Original subtitles

it will allow you to accurately measure and optimize your

the markets every time a high probability trade setup by your

strategy, can you actually identify the bottleneck and

fixed position sizing then fixing these of your training,

adapt to the constantly changing market environment and

strategy performance. Only when you have a clearly defined

percentage of your total account balance and then the

actually stay ahead of your competition in this zero-sum

then fix, tweak, and improve your strategy. It's how you can

game. If you want consistent results but the market is

sequence of their winning and losing trades so they always

using partials, how much volume are you going to partial at

the four hour and when you will just use the M-15 or if you're

risk of your initial position has been removed. How much will

try and predict the markets. You just have to try and be in

you risk per day. Now you can define this by the max

down before you're even looking at the charts to trade each

this, you know, kind of based on your gut feeling when you're

in the trade. You need to have this all laid out and written

that is risk management because professional traders, they

sizing, you manage your trades like an algorithm and you use

consistently use fixed risk. So to summarize, if you enter the

same way every time, use a fixed formula for stop loss

betray your stop loss? What time frame are your targets

slave to your strategy. You do need to try. You don't need to

just make sure you define all of these ahead of time and you

same for your total open risk. So this is how many trades you

random, then be consistent in what you can control and be a

will have running at one point with stop losses fully open. So

Define how you will scale in. Well, you only do it once the

manage your trade by trading your stop loss behind the swing

reverse. But again you must have a mechanical way for

each of those levels? You know, you don't just want to be doing

percentage of your total account balance on each trade.

understand random distribution, right? That noone knows the

using a fixed position sizing. You're risking the same

keep their risk constant. So, make sure that you are always

high or low or just the M-15 for example? Or are you

going to use both? If you are going to use both, then you

many traders don't really spend too much time considering and

need to define in what situations you are targeting

going to be based on? Are you targeting the four hours swing

day. Now, the final main area to look at is one that I think

order How many pips behind the swing high or low will you

pips in front of your key level will you set your take profit

but as always you must be extremely specific so how many

in theory you should be exiting on the the trend change right

guys know I really recommend personally but you can actively

highs and lows and just simply following the trend so this way

this to work now the other way which is one you know as you

drawing and identifying your key levels on your charts for

points in the market where we expect price to pull back or

zone or maybe a week swing high or low or any obvious liquidity

level. So, you can target an unmitigated supply and demand

another way is setting your take profit order on a key

profit order 50 pips away, right? 10 times five, Now,

and then you're targeting ten R, you would then set your take

target is you take your stop loss size and then you

risk ratio is. So, let's say your stop loss was five pips

obviously multiply it by whatever your chosen reward to

even only once price has reached fiveR running profit

for example right? So you can start to get bit creative here.

Now, the way that you would calculate your actual profit

either stopped out for a full loss or price hits your target.

Or maybe you want to you know move your stop loss to break

risk to reward ratio. So for example you may trade a fixed

RR of 10 to one where you use no active management so you are

approach. So what are some of the ways in which we can do

this? Well we can use a fixed take profit order based on a

the long term benefits from that consistent management

and dissatisfaction in the short term because you will see

single time so it helps you to eliminate that feeling of greed

know that you're going to manage the same way every

you've actually executed your trades and exited because you

room to be annoyed if price continues on further after

like a robot then this can help to eliminate any room for those

potential emotional mistakes and also you know there's no

money is involved we tend to make quite irrational decisions

strategy where you know we can simply just follow the plan

right as humans so if we have that mechanical management

you now have your capture at risk and wherever you know

manage those trades well. So once you have entered the trade

those great returns are the ones who can consistently

obviously your emotions are going to be pretty high because

great trades but what separates out those who get you know

they have the ability to pick out and enter really really

with many traders I've seen that a lot of them you know

hindsight traders. So the third area is trade management and

you know if you could hypothetically only make one

when you have a subjective and inconsistent approach to to

it. Now why do I say that? Well it's because of after working

consistent approach that then you can look back on and just

and improve your strategy because you have that

and optimizing and it makes it really easy to you know adapt

area of your trading strategy mechanical then this would be

placing your stop loss remember We are trying not to be

tweak that little bit right and obviously you can't do that

even if you find you keep only just getting stopped out then

you know exactly what part of your plan then needs refining

followed your plan perfectly and consistently now of course

instead you will be assured in your approach because you

favor but then instead of you know looking back in hindsight

and saying oh I should just had a slightly to stop and then you

it's obviously going to be far easier on your emotions at

times where you might only literally just be stopped out

know sitting there counting all of your missed potential profit

on now once you have a fixed method for stop loss pacement

by even a micro pip before price then reverses in your

from pair to pair and what time frame you're actually entering

swing that you will place it and of course this could differ

reward a little bit but it may boost your strike rate but just

in the position obviously this likely sacrifice your wrist

again you know make sure you define how many pips behind the

of the zone you might increase your odds of actually staying

case price pushes you know further towards the extremity

zone you may also want to cover the actual swing point just in

instead of just protecting your stop behind you know the entry

uncertainty or hesitation and a final way is just to use a

fixed stop loss behind a swing high or the swing low so

of sizing your trade every single time leaving no room for

tested your strategy you know you may find that over a large

volatile than Euro dollar in terms of its average shoe range

which just means in terms of how many pips it moves a day

you may find that six pips is actually the most optimal stop

and sometimes there's you know slight spikes of the zone just

sample size of trades actually three pips is the most optimal

frame you're on and what pair you trade so you can also use a

loss size so now you have a fixed mechanical consistent way

might be trading M 15 POIs, right? M15 zones but you're

premium or the discount. Now, when you draw your zones are

pound yen which is which is typically quite a bit more

pip whatever it will obviously differ on kind of what time

you are in the premium or the discount? For example, you

single time so you know it could even just be half a pip a

your entry zone need to be in the premium if you are selling

stop loss size to always use but then maybe for a pair like

to make you kind of you know consistently do that way every

you're going to use both so you're going to use zones that

would advise is that you define the exact number of you know

jumping all over the place are you going to only use flip

maybe you just want to use risk entries on the M-15 zones for

if so, what time frame are you going to use to determine if

let's say with Eurodonna you know once you've obviously

are you also happy to use the 15 seconds, you know as well or

fixed stop loss for each individual pair you trade so

cause flips and break structure does it need to be a sweep zone

price to enter the zone and then hit an instant market

way consistently every single time. So essentially we always

are constantly tweaked and refined by human input. The

you going to set a limit order or are you going to wait for

behind the zone you know just to account for you know spread

100% discretionary where the trader literally has zero

pips that buffer that you want to give your stop loss

all training strategies fit somewhere along the scale from

doubt when you're trading so that you can act with ruthless

test. This way that you can prove your edge with data and

scalable approach so you can snap out of the break even

that you have to make in the market but it's also extremely

lot. People can over complicate trading but we know that the

essentially betting on hands when they don't even know what

given a £1 million pound trading account today are you

the lack of capital you know which is the reason why they're

zone that we enter on as an absolute minimum but what I

so that's 1% risk on a million pound account right would you

capital or you know funding from a prop firm and you can

gambling with zero edge. But so many traders in the markets are

discretionary and subjective approach to trading is tough in

bet on a hand if you couldn't see your cards? Of course not.

change my approach to break out of it. Not having a proven

the fomo of seeing those winning trades play out without

know those winning trades and then after feeling the pain and

always place our stop loss behind the supply and demand

edge you have? You have absolutely no idea what

ways of doing this like anything in training but we

you don't need any details out so second key area to look at

in which you do enjoy it. How is that possible? Well, when

must be as specific as possible because there is no other way

zones or are you only going to use structural zones or maybe

another time frame just so you know you're not constantly

this before I changed my strategy where I would take a

using the Mone for execution within those M15 zones. So, you

each loss is bringing you one step closer to your next

enter will you enter on the distal in the front edge of the

hesitate my own ability so that I would naturally skip trades

even a fractal refinement where on the zone are you going to

zone or will you always enter on the EQ or will your entry

than one and in what circumstance it is valid to use

to be consistent with your approach so just make sure that

and practical and we're going to dive into each of

hesitate or doubt their next setup and they're the ones who

but they nearly always eventually blow up unless they

to avoid that potential pain I would then inevitably miss you

took, each loss felt like a direct threat to my plan to try

that you will then start to enjoy those consistent results

loss placement. The third being your trade management and the

market is a dynamic environment which is always constantly

themselves into a deep drawdown or maybe just continue, you

an edge over algorithms and you know that's why algorithms they

might use the M15 range to determine if price is in the

looks back and they review their trades and then they see

depend on how big your subtle size is instead you know you

with ruthless decisiveness and extreme clarity. No one likes

losing, obviously, right? But imagine for a second, a world

formula for consistent placement now there's multiple

is your stop loss placement so you need to develop a fixed

more confidence to continue to execute with minimal emotional

human judgement and it's actually that small element of

know, playing that break even game for years and years, never

that they follow their plan perfectly, they're not going to

buy range or will you refine to a pivot or a single candle or

you always going to take the entire buy to sell or sell to

and sort of very systemized approach but it will also allow

order what time frame are you going to use for your entry

in your proven edge to be able to eliminate any hesitation and

more mechanical and systemised so you can start getting

interference and they take the next trade which is a 5%

therefore, you have no real idea if things are going along

to execute the strategy for you. I personally think that

so we can see exactly why this is such a major issue for

an error next. Now, obviously, without a reference point based

of trades taken is relatively certain and predictable but

or does it need to be in the discount if you are buying? And

know which time frames are valid for you and if it is more

so does the zone need to take liquidity when it was created

these four areas to kind of look at how we can make them

results. So trade entry you must enter the market the same

be able to confidently risk 10 grand on the next trade with

does the zone to have inducement in front of it? Does

example whatever you want to do just make sure you define you

strategy that you can consistently execute and easily

execution are you always going to use the same time

very quickly scale to multiple six 7 or eight figures the sky

framework but just decides with a gut instinct all the way up

need to fix. First being trade entry. The second being stop

obvious that the discretionary trader with that subjective

changing so we need to adapt with it. So how can we make our

because you're executing the same crystal clear setups again

tend to you know they can work really well in the short term

pretty simple but what type of order are you going to use are

path to success is very clear. You must have a systemized

be able to scale until you have extreme confidence and clarity

this is where you will enjoy all of the benefits that we

up losing me more money so I was stuck in this never ending

in your approach because if you're not then you will never

perfectly met your strategy criteria, then you know that

probability you have of winning. It's just pure

they catch a2% win now you can see after those six trades the

fourth being risk management. So now we're going to get nice

the unpredictability of the game at the micro level and

and again managing the trade the same way every single time

your current strategy with extreme confidence and clarity

strategy mechanical? Well there are four main areas that you

then once you prove it with cold hard data that is the only

yourself would you be able to confidently risk 10, 000 pounds

all of the defined criteria of their strategy who can then see

statistically reliable outcome and that is your true trading

Why on earth would you do that when you you can't see what

simply a cost of doing business or will the panicking trader be

trades that should never have been taken and those losses

death loop which was you know feeling off itself because I

have just discussed from you know, having that mechanical

the sweet spot for training is around that 70 to 90% mark and

drastically minimised and you will then be able to execute

losing traders. So, after those four trades both traders are

you to avoid some of the drawbacks of being 100%

hard to accurately test and journal your strategy because

really going anywhere wasting their time, energy, and money.

level you have to believe that the outcome over a large series

because I wanted to quit my job so badly. So, I wanted to

mechanical because you still need a little bit of room for

on clearly defined and sound rules, you have no way to

as possible. Is it going to be the trader who can analyze

traders problems because if you're playing poker, would you

decisiveness you must have a consistent repeatable and

ability. Who do you think is now more likely to be hesitant

truly is the limit you know many traders moan that oh it's

extremely systemized approach, I would start to doubt and

human judgement that is required that actually gives us

frame for entries no matter what say such as the Mone or

is actually random but on a collective basis, when you have

to 100% mechanical where you can literally use an algorithm

really good strike rate it's very likely that these losses

look to enter on supply and demand zones right okay sounds

not having any success but let me ask you this if you were

then not make those emotional mistakes because it's only once

when they review their trades and they look back and they see

as planned or if there is a real reason for concern. You

could have been completely avoided. I think it's pretty

defined edge is very likely the root cause of most losing

that you desire because then you have a sustainable strategy

discretionate trader, they're just going to keep digging

determine that now consistently profitable traders we have a

your psychology. It's very easy to second guess any decisions

which you are now ready to rapidly scale acquire investor

and that is when you actually the solid foundation built upon

you've developed that bulletproof mindset you will

how can you have any certainty if a trade is actually valid a

because you know, I couldn't face taking another loss

way in which you will have a bulletproof mindset and once

actually working or not and then you can accurately, you

ready to comfortably trade it you know be honest with

dance and start to rapidly compound your growth. You see,

was just so desperate to make it but all I to do was simply

trader because you do not have to be. Having a very

those four losing trades and clearly see those trades met

of their probability model or if they were simply just bad

and escape my 9 tofive but then because I skipped trade setups

you cut out those emotional mistakes and those slip ups

trade. No doubt or hesitation. Now think of the market of a

cards they're holding. It's insane. Do not be a blind

next trade out of fear or take a low probability or even

me I would then revenge trade by you know rushing into poor

they don't need to know in order to make money

Hesitation kills traders. Once you have a mechanical and a

clearly defined rules-based strategy and this eliminates as

hesitation or doubt in their trading. So if we go back to

become a full-time trader and then, every single loss that I

few losing trades but then because I didn't have an

consistently. They don't care. And that's why they don't feel

you do have a systemized edge, as long as losing trades

do you define a key level? How do you draw them consistently

profital run of trades. Now, I used to struggle so badly with

the whole way through until the setup has met all of your

setups which I'm sure you can guess of course would just end

march on to new account equity highs but whilst the

Where and how will you scale in to add your position, okay? So,

traders who are just struggling to find real consistency and

represent a trading decision that you must to progress to

stop doing the break even dots because the mechanical trader,

contradict each other and the first is the micro level

where to place a stop loss of you know where it looks pretty

and successful at what they do. They have learned and

and do you remember the two layers of beliefs that

the max level that makes the professional trader effective

are going to catch their next stream of profitable trades and

what I see happening again and again with you know so many

a part of their probability model and those trades were

out they're frustrated they missed it but you know they

in the market after just taking a few losses will be

profit while the discretionary trader is down minus 2% this is

true. If a large enough number of trades are taken, patterns

they utilize to trade the market and within each of those

diagram, you know, from the starting point of analyzing a

they miss out on the winner now that they see their trade play

parameters ahead of time, you are establishing a basis for

you know just for the same setup it's very open to

hesitating after taking those losses and they can't face the

systemised strategy, the level of emotion that you will feel

pain of another potential loss so ski their next setup and

discretionary trader that they've been doubting and

trader with the systemized approach is sitting on a net 3%

an order, you will go through a decision-making process. Now,

single criteria in their trade plan they're going to have way

deep understanding of something called random distribution

that those losses or actually just in fact valid trades that

measure the outcome of your trading decisions and

winnerand they see their edge playing out but the

are just simply part of the probability model playing out

that they followed their plan perfectly they ticked off every

the one who has no real idea if those losing trades are a part

down let's say minus 4% now when the systematic trader

right, you know, whatever that means. Now, both of these

trade that's a complete fantasy of course I'm talking about

interest on the chart that they consistently, you know, repeat

and this is decision-based trading. Where the trader

need to eliminate the variable that is you. And the only way

with accuracy. Sometimes, they'll try to stop. Other

of time? Well, there are two types of trading strategies.

negative emotions and is therefore most likely to make

process for consistently placing them. They do not have

think is going to be sweating more? Which one is to panic and

to do that is to make consistent decisions that can

and resistance levels but they don't have a fixed systematic

have a bit more confidence so they execute the next trade and

hindsight after you have made that decision regardless of the

having the certainty that you are making the correct decision

approach is the one who is most likely to be feeling those

will emerge that produce a consistent, predictable, and

safe to place it You know, they'll use horizontal support

a larger sample size of trades, just the exact opposite is

then being frustrated afterwards when they see the

styles and they've got a lot of options open to them at each

and the unpredictability of the outcome on each individual

rules. There is a clear set of criteria that they take off to

and make an emotional mistake? Who is more likely to skip the

if you have been trading before because the majority of losing

our two traders, the mechanical and the discretionary trader

the market. So how do you stop this back and forth rhythm

subjective interpretation sometimes they trade from the

make every single trading decision so that they make the

random trade and to try and make their losses back as soon

are a part of their strategy and therefore those trades are

know, refine and optimize it over time. So, let's look at

remember at this level you have to believe in the uncertainty

be measured. Now, let's put some numbers on the situation

who both just took four losses in a row, which trader do you

50% Fibonacci level sometimes from the. 618 sometimes they

probability model or if you had made mistakes or just executed

here's the major key remember it's the ability to believe in

every trade but what it will do is it's going to help you to

right and we know that the outcome of any individual trade

doubt their strategy or even begin to doubt their own

know, just manually close and exit a trade if it doesn't look

decisions over and over and over and over again. Having a

hitting four losses a row is perfectly normal and expected

simultaneously believing in the predictability of the game at

want to miss out on all of that potential profit so you

even if you have a strike rate of 75%, which is a really

but if you take four losses in a row how do you actually

of the open-ended possibilities and it gives you that narrow

determine if those losses are simply just a part of your

going to happen next. No one does. But more importantly,

that you were in when you don't know whether to hold a trade or

best decision would be and to be honest it just used to my

trade and the second layer is that macro level and at this

professional traders hold that on the surface, they do seem to

knowing whether your strategy and your edge, whether it's

because I know I used to feel that doubt and hesitation all

bad trades that you should not have taken how do you actually

manage your risk, minimize your losses, and nail down and

action which over time will drastically drastically improve

your of success. By clearly defining your trading

then you will drastically reduce the chance of you making

poles of indecisiveness about the future and then regret over

confirmation but I don't want to go without me or maybe you

love with trading really because it's only when you have

level, will you set your order? Are you going to scale in?

an emotional mistake now the second type of trading strategy

same set of decisions over and over again. Now, the second

know that they have you know a couple of rough styles that

behind price will you trail it? If you set a take profit order,

it a series of binary questions that only have a yes or no

level so they've got many different entry confirmations

I think you get the picture, you know, that there are many

edge. It's just logical basic math. There is no way around it

path. What entry signal are you going to use to enter a trade?

a consistent mechanical method for identifying areas of

traders, they both experience four losses in a row. Now,

completely accepted the fact that they don't know what's

how that works. So each of these hollow circles they

secure your profits and handle unexpected events with decisive

mechanical strategy of course won't guarantee success on

place it in a different area every time. Sometimes, you

first box, then you move on to the next criteria. If it

combination of both. If you do trade a stop, how many pips

currency pair all the way through to actually executing

just use an EMA and they kind of just randomly pick

times, they'll just place a take profit order but they

Will you trade your stop behind price or sell order or a

the same way every time? How many pips in front of that key

your stop loss? How will you manage your trade? Will you

trader to set their own parameters ahead of time with a

as many of the individual steps in your decision making process

a clearly defined systemized trading plan with very strict

for the rest of your life you know I've been there thinking I

course of action to take. So you simply make the same

two different traders. The first trader on top, they have

trader they utilize a much more discretionary approach so they

you be so certain that you are making the right decision ahead

doesn't meet that criteria, then you simply do nothing and

the right decision next time then you're stuck in that cycle

leave your stop loss open or will you move it to break even?

decisions to make when we're trading. So, it's down to the

game like Pac Man. I'm sure you're all pretty familiar with

Will you wait for a supply and demand zone to form? How will

knew I should sold them but you know what it's okay I'll make

markets. There is no map. It's down to you to choose your

profitable trader do you want to be a hindsight trader

the next step. You have practically unlimited

outcome so that essentially it follows and if then process. So

you use to enter the market? Where are you going to place

you define that that zone is valid? What type of order will

where will you place it? On the next key structure level, how

think about you know programming your trading

that creeping doubt in your approach that you know you can

is what's called a mechanical strategy which essentially is

which trades to take based on their own you know human

possibilities of getting from point A to point B in the

minimum criteria and then you can just simply execute the

and current market conditions. So, as you can see in the

now I don't mean certainty and that you're going to win every

feeling hesitation and how do you stop feeling regret in your

mistakes how do you stop feeling doubt how do you stop

back of course I knew I should have bought it or I knew I

of the time you know where I was never quite sure what the

fact but do you ever these emotions in the market you know

take regardless of what your human bias may think so if you

your plan to see if it meets your criteria. If it takes the

you move on. Otherwise, if it does, then you just simply work

poles so you can make your decision making as objective as

hesitate and you agonize over what the right decision is

problem with approach is that the more discretion you apply

the chance of you making emotional mistakes so how do

strategy into a computer algorithm then you need to give

an event will occur in the market, you will then consult

where you have absolutely zero doubt or hesitation before

diagram this is where the masses play the masses of

decides which trades to take based on their own judgement

unwavering certainty when you approach the markets every day

just rules based trading so instead of the trader deciding

and you never quite seem to get it right consistently and then

with extremely clear rules based and mechanical criteria

you reduce the chance of you making you know those emotional

to your decision making process in the market then the higher

traders are you know those top 10% the ones who are

judgement instead the trading system decides which trades to

up there where you have certainty in the market and you

discretionary traders, they will make all of these

decisions based on their own human judgement and the major

they look back on the past with regret so think of this as a

losing traders and up at the top is where the professional

consistently making money year in year out so how do you get

a consistently profitable trader well if you can replace

trading so that you can be in that top 10% so that you can be

they're constantly trying to predict the future but then

outcome of their decision and yet they're indecisive because

the past and they're constantly hesitating and doubting and

The first type of strategy is called discretionary trading

traders or even those who are just struggling to find

every single time with zero doubt or hesitation. So how can

feel deep down it then never quite goes away or do you want

yourself from the losing masses and become a consistently

never feel doubt hesitation or regret how do you separate

outcome of the because down here at the bottom of the

making a trading decision so that you never feel regret in

between hesitation and regret? How do you transcend these two

possible? How do you get to the point you know up the top there

swinging pendulum from left to right with amateur traders

constantly swinging back and forth between these emotions in

consistency they are constantly fluctuating between those two

trade it was obvious it was going to keep going why didn't

the benefit of hindsight that you then realize when you look

hindsight vision is 2020 it's always crystal clear after the

should have sold right there of course I should have held a

I just leave it alone I'm an idiot you know as they say

enjoyable at all and it was starting to make me fall out of

trading so unnecessarily stressful. It just was not

continues going in your direction well you don't

close it down and take what profit is currently on the

know have you ever struggled deciding how to manage a trade

table just in case it reverses against you but then what if it

to hesitate, you know, wondering, should I enter the

Maybe I should wait a little bit longer for just a bit more

trade and get involved? Is it ready yet or am I too early?

you're trading and you're looking at the market, have you

represents the emotion of indecisiveness. Now, when

two opposing emotions. To explain this, we're going to

look at two traders. The first trader is retail Robbie and he

Amateur retail traders severely oscillate and struggle between

plan is provided.

ever felt just a little bit of creeping doubt and then started