My Week and a Progress Report on Price Ladder Training

14-18 March

As I mentioned in last week’s review that I am focusing on 2 areas to improve my trading.

1) Participating in the Futex Price Ladder Training Course, to improve my Dom reading skills and to work on my no fills on the Bund.

2) Working on my confidence and self-belief with visualisation.

Price Ladder Training – Halfway Progress Report

I am enjoying the course, learning loads, cementing other knowledge and improving my confidence.

No real trading this week as I was on Part 2 of the course and this consists of 5 days of Micro Scalping Drills on Sim that take place over a whole trading day. No time left for live account trading, missed out on some great set ups but I am playing the long game here.

I am not going to too much details about what I have learnt content wise on the course so far, as you can read all about the course syllabus here.

What have I learnt about myself as trader so far

Dom Reading

I knew more than I thought about reading the DOM, but this course has helped formalise this in a more structured form.

This in turn has helped me organise my own Jigsaw Dom to provide me the information in a cleaner format and get rid of some information which I did not need.

Planning

Futex provide a drill sheet with a plan for the day. I found that I worked a lot better if I read the Futex plan and then wrote out my own plan beforehand basically covering the Market I am trading, size, the set ups I am looking for and targets and stops. The fact of writing my own plan helped me focus on what I was trying to achieve with that days drill.

Focus

As these drills took all day and was micro scalping, there was lot of trades during the each sessions, between 60-100 trades over the whole trading day. So staying focused was important and it is hard to stay this focused for whole sessions at a time. I used the Pomodoro Technique, which is 25 mins work followed by 5 minutes break. I would get up from the desk and stretch, make a tea and then get back to it. This helped maintain my focus.

I have used this technique during my real trading but only when I felt my focus was slipping, but I intend to incorporate this every day, as it was very helpful in maintain my edge during the day. The biggest drawback is sometimes getting a set up as when I was meant to be taking a break. I would take the setup but on exit then take a break for slightly longer.

VPOC

In my current trading system, I don’t tend to trade around the VPOC, only certain setups call for a trade at the VPOC. Trying to micro scalp the micro balance that formed this week around the VPOC, was hard work, a losing proposition for me and was too much of a drain on the emotion energy and focus. Though this is not a time to completely lose focus as the eventual move away is something to be in.

Afternoons

Basically I was a lot better in the AM session. Found the PM session a lot harder to read, a lot harder to maintain focus and I was more likely to do stupid shit in the afternoon.

To improve my afternoon focus, I am looking to implement this suggestion from @PastaTrader_Fab in the this article from Breaking Out Bad

Though I suspect that Fabio’s climate is slightly better than a damp, cold English south coast.

Open

I tend not to trade the cash open, but as most of the drills required me to take a micro scalp on the open, I was forced to trade it. It was a lot more readable than I had previous thought and some of my best scalps of the week was off the opening order flow.

Anticipation

Getting in too early was sometimes a problem, I sometimes got in too early before the order flow showed itself properly on the Dom. I got better at waiting for this as the practice started to cement what I was looking for in the order flow as the week progressed.

Second chances

In my real trading I would sometimes get a no fill or miss an entry , I would then sometimes see some order flow that would enable me to second chance, but I many times I could not take these trades as I would be using my original stop and targets for the Risk and Reward calculation and the RR would not add up.

This week has shown me that I can micro scalp this order flow in the direction of my target with smaller stops and get a decent RR, of 2-3R.

Where am I wrong and is there an opposing trade

In my real life trading, I would be looking at an area for a trade, and whilst I was looking at this area I would be looking at where I would be wrong, where I think the first trouble area if I am right and possible entry points. Very rarely would I be looking at trades in opposing directions. This week has taught me that in certain areas, that I should be considering that if I am wrong, there could micro trade set up on the opposing direction, that will become based on the order flow of all the other traders that where wrong as well and this opportunity should be considered.

Lose as much as I can Drill.

Very interesting drill. Very simple, lose as much money as you can across the AM and PM session using 4 lots. I went in to the session with the plan to trade opposite of my trading system. And it lost money, so that was something of a confidence boost to me. Also this was the last day of the week, which followed 2 days of being in the market constantly (was not allowed to be flat) but micro scalping, no position trading. To be frank, I was on my chin straps, and struggled with focus during that day. This just reinforced that focus and energy during the week, needs to managed carefully.

Shit load of Trades

A great thing about this course, is the number of trades taken, and the immediate feedback from the market on the results. I have probably taken in the last 5 days about 6 months’ worth of trades. This has given me a certain confidence in the ability to manage the trades on a short term basis and a more fluid way of handling orders on the Dom.

Bund and No fills

The fecking Bund, is still a fecking fecker when it comes to fills even in micro scalping. To prove it, I recorded me trading the Bund in one of the PM sessions here.

Hard Stop

Whilst having the confidence of managing a trade without a stop order in the market and to get out where the trade is wrong, sometime the market will take off and trying to get out can be a pain, and can result in getting out with a lot bigger loss than planned. For any of these techniques I use in real life, as of now, I have a plan on how to get out, one chance to get out on a minor pull back and then a market order on any further adverse movement and I would have an emergency stop in the market to limit any loss.

Flatten button

Unlike my other Dom, the Flatten button does not pull all the other limits orders in the book. Lucky I learnt this on Sim and on the day of lose as much as I can.

Visulation

Had some great tips from Diontrader this week on visualisation. I am continuing this practice before the open and once before bed. This has proved to beneficial and I feel a lot calmer and focussed during the sessions. The real test will be once I go back to the real market.

8 thoughts on “My Week and a Progress Report on Price Ladder Training

  • 20/03/2016 at 12:19
    Permalink

    Hello Adey,

    I’m a fan of your minimalism and I’ve learnt a great deal from you about simplifying the process of trading and specifically from your ‘essential resources’ page.

    I’m aware that you trade through Stage 5 and I’m currently looking for a broker to trade FGBL and ZB. I am also in the UK, the shite part in Glasgow and I’m worried about the currency risk of buying euros for eurex products in a US brokerage. I’ve tried to find information about this online but struggling…

    When you buy FGBL in a US brokerage, how much currency exposure do you have, if any?

    Any help with this would be greatly appreciated, it’s these little nuances I’m finding difficult in the practical application of my trading.

    All the best,

    David.

    Reply
    • 20/03/2016 at 15:46
      Permalink

      Hi David,

      Thanks for your kinds words.

      Firstly there is always a currency exposure when trading in foreign markets, whether it is short term or long term. As the margins and profit / losses will be in a different currency than the UK. And that doesn’t change whether you use a UK broker or a US broker.

      If you use a US Broker, and they keep your deposit in USD, then you have a long term currency exposure when you eventually bring then money back to the UK.

      But if you trade Eurex products from a US broker, then you will have a double exposure. As you have an exposure of euro to dollars and then dollars to GBP.

      As I only trade Eurex products, then I have asked Stage 5 to keep my secured funds in GBP, so I only have currency exposure in the short term between the Euro and GBP.

      Your situation is slightly more complicated as you intend to trade products that are traded in Euros and Dollars. In my opinion there is 2 options.

      1. That you keep your funds in GBP, at the US broker, that way you only have short term currency exposure to dollars and euros.
      2. Split your funds at the US broker, into Euro and Dollars, then that way you have a long term currency exposure to dollars and euros.

      I would suggest that you do not want to have a purely Dollar account as you would be changing euros into dollars and then dollars into GBP.

      In my opinion I would want to avoid having a short term currency exposure and a long term currency exposure at the same time on my funds. As not only the change in exchange rates will effect the funds, but each time money is exchanged internally within the bank, they will charge you. This is done via widening the spread. Every transaction will have a cost.

      There we have to weigh up the short term exposure of frequent small costs and limiting the change of a long term change rates and the long term exposure of a bigger change in funds from a large change in exchange rates (could be beneficial or not) and the larger one time cost of exchange the money into your home currency.

      UK banks used to widen the spread so that the cost of the transaction would be about 4% of the amount. This information is about 6-7 years old so not sure what they use now and I do not know what internal charges US bank used.

      I am not sure what the other US brokers allow but Stage 5 was very accommodating, and allows me to keep my money in GBP.

      I hope this answers you question.

      Adey

      Reply
  • 20/03/2016 at 18:07
    Permalink

    Hi you say you are based on the south coast as I am , where abouts are you ?

    Reply
    • 20/03/2016 at 18:16
      Permalink

      Hi Simon

      I am near Portsmouth. Where abouts are you based?

      Adey

      Reply
      • 20/03/2016 at 19:09
        Permalink

        Hi Adey

        I am in Storrington 8 miles N/W of Chichester I trade Eurex AM and ES, CL , ZN in the US session . I have signed up to the Futex Live daily levels I haven’t signed up to the ladder training yet . I do mix the trading with my other business but looking to trade full time soon .

        A little bit of a lonely past time trading from home office , would like to speak to fellow trader , my contact 07889365813 .

        A quick plug if you don’t mind , which is a show I watch on the internet , http://www.tastytrade.com run buy Tom Sosnoff who was the creator of the trading platform Thinkorswim . He is a ex pit trader from the 80s . He banters and trades live from 1.00 pm gmt . Also if you go onto find shows scroll down to Cancel Crash is worth a look . A lot of his show is Options , but he does scalp the Futures markets . Also under find shows there is an interesting take on Scalping .
        If you haven’t seen it on youtube Floored The Movie , about the demise of the trading pits .
        If you want to speak on the phone day time is good .
        Hope this is of interest .

        Simon.

        Reply
        • 20/03/2016 at 19:38
          Permalink

          Hi Simon

          I will give you a bell during the week.

          I will also check out the shows you recommend.

          Adey

          Reply
  • 20/07/2016 at 10:15
    Permalink

    Hey Adey,

    After a few Months of DOM only trading, now with only TT, I find the best trades appear when price stops, then hangs around that level, the moves away, and retests that price. Looking at the T&S with a filter, and one without can give great insight as to when the professional money are postioning, and if those prices get accepted or rejected, then you have potentially good runners. I find this the most reliable, with front running the least.
    Regards Seb from the PLT program.

    Reply
    • 24/07/2016 at 11:01
      Permalink

      Hi Seb,

      You make good points about order flow. I too use a filtered time and sale to compare against unfiltered, one to ensure that there is enough volume being traded and second as you say to see where the positioning.

      I agree that retests of previous areas of order flows is a great entry.

      Front running has it’s problems. Getting filled at a good price and getting filled. I find scalping in front of big numbers in the Bund, especially problematic as the small reaction tends to happen 2/3 prices away from the BN, once it gets to the BN, either it ends up accepting it with little reaction or can reject it with a bigger move. But the scalp for 1 to 3 ticks does not seem to happen 1 price away, that my experience anyway.

      Good luck with your trading.

      Regards

      Adey

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *