Here’s short video on how to navigate and get the most out of the blog.
I receive many questions regarding my charts, indicators, trade plan, mentoring, etc. The following is a list of the most common questions and my responses.
What is the setting for your EMA trend line?
The trend line is an 89 EMA. It is a proprietary indicator but I have attached a similar one that will mimic the color change when the trend changes from bullish to bearish and vice versa (See link to indicator zip file in TDI question below.)
How do you use the EMA Trend Line?
I use the trend line to determine momentum and bias in the market. When price crosses and remains above or below the trend line, I will primarily look for signals corresponding to the momentum and bias – the trend.
What are the boxes on your charts?
Those boxes simply designate the beginning and end of each trading day as well as the high and the low of the day. It is a very old indicator and difficult to set up. There are many similar, newer, better and more user friendly type indicators on Forex Factory. Just do a search.
Where do I get the TDI indicator and what is it?
I have provided a basic version of the TDI in the zip file along with an adaptive EMA. There are others on Forex Factory as well. The TDI indicator (Trader’s Dynamic Index) was developed in 2006 by Dean Malone of compassfx. You will have to reaserch on your own how to use the TDI indicator. The Adaptive EMA is self-explanatory. You will need to know how to add these to your MT4 platform.
Get the TDI and EMA indicators here: EMA & TDI for MT4
How to do I set up the EMA and and TDI indicators? PLEASE WATCH THE VIDEO BELOW
What is your RSI setting?
I use the TDI (Trader’s Dynamic Indicator) default setting which is RSI 13 period.
What are the settings for the Trade Signal Line (TSL)?
I use the TDI (Trader’s Dynamic Indicator) default setting which is TSL 7 period. This is a fast Moving Average placed in the same indicator window with the RSI.
Can you send me your indicators and template?
No. You have to learn to develop your own trading system and trade plan. I offered the TDI and EMA above as starters. Giving you my proprietary indicators and template will not help your trading. It will just end up with all of the other Free Stuff you have and do not use. If you are asking for this, take a minute to think about why. Shortcut? Opportunity Seeker? The fact is, there is more than enough information on this blog to get you trading successfully. There some things you just have to figure out on your own and work through or you’ll never make it.
Does the TDI indicator work on Ninja Trader or Trade Station? Can the settings be duplicated?
You will have to search the internet. The TDI was designed by compassfx for the MT4 platform, but if your platform allows, you can place a moving average on your RSI and that should re-create the TDI crosses and behaviors.
Can you explain how to use Fibonacci Ratios and the Fib tool in MT4?
You will need to do some work on your own to learn how to use Fib retracements and extensions. Information is widely available on the internet.
What are your rules for entry, stops and targets?
The blog is designed for you to learn what professional traders do for consistency and profitability through analysis and execution along with the psychology required. It is not similar to a chat room or forum where indicators and trading systems are given away. My rules and trade plan are designed for my trading personality and experience level. You must formulate your own rules and trade plan, do your own back testing and practice diligently so you can execute YOUR trade plan efficiently. Knowing my rules and plan will not improve your trading.
Why do you post trades after they close and not during execution?
When I trade, I focus my undivided attention on the markets. It is too much of a distraction for me to worry about other people’s questions during my analysis and execution. Once the trade is placed, depending on the time frame, I usually walk away. I am not interested in making “trade calls” because that will not teach you how to trade. It creates more work for me without giving you any tangible skill. I currently have other obligations as well that prevent me from running a live trade room – although I soon may be able to do so. I produce the videos after my trading session has concluded and my other obligations are satisfied.
Are you a trend trader or a counter trend trader?
I am predominantly a trend trader, but I also trade counter trend. I have very specific rules that must be met for a counter trend trade. I do not recommend doing both unless you are very experienced. The rules of trend trading are often contradictory to counter trend trading and therefore can cause problems for newer trader’s learning and psychology. If you are just beginning or have limited experience, you should focus on one market (or currency), one time frame, and one system. Become proficient with that before expanding to other markets, time frames or additional systems.
Do you trade FX full time?
I do my best to trade the London and New York Markets every day for intraday trading but also implement a swing trading strategy on the 4H and Daily charts.
How long have you been trading?
I was introduced to Forex in 2002/2003. I have been trading professionally for 6 years.
Do you trade options, futures or stocks?
No. However I truly believe a chart is a chart and the skill of technical analysis applies to every market and every time frame. I concentrate on Retail Forex because it suits my availability and ROI requirements.
How long until I can trade full time? . . . or for a living?
How long will it take you to do the work, perform the practice, and develop the discipline, control and patience? (Plan on at least 2-3 intense years if you are serious about making the commitment to trade for a living.) You also must have sizeable account equity. I recommend starting with no less than $5K minimum and to make a worthwhile income/return ultimately $100K.
What trading books/authors do you recommend?
There are lots of trading books. If I had to read only two, they would be by author Mark Douglas – “The Disciplined Trader” and “Trading in the Zone.” Others include the “The Market Wizard” series by Jack Schwager.
Do you have training or course materials?
The blog contains more rich content than you will get on any other trading site – especially dealing with trading psychology. However, I have developed an all encompassing Beginner/Intermediate/Advanced course called The Pro Trader Network Excel Course. It will provide all of the tools you will need to be an independent and consistent trader. It includes two directional (trend) trading systems based on the TDI indicator and focuses intently on rules based trading and the psychology of consistency and discipline. Several times a year, I will offer FREE Workshops. At their conclusion, I describe the course content and the cost to enroll. The course includes a beginner Module and then builds on the Foundation Essentials material using the same indicators with additional strategies and more advanced topics. It is in response to the requests and emails I receive from fellow traders wanting to expand their trading education. My goal is to provide a “Turn Key” trading education. That simply means that you should not have to rely on anyone or anything after taking any of my Courses.
Click the link below for the FREE 4 part Forex Traders Workshop and PTN Excel Course. The Forex Traders Workshop video links are sent via email over the course of 4 consecutive days.
Do you have a mentoring program?
I do currently work with a local private client group who has some market/investing experience and prefer person-to-person interaction. I am looking into developing one that will accommodate additional traders – time permitting. Also, there are many traders that learn more productively and prefer a live classroom setting. As a result, I have been asked to set up a week-long event for live training and interaction whereby traders can travel to attend. I am looking into it. Demand will dictate if this comes to fruition.
I have done my back testing, but still cannot “Pull the trigger” on a trade. I am still nervous and unsure. What am I doing wrong?
While back testing is the key to acquiring data and system performance, it is only half of the equation. It is forward testing that will build the belief and remove hesitation in execution. You have to practice implementing what your back testing data has revealed about your system’s performance. This practice is the only way to get you behaving efficiently and consistently. Remember, everything we have learned to do well has taken practice and repetition. Trading is no different. You will never duplicate your back testing results 100%, but you can achieve results within a few percent if you are focused and diligent during your practice.
What’s the deal with all of the trading psychology stuff?
Your personality is your best friend and worst enemy. Clearly you can see that trading is 10% mechanical and 90% psychological. The reason I focus so much on psychology is that there are inescapable biological issues in our brain that we need to re-train and work around to be a consistent trader. Because this is so prevalent in new and struggling traders, it must be addressed before one can realistically consider trading as a viable means of income. Would you not take the same approach to any other challenge, profession or opportunity that you expect to produce a high level of financial return? Acquiring any skill takes building belief, repetitive action and constant refinement to get to the level of expert (unconscious competence.) Trading is no different, so we need to use the same approach to master our own trading psychology.
I have been watching the Market Structure videos and have practiced identifying Support and Resistance. What do I do from there?
Price re-tests areas of support and resistance repeatedly and as a result we are looking for price to get stuck or hung up and continue with the trend and/or possibly reverse momentum as the trend is exhausted. These levels, along with your trade plan, create potential trade set ups. After labeling key levels, put S/R in context with current price and see in the near term and long term where price might gravitate based on its current direction. Look at your trading time frame and notice candle patterns, candle color and oscillator behavior. Based on your rules, prepare for a valid signal based on these potential set ups created at areas of Market structure.
How do you know to stay out of trades even when you may get a valid signal?
For the most part, I stay out of trades on valid signals if the pairs providing the valid signal were not showing potential on the higher time frames in that day’s top down analysis. If there is volatility occurring because of news, I will revisit a previously ignored pair. I am looking for set-ups on higher time frames and corresponding entries on my trading time frame. That will eliminate lots of the noise and brain clutter when looking at multiple pairs. I simply commit to patterns, set-ups and price action that I easily recognized and can act upon. I will miss many winning trades. I don’t care. The important thing is that the trades I do take meet my rule set and fortunately most of them are winners.
You have a very high winning trade percentage. Why do you not show your losing trades?
I show you every intraday trade I take each week. You will notice two key elements of my trading style. I do not over trade. I only have two intraday trades open at any given time. Once committed to a pair and trade, I wait for the trade to play out. These two techniques alone reduce my number of losing trades dramatically. I will increase lot size to increase profit size, but I am not interested in trading for trading’s sake. I trade for profit and profit alone. As a result, I am very selective, conservative and patient – and therefore have very few losing trades. I also stick with things within my areas of expertise that I can easily recognize and act upon.
Where can I learn your trading system rules and strategy/trade plan?
You can’t. The thing most traders do not understand is that you must make the trading system and trade plan your own. Just as no two people are alike, no two people will trade alike. I am showing you trades and giving you the processes I use to execute them. Your process and system will differ, if ever so slightly from mine, because your back testing will be different and your forward testing will be different. I have all but published my rules and trade plan via the videos I produce. I will not formally publish them because if I do, and when they do not work out for the traders that can’t implement them or do the required work, I will l have to deal with the fallout from their negligence or incompetence and I simply do not have the time.
What do you mean by “break above, close above” when you are describing price action?
For a key level or price to be irrelevant or lose its relevance in the context of the time frame you are observing, price not only must break above (exceed a previous key level,) but it must close at a price higher the previous level. This is a clear sign that the collective participants are no longer captive to the previous high price level. When broken by a higher close, we can look to the next key level of price (support/resistance) for a potential re-test.
Do you use Pivots and can you direct me on how to use them?
I do not use Pivots but they are widely used just like Fibs. I feel it is a matter of preference as statistically they can be comparable to Fibs. I do not feel they offer any better advantage and provide more clutter to my charts. That is just my opinion. Peter Bain is the guru of pivot point trading and I’m sure you can find his training material on the web.
Can you recommend a good broker?
I have used InterbankFX (ibfx) primarily for the last 5 years. I have no other relationship with them other than as an account holder.
I have been looking at your trade videos and my Synergy APB candles and price action do not look the same as yours. Do you have a proprietary Synergy APB indicator?
No. I use the standard Heiken Ashi indicator that is supplied with the MT4 platform. I do not use Synergy APB candles.
There are so many different TDI indicators on Forex Factory. Which one do you use?
I use the very basic/original TDI indicator. You may download it from the FAQ section on the blog from question 4.
Why can’t I join your Skype or contact you on Facebook or LinkedIn?
I reserve Skype for only very close business contacts and a very small group of private clients. Skype is a distraction when trading and those in my list have a clear protocol and rules for usage that minimizes the distraction. We use Skype purely for business use and not as a typical “social” media tool. Facebook . . . where do I begin? Frankly, I do not have any interest or time to maintain a Facebook page because I am not that important and don’t want to entertain or share the mundane. I have the blog that is specific to traders that are serious about making money and that is about as far as I want to go in terms of being “out there.” For that same reason, I am not interested in building a network on LinkedIn. When I initially started the blog, it was recommended by a friend to join Facebook and LinkedIn. So far, they have only added to the 100+ spams I must delete everyday when I check the blog. The blog affords me plenty of exposure and interaction with the people I want to be around and by virtue of the subject matter, keeps the rest away. Old fashioned email is and will always be the best way to contact me.
Can I have a job with your company?
I do not have a “company” per se. It is just me and a few support teams I hire as needed. I made a conscious effort to remove myself from the “rat race” because of previously having many employees, being responsible for the livelihood of hundreds of people, and having to deal with the lack of personal responsibility that pervades the human population. I am at an age and place where I just want to pick and choose how I spend every minute of my time without the trappings and travails of the rest of the world (or more employees.) Thank you for asking. Learn how to trade and you won’t want or need a job!
Thank you traders for your continued feedback and support.
Stay focused, follow your rules, and I’ll see you in the markets!