This program is for serious traders. It is centered around exploiting the effects of classes of Algorithms (Algos) on price. This is not HFT (High Frequency Trading) but rather Smart Money operating in several time frames of high-volume markets: from large monthly, weekly and daily time frames, down to 15 and 1 minute, and even on tick chart. Algos are present and active in many high-volume, modern markets including: most Forex pairs, some equity indexes futures (e.g , S&P500 e-mini, DAX futures), bond futures, some commodities (gold & silver futures) and high volume stocks (e.g. component stocks in the Nasdaq 100 or S&P 100 indexes).
The presence of Algos (Smart Money) – evolved from Program Trading of the ’80s – and the observation of their effects on price allow identifying simple & complete trading plans (derived using 8 Trading Systems provided along with the effective FibStalking timing technique). Smart Money areas of participation and setups are identified well before the fact. Such areas exist due to the combination of multiple factors like order flow, Smart Money and professional participation, specific classes of Algorithms and they even reflect the aggregate effects of Market Psychology. Above and beyond the validity and consistency of these areas (identified by FibStalker Levels), students will learn several ways (e.g. measured moves, notable anchors, FibStalker Patterns, and more) to identify such areas often weeks, days and hours in advance, depending on the observed time frame, before the corresponding levels are actually tested by price.
Presence of Algos in Modern Markets can be leveraged on small time frames to create a well-defined, step-by-step, proprietary timing technique – called FibStalking Timing - to verify the participation of Smart Money & Algos at the FibStalker Levels identified in advance. This important technique allows testing the markets for confirmed participation, enabling further risk reduction (entry granted only if Smart Money participates). Thanks to the fractal nature of price and the markets, as well as the presence of Algos on all time frames – confirmed by the regular presence of anticipated patterns and price moves on the smaller time frames - the trading methodology and techniques can be used very effectively by Swing and Day traders alike. Advanced usage of the proprietary, procedural timing technique is also studied, applied, discussed, as well as showcased in real setups and trades.
Algos can be modeled in similar ways and follow similar rules on the smaller as on the larger time frames (e.g. daily and weekly time frames). Resulting price behavior on the smaller time frames can also be modeled and, indeed, it is used to confirm participation on the larger time frames creating a simple, elegant and very effective timing technique.
The Program equips the trader with a fully specified, procedural, multi-time frame Overall Price Analysis process aid. This process is showcased on real markets, it is fully explained and documented and can be reproduced by students to generate a “map” of how Algos are positioned on different time frames at any markets juncture. This priceless information is then used to perform another important activity, called Price Discovery, which allows understanding what price can do next.
Equipped with this information the student is guided step-by-step in producing initial trading ideas, create and validate trading plans and finally filter those plans through 8 Trading Systems provided. The trading activity is broken down and highly structured in simple steps, so that it can be replicated by any trader, regardless the experience level.
A generic system template is discussed and then 8 complete, written specifications of Trading Systems that use the FibStalker concepts are provided. Trading Systems can be used right away for paper or real money trading, testing and developing confidence. A clear process is also laid out for the beginner or inexperienced trader to review, paper trade, modify, test and augment new or provided trading systems.
The FibStalker Methods Express program offers all the information necessary to understand and correctly design and specify a Trading System that uses the FibStalker concepts, knowing that the “heavy lifting” is already done in the Methods. Innovative FibStalker Patterns explains price behavior in the context of modelling the effects of Algos in high-volume markets.
The program is completed by a large section dedicated to the Trader’s psychology, which is practically addressed with the introduction of tools to uncover, monitor and change non-useful market beliefs with on-going tracking, understanding of market psychology and taking a journey in to consistent trading. Particularly, the steps to develop Profitability first and then Consistency are analyzed. The 8 Trading Systems are also analyzed and explained in detail.
Other important areas like setting return objectives, adapting trading systems to your style, avoidance of common mistakes, degree of freedom and trading system effectiveness are all analyzed, discussed in great details with a very practical approach. Job aids and forms to help understanding and completing the Overall Trading Process are also offered.
How we as human learn trading, implementation of the Profitability and Consistency model, system testing and gathering data statistics, building confidence, continuous improvement and the role of money management are finally addressed (trading objectives are achieved trough Money Management). Continuous support from the mentor will guide the student in consolidating the understanding of concepts, the use of trading system, paper trading, testing, improvement, into final and successful real money trading.