I have come to realize that trading is very personal. Scalping is not new, but JF Boucher's style of scalping is refined to suite him. He has redefined his own method.
Interesting take on scalping. He seems like he really understands the markets. It's nice to hear grown ups talk about trading sometimes instead of ridiculous scammers trying to show off.
You are doing an amazing job, Etienne by finding and bringing great personalities like him for the interviews. One such a gem is JF. Man this guy is a philosopher and love listening to him speak spontaneous with such a simple approach with great wisdom. What an inspiration we get from this guy!! Also, your way of interviewing them is way better than many as you allow them to speak completely. I have become your fan now. LOL. You have lot of patience listening and asking right questions with no rush. Keep up your good work!!!👏👏👏💚
Thanks Etienne for interviewing him a third time. I love JFB and this is very close to the way I trade. Please in a few weeks/months have him again in your podcast...after all he gave the channel the highest. ..:)
My main take away from this is “risk” He’s found a way to silence the noise in his human brain with his style of spreading his risk across the board. Is this a form of hedging? This is by far the most interesting approach to risk/ trade management I’ve ever seen This isn’t even trading, it’s really art
notice towards the end when he talks about how many clicks he needs to do to pay off the dishwasher he bought. He doesn't want to push his luck at the casino... 20 clicks per day. Im sure this would be okay with smaller amounts of money. but I will say a lot of prop firms wont allow DCA for a reason.
So essentially, his exit strategy involves averaging down on a losing trade in the hopes that the stock will decrease enough for him to exit the trade successfully. It's essential to have a sizable account to support this strategy. Good luck, and keep me posted on how it goes!
@@AshishPatel-vy7mn Let say your normal risk is 1% per trade. so each trade must be 0,25% of your capital (to reach 36 pips, or the equivalent of 4 boxes). The question is : do you have enough capital in order to have a position reflecting a loss of 0,25% of your capital after the position having ran 36 pips against you ? With Forex I don't see why would that be a problem because you can trade % of a contract... With Futures there might be a problem because your minimal bet is 1 micro. Ex : for Gold (GC) 1 tick = 1$ for 1 micro. I've calculated the average move (1 box) to be about 30 ticks... so you want your stop to be at 30 ticks * 4 boxes = 120 ticks. So the minimum risk you can have to trade gold with this strategy on futures (not counting commission) is : 120$. 120$ for 0,25% mean you need a capital of : 48 000$. If you wish to risk less per trade (because you have a max loss of 16 trades according to his explanation), lets say 0,1% per trade.. you need 120 000$ capital.
I want this guy to read me bedtime stories 😂 Thanks for another interview with him Etienne! Jean's awesome! As for drawing boxes, personally I edit my own Fib Retracement tool, that way the whole chart is mapped out quickly 👌
I was trading in a very similar way in a demo account, with way less risk management. I had the balance up to 80k from 50k in a couple days trading MNQ, and blew it up because I didn't know where to stop selling into a short to get my average position up. Besides not managing the risk, I was exiting my positions on a first in first out basis that would result in the initial closing of positions being losses, but still the current price was usually on the right side of my average position price when I started closing positions. Like he said it's a fun way to trade. When the price starts working in your favor you get to hit the button a bunch of times each for profit. As opposed to committing to hitting buy once and sell once and the pressure that comes with timing it right. Not gonna be efficient with per trade fees and commisions though.
this is sooooooooo funny, because on my demo where I set sometimes no SL or a very big one with less risk or swing trade, I win most of the time, sooner or later the trades get in my favor, hit tp. but reality, with tighter SL or bigger risk or whatever, I lose. if I let the trades flow, it works out. if I care about SL I have more losses. i am so happy finally someone is talking about. never heard people discuss this.
@@markl431 exactly. i know it "works" for some...but watching this video made me itch lol. I don't DCA... look at how much extra work jeez. most of my days are one and done with a good setup.
@@Buu7899, good for you! For the life of me, I will never understand why traders would stay in a setup that clearly reversed against them. It must be the: I would rather be right than make money attitude.
This is exactly what I needed to hear. I go into panic mode when I go into drawdown and these RUclipsers who don’t trade pounded in my head to cut my losses. As soon as I exit it almost always goes back to my entry and a lot of times goes to my target without me. Only average in if you go small size though
patience and mindset. know that you always have the potential to lose. either improve your entrance or stop loss. years ago drawdown used to freak me out and Id chicken out earlier a lot of the time before my stop loss was hit. only to find out the trade went in my favor 75% of the time or more. and if the drawdown is too much for your account then you have entered with too big a size. hope this helps.
I've learned for myself that scalping pretty much requires an investment of time spent on the chart, much like a job, from x time to x time. I scalp for an hour. The swing trading, that's easy, pop in an out. Five minutes or less. I find both trading styles fascinating.
Amazing content, in actual fact Nick Shawn trades hedging similar without the boxes of course on a higher time frames and makes thousands of money...I like this aproach and speak to my personality and I would like to add it on to my trading set ups.
👍 I love watching this guy. 😅 I always wonder why he never uses moving averages to determine trend direction. Then scalp the prevailing trend. One less thing to calculate.
Thank you for sharing this bicarbonate succes formula ! 😂 He must have nerves of steel to trade like this. I wish that I could try this. All of the reversaling would get to me.
If you have 4 boxes and the trade goes against you in the first box to the fourth box, isn't way more than 4 percent of your account at risk. The draw down into stop out would be massive, wouldn't it?
Yes it would be. He's basically advocating to continue adding to a bad trade while he's hoping and praying for the bad trade to turn around and give him a large enough move in the right direction. A bag holder mentality.
@@markl431 he allows 4 trades per box which is 16 trades in total. If you trade 0.05 lots per position, that is 0.8 lots in total, which is 8$ per pip. When you have a 36 pip stop loss for every position, that makes it 8$ x 36 pips = 288 $ total loss. That is the highest amount of loss he can incur if he would be to lose every position that he takes (which it never happens because he closes losses earlier when prices reach 3rd/4th box while he has already profited from other positions along the way.) You can make up negative shit all you want about this guy, but he's taken 700 trades with a total net profit of 7% in 7 days. That is nothing short of amazing. So instead of talking shit, you'd be better off learning from this guy. At least that's what I'm gonna do.
How so ? You risk 0,25% per trade, 4 trades per box, so 1% per box... at the end of box 4 you begin to close box 1' trades, so you basically really have max 4% of the account at risk.
Great content. At the end Jean-Francois mentioned that he has put up on his RUclips channel at least 90 live sessions. Checking his channel it would appear that these are no longer available. Is that the case?
Question, what program or platform you use for trading. Im new to trading, trying to get its basics, i love what you are teaching though 90% is still alien for me :) . I use Revolut for trading but even on the highest plan you pay 0,12% commision for each trade 0,24% of value to get in and out of a position. Any advice is more than welcome.
Very good eye opener! learn something from it only you says pushing your luck but if the system is everyday repeatable and 90% win rate there is no luck involved right?
Jean is a legend...i have been trying to learn dan adapt with his box method...and truly it works...his method really works but i used his method along with my style and it works...how can i contact Jean to learn more?
he's a living example of a good trader... explaining what he is doing on unpredictable live markets, unlike the rest who is so dumb trying to discuss what they see on a closed market..
I personally trade like this on my personal accounts but I doubt prop firms will allow you add to losing trades like this. I would break the 1% Risk into four trades of 0.25% risk per entry. But his style is obviously fantastic and he has evolved over the years. Beautiful content Etienne.
What broker does he use? He seems to have zero spread on EURUSD, and I would be interested to know what the commissions are per trade, as I usually trade EURUSD but with a 2 pip spread, and that would make this method not so profitable 🤔
He holds MULTIPLE positions in drawdown, up to 36 pips, until they are ALL in profit 3 pips or more. His style only works for him because he is very very good at it.
it makes sense when the market is rotational and we know the market is 80% of the time rotational but every once in a while when it's trending, this strategy will be catastrophic. Don't know any successful trader trading like this, risking 10points to get 1 pont.
But he told you he is only risking up to 4% at max exposure. Discipline to stop once your max daily loss is hit is key. 4 out of 5 winning days at your logic.
Then you haven't watched Jean trade. He's taken some big losses but never blows his account. His risk is always 4%. When he hits a trending market and the trades extend beyond his 4 boxes, he loses at max 4%. He explains it all in the video.
Catastrophic, = 4% of the account - max drawdown of the strat... If you define the risk % as 36 pips of your lot size = 1% of your account.. (which i think is what he is doing), then catastrophic = max 4%. If 1% of your account is defined as literally 1% of your capital, the max loss is 4% x 36 pips...Still might not kill you - I need to do the maths.
The question to ask is how big are the winning days? 4 percent drawdown is tiny. However, even with a high strike rate one could still lose money. It looks like his risk to reward ratio is way higher on the risk side which gives one a higher strike rate but also a tiny profit per win. Thus exposing oneself to the “death of a thousand paper cuts” scenario as some traders like to call it. The wins never stop the bleeding of the loses. Something like this could work if you were to hold your full sized trade, targeting higher R trades. Higher than 4 percent top daily drawdown: large expectancy trades. However this would require not taking profit or peeling lots and riding out the full sized trade around target. This would snowball a trade getting big gains if target area reached but if not, you take the full loss, that is if you’re able to call it at whatever max drawdown you decide on. If not you’re going to blow higher percentage of the account.
Interesting concept but you can see clearly in his own charts he is on a demo account. I could understand this while trading during an interview but when he showed his past history that had 100's maybe 1000's of trades these where on a demo account as well even though the lots sizes were small. Perhaps there is a reason for this but he should have made this clear in the interview.
30-40 trades a day?! Wow! I thought the average price boxes is an excellent idea. Not sure I'm on board with the hedging type strategy. Obviously this gentleman is successful with it. I'd have to practice that. Right now I'm doing well with my method. But I am still always learning. I will try the box technique. Interesting. Wonder if it corresponds to Elliot waves and Fib retracements and extensions. Bet it does.
If i got that right, he's just lookin for a 3 PIP profit? while initially risking 36 PIPS? I know he manages drawdown as well but pretty crazy initial RR. Really cool seein people who don't have a traditional RR models
You missed the part where he said he entered the trade multiple times over and over again while already in drawdown. Which is something that you should only do if you are 100% certain with your system and your overall risk
@@chinbosschinboss2484 Thanks for the reply. Yeah, i was referencing the points u made & thanks for clarifying. Pretty crazy system but seems to be working for him. 3 PIPS target is crazy tho lol must have been alot of pain in figuring that system out
RR is mythology. Only 3-5 % of traders will be profitable if they are looking for a 1:4, 1:5, 1:6 RR. It is just too difficult for day traders to achieve this RR. You only trade once or twice a week with small profits. You lose 4 trades in a row just to win one. Psychologically, this is unsustainable. This is why 95% of traders burn their accounts.
Watching the trades in more detail, so he's typically taking just $4 total profit per trade, or up to 16 if he reaches max position size. But repeating around 40x in a two hour window?
Yes, but with his risk factor always at 4%. So when one trade closes, he can open another trade if the opportunity presents. Therefore, the maximum amount of trades can be higher than 4 per box
Anybody could summarise it by step by step. As per my understanding let say imagine as we try in altcoin. If daily spread of a coin is 10 usd. Average move 1 usd. Open for short position starting 101, 101,102,103,104 now 4 position. Current price 102. Close all position at once after immeditely average down the loosing position ? Is it the way?
If you are adding 1% in each box it doesnt mean you are only risking 4%. You risk 4% on the first box, 3% on the second, 2% on the third and 1% on the last, totalling potentially 10% risk per trade. He either doesnt know basic maths or is fucking with us.
![ARGENTINA vs. PERÚ [1-0] | RESUMEN | ELIMINATORIAS SUDAMERICANAS | FECHA 12](http://i.ytimg.com/vi/xtI25ENDDSY/mqdefault.jpg)
Building a position like this is what banks do at scale. This is genius and so simple. Engineering an exit beautifully said!
I have come to realize that trading is very personal. Scalping is not new, but JF Boucher's style of scalping is refined to suite him. He has redefined his own method.
Good Lord!!! This Man just gave me a career!!! Thank you so much for this content ❤❤❤❤
That's awesome!
I have lots of respect for Jean but his strategy forces you to risk a huge portion of your account similar to Apiary fund and trade the fund.
Love it sir❤❤❤ saya rasa kita memiliki frekuensi yang sama tentang scalping. Kerja yang sangat luar biasa. Salam from Indonesian
How has this strategy been going?
What specifically did you takeaway from this strategy that has you so excited?
Interesting take on scalping. He seems like he really understands the markets. It's nice to hear grown ups talk about trading sometimes instead of ridiculous scammers trying to show off.
Totally agree 👍
You are doing an amazing job, Etienne by finding and bringing great personalities like him for the interviews. One such a gem is JF. Man this guy is a philosopher and love listening to him speak spontaneous with such a simple approach with great wisdom. What an inspiration we get from this guy!! Also, your way of interviewing them is way better than many as you allow them to speak completely. I have become your fan now. LOL. You have lot of patience listening and asking right questions with no rush. Keep up your good work!!!👏👏👏💚
so AMAZING to see how this man trust the system without put emotions...
Thanks Etienne for interviewing him a third time. I love JFB and this is very close to the way I trade. Please in a few weeks/months have him again in your podcast...after all he gave the channel the highest. ..:)
Will do!
Today was the first time I was able to understand and make money on the way and on the pull back learning the support and resistance is HUGE
hey I just want you to know, Jesus is real and He loves you and died for you. 🤍
One of the most inspirational people! Jean Francois Boucher, all love and respect
My main take away from this is “risk”
He’s found a way to silence the noise in his human brain with his style of spreading his risk across the board.
Is this a form of hedging? This is by far the most interesting approach to risk/ trade management I’ve ever seen
This isn’t even trading, it’s really art
It is kind of a grid
sport rather
Yeah, 1 loser will take out 10 or more of your winners. Why don't you try this in real life and see what happens.
notice towards the end when he talks about how many clicks he needs to do to pay off the dishwasher he bought. He doesn't want to push his luck at the casino... 20 clicks per day. Im sure this would be okay with smaller amounts of money. but I will say a lot of prop firms wont allow DCA for a reason.
its an art of gambling based off probability. where as most other successful traders do not trade this way.
JFB’s legendary strategy right here. Amazing.
Gotta agree! Thanks for watching!
So essentially, his exit strategy involves averaging down on a losing trade in the hopes that the stock will decrease enough for him to exit the trade successfully. It's essential to have a sizable account to support this strategy. Good luck, and keep me posted on how it goes!
What is your take if we can start with a small account or forget it for this strategy?
@@AshishPatel-vy7mn Let say your normal risk is 1% per trade. so each trade must be 0,25% of your capital (to reach 36 pips, or the equivalent of 4 boxes).
The question is : do you have enough capital in order to have a position reflecting a loss of 0,25% of your capital after the position having ran 36 pips against you ?
With Forex I don't see why would that be a problem because you can trade % of a contract... With Futures there might be a problem because your minimal bet is 1 micro.
Ex : for Gold (GC) 1 tick = 1$ for 1 micro. I've calculated the average move (1 box) to be about 30 ticks... so you want your stop to be at 30 ticks * 4 boxes = 120 ticks.
So the minimum risk you can have to trade gold with this strategy on futures (not counting commission) is : 120$.
120$ for 0,25% mean you need a capital of : 48 000$.
If you wish to risk less per trade (because you have a max loss of 16 trades according to his explanation), lets say 0,1% per trade.. you need 120 000$ capital.
I want this guy to read me bedtime stories 😂
Thanks for another interview with him Etienne! Jean's awesome!
As for drawing boxes, personally I edit my own Fib Retracement tool, that way the whole chart is mapped out quickly 👌
I was trading in a very similar way in a demo account, with way less risk management. I had the balance up to 80k from 50k in a couple days trading MNQ, and blew it up because I didn't know where to stop selling into a short to get my average position up.
Besides not managing the risk, I was exiting my positions on a first in first out basis that would result in the initial closing of positions being losses, but still the current price was usually on the right side of my average position price when I started closing positions.
Like he said it's a fun way to trade. When the price starts working in your favor you get to hit the button a bunch of times each for profit. As opposed to committing to hitting buy once and sell once and the pressure that comes with timing it right.
Not gonna be efficient with per trade fees and commisions though.
this is sooooooooo funny, because on my demo where I set sometimes no SL or a very big one with less risk or swing trade, I win most of the time, sooner or later the trades get in my favor, hit tp. but reality, with tighter SL or bigger risk or whatever, I lose.
if I let the trades flow, it works out. if I care about SL I have more losses.
i am so happy finally someone is talking about. never heard people discuss this.
But the very few times you do lose (because losses are inevitable), won't you lose a detrimental amount, like days to weeks worth of profits?
Fr man. This is next level shit
@@awa3245, yes, you would, which is why cost averaging and adding money to bad trades is a piss poor strategy.
@@markl431 exactly. i know it "works" for some...but watching this video made me itch lol. I don't DCA... look at how much extra work jeez. most of my days are one and done with a good setup.
@@Buu7899, good for you! For the life of me, I will never understand why traders would stay in a setup that clearly reversed against them. It must be the: I would rather be right than make money attitude.
This is exactly what I needed to hear. I go into panic mode when I go into drawdown and these RUclipsers who don’t trade pounded in my head to cut my losses. As soon as I exit it almost always goes back to my entry and a lot of times goes to my target without me. Only average in if you go small size though
Be careful about this, but you can always experiment :-)
patience and mindset. know that you always have the potential to lose. either improve your entrance or stop loss. years ago drawdown used to freak me out and Id chicken out earlier a lot of the time before my stop loss was hit. only to find out the trade went in my favor 75% of the time or more. and if the drawdown is too much for your account then you have entered with too big a size. hope this helps.
I've learned for myself that scalping pretty much requires an investment of time spent on the chart, much like a job, from x time to x time. I scalp for an hour. The swing trading, that's easy, pop in an out. Five minutes or less. I find both trading styles fascinating.
Fascinating! I like how he applies logic to the markets and like the way he engineered an exit at be if trades go against you. Great stuff!
Glad you enjoyed it!
The cash register analogy... Awesome! Merci Beaucoup!
Glad you liked it!
People have to realize its a good strategy but there is always the possibility it will go a different way. High risk high reward!!
Glad to see Jean-François is doing well and back on your show, loved his last one with you!
More to come! Glad you liked it!
Great interview - this guy's style is fascinating
" i don't have to be right all the time " well said
VERY interesting way to precieve where and when to trade... quite enjoyabale!
Glad it was helpful!
Amazing content, in actual fact Nick Shawn trades hedging similar without the boxes of course on a higher time frames and makes thousands of money...I like this aproach and speak to my personality and I would like to add it on to my trading set ups.
I use a strategy very close to this since 2018, fx and derivatives. Thank you for the content Etienne.
Glad that was useful!
I would love an in depth look at he he would create a box for MNQ! Please have him back on and go thru that process more. Grateful you both
A very interesting approach, many thanks!
Glad you liked it!
👍 I love watching this guy. 😅 I always wonder why he never uses moving averages to determine trend direction. Then scalp the prevailing trend. One less thing to calculate.
got on my 2 weeks trading 7.2 % gain on my account :d love this
That’s awesome!
Thanks so much for the info, you are looking so well!
Thank you guys I'm trading to break away from being poor. This info is life saving
Thank you for sharing this bicarbonate succes formula !
😂
He must have nerves of steel to trade like this.
I wish that I could try this. All of the reversaling would get to me.
If you have 4 boxes and the trade goes against you in the first box to the fourth box, isn't way more than 4 percent of your account at risk. The draw down into stop out would be massive, wouldn't it?
Yes it would be. He's basically advocating to continue adding to a bad trade while he's hoping and praying for the bad trade to turn around and give him a large enough move in the right direction. A bag holder mentality.
@@markl431I tinkered with this a bit .2 below price 2 above and added as I went along . Volatility will tell ye where its goin then . ..
@@markl431 he allows 4 trades per box which is 16 trades in total. If you trade 0.05 lots per position, that is 0.8 lots in total, which is 8$ per pip. When you have a 36 pip stop loss for every position, that makes it 8$ x 36 pips = 288 $ total loss. That is the highest amount of loss he can incur if he would be to lose every position that he takes (which it never happens because he closes losses earlier when prices reach 3rd/4th box while he has already profited from other positions along the way.) You can make up negative shit all you want about this guy, but he's taken 700 trades with a total net profit of 7% in 7 days. That is nothing short of amazing. So instead of talking shit, you'd be better off learning from this guy. At least that's what I'm gonna do.
@@markl431 Yet you here talking crap about his mental state while you are still unprofitable.
How so ? You risk 0,25% per trade, 4 trades per box, so 1% per box... at the end of box 4 you begin to close box 1' trades, so you basically really have max 4% of the account at risk.
Why is it on a Demo account?
Brilliant...the institutions target day traders stop losses for equity. In volatile market I do the same and target these ...
One of the golden rules in trading seems to be "never average down". He does it on purpose.
Whenever you hear these “common rules” in trading, you can always find someone trading profitably doing the opposite… from my experience.
I like this guy, thx for the upload.
Great interview! I enjoyed the detailed breakdown of the strategy
I’m glad that was useful!
Excelent vídeo. Blessings from Puebla, Mexico. 🇲🇽🇲🇽🇲🇽
This is good one for even experienced traders like myself❤❤❤
Great content. At the end Jean-Francois mentioned that he has put up on his RUclips channel at least 90 live sessions. Checking his channel it would appear that these are no longer available. Is that the case?
What is the word. "martingale" and deep pockets.
He build his own grid system with his own logic :). Nice
Similar thoughts here.
Question, what program or platform you use for trading. Im new to trading, trying to get its basics, i love what you are teaching though 90% is still alien for me :) . I use Revolut for trading but even on the highest plan you pay 0,12% commision for each trade 0,24% of value to get in and out of a position. Any advice is more than welcome.
Very good eye opener! learn something from it only you says pushing your luck but if the system is everyday repeatable and 90% win rate there is no luck involved right?
Sir this strategy is good, with this are there any possible ways of 90% predicting buy or sell bar, I'm just assuming so
Good stuff there is a million way to make money in the market it's unbelievable .
hes a real character
Totally!
nice man , love the concept . why did u delete your live trade video's?.
A true wizard. Spread the butter instead trying to cut the bread at once !
It seems like a solid way to generate extra income, but I wonder how it would affect one's portfolio in the long run.
Jean is a legend...i have been trying to learn dan adapt with his box method...and truly it works...his method really works but i used his method along with my style and it works...how can i contact Jean to learn more?
You can get in touch with John through his website in the description.
Im really in shock 😮
Is there any way to learn it? Thanks
The whole market moves on a copy and paste distances not only in price but in time as well
Why the bounce lower in uptrends, isn't it better to take the retracements (take it in anticipation of the bounce back to the trend move)?
he's a living example of a good trader... explaining what he is doing on unpredictable live markets, unlike the rest who is so dumb trying to discuss what they see on a closed market..
Priceless 😮
I personally trade like this on my personal accounts but I doubt prop firms will allow you add to losing trades like this.
I would break the 1% Risk into four trades of 0.25% risk per entry. But his style is obviously fantastic and he has evolved over the years.
Beautiful content Etienne.
This is the best way to trade!!!!!.standard deviation.,.
Welcome back
How does a lossing (spreaded 4%) looks like?
Great interview
Really helped, joined the dots
Thankyou
Great to hear!
Is this the Euro future? What is the instrument and time frame?
What broker does he use? He seems to have zero spread on EURUSD, and I would be interested to know what the commissions are per trade, as I usually trade EURUSD but with a 2 pip spread, and that would make this method not so profitable 🤔
He holds MULTIPLE positions in drawdown, up to 36 pips, until they are ALL in profit 3 pips or more. His style only works for him because he is very very good at it.
How do we get in contact with him. This is awesome insight
Most prop firms don’t allow DCA right ?
So those boxes are pretty much ATRs?
since 1 box = 1 hour for him, those boxes are the hourly ATR yeah
I see a sellside liquidity grab, then a market structure shift and its going to buyside. You can have your box sir
lmao right!?
This strategy is absolutely bunkers (try this in NQ and get slaughtered) but the risk and trade management are on point.
what trading platform is this?i imagine you need a cheap broker for this. any tips?
"3" pip target, means he's not willing to take losses... .... allowing "36" pip drawdown..🤨
it clearly works what he's doing. discretionary trading man... it can either go terribly wrong or amazing
it makes sense when the market is rotational and we know the market is 80% of the time rotational but every once in a while when it's trending, this strategy will be catastrophic. Don't know any successful trader trading like this, risking 10points to get 1 pont.
But he told you he is only risking up to 4% at max exposure. Discipline to stop once your max daily loss is hit is key. 4 out of 5 winning days at your logic.
Then you haven't watched Jean trade. He's taken some big losses but never blows his account.
His risk is always 4%. When he hits a trending market and the trades extend beyond his 4 boxes, he loses at max 4%.
He explains it all in the video.
Catastrophic, = 4% of the account - max drawdown of the strat... If you define the risk % as 36 pips of your lot size = 1% of your account.. (which i think is what he is doing), then catastrophic = max 4%. If 1% of your account is defined as literally 1% of your capital, the max loss is 4% x 36 pips...Still might not kill you - I need to do the maths.
There's a reason why you dont know any succesful trader trading like this lol. he is just managing his loss if and when he loses.
The question to ask is how big are the winning days? 4 percent drawdown is tiny. However, even with a high strike rate one could still lose money. It looks like his risk to reward ratio is way higher on the risk side which gives one a higher strike rate but also a tiny profit per win. Thus exposing oneself to the “death of a thousand paper cuts” scenario as some traders like to call it. The wins never stop the bleeding of the loses. Something like this could work if you were to hold your full sized trade, targeting higher R trades. Higher than 4 percent top daily drawdown: large expectancy trades. However this would require not taking profit or peeling lots and riding out the full sized trade around target. This would snowball a trade getting big gains if target area reached but if not, you take the full loss, that is if you’re able to call it at whatever max drawdown you decide on. If not you’re going to blow higher percentage of the account.
Interesting concept but you can see clearly in his own charts he is on a demo account. I could understand this while trading during an interview but when he showed his past history that had 100's maybe 1000's of trades these where on a demo account as well even though the lots sizes were small. Perhaps there is a reason for this but he should have made this clear in the interview.
I agree. I appreciate the tactics and strata however please show us the following on a live account.
Utter garbage, target 3 while risking 36. Make 10% in a year while sitting in long deep painful drawdowns. Thats why he is on demo.
He is doing an interview, that's not the time to do a live trading session huh...
how to get the line that shows the average for the entries ???!!
I wish we knew what was his account at. We can't even see it and the camera moves to see what he won.
30-40 trades a day?! Wow! I thought the average price boxes is an excellent idea. Not sure I'm on board with the hedging type strategy. Obviously this gentleman is successful with it. I'd have to practice that. Right now I'm doing well with my method. But I am still always learning. I will try the box technique. Interesting. Wonder if it corresponds to Elliot waves and Fib retracements and extensions. Bet it does.
Appreciate you big dawg 😎
If i got that right, he's just lookin for a 3 PIP profit? while initially risking 36 PIPS? I know he manages drawdown as well but pretty crazy initial RR. Really cool seein people who don't have a traditional RR models
You missed the part where he said he entered the trade multiple times over and over again while already in drawdown. Which is something that you should only do if you are 100% certain with your system and your overall risk
@@chinbosschinboss2484 Thanks for the reply. Yeah, i was referencing the points u made & thanks for clarifying. Pretty crazy system but seems to be working for him. 3 PIPS target is crazy tho lol must have been alot of pain in figuring that system out
RR is mythology. Only 3-5 % of traders will be profitable if they are looking for a 1:4, 1:5, 1:6 RR. It is just too difficult for day traders to achieve this RR. You only trade once or twice a week with small profits. You lose 4 trades in a row just to win one. Psychologically, this is unsustainable. This is why 95% of traders burn their accounts.
daytrading the euro is like watching paint dry
Watching the trades in more detail, so he's typically taking just $4 total profit per trade, or up to 16 if he reaches max position size. But repeating around 40x in a two hour window?
Yes, but with his risk factor always at 4%. So when one trade closes, he can open another trade if the opportunity presents. Therefore, the maximum amount of trades can be higher than 4 per box
@@NeonNeuron got you, thanks
How did he create the box that size?
How much leverage does he use?
lost you at 13.40 when you said avg it . good luck to everyone who wants to follow
whatching the stop loss much be nerve wrecking!
That moment when I finally realized what all those blue lines on the left were 🤯
Isn’t better to just use measured moves?
How does he draw that box ?
There is a button in the charting software that lets him drag from one corner of a rectangle to another.
@@ScottHz Im sorry, let me rephrase my question what's the logic behind that box ?
He explained it in a previous interview, from memory he finds the smallest 1/2 hour overnight range and uses that as a single box.
@@Blu376 thanks bro 🤝
The longest range in the Asia session is about the size of the box. For EURUSD, that's roughly a box at 9 pips.
his strategy basically is mean reversion just defined with boxes lol.
Anybody could summarise it by step by step. As per my understanding let say imagine as we try in altcoin. If daily spread of a coin is 10 usd. Average move 1 usd. Open for short position starting 101, 101,102,103,104 now 4 position. Current price 102. Close all position at once after immeditely average down the loosing position ? Is it the way?
How to try this in crypto?
It's a risk asset as I see it, I only scalp indicies, but in my case I look for buy ops only
Trading on a demo acc?
If you are adding 1% in each box it doesnt mean you are only risking 4%. You risk 4% on the first box, 3% on the second, 2% on the third and 1% on the last, totalling potentially 10% risk per trade. He either doesnt know basic maths or is fucking with us.
i thought he was closing the first order once it breakout the box
He trades like the banks do…I think this is the best way to
Why he doesn't use fractals at round numbers? It would be easier. I think the secret here is his hedge logic. It is magic ;-)
easy to trade on demo mode
yeah seem to be demo mode. why an experienced trader would do that---
So, you're using boxes instead of fib levels? Ok, whatever works 💪
Salam, saya juga pakai rsi sudah 2 Minggu, Alhamdulillah winrate nya tinggi. Profit -+150% , setingan periode (3)apply close, market gold,
Why does his screen say demo
Probably doesn't want to show his actual account size. Nothing wrong with that IMO.