When my style of trading works | How I make adjustments

When my style of trading works | How I make adjustments

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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

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