Shawn’s Volatility Play (work in progress ver.1.1, Robunited)

Works only in volatile markets with powerful swings, i.e. best Euro open / US open

Example in Apiary “Library”, “Discussions”, Feb 8th, 2018, Trade Room, at 24.00 min

Risk/Money management:

Before going into details of the strategy, it’s essential to first fully understand the correct allocation of your capital to risk.

Watch this by Shawn explaining how to place trades using Benjamin formula

Setup/Process:

•Analyze PA on larger TF, understand PA on 5min, open trades on 1min chart

•Define support/resistance levels, area of value, i.e. Trampoline move

•Wobble: Contain the price around defined area of value, by “Building up a position" with multiple trades, distributed in small position size

•One Click Trade is configured to take 2 Pip profit and 24 Pip S/L

•After the trade appears on the graph, re-adjust the TP / SL levels

(When to leave a trade for 2 Pip profit, and when to have 1 or 2 trades with a wider TP, is important to analyze and we need to get more information)

•In Shawn words, keep the S/L (Hardstop),on the RIGHT SIDE OF THE FENCE, outside the area of value

•-> Important to understand: We don’t wait for patterns to complete on the 5min chart, we are part of the “creators” of this pattern in the market. Example in a video link below

•Exit strategy:

◦Keep all trades within the area of value, close to the price

◦If trades fall out of area of value, peal them off quickly <— This is one of the most important aspect of this strategy

◦Close all losing trades with a Softstop! The pre-configured Hardstop is only for emergency, risk we can’t control, i.e. Internet access, platform issues etc.

◦Take many 2 pip trades to make up for the losers, meanwhile keep “wobbling" building up multiple positions close in reach of price/market volatility

◦Continuously have 1, 2 or more trades with a larger TP, building a runner,which makes the income for the day

Examples with screenshots:

•When to enter long positions

•When to enter short positions

•When to move to break even

•When to increase TP - Building a runner

•When to let 2 pip TP run

Examples Video links:

Trampoline move, Trader on the Street E02, at 23.40min

Don’t wait for signal on the 5 min, we are part of the creators of the signal on the 1min - at 31.15 min

Best market to trade this volatility based strategy

In Apiary “Library”, “Discussions”, Feb 8th, 2018, Trade Room, at 24.00 min

Questions:

Shawn mentioned,"position adjustment trades? Need Example

When does the “fixing” (if needed) exactly start and define the process of this?