Let’s start with a post sent out to YTC Social Media last weekend:

<image: Trader Performance Drills>

This line resonated with me: “the most important talent may be the talent for practice itself.

And it reminded me of two prior YTC articles: 

A great topic that has deserved far more attention than it’s been given (twelve years since the original article; six years since the follow-up).

Drills, exercises, games… carried out with the aim of improving our skill in market analysis, trade selection, trade entry or trade management.

So let’s look at another exercise that I particularly like. This time one that does not require live data or a market replay tool. Historical charts will be absolutely fine.

Instructions (as I play it)

(1) Pick a random date (from those dates in which you have historical chart data or screenshots).

(2) Display the 1 minute chart (my Trading Timeframe) at 09:35 (five minutes into the session).

(3) Given the data that has unfolded so far since the market open:

(a) Describe the market structure and conditions present at this point in time.

(b) Project forward a path showing my expectations from here (or multiple paths if necessary)

(c) Identify any potential trade opportunity along this projection

(d) Step forward in time and assess your decisions and expectations. In particular when it didn’t play out as expected. What signs were present to alert you? How quickly could you have recognised this and adjusted.

(4) Repeat for 09:45, 10:00, 10:30

Example

<image: Trader Performance Drills>

<image: Trader Performance Drills>

<image: Trader Performance Drills>

<image: Trader Performance Drills>

<image: Trader Performance Drills>

<image: Trader Performance Drills>

Amend as required for your own circumstances

Adjust to suit your timeframes. If you trade the 3m for example, you might look only at 09:45, 10:00 and 10:30.

Adjust to suit your strategy. If you prefer to trade interaction with the Initial Balance (IB) area, for example, then you might look at 10:30 and then the time of the first touch of the IB high or low.

Include charts for pre-open Higher Timeframe context, if you prefer.

And feel free to add any additional indicators or tools you may use, beyond standard price action.

Options for accessing appropriate charts

While a market replay tool would be ideal for this exercise, it can be done just as easily with historical data within your platform. Start from 09:35 am and then manually step forward bar by bar.

Or through saved chart images, stored on your computer or other devices.

This option allows you to perform the drill at any time, without access to your platform or even internet connectivity.

Randomly select the market date, as shown above. And then open one chart image at a time to complete your exercise.

Or perhaps with a more structured approach as follows:

(a) During your post-session admin, save appropriate images from today’s action (0935, 0945, 1000, 1030 and beyond).

(b) Then open the charts for this same day (M-F) from 12 weeks ago (to ensure far enough back to not recognise the session) and complete your drill.

Enjoy your practice. I’ll do my best to ensure it’s not six more years till Part Four.

Lance Beggs

 


 

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3 Comments

  1. Hello Lance,
    Amazing article as always. I love the saying “the most important talent may be the talent for practice itself”. Repetition and experience. This reminds me of your broadcast where you said that everything we need is on the charts, right in front of our eyes.
    I wanted to ask you a few questions. Do you think 3m TTF and 1m LTF would be enough to trade Indices? 9:30am to 12, and maybe PM session afterwards. As I see it, 1m TTF suits better the 2:30 trading hour window, but 3m might do it as well, although there most likely will be no trades at the open. I’d expect them to form after initial volatility is played.
    And the second question, I wanted to ask about trade and money management. I believe you risk less than 1% (correct me if I’m wrong), i wanted to know about your first exit, how much do you take off your trade? Is it 50% of the amour you entered? I’d assume partials is a personal thing, some people will prefer to take 30% off, some 50 and etc.

    1. Vladislav,

      3m/1m combination – I’d be surprised if there were not 2-3 good quality trades available in the AM session on most days. Some days more. Some less. As you said, the 1m suits better in providing more opportunity. But it also gets caught in a lot more noise. Some people do better on 3m or 5m. Just be prepared for some days having no trades.

      Money management – if you want to do a split in two parts, start with 50/50 and track the stats. If you find over time that one part consistently outperforms the other, then change the split to favor that part. But if they’re somewhat even, or you find that sometimes one is best performing and sometimes it’s the other, then stick with 50/50.

      Cheers,
      Lance.

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