Ok, maybe not quite a complete strategy. More of a good foundation from which one can be built.

Let’s revisit the exercise discussed last week in Trader Performance Drills – Part Three.

This was of course not meant to be traded. It’s a drill. An exercise used to improve skill in quick market analysis. In projection of that analysis forward in time. And in identifying potential trade opportunity within that projection.

So with four trading days having passed since publishing that exercise, I was quite pleased to see the opportunity that had been presented in the markets.

Quick summary of the exercise (carried out at four times per day: 09:35, 09:45, 10:00 and 10:30)

  1. Display the 1m Trading Timeframe chart
  2. Given the market structure that has unfolded since the market open:
    1. Describe the market structure and conditions present at this point in time.
    2. Project forward a path showing your expectations from here (or multiple paths if necessary)
    3. Identify any potential trade opportunity along this path.
    4. Step forward in time to assess your decisions and expectations.

See the prior article if you missed this – Trader Performance Drills – Part Three.

So how has this played out so far?

With sixteen drill timings so far, I’m not going to cover each one. What I will do here is highlight just THREE opportunities that come from the 10:30 timeslot, which alone could have provided sufficient profit to cover ALL other trades, even if you lost every other one (and I would hope you wouldn’t do that).

10:30am Friday 26th August:

<image: Almost a Complete Strategy in Itself>

<image: Almost a Complete Strategy in Itself>

<image: Almost a Complete Strategy in Itself>

10:30am Monday 29th August:

<image: Almost a Complete Strategy in Itself>

<image: Almost a Complete Strategy in Itself>

10:30am Tuesday 30th August:

<image: Almost a Complete Strategy in Itself>

<image: Almost a Complete Strategy in Itself>

Yes, this is hindsight based. But that was the point of the exercise – a hindsight-based post-session practice with the aim of skill development.

And no, it won’t always be this easy.

But I think it offers an interesting option for traders who struggle with over-trading.

A way to limit yourself to four opportunities per day. Twenty per week.

Or perhaps a good starter strategy for developing traders. No need to “know what the market is doing at all times”. Just four times a day, with structure having already developed. Assess the environment and project forward (as discussed in our strategy rules). And then if subsequent movement confirms the projection, take your trade.

Four opportunities per day. Twenty per week.

Trade for the week -> Review your stats and analyse the trades -> Find improvements -> And repeat.

Happy trading,

Lance Beggs

 


 

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2 Comments

  1. Everyone says Trading is one of the difficult job

    But I haven’t seen anybody like you who can make it that simpler

    Best part of this strategy is
    1) Pause to assess the market at intervals is best part.
    2) Clarity in mind as it removes a confusion
    3) Your risk is already taken care in strategy itself.(4 trades only)
    4) Pre-planning for entry. (That is what every trader wants.)
    5) Learning projecting market forward in REAL TIME is another best thing.

    thanks a lot Lance for such articles .

    1. Thanks Ab,

      I’m really pleased to see someone recognise the value in this idea. While it’s not a complete strategy, I think it’s a fantastic starting point from which one can build rather quickly to profitability.

      Thanks for your comment. And best of luck with your trading.

      Lance

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