How I'm making trading adjustments in extreme volatility
what is up everybody i want to go over some questions from other traders that i've gotten such as you know what am i doing in this volatility can i even do six tick stops in this volatility uh will i live stream at some point and uh can you show me profile setups so i do want to go over a lot of that stuff i want to show you adjustments i'm making in my training right now because obviously the volatility is higher this is from today this isn't the full session but this is from today um all these trades were after uh fomc after the release and this is from uh may 4th 2022. man my face is itching but anyways as you can see i'm trading one lot trades um and clearly i'm not my mae is not six ticks if you're not familiar with mae or mfv mae is how many ticks the trade won against you while you were in it mfe is how many ticks the trade went in your favor and you can tell if a trader is decent based off these stats if they're showing you wins but they're not showing you these stats you need to question it so with that being said let's talk about it so i am making adjustments if you've not seen my sweet spot 2 video check it out i talk about when my trading works and when it doesn't work and i'm talking about running tight stops i'm talking about six tick stops there's a point in time when six tick stops works and there's a point in time when it doesn't now with this higher volatile volatility environment it's not going to work very well especially after an fomc release it's going to be damn near impossible to hit a six tick uh stop trade without getting stopped out all the time and the reason i know that is because i've been stopped out a lot in that type of environment and hence the reason i made my sweet spot video um explaining when that works and when it doesn't work and currently we're in an environment where it doesn't work now it does work at specific times in the session but the broader volatility at times does not warrant it so it's very important to identify shifting conditions and i'm going to share with you a method i use to identify shifting conditions so let's go ahead and do that so let's talk about why am i running one lot trades first and foremost it's all about risk to reward so uh what's going on is i when i get into a trade at say this price with four lots i'm risking 50 bucks a tick right so i could lose 50 on two ticks it'd be a hundred one fifty two two fifty then three right so you know i am losing i'm risking a max of 300 bucks so that for me is i'm comfortable with that um 300 bucks i've been doing that all for a long time so in order for the trade so let's say i enter here you know the entry is here in order to pull a two to one risk to reward ratio we got one two three four five six seven eight nine 10 11 12. 12 ticks would be a two to one rr trade most of the time the environment will warrant uh this kind of risk to reward ratio excuse me so um not all the time there's times where it could be too slow and too choppy but like a low volatile chop to where i'm not getting that and that's where i'm kind of on the other edge of the bell curve as far as my sweet spot not working when it's too slow there's a point where it's too fast obviously you're getting these moves these four four point moves no problem you know you're getting um what is it six twelve uh 20 you're getting 24 you're getting 24 tick moves relatively quickly just no problem you you can get 24 tick moves on average so with that happening i'm gonna get stopped out all the time i mean so i have to make an adjustment i have to do something different this is more recent and it's been working really well so here's what i'm doing to make adjustments in this current condition so what i want to do now is since i'm risking a one lot you know that's going to be uh what is it i'm risking 12 dollars and 50 cents uh per trade per tick so now i can risk a 24 tick stop loss and that is going to be minus 300 so now i'm i'm still willing to take this 300 loss but now that my stop loss is 24 ticks um i'm more likely to be able to actually not get stopped out all the [ __ ] time and hit a good trade the problem is is now i need a 42 tick when to get myself a two to one rr trade right and that definitely can happen so what you need to understand about my trading in general is i do fight my way into trades there's a point in time when i know i need to be scalping there's a point in time where i can hit it and hold it so i'm getting relatively decent at knowing when to switch between straight up scalps and when to actually start holding that is a skill i've been actively trying to develop i think as a trader if you have an edge and you stick to that and you're not trying to push your boundaries and try to tweak it try to make it better try to do different things with it i think you're going to plateau yourself and you're just never going to be a next level trader that's the way i feel about it so i mean i'm always evolving if you watch this channel from the first video up until now i'm always evolving so when you come here uh understand that i'm getting better or attempting to get better every day right so with that being said um i do fight my way into trades so there can be times where and let's go back to this we have uh you know let's say in a normal conditions you know we're entering the trade here you know one two three four five six one two three four five six seven eight nine ten eleven twelve now i'm not always going for the two to one risk to reward ratio if i can do better i want to but i do have targets that come out here then i have another target that comes out an additional six ticks above that another target comes out another six ticks above that because as it's going up um another additional six ticks it goes from a two to one to a three to one to a four to one to a five to one and i'm simply having targets come out on a bracket order to mark the prices i want uh to just kind of gauge where i am as far as risk reward goes now i am trading based off of uh volume profile structure momentum and a shitload of other stuff um so i'm not strictly trying to get out out of two to one if i can do better then so be it but that's just sort of gives me a rough idea of what price a two to one three to one four to one and a five to one would all be out right so when i go in four lots i'm all in i go all in right and then at a two to one i have a one lot come off or well it's sitting in the queue and then on a three to one i have another one lot sitting four to one another up until all four lots are in different places and again it's just to give me an idea of what the risk reward is on the setup i'm not trying to get out because of uh it's a two to one i'm not i don't want to have like this hard exit it all depends on what the order flow is doing the price action the volume profile structure and a whole bunch of other [ __ ] so when i'm getting into a trade often i'm fighting my way in right so there can be times where i'm picking up a you know a one-tick win because i'm trying to get the [ __ ] in it and it's not working you know i'm trying to get in it and it's just not working so i cut it and try to lock something in uh instead of a break even if i can ideally ideally do that right so when i get into a trade you know sometimes it'll go up to where the two to one would be and um based off of other things i'll scale a one lot off and usually my first set i'm always trying to get off relatively early if i'm not super confident in the trade but if i'm sure that there could be a bigger move i'm going to attempt to hold the other three contracts and sometimes it just comes back and then i'll pull it down here or whatever or i'll let it test me maybe the volume slows up maybe i think there could be a bounce there based off of price action and all that so i might hold it and if it's just starting to fail you know i'll cut it so there's a lot of times where i'm scalping but that's not my intention i'm trying to hit a fatter move at times there are times where i want to scalp but if i'm going to scalp it needs to be a scalp that will at least yield a two to one based off of a bunch of other variables so i need to at least be locking in a 12 tick there needs to be a potential of a 12 tick move in order for me to even consider taking a trade and sometimes i'm just not getting that at all so i can print a really solid p l staying within that two to one wrist reward ratio but that's because i'm not trying to do that it's just i'm scalping because there's so much [ __ ] going against the trade that it's just not working the [ __ ] out so now that i'm trading a one lot here's the difference with a one lot okay let's talk about the risk reward on it so here's this is the entry right here right so one two three four ticks would be fifty bucks right well on four lots one tick would be fifty dollars right um eight ticks one two three four right here this would be a hundred right on a one lot whereas the second tick would be a hundred on four lots so what's going on is now that the volatility is increased my my stop loss is now you know minus 24 right um because i'm willing to risk uh 300 bucks um the thing is now i'm looking at this from a how can i say it like my eyes are kind of blurred a little bit and i'll explain why um so when i pull the trade off maybe four ticks or eight ticks that's the equivalent of me getting out for a tick or two on four lots as far as the monetary value goes right so there are times where i'm looking at it but now now i'm looking at it from a more stretch perspective i guess that's a good way to explain it i'm trying to explain this so hopefully you guys can understand what i'm saying so you know essentially what i'm doing is i'm looking at my normal profit and loss on four lots but now it's it's being stretched outward risking the same amount of money on the downside right and i would be making the same amount on a two to one risk reward ratio if sephiro's got to go a lot further in my favor but with the volatility increase that's more likely to happen so now when i'm looking at a four ticks it's kind of like the equivalent of looking at a one tick win looking at eight ticks is like the equivalent of you know looking at two ticks so on and so forth as it goes up and it is the equivalent as far as the profit and loss would be whether i'm trading a four lot or a one lot so that's the way i'm starting to look at it so i'm looking at the trade from the same perspective i normally would but it's more stretched so the reason i say that is because uh the trades still work so the trades are still working um and the only difference is like you know i trade a lot of volume profile the only difference between you know of all volume profile and high volatility is the amount of movement uh then in low volatility it'll be less movement let's and let's pretend there's still a tick scale you know one two three four five six seven ticks right so you're still getting volume profiles they're still being built auction market theory is still working the thing is it's more stretched out it's a bit more noisier i would say yes and no to the noise yes and now yeah there's a fair amount more noise but then again low volatility environments can have a tremendous amount of noise as well which is chopping excessively so the setups are still there i'm still trying to be as precise as possible i don't want to take four i don't want to use 24 lot or 24 tick stop losses in my normal trading um because if i start doing that when the volatility is less likely well now my now i got to get a huge a an even bigger risk to reward ratio right i gotta get 42 uh what is it right 24 what is it what is 24 times 2 8 40 48 ticks that's it so i need 48 a 48 tick run to get a two to one risk reward ratio and i like trading tight because i can get those two to one three to one four to ones a lot easier because the market doesn't have to go as far and when your volatility starts contracting it's less likely that you're going to actually be able to even pull that off so that's why i don't want to get complacent and trade bigger stops i want to trade as pa as tight as possible within reason so if the volatility is clearly too much and there's just absolutely no way a six tick um stop's going to work and you can tell by just looking at the price action on your dom or whatever if it's just ripping no problem you know what six four points if it's pulling four point moves no problem well then it's clearly it's very volatile and a six ticker ain't gonna work so therefore i'm no longer in that sweet spot like i mentioned in that video so this is an adjustment i'm making to kind of help myself on the outer edge of my sweet spot and now i'm able to sort of perform in that with a different adjustment right so this is an adjustment i've made and as i make this adjustment it's going to start to expand my sweet spot out even more because as a trader there's going to be a point where your trading is really good and at some point your trading is going to suffer and that's because you were sweet spotting and you need to learn how to trade on the edge of your comfort and then you're going to start to expand out your sweet spot right so for example um you know that maybe this is your sweet spot right now maybe you have a sweet spot right here and and as you get better and you learn to trade on either side of your sweet spot you can start to expand out further and further so you know this would be low volume and this would be high volatility environments so over time you keep making finer and finer adjustments and you're to the point where you're becoming more of a professional in my opinion because you you now have adjustments you can make in the different conditions so you can trade the different conditions now my setups pretty much work across the entire board the thing is it's the adjustments that are needing to be different and by leveraging a one tick 24 a one lot trade with a 24 tick stop loss um i do put the marker out right um yes i can't do scaling like i normally would but um it's so volatile i mean you guys saw that p l that was you know 900 bucks on one lots on so many trades is pretty good and that's because the volatility uh is there right so if that volatility contracts then that you're not making that kind of cash on a one lot so you want to start making adjustments so one way i i look at volatility is let's say we have all these ticks again right a [ __ ] load of them right i don't know how many this is but you know if if i'm seeing it churning you know on average you know four eight i would say about eight tick range if i'm seeing it because i'm looking at a three second chart by the way uh so i do look at a three second price chart so i do want to talk about that real quick so i do look at a three second price chart and it is the price chart on my auction vista next to my jigsaw if you want to save 30 on auction vista and jigsaw use my affiliate link in the description and then use my coupon code i would greatly appreciate that but that is what i'm using as the three second auction vista chart for one it aligns with the dom which i really like i know it's a shitload of noise i know a three second chart is a [ __ ] load of noise but in order to be a precision hitter um you need to learn how to read the noise and i do look at price action actual physical price action price patterns you know as a retail trader you might look at head and shoulder patterns wedge patterns all that [ __ ] uh based off of the way the price bars are moving i am doing the same thing but on a three second chart but i'm not necessarily using stereotypical price patterns there's certain things i do that are strictly fat cats uh that i don't you know that's just really not out there on the internet it's strictly my price patterns that i'm using and those price patterns must align with volume profile now let's talk about this real quick somebody asked me can you show how to do setups on volume profile absolutely not reason being is if you've checked out my last video on price sweeping it took me 30 [ __ ] minutes to explain uh that price sweep um and i went over several scenarios of what it could mean in specific areas when i might want to trade with the price suite when i might not want to trade with the price suite so in order for me to share volume profile setups i cannot give you simple generic [ __ ] because i am not trading simple generic share [ __ ] if i'm gonna share something it's going to be stuff that's working for me and the only way to really show what i'm doing is well every trade is very unique first and foremost every trade is very very very very unique in the way you trade it the way it feels the way it moves so there is no rigid trading my trading is very fluid and i think a lot of retail traders you know it's good to be rigid when you first start and this is another example you know let's say we're real rigid right we trade a very specific level a specific way and it won't work that often but the more fluid we get and we don't trade that exact level we start to trade around the level based off of other things then we can start to get the trade to work out for us more and more so if you're trading a movement average and you're just hitting the move in average yes it can work at times but now let's start trading around the moving average based off of other things with multiple you know factors of support so as we use more and more multiple factors to support higher higher time frames and lower time frames again we start to expand how we can get the tray to perform for us based off of that specific area more and more and more so when i'm going into my volume profile trades i'm consuming a [ __ ] load of information right if you're not able to read the order flow you're not able to read the tape if you're not able to be quick if you're not able to read the price action on a three second chart if you're not able to use multiple volume profiles on multiple time frames and you're simply not going to be able to take my volume profile traits so what i would have to do is i would literally have to make a 30 hour video series on how i do it and if i'm going to make a 30 hour video series i'm going to sell that [ __ ] okay because i'm not doing that [ __ ] on [ __ ] youtube because that is a tremendous amount of [ __ ] work right and the problem is as a viewer if you're not watching every single one of those videos the context is all [ __ ] whereas if i sold the [ __ ] and this is probably a hint of what may come in the future i don't know i've tried to do stuff to sell to you guys in the past and i just it's so much work i just have never i don't know if i'm gonna actually follow through with doing that but if you pay for something you're more likely to actually go through all of it instead of me putting [ __ ] sporadically on the internet also i don't want to give away all my goddamn [ __ ] secrets yeah there's [ __ ] i do that i don't see other people doing and i've spent [ __ ] five plus years developing my edge and i just ain't willing to give all that [ __ ] away right especially because i know there are people who don't like me that watch this [ __ ] channel and if they want to [ __ ] know about it they can [ __ ] pay for it which i know they wouldn't so that keeps them [ __ ] out and i just don't want to be giving away everything there are traders once you hit a specific level you just don't want to be giving it all away right now don't get me wrong i do share with people and this now comes back to streaming on youtube i ain't doing that [ __ ] i ain't doing that i've been streaming on discord since 2020 of january consistently streaming on discord the thing is it is now private okay so i do it and i've been doing it in front of a small audience i'm ain't doing that [ __ ] on youtube first and foremost when you're streaming in front of [ __ ] people you're getting all these goddamn questions and then you get distracted and then you're not really trading and if you're doing it on youtube it's always new and random people that are always coming in so they really have no idea what you're [ __ ] doing and then you're constantly re-explaining [ __ ] that you explain to everybody else that's been consistently there so for me i do it it is now locked because the audience has been growing i've done it for free forever i'm still doing it for free but it's to the point where it's private and there's just really no way to get in it i do it for the people that have been you know they went into my descriptions on my videos they see the discord they go to the discord they see me in the streams and the people that make the effort to show up every [ __ ] day are the people who i do it for the people that have been showing up month after month after month and really understand what i'm doing is who i'm doing it for not people that are going to randomly pop in and out because they have no idea what's going on um you have people that'll and i don't want to waste my time on people that ain't showing the [ __ ] up all the time do you understand i don't want to have to keep regurgitating the same [ __ ] over and over and over because people are popping in and out randomly right if i'm gonna help people for free i want you to sit there but i i want you to do it on your own free well in accord and those are the people i want to help people that want to know what i'm doing the people that show up and the people that are willing to sit there and that have been doing it and have proved to me that they are going to do that because i've ran private uh discords in the past and all that and i've wasted time with people and i just am not about wasting [ __ ] time and i'm not about doing this in front of a large [ __ ] audience and i've listed off many many many many many reasons why i simply will not do that on youtube just don't want to do it in front of a bunch of people don't want to give my [ __ ] all my [ __ ] away for free if you want to see what i was doing then you should have been consistently showing up in the discord streams uh you should have been reading the descriptions but as i grow my subscriber account grows my audience grows there's more and more demand for what i'm doing and as there's more and more demand i'm going to eventually put a price tag on something but not the streams again there's just no way to get into it and i'm not charging for it so i want to continue to give to the community for free and if i do start charging for [ __ ] um and i put together a 30 hour thing on exactly what i do now you can watch it without coming into my streams and now it's to the point because there's a lot of times where you're going to sit in my streams and nothing is happening and if you if you getting in and out of the stream you might get out when something happens and i explain what happened right and then you show up and then i [ __ ] already explained it and you're like what did you do and it's like [ __ ] whereas if i have all the material in one place you guys can watch it whenever you want to and it just lays it out and there's no sitting around for hours without me explaining something like in a live environment right and what would also be nice if i choose to actually pursue that because again it's going to be a [ __ ] load of work that i don't know i want to really do what would be nice is if i sell two of those you know because it's going to have a price tag right um it's gonna be relatively affordable if i choose to do that because that's you know a 30 hour deal on my profile trading and i and i'm gonna explain why it would take that long okay um you know i'm definitely charging for that uh and you know selling two three of those a month would make doing this i would have an income and it would be an incentive to continue to do youtube right because i don't make [ __ ] off youtube and youtube is another [ __ ] job so i'm sure you guys want me to continue to make content right well if i'm going to continue to make content i do need to get paid for this this is why i push affiliate links because it works and the ad revenue and the donations because that all adds up and it makes it to where this is kind of worth it the only way this is going to really be worth it with is if i just have a bigger sub count and that takes time right um but the thing is if i'm selling something i put in a bunch of work sell it um people buy that then i have full-time income from that passive revenue source and i'll continue to do more free content good content right um more people will buy that [ __ ] it'll make more and it'll just make doing the youtube [ __ ] worth it right so just and you don't have to buy the material right but the thing is other people buying the material is giving me a good enough income to where i'm more likely to not get burnt out and continue to make free content right and so people buying [ __ ] is supplementing the ad revenue and all that [ __ ] so therefore people somebody buying something because somebody will somebody's going to want to buy that i'm telling you um you've seen my free [ __ ] content you guys love my content that are subscribers so you know you're going to get good [ __ ] if i'm charging for it you're getting good [ __ ] um you're getting really detailed good [ __ ] it's going to be a lot to watch uh but it has to be that way for a specific reason right it has to be that way because if you want to know exactly what i'm doing how i'm doing it i need to break down each component of the trade right i need to explain to you what's the price pattern on a three second chart i need to explain what happened in the order flow i need to explain where i made an adjustment i need to explain the higher time frame i need to explain the lower time frame and i have to diagnose and spend time on each of those little tiny components for just one trade so trying to break and i have break broke down trades on this channel and those are hour long videos and i need to give out a [ __ ] load of examples so that way you guys can understand how i'm doing volume profile trading and again that's going to take 30 hours and i'm not willing to do some half-assed [ __ ] where i'm not busting down each component i like to do that i'm going to do that so therefore if i do share volume profile [ __ ] the only way i think you guys would be able to even [ __ ] comprehend the way i do it is 30 [ __ ] hours of case by case by case study and each case study is a diagnosis of every little component order flow price action volatility you know the volume uh because market conditions shift and you need to see how you do it in the different conditions so just a rigid explanation of this is how you trade volume profile in an hour ain't cutting it ain't cutting it i know i have older volume profile videos but that is those are old videos right so they're just there at this point so and again full circle here uh those of you that don't want to pay for content well you know what if you're i mean i would be cool with this because one person two pers two people buying the content is going to allow you to get more free content on my behalf right because i need to get paid so everybody's sort of benefiting if you will i need to get paid because this is another job i don't have to do youtube i know you guys would like me to do it right you guys want me to continue to do this [ __ ] so i need to get paid if i'm gonna work two [ __ ] jobs it's that simple so and everything i make on youtube is a whole different bucket of money than uh the bucket of money that comes from trading and you know what uh what el whatever else is going on in my life where i have multiple sources of income like rental income from real estate or whatever i just sold my duplex by the way so i don't have any rental income right now but the money i made my original down payment on my duplex only can go back into real estate so you know the original down payment is real estate it can't go into anything else so that's how i like to separate my income streams so youtube is another job it takes tremendous amount of work just to put out two [ __ ] videos per week i'm spending hours and hours and hours doing these so i'm just letting you guys know what could potentially happen in the future and why it's a good thing whether you want it or not um and that's just the way i'm running this [ __ ] so i don't really give a [ __ ] right because i know the people that like me for me and like this content will always be here right i can't make everybody [ __ ] happy and i don't want to so let's go back into this and this is where you know i would have to explain more of this [ __ ] over the course of many examples because me simply drawing here isn't enough so now we have um so this is an example of using multiple factors of support which is what i do right i use multiple factors of support so let's talk about volatility and how i'm identifying volatility um so if the price is moving you know in an 8-tick range i would consider an 8-tick and on on average it's an 8-tick range i would consider that a sweet spot when that's happening i most likely am able to trade a six tick stop i'm most likely able to keep the trade tight when it's because on a three second chart you're getting these small small small ranges right and then all of a sudden you know it pops out and then you starting to get a range like this on a three second chart right and let's say this was the course of 30 seconds and this was another 30 seconds right let's say that price action was all together uh 30 seconds right so if that's the case if we decide to tune out noise which most people tune out noise um this is what it would look like on a one minute chart it would look like this right that's it you would have two bars that look like that but again on a three second chart it would here's the first 30 seconds then the next 30 seconds right and the way this is moving is telling me [ __ ] because you ever notice like a wedge pattern or some [ __ ] um a wedge pattern or a cup and handle or whatever those happen on different time frames so uh same thing here man oh did i just delete everything i did so let me redraw it again so um same thing is happening on a three second chart yet there's price patterns on a three second chart now it's not going to be your traditional price patterns it's going to be different just like bell curves i can smash a bunch of bell curves together for multiple days and i can create a composite bell curve or i can look at you know bell curves on a five minute chart and there will be bell curve so the thing is there are belt curves there are multiple bell curves that are being constructed throughout the session on small time frames and if you smash all those together the intraday rth session could be one large bell curve and then you could take multiple rth session bell curves and smash those together and then on a weekly time frame you'll have a larger bell curve so using smaller time frame bell curves to time a more midterm bell curve to time a larger curve is where i'm going to try to hit a longer hole okay so that is one thing i'm doing in my trading but also sometimes there's not bell curves so i'm using that three second price uh pattern because noise is good noise is how you become more accurate if you're tuning out all that noise and you're not seeing it then you're not gonna be precise right so you're gonna have to run looser stops it's how it's gonna [ __ ] work for you let's talk about the price action so how do i know when to start adjusting well again if things are moving in an 8-tick range that's probably sweet spotted so i know i can get away with it and that's on a three-second chart is the average movement about that sometimes the average move can be only four ticks and if that's happening you know and then it moves up and then it's another four tick and then it moves up and it's another four tick well timing it's gonna be a [ __ ] load harder timing it's gonna be a lot harder because the trade is going to most likely keep coming back to me whereas if it's an 8-tick range like this and i know it's not perfectly eight ticks with what's going on over there with the scale but you know if i nail the trade say down here it's less likely to you know it's moving further so it's less likely to come back to me whereas if it's just too tight and too low of movement it's more likely to come back to me now there's a point in time where you know um it's just moving four points right and there's four ticks per point so you know that's four eight 16 ticks um there's just times especially like this fomc which is blowing out and moving this much no problem no problem and i see that on a three second chart yeah you can see it on a dom but the three second chart which which is nice is historical movement how fast is that movement going so this is where i like a three second chart because it's allowing me to really see what is that average movement on the most small scale because i need to know so that way i can more precisely hit based off of you know areas on a profile that are aligning with a higher time frame profile that's aligning with price action and is the order flow confirming it okay what does the order flow look or like around there are orders pulling are they not is there reloading is there not order flow is not what i'm simply doing there's a [ __ ] load more to my trading order flow is merely a small component to what i'm doing in my training i and i know this channel has been order flow dominant but when it comes to this other [ __ ] there's more to it so those of you who think you understand my trading you simply do not and it's a let me tell you it's a lot more complex than you think and the people that tell you keep trading simple you can't because again condition shift and your approach has to shift just like that bell curve i drew up here you know if you have a rigid simple plan this is when it's going to work but if you start changing your approach then your setups gonna work in a broader range of environments and in order to change your approach you know to come out and expand your approach your techniques have to change and therefore the information you're consuming is shifting and changing so therefore each time you layer this up and you expand outward uh you're adding more and more and more and more components to your training it gets more and more complex now i'm not talking about adding ma a bunch of macd stochastics moving averages and a bunch of goddamn technical indicators right i am simply not talking about that right you know for instance um let's go ahead and just erase all of it right i mean if you look at my my trading you know we got uh order flow is merely a component the problem is if i'm not hitting the order flow in specific areas it just it ain't gonna work right i talk about tick drills but i and i talk about doing tick drills without charts i'm not that good at it it's a great practice and i explained it in uh that one video take it take a look at it while you're doing tick drills wrong and i talk about why it makes you better and it's not about p l so but the thing is if i'm just looking at order flow and nothing else uh there's a very narrow window of where it's going to work okay well let's overlay our um order flow with volume profile okay but we need to trade the volume profile in a specific [ __ ] area okay now let's add on another time frame of volume profile okay now let's add another time frame of volume profile okay let's add another time frame of volume profile okay and we're gonna use these different time frames to [ __ ] time it let's add three second price action all right let's adjust our approach to the different volatility conditions all right you know is that low volatility or is it high volatility um okay let's say that was low volatility this is where the approach changes okay this is medium volatility this is where the approach changes this is high volatility this is where the approach changes okay i think you get the [ __ ] picture at this point and each one of these goddamn layers is like an onion it looks like a [ __ ] onion each one of those layers adds complexity to the trading so when people say trading it should be super stupid simple it's not super stupid simple otherwise the failure rate wouldn't be as high as it [ __ ] is because environments [ __ ] change and as those environments are shifting and changing your approach needs to shift and [ __ ] change and if you're not willing to expand outward you're not never going to be the traitor you want to be you're constantly having to learn experiment and figure out what's working and just expand out your sweet spot expand out your training expand out your playbook setups when it works best when it doesn't work best when should i scalp it when should i hold it um and i could keep doing this [ __ ] forever and ever and ever and then i could spend an hour on each one of those [ __ ] components and each and there could be multiples of these components that go into one [ __ ] trade so therefore it's not simple my trading is complex but i can second nature it's to the point that as you're expanding out and you're adding you know uh each one of these components this component that component make sure it's to the point where it's starting to be easy it's second nature right you're not thinking too hard then expand out okay now now we can start how can we put these three things together okay now we're getting really good at trading these three things together okay but they only work in a certain environment so let's add another component to where we can fine-tune the trading okay now we have four components how can we smash all that together and now we're you know looking at different information like reading order flow for the first time is really complex and you're not able to do it but over time as you gain more experience experience more practice uh you're going to be able to do it easier and easier and easier to the point it's second nature and then sort of and now i can add tape now i need to learn how the tape is interacting with the dom uh how did those two components work with each other now now i can read the two components as one unit okay let's add that to a volume profile okay how do i make this order flow in this tape component work well with the volume profile so now we're starting to make that [ __ ] work okay but sometimes it works sometimes it doesn't maybe i need a higher time frame profile maybe i want to hit bigger picture trades well now i need to go up in time frames and over time as you're adding these more components and you get better at them you're able to process a [ __ ] load of information as one unit so that's why that's why i simply do not show my trading and i don't want to give away a lot of stuff i don't see guys on youtube giving away how to read three second charts right most people are tuning that out so i read a three second chart right because i want to see the noise because it helps me with the volatility then i have a 30 second chart i need a 30 second chart on my sierra charts because i want to see the broader price movement if you will because a three second chart is such a small time frame you only have so much real estate on your screen that i can't see i can no longer see pri prior pivots and rotations and tests of specific areas so a 30 second chart is giving me enough noise to where i can see almost the entire day on my sierra charts while still being zoomed in relatively well so now i have a 30 second chart and then the three second for really timing it so now i'm using both of those to really time [ __ ] because my three second charts not gonna allow me to see what just happened you know five ten minutes ago and maybe i wanna know what happened five ten minutes ago and honestly if i had the world's longest screen i don't want to crane my neck across it to see what happened on a three second chart right so kind of tuning that out but not tuning out too much of the noise is really key now there's times where i want to look at the price action over multiple days based off of the eth profile the rth profile so in order for me to see multiple days a 30 second chart is not giving me enough real estate i still want to see the noise as much as possible so now i'll go up to a three minute time frame uh which is giving me still plenty of noise not as much noise but then again i'm not really executing off of a three minute because i am executing off you know the 30 second three three second order flow time based [ __ ] off of micro [ __ ] if you will micro structure micro structure is important but the three minute is allowing me to now actually physically see what has happened over the course of several days in a row and still see enough noise um so that's how my time framing is i know it's small but i feel if you're really trying to be a precision hitter you're not doing it when you tune it the [ __ ] out and i like time based charts i don't want to do some goofy [ __ ] with renko bars or uh tick [ __ ] because i feel time is an important component um i feel time is an important component and i just want to know the range and how long ago did that pivot happen that's all i want to know that's it now you can look at um so i did point out how i use a three second chart to identify volatility um and how i adjust to that now you can do that on higher time frames so let's go back to this right um let's go back to this so um you can look at a so let's look at say let's just say this is a uh these are just normal bars you know high low bars or whatever i don't i'm not a fan of candlesticks i prefer bars the reason i prefer bar charts is because um you know on a candlestick you know if this is a red candlestick let's make it red well the you know what is it the clothes closes down here some [ __ ] and the open is here whereas if it's if this was reversed and this was a a green candlestick well now the open is down here and the closes up there and i don't like how it flip-flops like that whereas on a bar the open is always on the left tab and the close is always on the right but i don't even give a [ __ ] about open close on bars right so in my opinion auction market theory doesn't give a [ __ ] about time and i know that kind of contradicts what i was saying but auction market theory does not give a [ __ ] about time setups can happen in the middle of the night or at random times and that's auction market theory and that goes hand in hand with volume profile or belt curves right and um just to backtrack somebody asked me about market profile market profile is tpo it's the letters i don't use that i use volume profile i feel tpo is outdated i don't want to talk about it in this video uh nothing wrong with it right you can use whatever works for you but we're talking about my trading not your trading so um but let's let's go back to this so you know on a a a one-minute chart you can or a 30 even a 30-second chart hold on real quick um so even on a 30-second chart it's harder for me to judge volatility um i mean it's a lot easier on the dom but things are happening so fast on the dom what was the average what are the average movements and in my sweet spot two video i talk about tempo and this is what i'm referring to right so i'd suggest you go re-watch that if you've not seen it because it'll now make this video make more sense and when you re-watch that video that'll make more sense too so right so let's just say you know we're getting an average these are 30 second bars um and again i don't care about the open and close of the bar i just care about where we've pivoted and how long ago where are we ranging where are we not ranging where have we broke out where have we not broke out and how do these bars align with a volume profile that's what i care about not necessarily the open or close of it i've just been using bars for so long i prefer them so if you're starting to see a bar chart and this is a 30 second and now the the bars are starting to get longer really on any time frame right now your volatility is increasing right it's going a lot further on a 30 second chart than it was say in this area so that's how you can judge a volatility increase but again i like noise i like a three second chart so i'm able to really because i need it first and foremost for precision executing and it just allows me to really fine tune and dial in um adjustments and the thing is there are periods throughout the session where the volatility is so wide that maybe using a one contract trade with a 24 tick stop makes sense for me because it's out of my sweet spot if i was to trade a six tick stop but it can work in that environment but then there's a point during the session and it always happens where it starts to contract and when it starts to contract on a three second chart that contraction that average movement is you know no longer four points but maybe eight you know two points well that contracting means i can go back to my original size and then i can probably run a six tick stop depending on where we are as far as my bigger picture con context goes right i also have a video on context and how important that that is if you guys have not seen it you need to watch this video right so uh with that being said and i say that all the time with that being said um i guess that's one of my favorite words like [ __ ] [ __ ] and all those other words but um that's kind of where i'm making adjustments right now i mean we looked at that pnl in the beginning of the video i axed it out you guys can go look at it but it's working it's working well the problem is i'm not most of those trades i'm not hitting the you know what is it 48 tick win or whatever it is the 42 tick win to make it a two to one risk to reward ratio um but that's the equivalent of my normal trading on six ticks where i'm trying to fight my way into a trade and i'm not even picking up a two to one but i'm scalping it because it's not quite working um so i'm picking up less than two to one risk to reward uh but that's because it's not working it's not the order flow isn't there there's something happening or we're hitting a a piece of profile structure where there could be a pivot because there are areas on the profile where there might be a pivot um you know there's randomness when you get in a trade all you can do is manage risk and and my trading is very defensive so when i get into a trade i'm always thinking of it not working and how what can i do to protect myself and and in the end it's luck that makes the trade actually work now i wouldn't say it's necessarily blind luck because i'm hitting in areas that i know have potential of really good movements so that's where the edge is but in the end uh this is like a casino right you think the casino is freaking out when somebody is losing you know when they're losing on the [ __ ] roulette wheel ten times in a row no they're not because they know that if that wheel spins thousands and thousands of times they're gonna end up making money over the long run but when it comes to this it is a coin flip but the thing is can you skew it to where every time you flip the coin you're making more than you lose and with defensive trading i'm trying first and foremost with my training i'm trying to hit the most precise area as precise as possible because that definitely takes risk off the table but when i get into it i'm being as defensive as possible on the trade until it actually works but i know based off all those layers i showed you earlier where i can start maybe holding it where i can let it test me or there might be a point in time where i can't even let it test me i need to just cut it immediately so i know when to start switching in between uh those avenues maybe this will be a really good scalp could it turn into a bigger trade potentially if that's the case i'll start scaling out more contracts on something like that but if i think the trade could potentially really run and this is as prime as it gets then i'm less likely to actually start scaling out so soon and so early so there's this dance on when i can get away with this and when i can't and um that's why i'm telling you guys it would take me you know 30 hours maybe more just to explain each of the nuances and the components because that's what i do and i'm not willing to just try to give some half-assed answer right so i need to spend a lot of time in case by case study until it starts to make sense and if i'm putting in that much work and effort i'm selling the [ __ ] okay um because that's a lot of effort to just give all that [ __ ] away for free right and then making 200 bucks a month off youtube ain't worth it so anyways guys um that's what i'm currently doing that's where my adjustments are i hope you enjoyed the video please watch the older videos if you really enjoy what i say please consider donating to my coffee link in the description think of it as a tip um anyways i'll see you guys in the next video
2022-05-11 18:24
