d3: personal risk & copying strategies — Transcript

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1. 0:00so in this video I want to talk about
2. 0:02managing risk a little bit and I'm not
3. 0:04talking about the typical managing of
4. 0:05risk you know most people are managing
5. 0:07risk inside of they're trading and they
6. 0:09think about like taking making sure
7. 0:12their stop loss is in there right and
8. 0:14take profit is in there right so um I
9. 0:16talked about that a little bit before
10. 0:18but I want to talk about a different
11. 0:20type of risk a risk of being a human
12. 0:22right we you might be here because you
13. 0:24are an emotional Trader or you just want
14. 0:26to automate your trading system either
15. 0:28way there is a risk there right you're
16. 0:30trying to avoid you're trying to avoid
17. 0:32the risk of missing a trade if you're
18. 0:33trying to automate your tradeing you're
19. 0:34trying to avoid the risk of missing a
20. 0:36trade because you're not your computer I
21. 0:37get it we can't all be at our computer
22. 0:39all day long looking at all of these
23. 0:41symbols so that's might be one reason
24. 0:43you're here in this boot camp or another
25. 0:45is you're trying to manage your
26. 0:47emotional risk now we know our
27. 0:49competition is not managing their
28. 0:50emotional risk they're waking up every
29. 0:52single day and they're moving with the
30. 0:54market they move the market really
31. 0:56because it's their emotions that we see
32. 0:57in these charts you see this huge volume
33. 1:00Spike right here that is very
34. 1:03abnormal and that's simply a liquidation
35. 1:06that's why I showed you how to build
36. 1:07this liquidation map here so you can see
37. 1:09all the liquidations that come through
38. 1:12and then it stores the big ones here but
39. 1:14that's why I had you build that project
40. 1:16is
41. 1:16because this will help you see all of
42. 1:19everybody else's emotions just remember
43. 1:21it's another person just like you on the
44. 1:23other side of the screen so it's really
45. 1:26about managing uh not only trading risk
46. 1:29with stop losses and take profits all
47. 1:30that good stuff we might talk about
48. 1:32later in this training but I wanted to
49. 1:33take a quick moment to manage your
50. 1:36actual real risk which is you right and
51. 1:39it's me and I'm talking from a place of
52. 1:41Love here and uh I'm just talking my
53. 1:43experiences because I'm sure we're
54. 1:45fairly similar right we're both trading
55. 1:47crypto and anyways to manage that
56. 1:50emotional risk it's all about uh
57. 1:52fine-tuning your personal algorithm
58. 1:55whatever that is you know I when I got
59. 1:57into this stuff I spent 4 hours per day
60. 2:00day learning how to code and that was
61. 2:01challenging learning anything for 4
62. 2:03hours per day straight is challenging I
63. 2:05know we went to school for 6 to 8 hours
64. 2:07so I know you can do
65. 2:08it but one of the biggest risks that I
66. 2:11come across in my personal algorithm is
67. 2:13outside input you know you wake up and
68. 2:16you start scrolling Twitter and you are
69. 2:18literally putting that stuff into your
70. 2:20subconscious first thing in the morning
71. 2:22when your brain is the most Malu and
72. 2:24that's a huge huge risk because if you
73. 2:26look at your timeline and everybody is
74. 2:28bearish well throughout the day you're
75. 2:30going to build Bots that are bearish if
76. 2:32you see everybody is bullish on the
77. 2:34timeline then you're going to build Bots
78. 2:35that are bullish so you're building
79. 2:37biases and so I wanted to talk about
80. 2:39this just a little bit you know really
81. 2:41focus on your personal algorithm as one
82. 2:44of your biggest Risk Managers because if
83. 2:46you input the wrong stuff into your mind
84. 2:48at the start of the day that's going to
85. 2:50be uh put into your back test your
86. 2:53algorithms everything we build
87. 2:54throughout the day so what I would I'm
88. 2:57not trying to recommend how you do your
89. 2:59life life or anything but the way I got
90. 3:01through this is I said hey I'm not going
91. 3:03to take any input at the start of the
92. 3:05day I'm not going to open Twitter I'm
93. 3:07not going to open my text messages I
94. 3:08love my family I love my friends but you
95. 3:10know one word can really change
96. 3:12everything in that first hour of the day
97. 3:14I go work out get a meditation in and I
98. 3:16start coding four hours boom that's my
99. 3:18outgo I already talked about it earlier
100. 3:20um so I'm not going to go too deep into
101. 3:22it but you have to figure out what is
102. 3:25your most productive time of the day
103. 3:27because if this is new stuff to you
104. 3:28which it probably is
105. 3:30um whether you're learning how to code
106. 3:32or you're just learning how to algo
107. 3:34trade both times they're probably new
108. 3:36when you're learning new stuff you got
109. 3:38to find the most productive part of your
110. 3:39day for me it's in the morning time when
111. 3:41I have the most energy most discipline
112. 3:44so I put the most important thing for me
113. 3:46at the start of the day that's how I do
114. 3:48it but whatever your most important time
115. 3:50of the day where you can protect your
116. 3:52brain from the biases please please
117. 3:55please work on this stuff then because I
118. 3:57don't want you to have one day where
119. 4:00you're like super up and feeling really
120. 4:02good and you build a bot and then it's
121. 4:04like a super long bot and then the next
122. 4:05day you're like a little down so maybe
123. 4:07you don't you only work on this stuff
124. 4:09for like an hour or you build in some
125. 4:10biases in there you see what I'm saying
126. 4:12I just want to take some time to do that
127. 4:14and then the most important thing is is
128. 4:16um I don't believe in copying other
129. 4:18people's strategies or copy Bots or
130. 4:20anything like that so I just want to
131. 4:22tell you why because I always talk about
132. 4:24that and throughout this boot camp I
133. 4:25will keep reiterating that that like hey
134. 4:28this is not a place where you're going
135. 4:29to come and just uh jump in and get a
136. 4:32profitable trading bot I can't tell you
137. 4:34what strategy to run because at the end
138. 4:36of the day it's math if everybody is
139. 4:39running the same strategy then that
140. 4:41strategy is going to go to zero the
141. 4:43alpha is going to go to zero because if
142. 4:45somebody a whale comes in and they can
143. 4:46trade $10 million a day or per trade or
144. 4:50whatever it might be then they will all
145. 4:53of the alpha will start to go to them
146. 4:55and there's no chance for you so that's
147. 4:57why I'm a big believer in coming up with
148. 4:59your own strategies and throughout this
149. 5:01boot camp I'm going to keep showing you
150. 5:02ways to come up with more strategies but
151. 5:04then you find those strategies and you
152. 5:05back test the strategies to make sure
153. 5:07they actually work in the past but never
154. 5:09use a copy bot never copy somebody
155. 5:12else's trades um those are all going to
156. 5:14zero if you see things online to buy a
157. 5:16bot those are going to zero they're not
158. 5:18going to work I'm extremely confident in
159. 5:21that the only way that would work that
160. 5:23model works is if they raise money right
161. 5:25like so for me I have a bunch of
162. 5:27profitable trading algorithms the only
163. 5:29way I could get it to you or somebody
164. 5:31else uh without like detering the edge
165. 5:34is if I kept that strategy to myself and
166. 5:37I ran it as a fund and I raised money
167. 5:39I'm not raising money I won't ever raise
168. 5:41money but that's the only way that model
169. 5:43Works where it's like yo I have a
170. 5:44profitable algo and you know you can run
171. 5:47it the only way that works is if they're
172. 5:49raising money and they're keeping that
173. 5:50algo to themselves nobody's going to
174. 5:52share it but I will show you how to come
175. 5:55up with your own Edge and build your own
176. 5:56algorithms throughout this training and
177. 5:59just just be weary when you see like hey
178. 6:02you know copy my bot there's another
179. 6:04huge thing about copying somebody's bot
180. 6:06so you know in the Discord you'll see
181. 6:08every once in a while somebody will be
182. 6:09like hey you know what's the most
183. 6:11profitable strategy I should start
184. 6:12running I'm just getting started and
185. 6:14it's like uh those guys aren't going to
186. 6:16do too well because they're looking for
187. 6:17the quick way the easy way I know you're
188. 6:19different though I know you're different
189. 6:21you're here because you have you know
190. 6:23trading works it's just that you needed
191. 6:25to remove yourself from the day-to-day
192. 6:27of clicking the buttons right so you'll
193. 6:29come up with your own strategy and then
194. 6:31back test it to see if it actually works
195. 6:33in the past and if it doesn't then you
196. 6:35just move on to the next one and you
197. 6:36find one that does and then you
198. 6:38implement into a bot with small size one
199. 6:40of the biggest reasons you can't copy
200. 6:42somebody else's strategy is because you
201. 6:45don't know the strategy not only is it
202. 6:47going to go to zero if a ton of people
203. 6:49run it but you don't know the strategy
204. 6:51so for example here's just the simplest
205. 6:53example I've got a ton of profitable
206. 6:55trading alos if I were to say hey Bob
207. 6:59here's a profitable trading algo please
208. 7:01go run it you'll make a bunch of money
209. 7:03well those that algo is going to go
210. 7:05similar to how a chart goes It goes up
211. 7:07it goes down it goes up and then someday
212. 7:10what's going to happen is the algo is
213. 7:13going to take a huge draw
214. 7:17down so if the algo that you're trusting
215. 7:21somebody Bob is trusting Mev with an
216. 7:23algo that munda's pitching is like oh
217. 7:26it's the perfect algo run this you'll be
218. 7:28a millionaire yeah yeah
219. 7:30somebody's pitching you that and then
220. 7:31you run it even if it is a profitable
221. 7:34algo when it draws down 10% you don't
222. 7:37know the strategy behind it so you have
223. 7:39zero confidence in it and you'll
224. 7:41probably turn it off and then it will
225. 7:44probably revert see what I'm saying so
226. 7:47in order to actually be profitable with
227. 7:49algo trading you have to know the exact
228. 7:52strategy that your Bot is running and
229. 7:54you have to know how to code and you
230. 7:57have to be able to make these tweaks
231. 7:59because you're not going to have a
232. 8:00profitable bot day one so that's why I
233. 8:03personally I've spent 15 years in tech
234. 8:05building businesses building apps
235. 8:08building webs building everything that
236. 8:10Tech is needed for right you need to
237. 8:12know how to code for all this stuff my
238. 8:14whole life I was like no I'm good I'm
239. 8:15just going to hire people to do it for
240. 8:17me so literally like I'm I'm coming from
241. 8:21experience here and just telling you
242. 8:22everything so you can use my experience
243. 8:25but I was that guy that would just hire
244. 8:28Developers probably worked with a 200
245. 8:31plus developers I've built over a
246. 8:32thousand products and I didn't know how
247. 8:34to
248. 8:35code but it was very obvious to me for
249. 8:39algo training I had to learn how to code
250. 8:41because of this reason it's I can't just
251. 8:45be like yo bro let me get your Bot and
252. 8:46let me run it number one he's not going
253. 8:48to give me the the bot and number two if
254. 8:50I went and hired somebody off upwork or
255. 8:53Fiverr or whatever and I gave him a
256. 8:55strategy there's zero chance I mean
257. 8:56there's a small small chance there's a
258. 8:59tiny tiny chance that that bot's going
259. 9:00to work perfectly right off the bat for
260. 9:04the rest of my life you know that's near
261. 9:06zero chance like essentially the process
262. 9:09I've explained it it's to research back
263. 9:11test and then Implement so if you don't
264. 9:13know how to back test you have to hire
265. 9:15somebody for it and then you have to for
266. 9:16every single tweak even if it's like
267. 9:18changing a number or uh like hey let's
268. 9:20buy when it crosses the 25 SMA instead
269. 9:24of the 20 SMA or whatever it might be
270. 9:26something simple like that if you don't
271. 9:28actually know how to code then can't
272. 9:29make those those
273. 9:31tweaks so on top of any strategy that a
274. 9:35ton of liquidity is trading a t ton of
275. 9:38size those are going to zero
276. 9:41eventually not all of course but for the
277. 9:44most part on top of that if you don't
278. 9:47know your strategy and don't know how to
279. 9:49code then you're not going to be able to
280. 9:50make the tiny tweaks that are needed
281. 9:52you're going to have to keep iterating
282. 9:53on this process things change markets
283. 9:55change you need to be able to build your
284. 9:57own Bots and then build a second bot and
285. 9:59third bot and then test this new idea of
286. 10:01this this new strategy you had imagine
287. 10:04hiring somebody to do that that's crazy
288. 10:06it's going to be like five to 10 G's
289. 10:08every single change so it's like okay I
290. 10:10want a bot 10 G's boom okay now I want a
291. 10:13different bot 10 G's boom so it's like
292. 10:15that's why I personally learned how to
293. 10:16code because I know this stuff is fairly
294. 10:19secretive when you find your
295. 10:23Edge so if it's secretive like how are
296. 10:25you going to have somebody else do it
297. 10:26for you and constantly maintain it for
298. 10:28you if you got a ton of cash sure you
299. 10:29can hire somebody um but you're going to
300. 10:32have to keep paying and keep paying for
301. 10:33every change because you know I've been
302. 10:35through this process for three and a
303. 10:36half years and I know that it's not
304. 10:38you're not going to hit a winner right
305. 10:40off the bat just like anything else
306. 10:41you're not going to be like the best
307. 10:43basketball player in the world the first
308. 10:44day you do it you're not going to be the
309. 10:45best dancer in the world the first time
310. 10:46you ever do it so I think it's super
311. 10:48important to learn how to code and um I
312. 10:50just want to talk about this just a
313. 10:51little bit because I see it popping up
314. 10:53in Discord of like hey what strategy
315. 10:55should I run and it's like what strategy
316. 10:57do you come up with you know so I've
317. 10:59shown you ways that you can find
318. 11:02strategies here on Google Scholar you
319. 11:04can use YouTube use your ideas use your
320. 11:06training experience and really come up
321. 11:09with your own Edge by back testing
322. 11:11because you can come up with ideas that
323. 11:12don't even comprehend to you right like
324. 11:15they don't even make sense to you you
325. 11:16can read through these strategies even
326. 11:18if they don't fully make sense you can
327. 11:19back test them to see if they make
328. 11:22profit because that's all we're really
329. 11:24looking for at the end of the day so you
330. 11:26know go at this for yourself don't try
331. 11:29to take the easy way out um never copy
332. 11:31somebody else's bot you can work with
333. 11:34other people on the Discord I would say
334. 11:36that's the closest thing like build a
335. 11:38little Clan here two three people on
336. 11:40your team Reach Out say hey does anybody
337. 11:43want to join my little Clan I'm setting
338. 11:46up I don't know about you but I used to
339. 11:47play a lot of video games back in the
340. 11:48day and my clan was so sick and it
341. 11:53really motivated me to do really really
342. 11:55well with that video game I'm talking
343. 11:57about Socom if you know about it but
344. 12:01um it made me Excel like I I got so much
345. 12:04better at the video game because I had
346. 12:06two or three other people no what was it
347. 12:08clans were like maybe even up to five
348. 12:09people but not too big and they knew or
349. 12:12we knew every day at 8 8:00 p.m. we had
350. 12:16you know a clan battle so we need to
351. 12:18practice all day long so you know get a
352. 12:20little Clan together say hey anybody
353. 12:22want to be part of my clan let's work on
354. 12:23this every day at 8 a for four hours
355. 12:26could be a good idea that's the closest
356. 12:28to a copy bot I would say you can get to
357. 12:30don't copy other people's strategies
358. 12:32sure you can work with a small small
359. 12:33group of people but at the end of the
360. 12:35day your Edge will be eroded if it is
361. 12:38given to too many people so be wary
362. 12:40anytime you see somebody trying to sell
363. 12:41you a bot or when somebody's like in the
364. 12:45Discord saying like hey give me your
365. 12:46most profitable strategy they're not
366. 12:48going to make it you're going to make it
367. 12:49they're not going to make it I can't
368. 12:51wait to keep showing you absolutely
369. 12:52everything every little thing that I
370. 12:54know about Alo trading is covered inside
371. 12:55this boot camp so I can't wait to see
372. 12:57you in the next video