This project was built to help a currency trader improve his trading performance. This was done by analyzing his current performance, including what areas are working the best. Then building structure around their day to make sure they are fully prepared before taking any trades.
An audio was created to help the trader stay focused on the most important activities he has to do every day.
Here are the results from the client’s point of view:
“Much clearer sense of daily routines. Got my head space for trading going a lot quicker. Helped me to focus. Helped to give me more discipline. Helped me to focus on my winning trade setups.
Audio helped my head get in the right space. It helped basically with prep. I have cut way back on taking bad trades. And now I am completely focusing on my winning trade setups.
No issues trading at beginning of week anymore. That issue is completely gone.
Jordan helped by adding structure and ideas to get me where I wanted to go. I knew where I wanted to go but didn’t have a way to get there. Jordan helped me to add structure and flesh to the bones of my ideas.”
#1 Inconsistent preparation
#2 Lack granular structure
#3 Taking bad trades
- Professional mindset
- Improve trading at beginning of week
- View week as a complete segment
- Preparation process is run 30 minutes before every event
- Remove variables of week-to-week trading
- Trade relevant size to event
- Follow rules before, during and after event
- Improve trading skills by using time efficiently
- Add granular structure to project
Turn on audio on drive to work and at work. Listen to it once on Saturday and Sunday each.
Timeline should cover: process development, feelings, progress
Weeks 1 – 2 ( Oct 5 – Oct 18)
- As of Oct 5, account is at -4.33% year to date. From Jan 6, 2017.
- Initial interview conducted
- Project structure built
- Audio program built: Currency Trader Audio
- Client feedback: “Listened to audio a bunch of times. Reminded me of a bunch of stuff. It helped quite a bit. My focus was better, my preparation was better, everything was better. I listened to it before (in prep period) and while I was trading for a while. Helped me get into thinking better and more structure. I was a lot more aware of my emotions.”
- Oct 18. 2017 – “Happy with way I am trading, but trying to get too many pips. Issues: trying to get too many pips out of tier 1 moves. And letting gains turn into losses. Quite pleased with how I am trading since we started this project. There are things we can improve, but even the baseline has helped me big time.”
Weeks 3 – 5 (Oct 19 – Nov 1)
- Oct 20, 2017 – Been trading non-events this week which caused some losses. Dealt with: Added $100 punishment for trading non-events. Create a schedule for allowed events to trade at start of week. Four hour time minimum per day sitting at computer.
- Updated Audio Program: Currency Trader Audio 2
- Oct 23, 2017 – Changing focus from staring at trading chart (and reacting to price action) and spending time on on doing more event research. Looking at past events and what implications today’s event could have on tomorrow’s events.
- As of Oct 27 account is at -2.1% for the year so far. Need to start building more trading structure during events. This is going another layer down with the structure.
Philosophy: Trading is a craft.
Motivation: use audio structure
- Desired Results
- Benefits to project
- Benefits to trading
Benefits to project.
- Less stuff falls through cracks
- There is continuity from week to week.
- Trading well early in the week. Starting on a strong note.
- It builds consistency, which builds success. One good trade or one good anything is not success. Success is consistency. It is doing the right things over a long period of time. Every day.
Benefits to trading
- It is a lot of fun
- It is complex
- There is no formula
- I can be just as good as the very best
- Always trying to figure out a puzzle
- Don’t have to get dressed up and go to an office
- Flexibility of hours
- Able to earn a pile of money
Fall back to conversation.
The Circle + 80/20
- Experience: 21 months trading, studying trading for 17 years, Growth Project, Food Project
- Equipment: office, laptop, second monitor, Android phone
- Software: FX trade desktop, FX Journal
- Definitely works: trading proper size relative to event, audio system to keep focused daily,
- Possibly works: trading scheduled events
- Defintely doesn’t work: trading non-events
Outside the Circle
Practicing each day, during four hours
Layers: audio, sheets, calls, track performance when using audio/5 scenarios vs not
- Requires humility. You need this to trade well.
- This audio is preparing your brain to run the correct programs. You load them up so they are ready to run. These programs allow freedom during the trading event.
- Preparation needs to be done every single day. Because each day you are reinventing yourself and your ideas. Yesterday’s ideas box you in. Work on today’s canvas.
- At beginning of week, print out schedule for week’s events. You only trade planned events. Not surprise events or unplanned trading events.
- For press conferences, wait until they are almost over to make any trades.
- Classify the day’s events as tricky or normal at the beginning of the day. If it is a tricky event limit size to 1 lot.
- Set levels: important points to trade up to or trade down to
- Set tier 1, tier 2, tier 3 levels to gauge reaction
- If it is a tier 1 event, max trade size is 1 lot
- Determine relevant size to event.
- Just like you trade small on a tier 1, you need to trade larger on a tier 2 or tier 3 event.
- Prepare for five different scenarios. How you will react. Think through the implications. Choose the ideal pair for the scenario. Upside and downside depending on which way the information event is released. Think through what you are looking for in terms of a trade beforehand. Don’t chase trades the rest of the day. Take 20 pips and get out.
- Doing prep work saves your discipline. It reduces the number of decisions you need to make during the event. This boosts your will power, it makes you fresher which makes you trade better in the moment.
- Each day, there is a complex problem to solve. What could happen in an event? What does it mean if each of these things happen?
- The five scenarios can be done on a piece of paper, in your head, on a whiteboard or on the computer. You are reinterpreting connections. Try to be curious about thinking through these scenarios.
- Think about pip spread on first entry. Make sure you are in the right trading account and check for any adjustments you want to make to your account.
- Review from events from past 24 hours. Look at daily charts. Long term trends. Macro stuff.
- Daily factors to consider are: options expire | CFTC position | relative strength of currency | forward news events | support and resistance lines and consolidation areas | long term trend
- Trade management: if no momentum + no conviction, set stop loss to zero once it hits 5 pips. Conviction is when what is happening is confirmation of your gamed scenario.
- Take note of your emotions every few minutes during an event. You do this because you want to be aware of where your emotions are at. If you want you can actually write down the time every few minutes and specifically note when your emotions are shifting.
- When you make a mistake or take a big loss, turn the audio back on to bring you back to your baseline. This helps you reset your trading brain.
- On Tier 1 trades, the strategy is 1. Reduce trading size to 1 lot total. 2. Be patient on entries. 3. Take smaller profits.
- The only place you trade is at the office. Otherwise, you realize that you are making a decision to lose money.
- You have 30 minute commute to work total every day. Use this to prepare your mind and review the day’s events.
- You need to be sitting down at desk 30 minute before every event
- Every weekday you are sitting down at the office working for four hours. This is to keep you in the game. To keep you sharp.
- After a good week, the plan is to trade smaller and take smaller profits.
- Part of being an investor is investing your time as well as money. To see a return on your time, read trading or investing books. And if you really want a good ROI on your time, write out and develop theories. Writing sharpens your thinking like nothing else can. When you can write well, you can think well.
- Exercise is another great investment. It has been shown to improve mood and mental performance. Your job is 100% reliant on your brain. So anything you can do to improve performance could be worth a significant amount of money over the course of the year,
- Emotions: write down emotions, think about emotions
- Entries: plan out entry points in advance, write down
- Placing orders so stop loss and take profits are in the correct place
- Practice cutting losses
- In tier 1 events focus heavily on support and resistance levels.
- Create goals for the day: what your want to achieve, your measure of success for the day
- Test a new style of technical analysis
- Use the 5 whys to analyze your scenarios for the day
- Pay attention to feeling of fear during trading day. What are the driving factors of the emotion for the day? What are your thoughts telling you
- Pay attention to feeling of hope. When was hope useful and when did it hurt you?
- Write down all mistakes for the day, including the tiny mistakes.
- Practice letting profits run
- Focus on matching up timeframes
- Do 30 minutes of research on Google Scholar on currency trading (https://scholar.google.ca/)
- Hand draw a chart with a timeline on it of what you think will happen before the event starts
- Write: Assign numerical weights to the factors which will influence an event.
- Write: Examine your beliefs about the market which are commonly held by traders. Are any hurting you?
- Plan: What are some extreme situations which could happen and what would your response be? (war, terrorist attack, countries want to split, world leader assassinated)
- Write: What practices could make your trading 1% better?