When my style of trading works | How I make adjustments
what is up everybody got a new trading room that's right i am no longer in a closet anymore breathing in my own farts now i actually get oxygen so hopefully that's gonna help with trading uh look at that wall over there that's a lot further than you think and you know what the beautiful part about that wall is nobody is on the other side of that wall nobody's on the other side of that wall that wall or that wall in fact nobody's in this building i get to yell and scream all i want because there is nobody within a quarter mile radius of this trading desk and i get to oh yeah i get to do the videos the way i've always wanted to do them and really come at you with some energy baby so here's the problem though we are missing something because when i moved over to here that's right i moved i don't remember what i did with the uh mike bella fury picture that was once on that wall over there so until i can find it the best thing i think we can do is i'm gonna have to draw one so let's do it all righty guys i tried this is what i came up with um it is missing something let me just all righty now i think it is looking really good right there so this is the best i could do mike if you're watching this i am sorry i tried there i'm not an artist but you can see i did spend some time on this okay so let's go ahead and uh put it up on the wall and then we're gonna have to go ahead and you know do that creepy cult [ __ ] uh that we do with the mike bella fury uh pictures he bless this trading room with one good trades i'm in alrighty guys now that we've blessed this trading room with mike bella fury's beautiful presence on that wall over there and hopefully we'll continue to have one good trade after one good trade i want to talk about the pros and the cons of tight stops for those of you who've watched this channel for some time now you guys know that i like to keep my my stops tight i like my stops nice and tight like a tight [ __ ] cat this is womack he is one of my pussycats and he can no longer get on top of the trading room because it doesn't exist up there anymore all right guys i want to talk about tight risk i want to talk about the way i trade so i often get asked how do you manage your risk what is your stop my stop's always been at six ticks i know that seems insane but i've been working with it for a long time i know i can work within that however there's a point in time when it doesn't work we're gonna go over when that works when that doesn't work we're gonna go over the pros and cons of tighter stops versus looser stops so uh let's go ahead and just jump into it so pros and cons of tight risk right so the first thing is i get more tries so assuming you have a daily drawdown like all good traders should mines is fifteen hundred dollars i'm trading four contracts on average most of the time i get more tries by taking six tick stops than i would if i was to run loser stop so each one of my stops is gonna be about three i'm gonna lose 300 before commissions right so that's a three hundred dollar hit and i can take i believe four four and a half of them five before i hit my daily drawdown um back to back in a row right and that's assuming i get in the trade and i just let it keep hitting the stop over and over and over okay so i get more tries on my four lots than i would if i was to run a looser stops if i was to run you know 15 ticks then i only get two tries if i was to run 30 ticks i only get one try so for me it's why would you want to have less tries to attempt to hit a setup because most of the time the setup doesn't work the first go also keep in mind i try not to get stopped out if i can manage the trade and cut it for lesser of a loss or a break even or even a small tiny [ __ ] win i will attempt to do that okay so let's keep that in mind so another pro of tighter risk is you can trade larger size right um so for instance if i am running 30 tick stops well i only get one try with looser stops right on four lots before i hit my max daily drawdown so what i would have to do is i would have to cut the trade up into two lots maybe even one lots to get more attempts throughout the day so now i'm going to be trading with less size to prevent myself from hitting that max daily drawdown well when you're keeping the trade nice and tight you can come in with larger size and again get more tries so let's go down to the next one i think you can cash flow easier so what does this mean when i get in i'm all in and then i start to scale out i'm i've tried adding into winners and you have to treat each new ad as a fresh position so is this a specific area a specific specific setup that i would actually want to add into this area because the problem with adding to a winner is my break even's down here but once i add to it it's dragging my uh break even upward so that causes problems whereas on the other side if you average into a loser i'm here the trade trade's going against me this is my break even well if i add in that'll drop my um my uh break even down the thing is you want it again you want to treat each ad if you do that as a brand new position and you want to be hitting good areas when you do add so that's just my opinion when i talk about cash flowing easier since i'm running tighter tighter stops um 12 ticks would be a risk reward ratio of one to two so i can get out of my trades a lot sooner i can you know to get that superior risk or reward ratio and i could start scaling out and just cash flowing the trade a lot easier than somebody who is to run larger stops so for instance if i am running a stop of 30 ticks well i would need it to go 60 ticks just to have a risk to reward ratio of one to two right and these are just my opinions i'm talking out of my ass but this is we're gonna get into like my trading and [ __ ] so keep that in mind because i know somebody out there is going to get [ __ ] butt hurt and say something i know you're going to [ __ ] do it all right so just this is my [ __ ] opinions all right let's just keep it at that this is what i have to say and if you agree with me that's great if you don't that's fine too maybe you learn something right so go into this with an open mind so uh again with the cash flowing i would need you know when i'm running tighter stops i can start to get out and cash flow the trade a lot sooner a lot easier and honestly um yeah so let's just move on to the next thing if there is another one so it is easier on mental capital when you have tighter stops or when you're cutting the trade a lot sooner it's just easier mentally than if i was to put on a trade and i got it going against me 20 25 ticks then your asshole's really sucking up because that's going to be a bigger loss and that might be hard on you right so that's it for pros let's go ahead and look at the cons so when with my specific style of trading it only works in specific types of conditions when it comes to running these tighter trades uh it only works in specific types of conditions and we're going to look at those parameters that's pretty much this is this is where the gold of the video will be is when we look at what are those specific conditions where i can get away with trading the way i do and where it works really well i have to fight for bigger setups so it's one thing if i'm sitting there attempting to scalp and stuff i like to attempt to get bigger setups i'm always looking for the bigger trade um so for my style i have to fight more often than somebody with a bigger stop loss to get the trade to actually [ __ ] run right the pro is it's easier on mental capital because i'm not going to be taking a huge loss but i have to keep [ __ ] fighting for it so with that being said that can bleed your p l slowly when you're constantly fighting into a trade there's a point where you're gonna have to just stop and give up and wait for something else to happen and you might get caught up in the moment and just continuously fight for something and not realize hey i need to stop and let something else happen so that's that's pretty difficult um that's kind of difficult in the sense that you need to be aware of what you're doing and it's like hey i should probably stop fighting here and in order to become aware and know when to stop fighting you have to get away from the order flow and the price action and just go hey let's stop so just having that awareness is difficult otherwise you will be bleed your p l slowly whereas if you're running bigger stops um you're not gonna necessarily bleed it uh with a thousand paper cuts right you're just gonna take bigger hits um so that is it for the uh tight risk we're going to go ahead and look at loose risk pros less tries on bigger setups i think that was the only pro i wrote less tries on bigger setups okay obviously if you're scalping or you have a bigger setup that's just not working and you want to start scalping it off um you're really kind of [ __ ] yourself with that looser risk overall you really are so let's look at the cons of loose risk and some of these cons i'm talking about on tight risk are pros for the loose risk like works in specific conditions um or bleeding out the p l slowly you're not going to be doing that with loose risk right you don't have to fight for bigger setups with uh loose risk so cons oh you get less try so you're getting less tries meaning like we talked about this earlier um what's your max daily drawdown you know if you're risking if you're risking half of that on one trade or the full thing on one [ __ ] trade dude you're getting less tries um and even on looser risk you might need multiple tries to hit the bigger setup to be honest with you and you don't want to handicap yourself like that you have to trade less size if you want to get more tries really you know you see what i'm saying so if you want to get more tries you're going to have to trade less size so and that's is is it going to and here's a problem with that if you're trading less size then you're going to have less to scale out as the trade is working in your favor and that scaling out winners is something i really enjoy because it really does help so now i'm having less of an opportunity to actually do that so let's look at the next one it's harder on mental capital it really is because when you're sitting in there and it's like going against you and [ __ ] it's very tough to sit there and deal with it over time you can get desensitized to it but i i think for somebody who's newer or whatever it's just this is why newer traders are so scalpy oriented it's just easier to not take on risk and it really is harder um so you're gonna need higher rr setups so for somebody like me trading a six tick stop well i just i have a one to two once it reaches 12 ticks but if somebody's trading 30 tick stops well [ __ ] they need 60 ticks of profit just to have a one to two risk to reward ratio so you're gonna need bigger rr setups for those bigger uh looser stops if you're gonna be running that way otherwise if your rr is backwards you're really going to [ __ ] yourself you need to make sure you're hitting trades that potentially have good risk to reward ratio don't do it backwards too many people [ __ ] do it backwards they average in the losers not going to name names but there's some youtubers who do that it's not good i know you can get away with it at times but now i'm not opposed to averaging in the losers if again if you're hitting a setup in an area that is a good next entry area but if you're just adding to it to try to [ __ ] stop the bleeding and bring your uh break even down you're really [ __ ] yourself especially if you're not running stops at all okay let's get rid of all this stuff um and let's go over some parameters of me trading tight risk in what i look for so let's talk about three things these are our three ingredients volatility volume and tempo tempo volatility okay so volatility and let's go ahead what i want to do real quick is just pull up good old-fashioned paint okay each one of these blank areas is a tick all right so volatility is how far the moves are going right so if you notice that the market is only trading in a two-tick range like this well that's lower volatility right but if you notice the price action is going how many ticks is this one two three four five six seven eight nine ticks and you're seeing these nine tick rotations that's higher volatility so that's high volatility this is low volatility right and it depends on the market you're trading i just trade es so keep that in mind um so within the es i'm not saying nine ticks is high volatility although that is when you got these easier moves where it's just nine ticks like that that is higher volatility um lower volatility would be like four ticks and it's just grinding in these waves because really your price action is waves right your price action especially in the es because it's such a choppy [ __ ] market it's always doing these waves in it right so how far are those waves going and how easily are they going are you getting an average of 16 ticks or are you getting an average of four ticks is it four ticks right now and does it go into 16 ticks all of a sudden well you just went from low volatility to high volatility so let me go back to this now that you know what that is so that's volatility right volatility is very important because volatility is something you want as a scalper because if there is no volatility you're not getting moves to really run they're not just going and and when i'm talking about scalping i'm talking about momentum scalping or trying to get in right as it goes i mean as a scalper you really do want the traits to move pretty much immediately and there's certain conditions where that doesn't happen and then scalping isn't going to be as good there can also be volatility that's so huge that it's too [ __ ] fast we'll get more into that here in a minute so the next ingredient is volume you ideally want to weigh volume what the [ __ ] does that mean that means your bid and your offer both have market orders hitting at the exact same time you want those market orders on the buy and sell side to be flowing in at a steady pace at the same time okay that's gonna allow you to get in and out of the trade a lot easier it's gonna allow you to pick up a tick or scratch the trade a lot easier if you don't have no [ __ ] volume and it's barely trickling in you're not going to have volatility volume and volatility are two different things your volume how fast that volume is coming in can certainly influence how far your volatility is going to be moving sometimes you can have large amounts of volume flowing in but all of a sudden you don't you just don't have volatility and what's happening is somebody might be absorbing or reloading or the order book the dom your limit orders are a lot thicker there are times where the order book thins out rollover is a good example so the contracts on the bid and offer get a lot thinner than average and when they thin out like that it takes less volume to get more volatility moves when the book gets thicker when the dom is thicker those limit orders the offer and the bit are thicker it's going to take more volume to get that same type of volatility okay so you want to be paying that that's why the dom is so good because in the sense that you'll know you'll see that if it's thicker or thinner and you can sort of gauge what your approach is going to be the next thing the final ingredient i would say is tempo so tempo is something i would i would say it goes with my like i trade volume profile right so i'm trading auction market theory volume profile there are times where you just have this chop that makes no [ __ ] sense okay and then there are times where you have these good rotations and the exact spots that you think it's going to rotate good tempo is when for example low nodes are rotating where low nodes should be rotating and you're just getting these rotations and tests and specific areas and it's relatively clean bad tempo is when it starts to chop like hell so you have bad tempo in very high volatility environments where the book is super thin so when the book is thin and you have high amounts of volatility you tend to get more excessive chopping before a trade actually sets up and goes so you have to account for that and very low volume low volatility environments like the summer time where it's barely grinding you don't really get good tempo in that i would say high volatility high volume environments and low volume low volatility environments are two opposite extremes and both of those environments are very difficult to trade for me and my that's how it is right somewhere in the middle is where i do really good so what does that look like that looks like a bell curve so here's the volatility curve and this applies to my trading um all right so i know you guys probably read everything so over here this is the flat line this is where it would be low volume uh low volume low volatility right over here this is where my trading suffers over here is super fast or it's just [ __ ] moving like before an fomc announcement the book thins up you got a [ __ ] load of volume you got a shitload of volatility and it's moving so [ __ ] fast that a six tick stop is not going to work because you're going to keep getting stopped out over and over and in those environments you tend to experience a lot more slippage on your stop so you what you think was a six tick stop ends up being a 10 tick stop because of slippage or some [ __ ] so this is this is where i don't thrive in either one of these conditions there's a sweet spot and i have a video titled sweet spot i would probably argue to say this is going to be sweet spot too with a good visualization but this has everything to do with my specific trading so let's let's kind of right now we have high volatility conditions actually not today today kind of sucked um we didn't really have high volatility movements we had very low volatility movements today um but let's talk about let's start on this end of the curve and just kind of look at this so i know there's three curves i want you to kind of ignore that this curve on the outside is tempo the curve in the middle is extreme this is your volume and this one is book thinning and thickening so think of this like volatility so the outside is again tempo oops tempo the middle one is your volume and the outer one is volatility or not really volatility this is the thickening and the thinning of the book because that causes volatility all right this whole [ __ ] curve is a volatility curve high volatility low volatility right so again the thinner the book gets the less volume it takes to move the market around the thicker it gets the more volume it's going to take to get get you that same push so for instance on a very thin book where you only have six lots let's keep it simple you have 10 lots on the next four ticks so let me go back to this paint right okay we got 10 lots here 10 lots here 10 lots here this is super simple it's only going to take 40 contracts to bump the price for ticks right whereas if the book is thicker right and we got a hundred [ __ ] lots on each one of these well you probably see where this is going it's gonna now take 400 [ __ ] contracts so remember we had 10 lots it only took 40. well if that same 40 comes in it didn't even clear this out this would drop from 40 to 60 right because 100 lots minus 40 leave 60 on the offer now it ain't even moving a [ __ ] tick right it's going to take more volume for the same distance traveled on a thicker book all right so let's kind of look at this so when we have good tempo i have a sweet spot so if we're in a super high volatility so the left side of the curve from here over is going to be when we start to go into higher and higher and higher and higher volatility and this is the book is progressively thinning out as we go this way um and then your volume is starting to increase as we go this way and typically when that happens you start to get worse tempo in my opinion so that's what these three red arrows are the book is thinning we're getting extreme volume and we got bad tempo on the far extreme edge so it's progressively going that way the further we go and these are three things again that i'm looking for when it comes to actually how can i approach the market because when you approach different conditions require different approaches and that honestly is what makes trading so [ __ ] hard because you have to be like a weather man and you got to have a [ __ ] bag of tricks for the different conditions and those of you who are learning the trade in this environment for the first time you're gonna struggle when it goes to the summer time vice versa and this is what makes trading so difficult at least trading one [ __ ] market like the es so as we go up to the sweet spot on this volatility curve we're getting good tempo steady volume and the book is thickening a bit okay now over here where this is say this is like the summer time right this is when nothing is happening and the [ __ ] just sideways and you just have these two tick ranges and it just sideways forever uh in a two four tick range for hours that is flat line that you're going to have bad tempo no volume and the book might be thickening in those conditions typically the higher the market goes towards all-time highs typically it starts to get thicker and as the market starts to crash like this invasion of your crane or just whatever when the market starts to get below its 20-day moving average it starts to thin up so that book starts to thin up and then you start to get more volatility because of that when you get closer to all-time highs it tends to get thicker can there be exceptions yeah there can so in the when we're in an area where it's the summer time and it sucks i want to see good tempo i want to see steady volume so i want to see that two-way volume i want to see the bids and offers being hit at the same time because in dead volume you're only getting one-way volume meaning one price it'll hit the bid barely anything will hit the offer and then the market will tick down but then barely anything hits the bid and then it starts hitting the offer mostly so trying to pick up a tick just a tick in those conditions sucks because it's so hard and you're gonna more likely get trapped in [ __ ] trades and that type of environment because you can't get the [ __ ] out so we want we don't want to there's exceptions to this curve we'll talk about that later but let's keep let's kind of keep it simple let's look at it so up here i have a sweet spot ultimately this is where tight risk works really [ __ ] good the market isn't too fast it's like the little red riding hood story you know a little red riding hood she she wanted she broke into the bear's house there's like a mama bear papa bear and a baby bear and she she straight up broke in there and she started eating their porridge and she didn't like this one because it was too hot this one was too cold but this one was just right and then she went and [ __ ] took a nap in their beds uh this bed was too stiff this one was too soft this one was just right that's what this is all about uh bell curves are really amazing things there is a sweet spot where you can run super tight risk and it just works and you need those three ingredients notice the good tempo i need good tempo no matter what if i got [ __ ] tempo and high volatility and i got [ __ ] tempo and low volume low volatility well then that just gonna make [ __ ] a lot [ __ ] harder and notice how i have good tempo on the outer edge of this curve with good tempo that brings without good tempo it's not gonna be as easy right but if i have good tempo it sort of widens that sweet spot out it widens the curb out good tempo is everything okay steady volume is very [ __ ] important notice how i have steady volume no volume is really bad an extreme volume isn't bad extreme volume is not bad if the book is thick enough if that book starts to thin out then that's gonna make the market move so [ __ ] fast that as a human it is impossible to [ __ ] just trade tight okay so i want a steady two-way flow i want the bids and the offers to be getting hit at the same time and i just want a steady flow of orders i just want orders to constantly be flowing okay and the problem is when you get into the summer time those orders will flow stop and then it'll be one way volume one-way volume one-way volume and it'll flow kind of quickly and then stop one-way volume one-way volume okay and then super fast environments you'll constantly have this chugging really really really fast and then it'll slow down a little bit and when it slows down your volatility actually tightens up slightly and that's where you can kind of time a trade in those environments so in speaking of that as we come and trade higher volatility higher volume environments on a thinner book now i want to change my approach on this side of the curve i want to make sure that i'm waiting for the volatility to collapse and i want to see the volume actually slow down and i want to see the tightening of price action before i hit the actual [ __ ] trade and on this side of the curve i'm gonna be more quick at getting in and out of the trade get in get out and i'm probably not gonna break even what i'm gonna be doing is i'm gonna be hitting a flat key most likely the closer we get to this further edge the more likely i'm going to hit a flash flat key the further we get up this curve the more likely i can actually use the mouse cursor to get out of the trade for a break even okay same thing with taking profits because sometimes you'll get these sharp up moves and then it'll just collapse right in and you need try to get out as fast as you can so over here the approach is vastly different than over here over here i can be super duper [ __ ] tight i can get hell all the way when it's dead volume up until it's dead volume somewhere in the middle of this curve on this side i can get in and out and not even let the trade go against me a tick for the most part maybe a tick but i'm not going to be getting stopped out as much in these conditions i'm going to be getting especially over here i'm going to be getting stopped out all the [ __ ] time and that's where this style of trading isn't going to work but over here i'm going to be getting in and out of the trade but the problem with that is there's no [ __ ] volatility at this point there's a lack of volatility because again this is volatility curve more volatility over here less volatility over here so the problem is i keep getting in and out of trades but they're just not running they're not working so therefore momentum scalping or just scalping in general does not work that good on this side of the curve um so i'm gonna maybe i could maybe pick up a tick a two ticks three ticks that's it so the further we go down here the less ticks i'm picking up on us on a scalp and the problem is it's just not worth it at that point at that point it's just not worth um it's just not worth being tight and trying to fight into a a bigger trade if you will it's just not worth it and it's not worth scalping the further you go down this curve because hell if you're running a six tick stop well you're not even picking up six tick moves or if that's all you're picking up is six ten six tick moves because that's the average rotation of the price action then that's a problem that's a one-to-one risk to reward ratio you need it to be moving a bit more so at that point that's when it doesn't work but over here on this side you're getting more movements and you're more likely to scalp and just over over here especially the further down you go to super fast the more you want to [ __ ] scalp so less scalping over here this is where you want to most likely scalp and not actually hold [ __ ] trades so up here is where i want to actually start to hold trades so hold trades up here start to scalp more as we come down this general region because now you're getting bigger volatility moves and it's just it's you're going to be able to pick up really good um trades like momentum scallops because you're just getting more movement to them the further down you go now again at some point it's just it's too [ __ ] fast that uh you're going to at some point as you go down this six tick stops just does not [ __ ] work same thing over here six tick stops yeah it works but now you're picking up less and less um ticks on the upside so with that being said so this is the sweet spot again this is where right in here when you have all three ingredients so that would be volatility volume and tempo is the volatility good do we have good volume and when i'm talking about good volatility i do want to see you know these eight tick rotations so and when i'm saying these rotations it's easier to see on a three second chart which is that heat map i have next to the jigsaw dom if you guys want to save 30 on jigsaw trading use my affiliate link in the description and then use my coupon code save yourself uh 30 bucks on that definitely help me out appreciate it but anyways with that being said i want all three ingredients for that style of trading to work and part of the reason i'm sharing this is because some of you guys get into this and start to do tick drills but you're getting into it maybe on one extreme or the other and you don't understand these ingredients and you don't understand what you need to be looking for and just really getting to know the es and these different market conditions and these average rotations of these volatility and the movements it's just like it's it's something you're just not thinking of you're not aware and hopefully this brings it to the forefront to where you can think of it and adjust because tick drills does not work in all conditions okay today would have been a good day for tick drills but it didn't work for it wasn't working for me uh in the sense that yeah we did so what was interesting about today and i want to talk about today real quick so let's back it up so what was interesting about today is we at least in the afternoon we were having about four tick rotations so four tick rotations we had steady volume but it wasn't that high it could it could have been a little higher but it was good enough volume wasn't the problem so the volume i would say was relatively good for what it was the problem is the volatility sucked so this is where this curve isn't perfect okay it can be more skewed to where you have your volume is in a sweet spot but the volatility isn't the volatility well actually this is the volatility curve so maybe i should retract what i was saying either way this isn't [ __ ] perfect okay i'm trying to paint a picture of what's going on so hopefully you guys can get an idea really there could have been more volume today let's put it that way if there was more volume today we would have had more volatile movements so really the volume was kind of on the lower end of it all but it was still two-way it was still good to where you could get in and out of trades pretty [ __ ] quickly and again volatility is definitely going to be affected by how much volume is coming in but also the thinning and the thickening of the book is also going to help with volatility so again volatility is affected by how thin is the book versus how thick it is and how much volume is flowing in so they kind of all it's a three-way relationship let's just put it that way so today had good volume but not good volatility and at some point the tempo kind of [ __ ] sucked so i had one ingredient today and it made today really hard so we had one ingredient so this one ingredient would be this inner curve right here from here to here the inner curve when you have one ingredient and it can be any of the ingredients okay it can be volume it could be tempo it could be the thinning of really the tempo is like king if i have good tempo then anything can really go down unless the volatility is too high or there's no movement right so if you have one ingredient whether that's volume volatility notice how it's thinner when i have two ingredients this curve starts to expand out wider and then when i have all three ingredients it's expanded out further so this sweet spot goes from being this thin to thicker to way fatter so i am looking again it's like baking a [ __ ] cake or some [ __ ] i've never baked a cake in my [ __ ] life but i imagine that once you have all the right ingredients it comes out just right right so that's what i'm saying here is like i am looking for these specific things and i want them all to be just right like red riding hood when she broke into those [ __ ] bears houses and [ __ ] in all their toilets right and then flush and she said this toilet feels the best on my ass right so that's what i'm looking for is the volume really good is the volatility really good and is the tempo is there tempo is there a good tempo and if so i am now sweet spotting and i can trade tight risk and if i have the tempo i can fight into a bigger hold and it'll actually work if i don't have the tempo but i have good volume and good volatility or the really at that point the thickening and thinning of the book doesn't matter per se i know i drew it on the curve and i know i'm confusing the [ __ ] out of you guys and i apologize try to just bear with me volatility again i don't want the volatility too [ __ ] high don't want it too [ __ ] low okay now it could be really high volatility but if if the book is really thick and you got good two-way volume then that's going to be easier to get in and out of the trades and this is why i'm saying this curve isn't perfect right it's going to get us skewed in different conditions so if i i have this i have a lot of this ingredient but not enough of that then the sweet spot is going to be adjusted right and throughout the trading session this sweet spot is constantly changing the entire day isn't just sweet spotted okay now let's put it this way from november up until the beginning of february because i stopped trading and i moved i was crushing it so the market overall was sweet spotting for me okay but my my approach was different right it was pretty volatile but i'm more scalping at this point i'm taking these medium-term scalps they're not micro scalps they're not these high-end big holds some there was a combination of those but i'm taking these medium term scalps and i'm sweet spotting by doing that and that's another thing there's a point in time when i can hold and when i can't hold the trade if i'm trying to hold the trade but the conditions aren't warranting for a hold because it's just not right well if i'm trying to hold a trade that is only a scalp well then i'm no longer sweet spotting i'm trading somewhere over here in a weird spot so me sweet spotting is going into it and scalping it or doing something very specific with my approach and trying to stay up in this specific area i know i can get away with doing this in these conditions if i try to do this in these types of conditions well that's not going to work up here it's it's not going to work and the same thing applies to running tight risk it's just not going to work on these extreme edges what's probably gonna work and i've been experimenting uh because i hadn't traded for a month i sat down and traded like [ __ ] i did okay um so it's like okay let's go back on demo because when you haven't really traded for a month you kind of trade like [ __ ] not gonna lie and not being here all the time just really [ __ ] it up it's a different environment hopefully with the blessings of mike bella fury i can get back into it and also i did so well for so many months in a row that there was going to be a point where my trading was going to slump out or suffer at some point i knew it was coming it happened it's here so and i'm just now getting back into this [ __ ] guys so that's why there's been no videos um because i've been moving and i've been trying to get my place for ready to sell and all this [ __ ] um shitty process uh but anyways what would oh yeah so the discord link is not working in any of the other videos but from this video forward the discord link is working because somebody's server somebody's just scored they [ __ ] uh they decided to terminate it and then somebody recommended my discord so i had a huge amount of [ __ ] people just flood in uh that weren't coming from my youtube i want the people that are in my discord to come from my youtube i feel the people that aren't coming from my youtube don't really fit in that well um and i made it for you guys so um yeah you go into a discord and you're like who the [ __ ] fat cat right it's like you're missing so much con context um if you guys like the efforts i put into these videos i do have a coffee it's a donation page i'm plugging myself because i spent a lot of time making this so if you like it and this really is helping you please feel free to donate think of it like a tip because youtube don't pay [ __ ] uh yeah there is a specific type of environment where this style of trading you can definitely do it and you can definitely get away with it and it works beautifully but there is a point where s running tight wrist just isn't gonna [ __ ] cut it it's just not gonna do it and when you have these super fast environments that's when you can run bigger risk because you're gonna get even bigger reward and that's what i want to talk about looser stops is not a good idea necessarily in uh these other environments where you're just not getting that same amount of movement if you're risking 30 ticks well the day better be averaging 60 to 100 ticks right you better be getting like a one to two risk reward ratio at least at minimum uh to be running larger risk if you're going into the summer time and you're running [ __ ] 30 tick stops but the market only trades at 30 tick [ __ ] range well that's way too [ __ ] big now six ticks might be tight as well i don't know we'll see what happens when we get in those [ __ ] god-awful [ __ ] environment we'll see what happens i don't look forward like like they say tray till may then go away because it really [ __ ] sucks when the market is on this end of the spectrum when it's over here it's definitely has great opportunities and the more it's over here the better the scalps get baby they get sexier over here the approach is going to start to shift and change so hopefully you guys enjoyed that video hopefully you guys enjoyed that picture right there if you want maybe i could draw a picture you i'm just kidding i'm not doing that uh anyways guys have a good one and i'll see you in the next one
2022-04-06 03:43
