TRADING ADVANCED CYCLES

YOU have to decide if you want to trade or not. If you have decided you do, then this course may help.

'Trading Advanced Cycles' is for those who want further specific knowledge and experience to take the 'cyclic edge' taught in Advanced Cycles to a proven profitable plan. Once properly developed, such a plan can be used real time real money in the market(s) for which it was developed.

Below is a draft syllabus...

Developing a Proven Profitable Plan
This course involves learning a process to develop a proven profitable plan using cyclic knowledge. You will learn to fish. You will not be given a fish. Once you have generated sample trades from the plan, these will be used to establish the quality of the plan. We will get answers to "Will this plan be good enough to meet trading income objectives and will the drawdowns be tolerable?"

There is a lot to do. Back testing and forward testing are very valuable but they take time. You will need an average of at least one hour per day. More if possible.

Cyclic Theory
            Revision and Extension
            Correct Phasing is Critical
                        ‘Real time’ phasing practice

Trading Theory
            Paper trading covered in Advanced Cycles
            Hurst’s Approaches
                        Profit Magic
                        Hurst Course
            D’s Approaches
                        Trading TIME (Big Ducks)
                        Trading VTLs
                        Trading FLDs

Trading Practice
            Live Trading Examples
                        ‘Real time’ trading practice
            Examples of ‘Trading Theory’ Approaches
            Real Time Market Updates

Keys to Trading (or Investing) Success
            ‘ARMS’ Helps to Conceptualise the Key Aspects of Trading
                        Approach
                        Risk
                        Market
                        pSychology

Approach in Terms of Lifestyle
What do you want to do with your life?
Mission, Goals & Objectives
            Life Mission
            Trading Goals
            Trading Objectives
What Trader ‘Type’ Suits the Lifestyle You Want
            Intraday Trader
                        Intraday Issues
            Position Trader/Short Term Investor (Holds positions for days to weeks & sometimes a few months)
                        Position Trading Issues
            Investor (Monthly to Yearly)
                        Investor Issues

Approach in Terms of Mindset
            Successful Trading Facilitates Autonomy
            Trading is Not an Amateurish Hobby – it is a professional business.
            The Jobs of a Trader: Mange Risk and Take Small Losses
            Successful Traders Take Responsibility
            Traders Need to be Passionate About What They are Doing
            Newbie Traders Need to Commit TIME
            Clearing the Decks
            Traders Need an Education
            Mentoring
            Coaching
            Guide Beside is Coaching and Mentoring with Objective Insight
            Guide Beside is ESSENTIAL When
                        There has been a catastrophic financial loss
                        There has been an intense emotional situation involving severe pain
                        Frustration becomes overwhelming
Realities of Trading
            You don’t have to be ‘right’
            Losses occur
            Professional traders trade for opportunity NOT for money
            Trading financial markets is simple and easy
            Most traders in reality
            Newbie traders often want these things
            Initial winning trades can be problematic
            ‘Mobile’ Trading is for amateurs
            Multiple Screens
Winners Never Quit and Quitters Never Win
            The difference between the newbie’s ‘vision’ and ‘THE reality’ causes discord
            The key for newbies is to risk a very small percentage of trading capital (<2%)
Understand Your Risk Profile
            What is the largest percentage drawdown you can comfortably stand?
            How much of ‘your’ money are you prepared to risk on any given trade?
            How much of ‘your profits’ (or the ‘market’s money’) are you prepared to risk per trade?

Approach in Terms of Trading Methodology
Approach must suit
            Personality
            Character
            Lifestyle
            Goals and objectives
Type of Approach
            Analysis
            Method
Approach in Context
            Trade an appropriate approach
Edge or method or strategy or tactics
Develop an Edge
            Example 1. Price (Trend lines)
            Example 2 Price (Trend Confirmation)
            Example 3 Price (Retests)
            Example 4 Price (Reversal)
            Example 5 Price Indicators (Example Moving Averages)
            Example 6 Other Indicators
            Example 7 Geometry
            Example 8 Time

Approach in Terms of Trader Profile
Lifestyle
Timeframe
Methodology
            Trend follower
            Counter trend trader
            Range trader
            Hedger
Instrument (or Vehicle)
            Stocks
            Futures
            Options
            FOREX
            CFDs
Market
Risk Profile
            Every trader MUST establish where they sit on the risk continuum
            Risk lover?
            Risk accepting?
            Risk averse?
            Risk shy?
            Drawdowns
Temperament, Personality and Character – Skill Sets and Personal Traits
            Risk Manager
            Planner
            Researcher
            Perseverance
            Decisiveness
            Focus
            Resilience
            Self Awareness
            Mental Capacity
            Emotional Capacity
Growth or Income
            It is useful to separate these into two accounts
            Growth Account
            Income Account
Measuring Profits
            There are many ways to measure profits
            Newbies are better off not focussing on the money
Stages of Trading
            Mechanical Trading
            Subjective Trading
            Intuitive Trading

Approach Crystallized Into a Trading Plan
Plan Overview
            Fail to Plan = Plan to Fail!
            Execute Flawlessly: First Time, Every Time
            Positive Mathematical Expectancy via Back Testing, Forward Testing & Paper Trading
            All System Components are Interrelated and Linked.
Establish a Plan
            You need an ‘edge’
            Write the plan down and keep it simple
            Aim to trade selectively
            Aim to stop your losses short AND let your profits run
            Aim to get profits at least three times larger than the initial stop loss
            Only trade large & active markets
            Trade ‘at market’
            Establish your system’s DOLLAR OBJECTIVE by WHEN
            Know what you are doing and do what you know
            EDGE
            SIGNAL
            ENTRY Strategy
            POSITION SIZING Strategy
            STOP LOSS strategy
            PROFIT Strategy (Let profits run BUT protect them)
Back Testing
            Back test it
Forward Testing
            Repeat the Back Testing on a more recent section of the market
            Are the results similar to the back testing?
Paper Trading
            This step is required to test the plan real time but with ‘paper’ money
            Does the plan work real time?
            Are the results similar to the back testing and forward testing?
Real Time Real Money
            FOLLOW your plan
            Initially use VERY small positions
            Keep accurate records
            Make good notes
Review Each Trade
            How did each trade go?
            DO NOT CHANGE YOUR PLAN WHILE IT IS IN THE MARKET
(Re-)Develop a New Plan

Approach Crystallized Into a Trading System
Goals
Objectives
Trading Plan
            Signal
            Edge
            System Measures
            Back testing
            Forward testing
            Money management
            Paper trading
            Real trading
Trading Practicalities
            Trade Tracking
            Data
            Software
            Broker Selection
            Markets to trade
Psychology
            Discipline
            Confidence
            Pulling the Trigger
            Emotions
Portfolio Management

Approach Displayed as a Trading System Lotus

Risk – Manage Risk First and Let Profits Take Care of Themselves
            Minimise Risk
                        ALWAYS use a stop loss
                        ALWAYS use a tight stop loss
                        ALWAYS apply position sizing rules
                        Diversify your portfolio
                        Pyramid carefully and understand its pitfalls
                        Triple backup
                        Amateurs Focus on Potential Profits
            First Task of Risk Management is to ‘Establish the Trader’s Risk Profile’
                        Amateurs typically have unrealistic risk profiles
            Edge and Plan
                        Preserve Financial capital
                        Attitude to Risk management
                        Individual Trade Risk
                        Portfolio Risk
            Understand Money Management
                        Total Asset Value (Net Worth)
                        Capitalisation
                        Profit Compounding
                        Remove Profits or Accumulate a Surplus?
                        Starting Capital
            Business/Tax Structures
                        Sole Trader
                        Company
                        Self Managed Superannuation Fund
                        Trust
                        Partnership
                        Other Structures

Market
            What comes first - the plan or the market?
            Which market and why?
            Does the method fit the market or does the market fit the method?

pSychology – Managing ‘Self’ is the Key to Bringing All Components of Trading Together
            Why are you trading?
            Know the proper things to do
            Understand that your psychology is important to success in the markets
            Preserve Profits
            Discipline and Perseverance (once you have a proven profitable plan)
            Psychology is about being in a good space to handle ARMS
            Psychology impacts trading
            Psychology is to do with dealing with ‘self’
            In the fullness of time – this is THE most important aspect of trading
            Is the trader exercising good ‘balance’?
            Does the trader have good support structures around them?
Preserve Emotional Capital
            Be emotionally intelligent
pSychology – Manage Stress
            When under stress: Stop. Breathe. Reflect.
            Be up for trading and on your game
            In the heat of battle
            Sharpen the saw
pSychology - Trading Well or Trading Poorly?
            Trading Well
            Trading Poorly
pSychology - Trading Errors, Issues and Challenges
            Overtrading
            Taking too many trades
            Trading in too many markets
            Trading markets where the risk is too large
            Trading with leverage that is too high
            Trading with positions that are too large
            Trading with stop losses that are too large (if used at all)
            Establishing or maintaining a portfolio with too much risk
            The key message here is under trade, under trade, under trade
pSychology of Different ‘Hats’
            THE ANALYST
            THE TRADER
            THE ACCOUNTANT

 

 

 

 

 

Email enquire@futuremechanix.com to enquire, express interest or notify payment.

Disclaimer and Agreement