Wednesday, 28 November 2018

Technical Analysis Vs AIMS The Setup

The traditional way of technical analysis is to look for Supply Demand areas, check support and resistance, find out the key price levels where price seems to react, reverse or hold levels.

Compare that to the AIMS Setup method. An indicator based, rule based method, you will find that the former requires a considerable amount of time and attention and experience compared to AIMS The Setup.

Anyone can learn to trade the setup within a few weeks. It would take good 12-24 months to master, the so called, simple analysis using "naked charts".

The following series of charts show a trade I just took at the time of writing this.

The Rejection of the Price Zone influenced the Long but ... check next chart

AIMS The Hunt Method created an Apple Signal at that spot without the need for you to learn to trade with S/R and S/D analysis. No price action analysis required. 

This chart shows what AIMS The Hunt Method looks like. We trade with m5/m1 chart side by side. A unique way of trading the M1/M5 charts. 

A 1:20 Risk Reward Cherry Signal on the M5 Chart. 

Tuesday, 20 November 2018

Clearly Moving Markets - But No Signal

There are times when you see the Market is clearly moving in x or y direction but your system does not create a trading signal on the chosen time frame.

e.g. The EUR/USD this morning was clearly not going up. @Jasmien hinted in the chatroom that she thought it was stretched. And at that time it appeared to be continuing the uptrend.

Soon after the Big Bear Candle was printed.

So What can we do when its clearly telling you that its reversing or its going this way.
You don't want to break the rules of your method.

Here is a prime example.

Drop to the Lower Time Frame. Below I show M15 chart.

The picture clearly shows some good AIMS The Hunt Cherry Signals. 
In the forum I also discussed a very cool way to catch such setups, on the M5 time frame. 

Its called the AIMS 10X Pattern. You can spot the M5 setup 1's while watching the H1 chart. 

Hope this helps 

Sunday, 18 November 2018

AIMS The Setup vs AIMS The Hunt

Which one is Better? 

Well, it depends. Let's have a look at the following pictures of the trades I took on the GBP/USD.

First picture is that of GBP/USD H4 (Four Hourly) Chart.

This picture has three beautiful signals and three beautiful trades marked by distinct vertical lines so that you can identify all trades on the next chart that shows the same trades on the H1 (Hourly) chart.

This picture convinces me why Setup 1 is an Awesome Setup as well as why Hunt Method is even superior or  at least a great alternative. 

Superior because it requires less time to observe and trade this signal, requires less screen time and can be traded on higher time frames as well as lower time frames.

Alternative because people who can't trade the hourly chart can trade the 4 hourly chart and catch the same setup 1's that happen on H1. Same goes for H4/D1.

Three Coloured Lines indicate trades that were taken as Setup 1 originally on H1 Chart.
But look at this h4 chart,  all 3 trades seems to be timed perfectly with Cherry Signals.
Conclusion: Trading Hunt Method on h4 would ensure you take all the great Setup 1 signals that appear on h1. 

Sunday, 11 November 2018

The Mindset of a Professional Trader

There are two types of mindsets. One that is the opposite of the mindset required for consistently successful trading while the other the mindset of professional consistently successful traders.

The Non Professional Trading Mindset:

When a novice, non professional trader sees a setup, (A Trading Signal)  many doubts hits the trader. Instead of looking objectively at the rules of their trading plan (assuming they have one since most don't even bother with this fundamentally important aspect of trading) they look for all the things that have nothing to do with their plan.

As a novice struggling trader you start looking for reasons that has nothing to do with your trade plan. In other words the trader loses objectivity. Though confusingly though, for most people, when its a wrong setup, or no setup, trader somehow, finds it very easy to take those trades. There is no hesitation and they jump in without thinking. That is one type of mindset.

This mindset is a disaster. The trader may have in their hands, a very good trading methodology but they don't yet possess the mindset that is essential for peak performance. They have not trained for it because they don't yet know it is a "thing".

The Correct Trading Mindset:

Professional traders know exactly when to enter the market, where to set their stop loss and take profit levels. They understand risk management but more importantly they are disciplined. Highly disciplined. And the reason they are highly disciplined is because they have acquired the mindset called "Probabilistic Mindset". They know  that a single trade can become a winner or loser at any time. They know they cannot dictate the outcome of this one trade. But they also know that their method gives them an edge. So they keep taking signals objectively.

You have to do everything in your power to switch to that mindset.

There will be a day when you experience the switch.  You'll move from  finding it easy to take just any trade to finding it hard to take any trades that don't fit your rules, you find it hard unless its your setup, following the rules of your trading plan.  that day you will have become a trader with a professional mindset. A trader who's path of least energy has shifted.

AIMS Stress Free Trading - The T20 Principle is a training methodology. The FUTURE YOU that you want to be can be achieved at the end of the T20 training course. It is the mindset that you want to switch to. You don't need to change strategy, you need to switch mindset. 

Sunday, 4 November 2018

How to remain Consistently Profitable - Control Drawdowns

The Most Important thing I've learnt in life , relating to trading, is that we should risk far less than 1% per trade. Yes, that is what we are told in most of the trading books to risk 1-3%. Even though a very small proportion of the trading books talk about this very important aspect of trading i.e RISK Management in the first place.  But what they don’t consider is what happens if you have 10 losing trades in a row?

The Biggest Secret of Trading Success is: RISK MANAGEMENT.
And risk management has a lot to do with this often-ignored concept called Drawdowns. A good method should always address Risk and draw downs.
According to Investopedia

What is a 'Drawdown'A drawdown is the peak-to-trough decline during a specific recorded period of an investment, fund or commodity security. A drawdown is usually quoted as the percentage between the peak and the subsequent trough. Those tracking the entity measure from the time a retrenchment begins to when it reaches a new high. (ref)

Some people mistakenly think drawn down begins when your account balance drops below its start point. E.g. if you start with $10,000 and it drops below the 10K is when drawdowns start. I did not know until now that there are so many people who think its that way. Oh no.

We need to understand that no matter what strategy of trading you apply, drawdowns will occur. Drawdowns are REAL. They happen, they will happen, and nobody can stop them from happening.

Because it’s part of the whole game. The game of probabilities. Every now and then you will experience a batch (the T20 Principle) where you get 10 rents or more. Without a solid plan, without knowing about it in advance, it could happen and what most people would do is to abandon the plan. If your plan does not cater for this, your plan will be considered an incomplete or ineffective plan. So we must plan but not just plan, we must plan accurately, efficiently and effectively.

I learned that there are two factors, which when combined keep those damn 95% of traders below the zero line of their equity graph.  

Factor 1: Draw-down periods
Factor 2: Lack of Discipline

The above could usually be the result of NO PLAN...

When there is no plan, and there are drawdowns, there really is nothing for a trader to think  but to RUN as fast as they can. The path of least resistance is to STOP doing what they are doing. In all honesty It's actually a good rational response to stop doing it because it hurts.

The problem however is that if you stop what do you do next? The usual answer is, look for a new method. There "the demon Dr. Draw" will drag them down again and so the yo yo (AO) continues and so does the hopping mechanism. Until finally someone tells you about AIMS (ahem);...

T20 Principle keeps you grounded. It helps you with staying disciplined. However, what it can't stop is the probability of those major drawdown periods. But it does teach you about it. T20 principle deals with both the discipline of trading and probabilistic mindset. It’s a one shot medicine that cures all the trading diseases there are.

This is the main issue. So, what must we do?

The answer is simple. If you are uncomfortable with the drawdowns, e.g. risking 1% per trade, 10 consecutive losers could mean nearly 10% drawdown. and if your plan is to NEVER experience a drawdown more than 5% the simple way to achieve this is to use (no , you don't need to change entry method) Risk Manipulation.

If 10% draw-down is too big, and it is big simply lower your risk per trade. That is What makes winners consistently winners. And so here comes the example of Fruit method again. This method trades aggressively, but with very conservative risk management. We enter market only with Quarter risk, adding on the rest of 3 quarters in next 2-3 add-on trades.

This way, you can keep drawdowns relatively low, within acceptable margins. If you still experience drawdown of more than 3-5% then perhaps lower the risk per trade to 0.75% or even 0.5% and then scale in to positions. Keep in mind if you score less than 70% on your discipline then the first thing to deal with is to get that figure to above 70%.

This can be done with setup 1 as well. In setup 1, what we can do is to make entries  just the way we do, but simply take half off at 1:1 and let the rest be trailed with a box. This will reduce our over profitability a tiny bit but massively reduce drawdowns and keep it within acceptable ranges. e.g. if you risk 0.5% per campaign, it would  take more than 10 trades to draw-down 5%. and before you know it you will hitting the win streaks again and back in the zone.

All the best my fellow traders and AIMSters

Thursday, 1 November 2018

Really and Honestly Trade The Setup 1

This setup is much more powerful than even I thought myself.

It just never seizes to amaze me. The Setup is a perfectly testable idea. Anyone can look at the rules, test it on past data and do a forward test. To date, Nobody has ever been  able to come to me and say, "this did not work". Why? Because "IT WORKS". How do you know that it works?

To Find Out, People join our forum, they go through the course material, start trading the simple method, they complete a batch of T20 (The T20 Principle has been our greatest achievement thanks to Mr. Douglas) testing the Setup 1 idea and nearly all of them get the following result.

33% winners 33% Break Even Trades and 33% losing ones.Winners are Twice as big as the losers. 

You will get 5% on average per T20 (risking only 1% per trade).

The Setup shows you where to put Stop Loss, Where to Take Profit and Where and When to move Stop Loss to Breakeven.

Plus Snorms Fantastic ATM Expert Advisor can automate the trade management bit for you. So you won't have to try to "be disciplined" because the BOT will do it for you. #Snorm 

Slap me on my face if you did not get it. Tell me if this did not happen for you. It WORKS

And Hey I've even shared all the pics of the Setup with you already. What we then offer inside the AIMS Forum and Chatroom is help you get disciplined and actually be able to DO IT!!!

All the money paid for discipline? oh yes... Discipline is the most expensive and hardest to find commodity when it comes to "BEING SUCCESSFUL". 

Below is screenshot of trades we took using our Favourite Setup 1 trading the #DAX30 this morning.

Followed by a Trade Setup on #EUR/USD that we were able to identify on H1 chart.

When is it too late or too early to buy a pullback? 

In order to answer this question first ….  Let’s quickly do some repetition. Let’s quickly do some repetition.  Let’s throw in some trading ...