what took me the longest was learning how to actively manage opening a trade is easy closing a trade is easy managing that trade is really hard it's really really hard because the market is forever changing it's always doing something you're not anticipating and you have to react to that welcome back everyone today how's it going with jeff hoffman we spoke a long long long long time ago 2016. i believe it's a good heavy background password good to talk about trading once again uh you're someone that i really respect for your training style which is completely
different from mine you're trying something completely on the opposite side of mine and so we'll discuss that to trading how you've been evolving and things you do knowledge and and some advice for people on how to become better at trading so what's been going on since we last spoke uh well uh last time we spoke i had uh been diagnosed with leukemia and so i i uh i went ahead with my treatments i continued to trade at the same time i was trading at the time for a hedge fund and a family office and running
my own accounts at the same time uh since then uh since september of 2020 i started a therapy for my leukemia and so in order to mitigate risk i gave up trading for the hedge fund and for the family office and i currently only run my own accounts therefore i can't be held liable for problems you know if i'm not there to trade on their stuff so i would rather just focus on my own uh my own accounts and at the same time i've been educating other upcoming traders on how to do what i do
as well as teaching a uh evening class for uh adult learners people that are in their 60s 70s that are interested in this kind of stuff and uh they have nothing else to do than bingo definitely better for sure but you do look good compared last time we spoke i think you're making good progress in terms of that for sure and that's good to hear for sure yeah my health has really uh taken a swing for the better and so uh it's been about a year since i quit trading other people's monies and i'm almost
ready to go back and so in the meantime i keep practicing on my own keep practicing my own i have been running a couple of eas and uh the eas in particular look for very small profits just the same way that i do in my regular trading but the eas also employ hedging in order to mitigate risk and uh i i've had two of them now running for over a year uh putting in about 10 hours of profit overall so things are looking up pretty good pretty good and i know that david did a while
back had a lot of views people were really interested about your way of trading which is scalping i just got really small moves in the market which is insane for me tell people what that sharing style looks like and kind of what you're aiming for and what's the objective of your trading okay and so a long time ago i realized that myself included everybody wants to become a trend trader the problem with that is the trend it does not last very long if you look at most trends between ranges there are only two to three
bars and so you're you're gonna break out of a range you're gonna be in the trend for two to three bars and then you're gonna encounter a pullback and give up some of those gains and right away most people panic or uh can't withstand that pullback they the stress of pulling back is too much so they'll give up on the trade so what i realized is that ranges are everywhere in between those trends so why not learn to trade the range and already be in the trade when the trend starts and so uh i i
became a range trader i i started to learn how to trade ranges and so you could do that on any time frame and i myself started trading ranges on the hourly chart and then from there move down to a one minute chart in steps obviously i didn't make the jump uh the leap overnight but on the one minute chart a range is typically made up of a couple of bars and a couple of bars on the one minute chart is two pips per bar or four to five pips in total and so if i trade
the range i can collect those two to five pips over and over and over until the range breaks out until the price breaks out of that range and then i i find myself moving up or down two to three bars and then into another range that's worth two to three pips per bar and so the atr is my unit of measure regardless of the time frame that i plan to trade that atr is what i shoot for i want one or two atrs of profit every time i click the button and on a one minute
chart that one or two atrs happens to be two pips two to three pips and so uh every time i click the button i expect to be within uh one or two atrs if if i don't then you'll notice on my chart i do have a stop loss and it's referred to as a long tail stop right and it's not it's 35 pips away and so right away people start to panic because now their risk to reward ratio is obviously upside down and i'm not i'm not trading for risk to reward i'm trading for reward
the risk that's my job to manage i manage risk i'm a risk manager and so because i have a 35 pip stop that doesn't mean it's for the trade that's to protect the account it's not to protect the trades that i'm in currently and so let's say black swan event comes along all hell shakes loose and you're in my case my whipsaw will take me out of the trade trades at 35 pips hence my account is protected beyond that it takes me out of my current trade but it protects the account myself if i find
myself taking a bad trade i must manage myself out of that bad trade i don't let the stop loss do that for me i will either take the loss manually or use margin to maneuver out of that loss to a break even or i'll hedge that position to buy myself time in order to maneuver out of that position and so uh being a risk manager is an active role in this type of trading uh i can't just let the stop-loss take care of of things uh the stop-loss 35-pip tail stock is there to protect the
account not to protect my trade i do that we had a whole discussion before we started to record i'm so sad that we didn't record this because it was so good it's so interesting what you were saying so but if you want to show your charge for people what you're kind of looking for and doing that that would be really cool i think people would really appreciate it i'll share my platform uh i use a broker called global prime uh it's an ecn broker uh a book and so uh i think you spoke with jeremy
yeah i'll definitely leave that interview linked below the description yeah and so yeah this is on the screen also basically what i typically do like everybody else we all have our universe we all have a group of pairs or instruments that we like to follow or or keep an eye on for myself i i like to look at gold silver no oil natural gas bitcoin one exotic pair which is the mexican peso i can go into details why that is later but and then most of the indices i try to look at uh from there
my my uh my main focus has always been on forex and so i look at the majors especially when there's news coming about uh i think on wednesday we have cad news and then on thursday we have the ecb coming and and so uh you know that's the the chart that i'll be looking at from there because my bread and butter trading is always on the euro and it's always at the same time of day every day and i try to be finished at the same time of day every day i do what's called a
top-down analysis and so i'll start looking at the daily chart and from once i establish my bias on the daily chart i'll break it down with an hourly chart and then because i know that i trade ranges i start identifying the ranges on the five-minute chart and then once i've identified the ranges i'll be playing them on the one-minute chart and i do all of that here and so uh i'll play i have the daily chart i have my hourly chart and then i have my five minute chart with the five minute chart i will
identify where the ranges are and then i'll be playing those ranges on the one minute chart here on the left hand side and essentially like i suggested earlier that upside down risk to reward ratio uh is not something i'm really concerned about because i actively manage my risk i don't let the stop loss do that for me and so uh in this particular instance if you look up at the top here i started trading about two and a half hours ago i'm up two hundred dollars on the day uh a lot of people out there
are still waiting for that perfect trade to set up right they're still waiting for that perfect entry or for that uh qualification trade they have to be qualified into a trade i i just traded ranges i traded the range here i traded the range there i traded the range here and i traded the range there and right now i have trades pending on that range and my pending drawdown if we look here uh sorry my drawdown currently is uh you know seven pips of drawdown and so that to me is negligible i can survive that
now if it starts to move against me i will have to employ extra margin in order to maneuver to a break even or i can possibly hedge that trade in order to buy time and to exit to a break even and so uh one one commits to the loss where one commits to delaying the loss and so it's up to me how i manage that and you know it's a private uh personal thing based on the news that's coming how you feel the biases and all this kind of stuff but nonetheless we're looking for a
range we're looking to remain inside that range you'll notice this range up here once we broke out of it it fell two bars before coming into another range for some people that's a trend right this would have been a trend and then they got pulled back and then there's another trend and another pullback or reversal for that matter and so it's it's based on perspective trading ranges uh buys you more opportunities there's more ranges in the market than there are trends in the market and most trends are two to three bars and so before you
encounter the first pullback of the first reversal so there is there's more opportunities going sideways than there are going up and down if that makes sense yeah i totally agree with that now you're looking at a one-minute chart for your trades you have a five-minute chart yeah a one-hour and a daily chart what's the importance of all these time frames uh well the top-down analysis gives us an idea of where the market has come from what it's attempting to do and because i'm a very short-term trader and i go flat at the end of the
day meaning i close all my trades i want nothing on the book when i'm finished trading at 10 in the morning my time and so uh i need to i need to be able to re i need to be able to know what the likelihood of the outcome is ahead of time so this top-down analysis really helps in doing so uh i don't know if you're familiar with trading pivots but pivots is a a calculated level uh the calculation never changes uh black boxes gray boxes target pivots over and over and over as a as
a high probability trade you'll notice back here on this particular day here we we never came to the pivot the the yellow line is the pivot the price never came to the pivot the day before it did the day after it did each day after we we rotated around the pivot this day four days ago we never did although today we have right and so these pivots are magnets and uh on the daily chart i use himoku to realize support and resistance and long-term forecasts uh the hourly chart gives me an idea of where swing
areas will be and so the lines you see here are camarella pivots a camarilla pivots are a uh a form of traditional pivots with a multiplication factor that tightens everything up uh so you have a better chance of hitting the pivots and essentially what a pivot that was missed four days ago attracted price today right and and uh the likelihood of us rotating around from this level is very very high just like it did here it did here here here and the day before the missed pivot right and so this top-down analysis gives me an
idea of where to expect those ranges and then the ranges i i get them uh in front of me on the five minute chart and now i can target from one range back to another range support and resistance right and so supply if supply and demand is the glove that fits support and resistance i trade support and resistance some people trade supply and demand on the higher time frames interesting for sure now what makes you decide to enter a trade either go longer or shorter than one minute this is based on i know you're trading
only price section so you have no indicator at all yeah for your entries how do you decide to enter the majority of the trades are based on a three-bar reversal and the three bar reversal uh if you look at it on a higher time frame is likely to look like a pin bar and so a lot of guys will see a pin bar on a one hour chart and they'll they'll take that as a valid trading signal i'm already in that trade because i saw it as a three bar reversal on the one minute or
the five minute or the 15 minute term and so it takes a three bar reversal to make a pin bar if you see the three bar reversal you're already in the trade while the pin bar trader is still waiting for it to confirm so a three bar reversal would be like a bullish candlestick then a neutral then it bears would that be what it looks like the three bar reversal would be something like this back here where you uh you overtake the apex or you overtake the nader the nader is the bottom of the apex
right the the bottom of the uh of the three bar reversal and so let us find one here uh there's a good one right here and so you have this little blue bar and then you have the nader or the apex right there and then we broke the bottom of the apex three bar reversal and then as i taken the trade there i could have earned another two pips down here interesting so that's never something i want to enter for the fact that it's like at the bottom of a big move and i would have
a used top plus but because of the way you trade it's different so that's really interesting to see yeah and so my stop loss is always 35 pips away and it's not something that i let the market reach i i won't allow the market to get there without me getting involved right i will either hedge that off or i will add margin some people will say never add to a loser but it's not a loser it's part of the plan right this is part of the strategy i'm not adding to a loser i'm adding as
part of my strategy and my strategy enables me to bring that losing trade to a break even and minimize my loss that's why the strategy is in place that's why the strategy is there and that's why i employ that that tool in my toolbox and so adding to a loser i can actually see the purpose in that i know why you don't want to add to a loser but it has to be a losing trade in the first place you have to have called it a loss does that make sense yeah it does but you
got to be aware of the news all the time you got to be aware of what news is coming up for sure yeah and the the really important part of trading the way i trade is to not put all your bullets out in one shot you want to keep dry powder you want to have extra margin in this on the side just in case you need to use it and so the way i typically trade is you'll see here i have uh almost a full lot on on these on these trades here uh typically i
would use one to 1.2 watts per position and if i need to fix it if i need to fix a rogue trade or a bad trade i may double that i may go up to 1.2 to 1.8 2.0 but never go beyond like there's a limit right you don't want to put all your margin on the line and so it's it's managing risk using margin basically i like to fall into a long trade or i like to shade a short trade i want to be at the opposite ends of where the retail traders are i
want to be the guy that's selling them the ass or buying the bid from them you'll notice on this particular platform i can buy the ask or i can sell the ass i can buy the bid or sell the bid right i'm selling it to you guys that makes sense yeah it does it does whether you want to go on a one-minute chart why not like a five minute or fifteen minutes why the one-minute chart because i have better control over my wrist i can control risk down to one penny i i can do the
same thing on the five-minute chart but i'm losing a five-minute bar whereas on the one minute i can see the move i can see the break there's a three-bar reversal right up here uh right three-bar reversal so there's one two this bar is breaking the low here and now we're in we're into a short and the idea that we can profit two pips at a time once i'm out of that trade i'm risk free right and uh my my whole purpose in this is to be risk-free each and every day i don't all trades overnight
i sleep like a baby i come back to work the next day and i start fresh i it doesn't matter to me what the europeans did overnight what the asian market did overnight it makes no difference i come back i i review i do my top-down analysis right obviously tomorrow is going to be one more bar added to this but i have i have to redo my top-down analysis i can't just assume things did not change very much overnight i always always always review the top-down analysis and then likewise the the hourly chart the five-minute
chart and then on this five-minute chart uh what you'll likely see me do often is draw lines just to identify where the ranges are right if you if you know how to trade a box how to trade a rectangle basically you i i you know i move in and out and i could take my rectangle and move it one box down and then move another box down the the width of the box is typically the same on the chart and that's where i make my two pips two pips down two pips up two pips down
two pips top and it's not uh it's counterintuitive most most traders don't like to do this because they rely on their stop-loss to prove them wrong right they want to be proven wrong but they rely on their stop-loss to do it i rely on the price action to tell me that i'm wrong and i rely on that same price action to tell me what to do right do i need to hedge do i need to add margin do i need to just take the loss right and when i do just take the loss it's minimal
compared to the 35 pip stock the 35 pip stop like i said is to protect the account my account will never blow up because i have that 35 pip stock there there's not one trade that can take everything to help right and i don't ever leave trades open overnight unless i'm required to buy my employer whoever the fund is that i'm working with and so some of them like here in jasper there's a family office that i help once in a while and they get a lot of deposits in u.s dollars we live in canada
and so they let me trade their us dollars to give them more canadian dollars in the account right and so i basically wash their money for them i launder money but because they have a lot of uh us clients they get a lot of us money in the account and so i purposefully make more canadian money out of that us money on their behalf and so that basically forces me to swing trade and by swing trading then i'm left having to uh i'm left having to have trades open overnight on their books it's not on
my books my books i'm always flat at the end of the day and trading in that fashion allows you to sleep better at night take smaller risk and manage that risk more efficiently and the beauty of forex is you can manage risk to one penny right you can manage risk all the way down to one unit of measure whatever country you live in unlike stocks where you have to buy one share now you can purchase uh partial shares you know with platforms like uh wealth simple and stuff like that but you you forego on uh
customer service you're not gonna get the best price if you try and phone the broker they no likely won't answer your phone they'll tell you to chat online and so you you know you don't pay commission but you pay in other ways uh this way the way that i trade two two pips at a time with a legitimate broker that's not trying to profit from my losses they're not gonna try and force me to lose right they're not going to whiten the spreads on me just because they want to see me lose it's easier for
me to trade in this fashion because i am an active risk manager i'm not a passive risk manager right i don't sit on my hands and wait for the stop loss to trigger me out i i want to manage my way out of the trade before the stop loss comes and uh these ranges you know arrange like this that's typical right this is typical of what we normally encounter and it's not uh it's not abnormal that i'm adding a couple of positions thinking thinking that we're gonna come and revisit this area here and if if
that's the case then i'm adding a couple of the wins to my to my roster if i go and look at my statistics until i take a loss i cannot report a sharp ratio and i can't report a win loss ratio because i haven't lost yet right and so uh my drawdown was 14 right at the most my drawdown has been 14 and that's because i trade on the one minute chart right and so everything i do i do on the tightest of the time frames that i can and it still earns me money and
if i'm efficient i earn more money because i don't really care much for the trends i worry more about the range one of my mentors one of my tutors uh years ago told me flat out if you learn to trade ranges you'll get hired on the spot most people 90 of the people you speak to they're trend traders in their mind they're trend traders right they think they're buying low and selling high that makes me a trend trader well no it doesn't you have to you have to withstand pullbacks you have to withstand drawdown and
reversals you have to be able to tell yourself uh count yourself as a trend trader you have to survive the trend you have to be in it from the bottom to the end the internet also tells you to not pick tops and bottoms well if you're trading ranges that's that's all you're doing is picking tops and bottoms right you're picking the top of the range and you're trading it to the bottom of the range then you're turning things around and you're going back up again uh if if uh give me one second here and i'll
bring up a little yeah by the way uh i'm not sure people notice but you're getting in and out of trades while we speak which is insane yeah this this particular picture here explains a lot of what i try to do the idea that i trade the range and most people most people want to be the trend trader they want to capture the breakout i'm already in that trade i i took the best price if if i if i play the range i'm already in this trade when the breakout happens i just have to hold
on to my trade and not take two pips everybody else is waiting for that breakout why not use like a indicator like the rsi or something to add confluence to your trades what makes you want to go with just price action i'm very curious to hear you on that i used to use the ending oh i used to use the williams percent r williams percent r is a momentum indicator and the momentum indicator if you're unfamiliar is not bound to a scale it floats it has a floating scale sometimes it's at 70 sometimes it's at
110 sometimes it's at 30. there's no there's no scale the scale floats and so that does not really bode well for uh forecasting overbought and oversold areas and so what bill williams did is he took this momentum indicator and he applied an rsi to it and so now you have momentum that's bound to a plus or minus uh 100 scale so now you can have overbought and oversold zones now that you know how the indicator works it makes a lot of sense on how and when the overbought and the oversold areas get triggered you can
actually physically see it and so each indicator out there was built with a very specific purpose in mind rsi no relative strength index macd right moving average convergence divergence it's in the name use it for what it's built for right i don't have an indicator built to tell me when my range is over i can use as catastic i can use an rsi i can use pre-built indicators but they weren't built for my purpose and so i chose to not use them right the only thing i really need to worry about is momentum and the
momentum i notice because the markets are not random far from it the markets are circadian in nature right the markets open and close at the same time all the time it's the same participants that come in and out most days the news comes out like clockwork there's no randomness in these markets the people make it random but the markets themselves are circadian in nature and so i know that if i want volatility and i need volatility to earn money i can trade it during certain times of day when that volatility is always there and so
i've scheduled my business around that volatility i don't need an indicator to tell me volatility is coming i just need to look at the clock to tell me that volatility is coming right and then by picking one or two atr's of profit at a time i'm not looking at a four-hour bar i don't need two four-hour bars of profit i'm looking at a one-minute bar i only need two one-minute bars of profit and it i don't know about you but it's a lot easier to tell what's going to happen one minute from now rather than
one hour from now all right it's good it's really hard it's really hard to see where price is going to be in one hour but it's really easy to see where price is likely to be in one minute how many hours did you trade do you have a schedule that's fixed or you look at the markets and decide no i have a i have a fixed schedule i live in the rocky mountains and so when it's 10 o'clock eastern it's 8 o'clock my time i try to be done by about 9 30 10 my time
so when it's noon in new york i want to be finished and i typically trade about two to two and a half hours per day not that much compared to what some people could think that you trade all day or your information oh no not that much you start to lose interest and start to lose focus at approximately one and a half to two hours into your trading session and so i try to max two hours i'm done because i live in the rocky mountains i have a two hour uh time zone difference and so
if i start at six o'clock my time that's eight o'clock eastern the stock exchange just opened and so i try to come in a little before that i want to be here i want to be at my computer when the stock exchange opens and not not because i trade stocks it's just because the participants are there and the volatility is there and the momentum is there and uh whatever happens to bonds usually trickles down onto forex anyways and so uh it's no one hand shaking the other yeah you can't have one without the other uh
the the way we look the way we look at the market because i have a very narrow view of i i have only one job and for me my job is to trade the euro i i have this burst that i look at that's just to give me a good feeling of what the market is doing not because i want to participate in any of those markets right my bread and butter is always the euro i don't really care what the yen is doing i don't care what the s p is doing while i'm trading
while i'm trading for that one and a half to two hours i i want to be focused on what the euro is doing and where those ranges are and the likelihood that we revisit the same price is extremely high i i'm sure you've yourself have noticed but the forex market is a mean reverting market it you get to re you get to see the same price typically multiple times you'll take a trade you may miss the exit and then give up all of your gains and you'll see price come back to your entry right that
happens all the time all the time unlike stocks the stock market is bullish by design there's always more stock buyers than there are stock sellers always always always stocks go up by design right there's no business in business to go broke and so to be listed on the stock exchange to be listed on as one of the industry if you're one of the s p 500 the minute you don't qualify to be there they take you off and put somebody else there right the indus it's all designed to go up the entire industry is designed
to take your money they want you to buy stocks they don't want you to sell them they want you to buy them right it's a bullish market by design so if we know that ahead of time and we know the implication that it has across the other instruments you can benefit from that and and that correlation i chose to not profit from and i wanted to focus on a five minute chart a one minute chart make a couple hundred dollars and then be finished for today and if i do that five days in a row
then i have a thousand dollars at the end of the week right it's really really important that i stop trading every day otherwise i start to give back some of those profits i start to over trade i start to make silly mistakes because now i'm tired it's two hours already right and so uh operating as a business with business rules around my trading so i have start times i have end times i don't work overtime ever right i operate as a business and as such i have business results i don't have hobby results hobby costs
money business makes money right so uh it part of what i do is logic part of what i do is uh a very small part of what i do is is gut feeling most of what we do is analytical it's process and it's repeat repeat repeat repeat repeat it's boring right trading after a while is boring uh if it's not boring you're doing something wrong if it's too boring you're also doing something wrong right and so the fact that we have to have a little bit of excitement that's probably why we started trading in the
first place right and but now that it's become a job it's become a purpose the government doesn't ask me to pay capital gains anymore they ask me to pay taxes right because this is a job it's not just a part-time thing i'm trading as a business i therefore have to pay business tax right if it's mom and pop trading once or twice a month at the end of the year the government will say now you owe us capital gains right you have to pay capital gains it's very different so because we have a purpose and
we have to do this uh logically and our goal is to not blow up you know you want to do this for as long as possible having a long tail stop makes a lot of sense if i'm an active manager and the what took the long time what took me the longest was learning how to actively manage right opening a trade is easy closing a trade is easy uh managing that trade is really hard it's really really hard because the market is forever changing it's always doing something you're not anticipating and you have to react
to that and if you have a broker that allows you to hedge that allows you time that doesn't mean you don't take the loss it just means you're not taking it right this second and so you're postponing the inevitable but at some point you're gonna have to collapse that hedge you're gonna have to flatten and take a loss on one side and the win on the other but in the meantime you have the time to strategize you can come up with a strategy with a high likelihood of an outcome that's better than taking the and
and that's where that's where it takes up it takes a long time it takes a lot of practice and and you don't need tens of thousands of dollars to do this you know a lot of people want ten thousand dollars to start that's a good start but you can't make a living with ten thousand dollars you're going to stress yourself beyond and start making you know crazy mistakes if you if you want to trade for a living and trade for income like i do a good place to start would be 40 or 50 000 that
way you could trade one percent at a time staying 99 flat you know the the concept the idea that you want to be 99 flat remains valid but the long tail stop will protect that 99 that's been a good discussion i know i want to take your time it's been an hour already but it's been really good and i know people got a lot of value from this for sure what can they contact you or connect with you if they want to reach out after the interview uh well i still have my website uh it's
more like a uh an old newspaper it's not really uh just a sec it's over here if you can come and find me here jasper4x.com and uh from there no i i have links to my uh fx book and some of the other stuff that i have running there's uh the eas that i run uh are there only because i'm not trading you know 24 hours a day but the strategy that the eas employ are very close to what i do in real life and so they're looking for uh one to two bars of profit
on a one minute chart they do it across an array of pairs where i only trade the euro right so me myself i only trade the euro the robots they'll trade all 28 pairs depending on how much money is in the account and so uh but they do the same thing they look for small amounts of money and if they don't get it right away the trade gets hedged and then we look for a high probability exit the same way that i do right and but the heat the the eas the robots are not foolproof
they're not set and forget uh i do have to look at them i do have to manage the trades that go rogue the trades that go crazy uh i and and matter of fact i don't stop the robots for news i don't stop the robots for anything i take over uh the trades that go bad and so if for example the robot is running on 20 pairs uh on any one day there might be one pair that has a bad trade on it i may have to get involved on that one pair to better the
situation and but it's not uh it's it's not by any sense the word is set and forget that you you have to be involved in that in that style of trading and that goes for pretty much all style of trading you can't just set and forget you know even position trades you have to look at your portfolio once in a while so but yeah in the end no range bound trading uh there's more ranges than there are trends and if you realize that a trend gets interrupted by a range every two to three bars then
why bother trading trends just learn to trade ranges right and from there uh everything changed for me once i realized that trends don't last very long right regardless of the time frame you look at a trend always gets interrupted by a range or multiple ranges and so instead of getting interrupted and giving back gains or giving back profits i would rather learn to trade that interruption and participate right and then be flat at the end of that day now this particular range is pushing the higher end pushing the higher end right if it gets up
to around here i'll be adding to my existing position and then looking to come out at breakeven while my long tail stop is all the way up top here right so i'm still way way way far away from my stop and i still have lots of room to operate as long as you're able to operate within an envelope of risk you have to be able to work within an envelope of risk in my case that's 35 pips i'm okay within that 35 pips i can maneuver in and out of trades within that 35 pips and
still finish the day positive a lot of people will start to panic when the price gets close to their stop loss and that's when they move the stop loss right that's the wrong behavior that's the wrong behavior the stop loss is there to protect the account it's not there to stop the trade your job is to stop the trade right your job is to be proven wrong as soon as possible and that would have been one bar moving against you two bars maybe three bars at the most that's three atr's back right uh when i
traded for the family office my mentor there he was a really big proponent of price and time cycles and so you would want to measure you know five or six upswings yeah and you measure five or six down swings and you average the number of bars and the number of pips and that tells you what to expect forthcoming right just like the baseball players they have average statistics we do the same thing with the market an average up leg is so many pips so many bars an average down leg is so many pips so many
bars and then you start targeting those averages right and so at time stop if you haven't reached your target in your average number of bars take the loss stop the trade that's called the time stop 99 of the people out there will never do that yeah it's too hard it it the comprehension is easy but to actually do it it goes against their values and so uh a time stop is extremely valuable especially in situations like i'm in now where things are pulling against me they're not trading in my favor and my clock is ticking
i'm almost finished for the day so at some point i have to say okay am i taking losses or am i gonna hedge this and work an extra 10 minutes no no no i can't do that right and so because i refuse to work overtime there comes times when you have to take the loss you just have to and in some cases it's because of time and that time stop is as important as a price stop if not more important because time is money right and so instead of wasting the next two hours waiting for
this to close i'm just going to close it and i can use that money somewhere else and that's the beauty part a lot of people will sit on their hands and hope for traits to come back they hope it's going to come back instead of just taking the loss and go dig yourself out of the hole somewhere else make money somewhere else right instead of hoping and praying because there's no room for them right and so uh but logically trading a range has more opportunities than trading the trend and all day today you would have
had two trends right maybe three if you were willing to reverse your bias right there's only two trends today whereas lots of opportunities to go sideways okay and so that's basically what i do i trade for two to three pips uh on a smaller time frame because it gives me more opportunities to manage risk and i do it every day like clockwork and i operate within the business time business plan and a clock i i don't work overtime and i'm finished at the same time all the time just like the markets kind of wind down
after the europeans go to bed once the european market closes off for the day there's really no momentum left and if you're left sitting on the trade in the afternoon you're waiting for tomorrow or overnight to get more activity because it's only going to go sideways why not make money while it's going sideways right the same way i'm trading here i can do all day 24 hours a day you could do this with in the asian market you can do this in the european market i do it in the morning in the american session because
that's where i live and that's it's profitable to me that way but you can trade ranges in the asian session just the same there's ranges all the time everywhere there's not trends everywhere all the time one last tidbit if we look at things like the aussie us or the cad this is a trend right there on the euro this is a nice trend this is a trend but look how many times the price got overlapped the price you see here you see it here you see it here you see it here you see it here
you see it here the same price comes back over and over and over how is that a trend does that make sense yeah thinking that way you have a good point okay so how is that and so if i see this as one big range even though it's a five minute chart i have opportunities in here to make more money than the guy that's waiting for the trend right and so uh yeah i think my mentor was right when he told me years ago that trading ranges is more profitable than trading trends and uh i
i wholeheartedly believe that he's absolutely right absolutely right especially as short-term traders right you cannot trade trends uh on the one-minute chart it's you know it you can but it's it's pointless there's more money to be made going sideways awesome a lot of good thoughtful advice for sure here and if you guys watch till the end make sure you comment below i want to know because you definitely committed if you watch this up to now i think it's really good and uh thank you so much for this i think it's been awesome to discuss and
have something to catch up of course yeah looks like you're doing great and things are moving on really nice and that's really cool and i love hearing your style and kind of challenging my way of seeing things challenging my perception of things which is really good and uh yeah i hope to talk to you soon yeah absolutely i hope to be able to come back on soon
