The Inner Circle Trader's Millionaire Traders Guild

Trading Systems
183

Hey guys and hey new thread. Thought I’d say hi to the old timers and our new friends.

I wanted to be able to report that I’ve doubled my account since going live in early October 2011 with 5K but I’m stalled at 8.5K and felt I should post rather than wait. This is better than it looks as I took a 30% drawdown in a single session of maddness early on and a further 10% drawdown over Christmas when in my wisdom I tried to take advantage of the low liquidity but it took advantage of me, the beast.

As I knew it would my trading was adversely affected with the release of the new materials and in all honesty I was still struggling to use the Traders Trinity profitably until quite recently.

I’ve now assimilated the new materials to a level I feel comfortable with and have changed a few things over the months that I’ll list in no particular order.

I do nearly no fundamental analysis at all, earlier in my trading journey I felt a bit of a fraud if I could not give a creditable explaination of what was going on in the glodal economy. This knowledge was giving me a negitive bias towards the Euro and affecting my trading thusly. I now ignore it and do better. I would like to monitor the news chanels and wait for an extreme of sentiment prior to a major reversal, which I think is valid, but the noise is bad for me so I don’t.

I don’t use COT, never really got it and as an intra day, generally intra session trader I don’t need it yet.

I only catch up with the thread when I’m done for the day so as not to be influenced (I’m easily led) and I don’t use forums chat atm.

The importance of regularly taking something off the table and leaving something to run has never been clearer to me.

The addition of the 18, 40 daily emas was great for me. I’m not suggesting you use them like me but if I’m using the emas (trending market) I don’t use the Traders Trinity and visa versa. So the simple action of identifying (to my satisfaction) wether I am applying the tools to a trending or ranging market has helped me.

So with all the notes I have, I think I remember Michael saying an effective trading strategy can be written on a match book- Trade with the trend following a pull back(emas), In a ranging market trading from the periphery towards fair value (T.T) ideally with the high TF.

As a die hard over trader I have started using a points system to enter my trades and I’m finding this a useful addition. I’ll try and attach it, please don’t use my numbers, they apply to my understanding and application of the tools and I think this is quite indvidual and subject to regular change but if you struggle with discipline this might help. It’s still discretionary and not set in stone but counting the points can bring me a bit of clarity, usually to stay out.

I will be back in a bit to correct spelling and punctuation :31: GLGT

I don’t post much as the threads are so busy but I’m a daily lurker.

Trade point chart.png407×508 11.1 KB

LOL at We need to talk about Kevin, in my attachment, I googled this movie and now it’s on my trading chart forever, if anyone needs any IT solutions, I may not be the person to contact :19:

184

Please, allow me to jump into the conversation about starting capital and size of account, etc.

I dont really understand the point and cant see the logic of adding money to an account on later stage… Sorry, but doesnt make any sense to me.

First issue, that immediately appears is how do you track your progress when ‘‘artificially’’ change the account balance all the time? ‘‘Its a percentage game’’ some may say, yes but still complicated and confusing.
In this case (determining the starting capital), we should approach the matter from the Bottom-Up imo, or at least this is how I do it, not pretending to be ‘‘the right way’’ or ‘‘the only way’’, this is my way. I’m always trying to watch my bottom line, the top will sort itself out… :wink:
It is said in every book on trading, says it every mentor or guru, says it ICT too: ‘‘start with what you are comfortable of loosing’’, dont trade with your rent money, dont trade with your lifetime savings, etc. This, combined with the minimum stake/size required by your broker of choice, should be the basis on which you should determine the starting amount. Nowdays you can start trading with 20 or 50 quid initial deposit.
And the size doesnt really matter with the ICT’s methodology, this thing (trading account I mean) will grow to a Million, no matter how small it is (still talking about trading account :wink: ). We have all seen it already in live examples. Even 50 bucks could be turned to 1 million, why stress yourself with huge starting accounts!?
Also, another thing, that is so obvious, but many traders missing it, you dont need and you never gonna use the full amount of you starting capital (being 1k, 10k, 50k). Allow, a ‘‘normal’’ 8 losses streak from the first trade, even on max risk of 2%, that shouldn’t go beyond 13-15%, hek make it 20% initial drawdown. If you remember Michael himself said in the first videos (just going through them again) something along the lines: ‘‘you wont need more than 30% of your account ever’’. So, to summarise, you only need $300 on 1000 or 3000 on 10000 physically available. Why you need to actually deposit $10k to sit there and do nothing, plus this is extra stress imo.
This is what I did: Check whats the min stake per pip on my broker, multiply it by 30 pip standard stop loss, then take this amount for your 1% initial risk (this where I did mistake and said this will be my 2% risk), multiply this amount by a 100 and you will arrive at your starting capital. I then, because like a bit of extra adrenalin, decided to put in only the money needed to place only one single trade, loaded just one bullet in my rifle if you like (’‘One Shot-One Kill’’, remember?). It was a win the first trade, so I had two bullets for the second trade and so on. From the second trade on, you risking ‘‘their’’ money, not yours and this is gigantic relief too.
If I was to loose the first trade, would’ve just put another bullet and try again until start on the right foot with a win. Hope all this makes sense to you.

:41:

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There are alot of valid points being brought forward regarding starting capital. Speaking for myself, I have a specific plan to trade with much more than my current starting capital. In a few months, I will soon be in a unique position in my life where I may take a full year off between contract work and give myself a chance to see if I can trade full time and change career paths. I am lucky that I can afford to take this risk financially and have full support from my wife as well.

My goal is to net about 8% profit on average per month consistently on a large account. I don’t need more but will welcome the extra $ if it comes. I realized recently that I am also affected by others posts/chats during trades so I will avoid them altogether while in the market and check back end of day.

Regarding this 1st month going live for me, I reviewed February’s data and re-ran historical trades against this month again . I would currently be a +2% which would interestingly be the worst month when compared to 8 months of data I have accumulated thus far. Let’s see how things go moving forward …

187

Wow guys… you are pushing this thread along rather quickly… and it only has one entry so far lol.

My advice on the starting Capital issue would be start with the amount you are comfortable risking and can stomach losing every penny of it… and still have the nerve to refund the account should you have to.

Starting with a small account gives little room for nerves and emotional tug-a-wars to impose their effects on your Trading and following of your Trade Plan… assume one has a plan that is. :wink:

[B]GLGT [/B]:57:

PS: Market Review Video being produced this afternoon… need to snag a bite to eat then uh’ recording I will go…

~

188

Hey ICT

I have a quick question about stochastic high probability trade setup that we use on the 1hr and daily timeframe. Is it valid on a weekly chart as well?

4hr stoch divergence.jpg700×380 29.1 KB

189

Yep :slight_smile: As ICT always says, his tools are universal, they apply to all timeframes :slight_smile:

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New Market Review Video Link On First Page… [B]GLGT[/B] :57:

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This will be my only post here, so that I am subscribed to this thread. The old thread is getting bombarded by flame wars.

Looking foward to the new thread!!!:7:

PS: The Video ICT made on the first page was awesome, but I cannot stop laughing at the high heels and make up by the blonde warrior. :18:

193

Sorry about that… ended up getting sucked into it because I got feed up with the mess of it… Trying to be a respectable guy… Decided to remove anything I said that could be taken negatively. That’s not what I want to be known for. Just want to show good fruit. You will not hear any more peanut galley from me… I’m here to learn and improve on my trading techniques.

195

Yeah it is from a movie called Sucker Punch

196

What’s up folks. Just saying high and looking forward to this year. Proud to say I’m a student of ICT and looking forward to the development of this thread. Akeakamai, thanks for the sobering post earlier, I know it resonated with me. Anyway, it is awesome to be part of such a genuine group of people.

197

aud_jyp_assian_scalp_022612.jpg700×304 21 KB

Reflection Reversal
Exhaustion Gap
Market Structure Breakdown (lower timeframe)
Market Flow Bearish
Range Expansion basis Fib pointing to 8645
Central Pivot 8645
Stop Pocket 8645
Used Friday’s High and little under it for Short cover from 8710

40 pips in the bank.

I don’t trust these yen pairs… I take what I get early and bail. These two currencies move a good bit during Asian Session and Fiber and Cable while overbought… neither had the easy sell setup as this pair. I found it really late and had no time to post and present a premise behind the trade and still take action on it.

Hope this satisfies nonetheless…

GLGT :57:

198

Does anyone recommend trading more pairs other than cable and fiber? I’m thinking of watching various pairs and only entering the high probability setups.

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Its been mentioned in the other thread. The aud/usd and nzd/usd are great ones to watch. Load up your tool and killzones the same, and just get used to where you see the action. They respect pivots well.

200

I prefer mastering the GBP/USD and EUR/USD first and then start looking at other pairs. This is my personal preference and wont trade any other pairs until I can make consistant money with these two. ICT has always said you can make more then enough money just trading these two pairs, so that is what I am going to do.

201

Dear all,
can you help to provide simple instruction how to watch ICT’s weekly market review. I’m trying, but it sends me to MSN site. Do i need go to specific par, passwords, etc?
Best regards,
Alex

202

I think this is a problem on your side I justed checked and went straight to the livestream video, no password or anything required.
Maybe you should try another web browser as I think your existing one is a bit dodgy.

Wally

203

Nothing special required, just click the link and it should play:

Market Review 02_26_12on TheInnerCircleTrader - live streaming video powered by Livestream

204

Hi everyone! Can someone kindly point me to where can I find more about that subject in ICT’s videos?

Thank guys!

205

refer to the original thread “What Every New & Or Aspiring Forex Trader… Still Wants To Know” and look under “High Probability Price Patterns : View Video”