My Top 3 Trades from the Competition — Transcript

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1. 0:00I was ranked three times in the world
2. 0:02trading championship day trading
3. 0:04division and I was vice champion for two
4. 0:06times with a total performance of 350%
5. 0:10over 9 months and here are the best
6. 0:12trades I took in the competition and why
7. 0:15I took them. So let's start from the
8. 0:17beginning of the session and we can see
9. 0:19that uh before the starting of the
10. 0:21session it was almost uh 12 uh central
11. 0:25central European time we had some kind
12. 0:27of balance here the market was really
13. 0:30trying to understand where to explode
14. 0:33and also on the upper part the profile
15. 0:35was was really clear. We didn't had a a
16. 0:39clear direction here. We had the market
17. 0:41trying to break out on the upside to
18. 0:42break out on the downside. And if you
19. 0:45only use price action in this moment,
20. 0:47you are pretty confused. You think that
21. 0:49nothing interesting is happening and you
22. 0:51you just think that you need to wait.
23. 0:54But volume was telling us something
24. 0:56different. And I want to start today uh
25. 1:00letting you understand the power of the
26. 1:02cumulative volume delta and the concept
27. 1:05of the volume spread analysis. This is
28. 1:07one of the one of my most profitable
29. 1:10trading session that I had in the
30. 1:12quarterly world cup of robins and it's a
31. 1:16super directional session and I just
32. 1:18capitalize on the market collapsing on
33. 1:21NASDAQ and I will let you understand why
34. 1:24there is a big difference between
35. 1:26watching only price and adding volume to
36. 1:29your narratives. Let's start with the
37. 1:31situation we are in from the price
38. 1:33action perspective. We can see that the
39. 1:35market is balanced at this time and if
40. 1:38we plot a profile for the current
41. 1:40situation we can just see balance and
42. 1:42there is the fair value on the middle
43. 1:45there is no clear direction but let's
44. 1:47start with the first leading volume
45. 1:49indicator that is cumulative volume
46. 1:51delta to try to understand if in this
47. 1:54moment we were building some kind of
48. 1:56pressure. Let's start with the
49. 1:58cumulative volume delta and let's
50. 2:00compare the two. So the market was
51. 2:03balanced at this time but as you can see
52. 2:05the direction from the pressure of the
53. 2:08market and cumulative volume delta is
54. 2:10pretty huge even before the breakout. So
55. 2:13the market is clearly building pressure
56. 2:16down. This is the delta of the volume
57. 2:18and the we are in a condition of
58. 2:21accumulation and distribution. This in
59. 2:23this specific case this is a
60. 2:25distribution. Now I receive a lot of
61. 2:27inquiry and questions and Fabio can you
62. 2:30please clarify this? How can I diversify
63. 2:32and understand if you are in a condition
64. 2:35of accumulation and distribution? This
65. 2:37is the way because the volume is leading
66. 2:39the price. So the volume is showing us
67. 2:41that we were distributing and we were
68. 2:43ready to explode short. But this is not
69. 2:45enough. This is only the first milestone
70. 2:47for my trading model. So I will add the
71. 2:50second confirmation that you can get
72. 2:52from this. I will remove the cumulative
73. 2:54volume delta and I will go inside the
74. 2:56deep trades model now. So big trades
75. 2:59it's an indicator that we are developing
76. 3:02in our proprietary platform and it's
77. 3:05something that is really giving us an
78. 3:07edge in understanding where the big
79. 3:10players are pushing the price. So what
80. 3:12we can see at this moment is a clear
81. 3:14balance condition in the market and the
82. 3:17first moment that we had some kind of
83. 3:19follow up on volume and confirmation
84. 3:22from price was exactly this candle. This
85. 3:25was my first position because the market
86. 3:28told me Fabio we are going down the
87. 3:30volume pressure is down and we have the
88. 3:32price action that is following up. So I
89. 3:34have the first position here. Now for
90. 3:37those who follow me and understand my
91. 3:39strategy, my way of trading is keeping
92. 3:42draw down really low, building uh the
93. 3:45profit for the day and then risking
94. 3:47again the profit. So what I'm seeking
95. 3:49and what I'm searching for the session
96. 3:51is explosion in market movement. And
97. 3:54this is exactly what I want. This is the
98. 3:57first confirmation that we are in a
99. 3:58condition of out of balance. We we were
100. 4:01in distribution for all the session. Now
101. 4:04we are starting to go down. This was my
102. 4:06first position, exactly this one. And
103. 4:08this was, if I'm not wrong, this was 30
104. 4:11of December. So, we were on the final
105. 4:13days of the competition. We were
106. 4:15head-to-head with Nazaran. And the first
107. 4:19position went to break even immediately.
108. 4:22So, the market exploded in my direction
109. 4:24and I put my stop loss to break even.
110. 4:26The first stop loss was
111. 4:28here. So the risk-to-reward was pretty
112. 4:31huge on this position because if we can
113. 4:33consider that I closed this
114. 4:36position, the first position was
115. 4:39closed around here. It was uh almost 1
116. 4:45to three even more 1:5 risk-to-reward
117. 4:48ratio. Uh this is one of my way of
118. 4:52managing position sizing is when the
119. 4:54market is giving me another confirmation
120. 4:57that the sellers are pushing the price
121. 4:59down. I put my first stop loss to break
122. 5:01even and I can consider to close the
123. 5:03first trade and open a second one with
124. 5:06the profit of the first one or just
125. 5:09continue to add to my position in
126. 5:11direction of the trend. Then I was uh in
127. 5:14live commentary with my business partner
128. 5:16and this was the first position. This
129. 5:18was the second position. This was the
130. 5:20third position. And then I closed all
131. 5:22these trades here in the second
132. 5:25accumulation phase. Why? Because I start
133. 5:28to see that the big trades are not
134. 5:30pushing anymore the price down. We are
135. 5:32in a redistribution phase. And this is
136. 5:35another concept that is not well
137. 5:38understood by traders. They try to guess
138. 5:41if we are in a accumulation or
139. 5:43distribution only using price action.
140. 5:45And this is something that is not really
141. 5:47convenient. So from this moment I waited
142. 5:50and I took some profit and I use half of
143. 5:53this profit to risk again. And again as
144. 5:56you can see is as clear as possible. You
145. 6:00see again the the price action breaking
146. 6:03down. You see again big trades in the
147. 6:05direction of the trend because we
148. 6:07studied auction market theory and we
149. 6:09know that this is a sell model day and
150. 6:12we continue to sell and this was another
151. 6:14huge takeprofit because I use part of
152. 6:17the profit in this position. So we
153. 6:20already commented like we already had a
154. 6:22commentary of five different position
155. 6:25that were trailed as the market was
156. 6:28moving. Another position because I
157. 6:30closed the session around four. Another
158. 6:33position that I took was this position
159. 6:36and this is another model that I use. As
160. 6:38you can see the market is breaking down.
161. 6:41Okay. And I see that the big trades is
162. 6:44holding that the price is trying to
163. 6:46retrace the buyers are trying to take
164. 6:48control of this market condition but the
165. 6:52results is almost zero. So to do this
166. 6:55kind of analysis I usually use the delta
167. 7:00profile footprint. So we will now open
168. 7:04the profile footprint and the cumulative
169. 7:07volume delta and we can just zoom
170. 7:10in on what was happening at this moment.
171. 7:13And as you can see I was using volume
172. 7:17spread analysis. So the direction of the
173. 7:20pressure of the volume and the result of
174. 7:22the price in this exact moment this
175. 7:25exact candle the result of the price for
176. 7:27a pressure in by delta was almost zero.
177. 7:31So this is a confirmation that the
178. 7:33buyers are punching a wall and I want to
179. 7:35be short in this position. So this was
180. 7:37again a short position again a short
181. 7:40position and as you can see as soon as
182. 7:43the market approach the all-time low for
183. 7:45the day you see big traders sell
184. 7:48continuing to push down. This is your
185. 7:50opportunity to put the risk to zero to
186. 7:53put your position to zero and again the
187. 7:55market collapse. I took profit for this
188. 7:58position at this level. That was the low
189. 8:01of the day and I was sitting at a huge
190. 8:03profit for the day. So I didn't continue
191. 8:05to load my position during the evening.
192. 8:08But this was my most profitable session
193. 8:10on the World Trading Cup. So, if you
194. 8:12like this video, let me know in the
195. 8:14comments if you like this kind of
196. 8:16content.