’t create success, the freedom to make it will.” – Nelson Mandela
"Money won't create success, the freedom to make it will." – Nelson Mandela
How to Always be on the Winning Side in Trading – Getting over the Wall.
Below I will share a few pointers or rules that I used to get over the wall, but the truth is the topic is massive. Because it is a series of disciplines and everybody is at a different place in their learning, I will simply share a few key pointers below.
This week we have decided to start sharing every trade I execute via short video posted to YouTube and copied to our social media feeds on Twitter, StockTwits, Facebook, Google+ etc. Then learning traders can view these shortly after they occurred intra-day. We do record our complete trading room session also FYI and to see them live you need to be in the room. But if you are not for whatever reason you’ll be able to view the videos near real-time and they will be snippets (1 min to 5 min videos) that will explain every detail possible of the set-up, process during the trade and closing the trade out and why. This will be our method of helping other folks over that wall to freedom.
A Few Things That Helped Me Trade for Consistent Profit.
Number 1: You need a process that over a series of trades always puts you on the winning side.
You will never win every trade, and in fact I know traders that win less than they lose, but their winners are better than their losers.
For example, I have a swing trading process (see my most recent Swing Trading Quarterly P/L Review), I have a day trading process (see my most recent Day Trading Quarterly P/L Review), we have an Algorithmic Chart Modeling Trading Process (the Quarterly Report will be out soon – and it destroys my day-trading and swing trading results), and then I have my personal trading account trades that I don’t share because I use it for high risk representing a small percentage of my trades (I wouldn’t want to encourage others in that way or be responsible for that) and I also use it for learning (options and shorting and the like). BTW I can trade along any averagely decent options or short seller, but I don’t want to share it with the public until it is locked in and extremely predictable (again I don’t want to be responsible for the possible losses).
So get a process! How do you get a process? Well from folks like us, learning on your own, or various other ways I suppose. Be cautious that the service you pick suits your personality and goals, and be sure you investigate it well (I get notes daily about how much folks spend for services and feel guilty because it was either misguided or didn’t fit with their goals). Check their calls, back check all of their calls and see if they are successful. Be sure the calls are transparent with time stamps. Talk to their clients.
What is my process? My process is structured trading. I know the natural trading structure of each instrument I trade. This process is also my edge and frankly with-out this “tool” – structured trading, it will be very difficult for any trader in the near future to win. The machines are here and it will require a change in the mindset of traders. But here again, more on that in a future post.
But the bottom line remains the same, structured trading wins. I am updating this post today (July 15, 2018) while we I am reviewing our profit loss performance statements… the results from the last six months are stunning. We are releasing them soon (before the end of July when our next Generation Machine Trading Algorithm models are released). The point is…. you can’t compete with a trader that knows the natural historical trading structure of a financial instrument over all time frames (from 1 minute charting to weekly). It just isn’t possible to outperform that trader (the intelligently assisted trader #IA) – with the only exception being the machine. I can’t beat the machines. But I employ them to help me.
There is a reason our win rate is so high. Ask for a tour of our live swing trading or oil trading alert feeds (that are time stamped) – you will see win rates in the high 90% range over the last six months and we welcome folks to visit our free public chat room to ask around about our performance. We put it out in the open. Swing trading and oil trading are our best results being over 90% but our other instruments are also doing exceptionally well also – just not as high.
All that winning alert feed success can be directly attributed to a winning process, that we have near perfected that is in our instance what we call structured trading. Knowing the historical structure on all time frames of the financial instrument that we are trading (assisted by machine data and charting) provides us an edge over the majority of traders in the marketplace.
Number 2: You need risk management. You cannot be a consistently great trader without extreme discipline in risk management.
This post was motivated by the many replies I got on the weekend to a simple tweet (that became a series of tweets) about the pain one goes through to get up over the wall and to the side of freedom in trading. It actually touched me, seriously. The number of folks that messaged me about their stories blew me away. I was an emotional a wreck, and risk management (next to the importance of a “process” seemed to be a consistent theme).
Risk management is knowing where your risk reward lies before you enter a trade and adhering to that with-out fail. Now, I compromise this myself at times, primarily however because as conditions change I will change my threshold. But, you HAVE TO KNOW WHAT YOU ARE DOING before you start flexing on this rule. Study out risk management online because this is intended only as a brief post.
Number 3: Turn off the noise.
Did you know that many of the people telling you about great stock picks on television etc are paid to or have paid the broadcaster for the opportunity to do that? In one way or another there is a payment transfer, it doesn’t have to be in direct payment for service form either. I personally have been invited to a number of programs, I did one recently on premarket show with Benzinga see: PreMarket Prep for December 30: Wrapping up 2016 with our best call of the year, and since I haven’t done one (we have many that have asked – especially to look at our algorithms). I do have some others booked and will do them in the future, but I am being selective for this very reason.
So I won’t get in to all the details, but media (all things considered) should be at best a very light part of your study. You need to know your basic technical information and set-ups – the fundamentals aren’t as important because stops deal with that. Get your technical set-ups in order. Hence why we are going to start publishing every trade intra-day for traders.
Number 4: You need a good home – a trading coach, mentor, trading room or newsletter service (with coaching add-on).
The number of traders (in our service and out) that DM, email or message me in some form daily is becoming astronomical. And I do everything I can to respond to each and every one daily. I say this not to be like oh I am so important, I say this to say that I know with-out a doubt that the average learning trader needs a coach. Good coaches aren’t cheap but they will bring you return (or value) that nothing else can.
Short of that, get in to a good trading room or get a newsletter service set-up that will help you with technical set-ups. When people ask me what I do I tell them I do oil changes. Seriously I do. Why? Because it’s the same. You take your car in for an oil change because it is more efficient or it brings a value to you and that’s why you go. You’d rather spend 50.00 on the oil change than do it yourself. That’s what a newsletter service will do for you – for the 50.00 or 300.00 a month or whatever, it will provide you the free time to do other things while someone else is doing the grunt work compiling technical set-ups for you.
Number 5 – Emotional Intelligence.
What is emotional intelligence? Emotional intelligence is simply the identification, tracking and management of your emotions. Emotional intelligence is much more important to your trading success than your IQ because what you do is inexorably connected to how you feel. In other words, emotions are organizing principles of our human system and they cannot be separated from us. In fact, they are, to a large degree, what makes us human as as such this is directly attached to your success or failure as a trader.
Again, because this post is simply a brief I encourage you to research emotional intelligence and what expert traders have to say about it. Study, study, study.
There it is… emotional intelligence. The nemesis I had to beat. Great tweet.
There it is… emotional intelligence. The nemesis I had to beat. Great tweet. https://t.co/dlZkhe67ia
Last but not least, in fact I think for me was most important, was when I started trading with transparency. I started publishing trades in trading rooms in 2015 that I was investigating (when I was learning how to daytrade vs. swing trading and investing).
Then in 2016 I began posting my trades in and out to Twitter and Stocktwits and later in 2016 to our service.
Now I post my trades all over the place haha – I have to be cautious how I do that because we have subscribers, but I trade live in our room and post trades to social and our blog. I even post our trading room footage and a transcript daily to Youtube and our blog.
And this week Sartaj will be taking each of my trades and posting them intraday to Youtube and our social networks. This will cause me to have to be more verbal (I have a fear of public speaking) but I will learn. My goal is to broadcast everything I can think of in each trade fo that each video snippet will be very detailed for trader’s learning.
There are many more points or “rules” to trading (number 7 would have been stay away from morning momo stock plays haha).
In Closing
That is it for now. I will write more on this topic in the near future.
It is Sunday and we’re in the lab processing our weekly Swing Trading newsletter, running the charting algorithms for our six models in Oil, $SPY, $VIX, Gold, Silver and the US Dollar and I have to get ready for a big week in the trading room.
We are after all stepping it up a notch in that we are not only publishing the trading room video and transcript at the end of each day going forward – WE ARE PUBLISHING EVERY TRADE to our social networks right after they occur intra-day all day every day for now on! That is a big deal! Why? Because I believe it will be a primary way that traders desiring with all their will to get over the freedom wall, will in fact have another important tool in that endeavor! You can’t follow another’s trade but you can certainly crack open their method and make it yours!
Don’t follow other people’s trades. You don’t know their position size, time frame, stop loss, or exit strategy.
Don't follow other people's trades. You don't know their position size, time frame, stop loss, or exit strategy.
Message me anytime with your story or questions – I WOULD LOVE to hear the stories. I’m being serious here, I have never been that guy, but there is something about this, helping others get over that wall that has seriously inspired me to action.
Compound Trading Group Platform: Algorithm model charting for $SPY, $VIX, #OIL, #GOLD, #SILVER, #Crypto ($BTC Bitcoin, $ETH, $LTC, $XRP,) $DXY US Dollar and Swing Trading Newsletter. Live trading rooms for full-time daytraders. Private coaching and live alerts.
