I’ve been working with an expert intraday scalper to develop a system (based on his working system) that is leveraging the principles we talk about in the Price Action Masterclass but in a much more advanced way.
It’s still a system, but it is a system with a LOT more flexibility than any I’ve ever traded before.Similar to Ken Long’s RLCO system, it paints EXTREMELY impressive numbers, but requires a lot of concentration and practice to get it right.
Usually I like systems that take one or two trades per day off daily charts, and I reuse the same family of setups in innovative ways. I prefer systems with about 90% mechanical rules and about 10% discretion
This system takes 10-20 trades per day off 250 tick charts (between 1 and 3 minute charts), and it’s about 35% system and 65% discretion.
So the exact opposite of my comfort zone.
And I sucked when I started, it took me some time to start making cash with it.
I’m still working on developing a decent live track record (backtesting isn’t useful for a system with a lot of discretion in it) before I’m comfortable releasing it.
There are a whole lot of new setups you haven’t seen before, and let me show you the first one (in the video below)
What’s the advantage of a system like this compared to our usual trade like a robot systems?
Well the performance is way higher, for a start. The expert discretionary system traders I know all post returns far in excess of what I am capable of.
But that performance doesn’t come for free. It is much more difficult than pure mechanical systems, but not completely impossible (like “I just read the charts” approaches which are doomed to fail)
Think of it as a structured framework designed to box you in and stop you trading like an idiot, while still allowing a great deal of freedom on the entries.
These type of systems are MORE suitable for trading for income. In fact, the guy teaching me this stuff withdraws his winnings every single day. Which I really, really like. Trading for pure income is something I’ve never done.
If you want to follow along my own performance (both good and bad) you can see every single trade I take here
In other news it really is the LAST CHANCE for bears today. We are at an inflection point and the bears are on the verge of fucking it up for the 927th time in a row since 2009.
This is the very definition of an inflection point
Also, we have lovely setups in bonds today. This is the 10 year note.
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