Manage Your Market Risk. Mouse over chart captions to display trading signals. You will have a reflex action. When bands contract in a narrow neck, the squeeze is highlighted by a sharp fall in Bollinger's Band Width indicator as in the Microsoft [MSFT] chart below. Take it or leave it. Put them all together and you get what I have. And when I researched on Statistics and I started understanding stuff I moved onto Physics, then I went deeper.
Order At The Bar. I started trading when I was 18 years old. Previously I was taught by a trader from the USA who happens to be a famous guy who likes to grow Turtles. I started my first trading career in the pits at 18 years old. Trading my masters account in the Chicago Mercantile Exchange. The very first day I lost half a million dollars when I was 18 years old. That was when I was hooked. I was determined to make it back. I came from a middle class family. I started working when I was 14 years old to support myself and my family.
I graduated with a degree in Political Science and now I am also a writer. The interview me on TV, radio, newspapers and I sometimes adjunct teach at Universities Mostly investment bankers and central bankers which is rare, because not everybody gets to teach central bankers. Particularly on risk management and some bollinger bands nick radge the stuff Governments have to decide on such as interest rate decisions and stuff like that. Can you give the listeners some insight into your trading?
Your trading style, strategy, time frames, ave. First of all I trade with a non-time based chart. I swing trade and do intraday trading which is unusual for professional fund managers. My typical profit taking is between 5 and 20 pips which is scalping intraday. I use custom technical indicators that I designed myself which really is no secret because after all it is a time series theory based on statistics.
Namely Arima and Anova variance studies and linear regression studies. That constitutes the main component of my entries. By the way, my stop loss is seldom more than 10 pips. I trade in the foreign currency, Forex, markets. At least not with my flag ship fund. Think of it this way right. If you want to have a good trading system you want to be right in 3 things. Number 1 is Direction, which is the easy part because if you can use any form of indicators you are going to get a direction.
Number 2 gets harder. Magnitude, you need to know when to take profit, when is an optimal stop loss as well. Then the 3 rd thing and most difficult is Timeframe. By when will the market go to which price? So, in order to do that you need to create what we call a Time Series Study with studies in deviations of variables. Think of it this way, look at a period of 10 years series data.
Then look at the way it fluctuates, historical swing. And that is actually what we call the variance. And how do you derive the mean? You use a time series study. Some sort of moving average, with heavier weighting on the current data. There are many types of moving average, actually there are about 32 types of moving bollinger bands nick radge in the world. So, you do a linear regression where you have the price up, up, up and lots of down prices. Lots of dots in the data form. Linear regress, find the best curve fit line, determine where is the best deviation and what do bollinger bands nick radge get?
You get a place where you can probably predict. You can probably predict where the price is going to be at which moment in time. You can probably know the stop loss you need in order to capture the gain that you desire. So, you begin with philosophy. My philosophy is: I want to have the smallest drawdown with the greatest gain in the shortest amount of time, which is what trading is right? Trading is about using the smallest amount of capital, smallest amount of risk, making the most amount of money in the shortest amount of time.
So it beings with the philosophy and then with a philosophy you must have a hypothesis. Then after hypothesis it becomes theory, tested with real data. And after that it becomes theory, it becomes rule which forms into the trading system. So I developed all this by myself. Which is difficult for me because I did not even take mathematics in high school.
Primarily because when I was in junior high, 14 years old, I took a subject called probability, and nobody was able to solve the question that was asked by the teacher in the whole cohort and I was the only one that could do it. I studied English literature, like Shakespeare. For example, in Shakespeare, if you want to compare 5 princesses and a king, how are you going to make the correlation to predict what he outcome will be?
You will need a mathematical set of tools. You can use algebra, you can use calculus you can use a lot of things. So in order to solve that arts question I was forced and interested enough to research on statistics. And when I researched on Statistics and I started understanding stuff I moved onto Physics, then I went deeper.
I went into Quantum Physics and applied what we call the interdisciplinary approach to trading. So my trading comes from philosophies derived from Arts, Science, Physics, natural medicine as well. Put them all together and you get what I have. I start on Monday at 5pm EST, which iifl options brokerage charges is Sunday in the US when the Forex market opens.
I will trade manually for a few hours and let my automated trading system take care of the bollinger bands nick radge. So, I trade from 5am, my time, to 3am, my time, the next day. I just sleep for 2 hours a day formally and nap for 15 minutes 4 times a day. What traits did you have, what actions did you take? The bollinger bands nick radge trader does not spend an immense amount of screen time of the computer. So obviously, the amount of screen time correlates and causes the amount of success in trading you will have.
Because if you want to trade my way, which is intraday. You will have a reflex action. You have to buy and sell in a flash. Take it or leave it. I cut losses a lot. Out of 10 times I lose times. This has something to do with the ways schools teach us in formal education. Everybody makes tonnes of mistakes, even the best. So if you do not make mistakes that are small enough to not lose your entire capital, or worse off — what I do it wait until margin call. Then you will not be able to do anything successful.
They try to use common technical indicators. RSI, Stochastic, MACD, CCI, Moving Averages blah, blah, blah. Do the banks use that stuff? No, they never use that stuff. How do I know that? Because I was in the bank before. Things like Fibonacci, things like Elliott Wave, things like Dow Theory. The never ever, talk or use that stuff. Wish they do exist, but the question is: How much do you win when you win and how much do you lose when you lose? So, pay attention to that.
So, the third thing is phycology. Most traders have very bad phycology. When they win they have a winning streak. When they lose they spiral into self-destruction. There are tonnes of reasons for that. The natural human instinct does not make us good traders. Most traders are not happy. So, naturally you lose. Only to realise they are forced to use such a small stop loss they surely get stopped out before the market goes in their way. Which it is in the system I shared with you right?
That has a high accuracy. I gave it to you for free right? Just on your 4 points above, how did you pick up on all this? When you first started out, did you have a mentor or was it just self-education? I did have a mentor bollinger bands nick radge he did not really teach me anything about this. He taught me about supply and demand in the market by making me plot charts by hand. Even plot moving averages by hand, without a calculator. So I had to calculate their values in bollinger bands nick radge head and take graph paper and draw them.
Which is where it tells about market demand and supply, what the big boys are doing, what the small fries are doing and how the strong bollinger bands nick radge takes away the money from the weak hands. Before he could teach me more he passed away. The rest of the things I had to discover myself the hard way. When I was 21 years old I was a millionaire. When I was 21 and a half years old, not even 22, I had only 50c in my account because I lost everything I had in the markets.
And this cycle went on 3 times before I hit 30 years old. So, I was a millionaire, bankrupt, millionaire, bankrupt, millionaire, bankrupt, three times in a row before I even hit 30 years old. I hope nobody goes through that but that seems to be the case now. So I did withdraw money, but if I lost money I put the money back and tried to trade again and recover the losses. You can think of it as some sort of gambling habit.
Couldwould, should is what will kill you. The fact is I did have a large account, millions of dollars. And still the market can go all the way to get a margin call. Primarily, accelerated because I was doing Martingale strategies. I was averaging down the price. What sort of things do they do? Bollinger bands nick radge, there are two types of way they do that.
First the client calls in and request a quote, they will muck up the price and try to sell it off to another person, making the spread in between. The second type if the very very long term. They buy, they use fundamental analysis. They have the economists behind them. They buy and hold for years and years and years. There is no intraday swing trading. There is no inter week holding. There is no 4 hour chart, stuff like that. Is there a better way? There are people like me who on a professional basis who do exactly what the retail traders do except that we use different tools.
Except that we might be using non-timeframe charts for example. We may be using very small risk exposure or we are very well capitalised. So, there are some differences between a professional and a non-professional. If you were a retail trader working a day job, what 3 steps would you take to start earning an income as a trader? First of all, run a demo and a live account side by side.
So keep doing the system improvements, keep reviewing your system almost every day. Is it sound, is it logical, does bollinger bands nick radge work in a sense? Minimally after 33 trades, because you need at least trades before you have statistically significant analysis of what happened. After you do that, then move onto professional trading by increasing your lot size.
Can you explain to the listeners your preferred trading strategy, the ins and outs of how it works and why you choose this type of strategy over others? It boils down to philosophy. If you are a retail trader and you need to make a living. Can you actually use a 4 hour chart, can you? You mean you 4 hours, 8 hours, 12 hours before you get 1 signal? And if you get that one signal, are you going to bet very big on it?
Which is good, because you bet too big you lose. How are you going to make a living from that? So, because of that, when I started out I decided to go very short term trading. As short term as possible. So, I made a few trades every half an hour, or every hour. Then when you go to the short term trading you have a problem. You have to use the 1 minute, 5 minute charts and stuff like that.
One moment it goes up, the next it comes down. The moment you buy it goes against you, the moment you sell it goes against you. You feel like an idiot, you feel like the market is trying to fool you. So, how can you do bollinger bands nick radge The only way you can do that is to eliminate the noise. Use non time based charts. Which means a chart that only plots when a certain X amount of price has moved so that it reflects the true movement of the price.
Not the 1 minute, bollinger bands nick radge the 5 minute, whatever. Even a MACD will look different. As a trader when I started out, I could not afford to lose a lot of money so my stop loss naturally has to be not that big, pips or something like that. And as a fund manager, my SL cannot be too big as well, like pips. So, your SL cannot be too big. Which mean to say your accuracy needs to be high. Which mean to say the earlier you buy the better, the earlier you sell the better.
Because you also need the buyers and the sellers to transact, then the price will form. Diving a little deeper on fundamentals, what 3 things would you recommend a novice or intermediate trader educate themselves on? I have one thing to recommend, the subject of Game Theory. This will help you predict what the politicians are going to do, e.
Basically, Game Theory is a mathematical form of predicting outcomes. There are a lot of free resources out there on the internet. I think there a site called gametheory. They even have free software you can use to calculate. Diving a little deeper, thinking about any price chart, what 3 things would you recommend a novice or intermediate trader educate themselves on when reading a chart? There is no central exchange so there is no reliable volume to read from. But it give you a concept of what the big boys do and how they take away the money from the weak hands.
Which really is demand and supply. Then if you want to sort of automate it to an algorithm you probably need more advanced indicators that can read those things then buy and sell according to the rules. Just go bollinger bands nick radge Google, type Volume Spread Analysis Free PDF. I think there are lots of them. If you have a mentor it takes 6 months. My mental approach to trading are the 4 things.
I want to use the smallest amount of capital to make the greatest amount of gains with the smallest amount of risk over the shortest amount of time. I use dynamic trailing stops which is not liner. Do you automate parts of your trading? If so, what have you automated, why and how does it help you? Why do I say it like that?
And when you have a lot of free time you start to think about a lot of strange stuff in your head and sometimes you come to the market and you mess up your own signals. You intervene with your algorithm and you try to curve fit make it better for no reason and you actually spoil the whole system. If there was one thing you would recommend any retail trader spend the next month mastering, what would it be, why and how could they go about mastering it?
Find a good trading mentor that does not charge you crazy fees or even better for free. But if they are not lucky enough to find someone like that the best thing they can do is to commit to double the time they spend on the computer. Some of the people come back from work at 7pm, have dinner, spend time with their kids and start trading at 9pm. The first thing you need to do is to convince yourself you cannot be like that. So you need to trade all the way to 2am instead. Will that effect your day job?
For sure, but every trader spends a lot of time and so should you the newbie. My preferred trading platform surprisingly is Metatrader 4. Of all the professional platforms I have available I just use the retail one, Metatrader 4. If there was one mantra or bollinger bands nick radge our listeners should reminded themselves of each day, to help improve their trading, what would it be? It also means the market is there tomorrow.
For those not in the know, my mastermind community are working towards creating a profitable trading system. You put a very very tight stop loss, right at bollinger bands nick radge high of the candlesticks. You can go to my website www. You can find me on Linkedin, Skype, you can call my cell phone if you want to. You can find me lots of ways. I must say I did enjoy meeting He Shuhan and with his MT4 background it has been the binary option pricing using fuzzy numbers aligned to what I do, so in that respect it did enlighten and inspire me further and is up there with the best of them.
I think I mention it in a future bonus episode. At all times any and all bollinger bands nick radge on, or product purchased from, this website, is for educational purposes only and is under no circumstance intended to provide financial advice. No guarantee is represented from any statements about profits or income, whether express or implied.
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SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. How he reads the markets using non-time based charts. A free resource that will change the way you look at the markets. The indicator he uses to dynamically manage trailing stops. Hi cam did you publish the results? Buy Cam a Beer to say THANKS!