Price Action Algo Trading (PAAT) Journals

Hello All Traders,

I started this forum to show how the Price Action Algo Trading (PAAT) system works in various markets. First, let me explain what PAAT is and how it works.

The PAAT is a trend-following Price Action Trading system with a high win rate that uses three timeframes of Macro (highest timeframe), Structure (Middle timeframe), and Trading (smaller timeframe) charts. The difference between each time frame is about 3-10 folds, allowing one to see smaller price swing waves within the higher ones:

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The use of three charts creates 27 possibilities based on the combination of all chart patterns, from which only 6 of them are tradable and 21 need to be filtered due to high risks.

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The Macro chart defines the trading risks and is evaluated by a pre-algorithm check section of the trading plan to see if the entry risk is suitable based on the trader’s experience:

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The Structure Chart is used to recognize the trend in the middle timeframe and analyze its momentum. The Trading Chart is used to find pullbacks along with the direction of the main trend (HPTA: High Probability Trading Area) and pinpoint entry area that provides good R/R:

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This is done by 5 conditional algorithms plus an entry signal confirmation as explained briefly here:

Algo 1- Analysis of Trends: Confirms that the Structure Chart pattern is trendy.

Algo 2: Analysis of Momentum: Confirms that the trend is strong and not weakened (end of the trend) on the Structure Chart.

Algo 3: Analysis of High Probability Trading Area (HPTA): Confirms that the Trading Chart pattern is trendy, and its direction is aligned with that of the Structure chart (both uptrends and or downtrends).

Algo 4: Analysis of OB/OS: Confirm that the price in the Trading Chart reached an Oversold (OS) area in an uptrend or an Overbought (OB) area in a downtrend.

Algo 5: Analysis of R/R: Confirm that the price in the Trading Chart has a suitable initial Risk to Reward Ratio at the point of entry.

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This was briefly the core of this high win rate price action trading system that works like a powerful engine for a modern vehicle. This engine is embedded within a robust Trading Plan that provides all safety features of the modern vehicles to make sure traders follow important psychology and risk management elements before and during the trading session:

The trading Plan is in form of a smart excel checklist that develops right safety habits and has also important Post-Trading Session Journal, which is important for trading personalization at the beginning and performance improvement later with the trader’s coach.

We will review some live trades that are taken by the PAAT system and journaled using the smart trading plan excel file.

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Sounds interesting. Your time frames are a little confusing though. 15 minutes as macro wouldn’t be a strong correlation to an uptrend that you’d let run. At the very least, you’d want a H4 uptrend, preferably longer. It looks more a day trading and finding a good entry point system. Not sure the markets right now are good for this, but a couple of months ago I think it would be a good system.

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Hi Chesterjohn,
Thanks for your feedback and interest! Good point, and based on our experience, half of the time the Macro chart timeframe is large enough to show all major turning points. For other 50% cases, PAAT traders either zoom out the Macro chart or use > 1-4 hours time frames in order to see the major Dynamic S/R levels (See the Friday and today live trades that shows another 2 hours Chart on the left of Macro chart that I use to see the Major swings and S/R).
Yes, you are right and market volatility is very high now and that makes it riskier for novice traders to trader at this time and should stay away. We have implemented the Volatility filter checklist in our trading plan to make sure PAAT traders do not trade when the volatility is high and it works well.

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PAAT Trading Journal of the trades on 24 Feb 2022 was posted on our YouTube channel.

PAAT Trading Journal - 24 March 2022

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PAAT Trading Journal of the trades on 25 Feb 2022 was posted on our YouTube channel.

PAAT Trading Journal - 25 March 2022

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PAAT Trading Journal of the trades on 28 Feb 2022 was posted on our YouTube channel.

PAAT Trading Journal - 28 March 2022

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Another PAAT Trading Journal was taken on 28 Feb 2022 by one of our traders on the CFD of S&P500 using a forex broker and MT4, which was posted on our YouTube channel.

PAAT Trading Journal - 28 March 2022

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*PAAT Trading Journal of the trades on 1 Mar 2022 on the weekly Options was posted on our YouTube channel.

PAAT Trading Journal - 1 March 2022

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PAAT Trading Journal of the trades on 2 Mar 2022 on the weekly Options was posted on our YouTube channel.

PAAT Trading Journal - 2 March 2022

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PAAT Trading Journal of the trades on 3 Mar 2022:
The market shows high volatility as Fed Chair Powell Testifies and geopolitical news intensifies.
A 1 min chart shows ~ 15 points move in every extension, so no trade at this time as the Pre-Algorithm trading session check on volatility does not pass:

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hi can we make this Strategy kind of automate as well ?

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Hi Soheil,

Good question! Yes, some of our traders with programming backgrounds created programs that check real-time market data on many instruments to see when the three charts are aligned and send signals as you see here:

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Then the traders use this screening signal to check if other Algorithms pass and have a low risk of entry for Setup T and take the trade as shown here:

photo_2022-03-06_06-12-23

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PAAT Trading Journal of the trades on 4 Mar 2022 was posted on our YouTube channel.

PAAT Trading Journal - 4 March 2022

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PAAT Trading Journal of the trades on 7 Mar 2022 was posted on our YouTube channel.

PAAT Trading Journal - 7 March 2022

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