Bob Volman Price Action Scalping

[garageboyFUJI]

I could get a report also this time. Thank you Bob, and BLS. I appreciate it.

 

[garageboyFUJI]

Hi
I have a Simple question.
Do Al Brooks and Bob have it between friends ?
just I'm curious. I don't sure The books written by Al Brooks help me, or not. If I need to read the books for understanding price action trading of Bob Volman, I'd like to read. But I don't know that Al is good or not. I often heard the books of Al is very hard to read and understand.

 

[matty_dunn]

Week 33: https://www.dropbox.com/sh/1amxmi9af0fk6ej/VA5_ZrjQF1

Thanks Bob and BLS

 

[matty_dunn]

Hi
I have a Simple question.
Do Al Brooks and Bob have it between friends ?
just I'm curious. I don't sure The books written by Al Brooks help me, or not. If I need to read the books for understanding price action trading of Bob Volman, I'd like to read. But I don't know that Al is good or not. I often heard the books of Al is very hard to read and understand.

Hey FUJI, I've read his books, and yes they are more difficult to understand but there is a lot of useful information contained within. However, it is quite a different approach than Bob's.

All I can say is that after reading Al's books then going back to Bob's it's like a breathing out and a relief. However, the problem is that when reading Bob's book trading can seem pretty straight forward - you trade this set-up in these conditions and you'll make money long term.

As we all know it is not nearly as simple as this, and without the benefit of Bob's charts over the last year or so one could rightly claim, after reading his book, that if you traded the set-ups he subscribes to (in the book) that one would actually lose money.

We have to remember that things are always changing and as a trader one needs to be attuned to any changes in the way markets behave. This has been made clear by Bob in the comments he's made on his charts and the set-ups he takes.

I believe, as Bob says - the only way to find and exploit an edge is to spend countless hours studying, rehearsing and experiencing YOURSELF, regardless of the method one takes a liking to.

So, regarding Al Brook's work - I believe it's worth reading, and if it speaks to you then pursue it. If not, let it go and stick with what does.

Hope this helps.

 

[garageboyFUJI]

Hey FUJI, I've read his books, and yes they are more difficult to understand but there is a lot of useful information contained within. However, it is quite a different approach than Bob's.

All I can say is that after reading Al's books then going back to Bob's it's like a breathing out and a relief. However, the problem is that when reading Bob's book trading can seem pretty straight forward - you trade this set-up in these conditions and you'll make money long term.

As we all know it is not nearly as simple as this, and without the benefit of Bob's charts over the last year or so one could rightly claim, after reading his book, that if you traded the set-ups he subscribes to (in the book) that one would actually lose money.

We have to remember that things are always changing and as a trader one needs to be attuned to any changes in the way markets behave. This has been made clear by Bob in the comments he's made on his charts and the set-ups he takes.

I believe, as Bob says - the only way to find and exploit an edge is to spend countless hours studying, rehearsing and experiencing YOURSELF, regardless of the method one takes a liking to.

So, regarding Al Brook's work - I believe it's worth reading, and if it speaks to you then pursue it. If not, let it go and stick with what does.

Hope this helps.

Thank you, matty_dunn.
I think so too.
I don't think it's better for me now. I got it, and I'll go on Bob's trading whitout Al's. Also I think it takes much times to read and understand. I decided to concentrate on only Bob's. That's my decision.
I'd like to read the books once this trading settles down someday.
Thanks, I'm glad.

 

[Giorrgi]

First setup seemed very thin.

Second one (trade I took) probably required more buildup. 3rd chart is zoomed out to show the price action prior to the trade.

Losses affect me a lot right now. I skip a lot of setups for no reason sometimes and then take ones that don't workout.

 

[Traderallen]

First setup seemed very thin.

Second one (trade I took) probably required more buildup. 3rd chart is zoomed out to show the price action prior to the trade.

Losses affect me a lot right now. I skip a lot of setups for no reason sometimes and then take ones that don't workout.

no one likes to lose, it always sucks. However the only way to get past being affected by losses is confidence in your trade plan. And that can only come in time. I have a lot of good trades with the method of scalping. My winning trades are upwards of 80% or better. I haven't traded much this month, but currently I have nine winning trades, one scratch trade, and zero losers. Even with that high percentage of wins. I have to fight the urge to close trades early. It's funny I don't mind losing trades because I know overall I have a trade plan that is profitable. I hate giving back pips from a trade that almost reaches target but reversed.
A friend of mine it's been trading for over 25 years told me to just keep doing what I'm doing and as I get more confident I will be able to keep my emotions in check.

 

[Giorrgi]

no one likes to lose, it always sucks. However the only way to get past being affected by losses is confidence in your trade plan. And that can only come in time. I have a lot of good trades with the method of scalping. My winning trades are upwards of 80% or better. I haven't traded much this month, but currently I have nine winning trades, one scratch trade, and zero losers. Even with that high percentage of wins. I have to fight the urge to close trades early. It's funny I don't mind losing trades because I know overall I have a trade plan that is profitable. I hate giving back pips from a trade that almost reaches target but reversed.
A friend of mine it's been trading for over 25 years told me to just keep doing what I'm doing and as I get more confident I will be able to keep my emotions in check.

Wow that's some impressive stats! I'm still stuck somewhere at 50% winners/losers-scratches.

 

[kulpio]

Hi Giorrgi,

I do also not better than 50% winner/loser.
For me, compared to my previous stats, before using Bob's setup AND emotionless kind of state of mind, I'm damn happy! It's like 150% better.
I used to just get so affected by losses, that I often lost 3 times more by trying to get it back... one time I blew my account in two hours... it can go pretty quick when your mind is that destructive.
However, especially in this low volume period, missing a valid trade can pretty much do the same mental damages as it might have been the only for the day....
And once missed, when you find a less valuable setup, you jump on it. And if it becomes a loss, it definitely hurts...
But i like to remember quotes of Bob in this moments. Like the trade that is open is the less important of all. Or that, at the end, it is just probabilities beating us up a little...
However, I feel your pain!
Look at your trades as something that really doesn't matter, trade all valid setups.
When I see bob's charts at the end of each weeks, I'm like damn! I got three time his amount of trades, at least... I take them all! and maybe one that aren't really valid, and I still manage to break kind of even....
When I saw that you took the same trade as me last week and then that bob did too, it gave me a huge kick in my confidence's butt. We saw the same thing! we took the same candle in the thousands printed in the day! that's pretty cool I think.
Don't beat your self up as it can ONLY lead to negative result, personally, professionally and whateverly.
Have a nice trading day!!! the sun shine!!!! and the birds are still singing, so it's all good. :cheesy:

Best regards,

Kulpio

 

[Giorrgi]

Hey man,

Thanks a lot for the support !

"However, especially in this low volume period, missing a valid trade can pretty much do the same mental damages as it might have been the only for the day....
And once missed, when you find a less valuable setup, you jump on it. And if it becomes a loss, it definitely hurts...". That is exactly it !

 

[Giorrgi]

Took one trade on EUR/JPY yesterday.

 

[kulpio]

My trades of yesterday, a nice day...
One scratched at the end of the day, that isn't on the chart.

 

[Giorrgi]

Hey man,

I don't take those continuation trades, but good job ! How often are you able to catch these ?

I took one trade yesterday on EUR/JPY and saw an interesting pattern on EUR/USD but didn't take it. I'd like comments on this second chart.

 

[kulpio]

Hi Giorrgi,

In your second chart, if not drawn, I would have not spotted this pattern at all.
When the price moves without pullbacks, I have trouble to spot the ranges, even more when there is some false break and teases in it.
I like to ''feel'' the breathing of the price, there was none in this chart in my opinion.
But it would have been a nice trade though.
Regarding the continuation trades, to be honest, I often get burned, but not by much as I tend to keep my tpt very tight. If there is no tpt near enough but I feel that the price will continue, I take the trade, but as soon as a bar gets broken, I close it.It's risky, but if quick enough, either it reach my profit or I scratch it very tightly. As I said in the previous post, I take these setups most often after news reports, or there must be a very strong trend (like the one on my previous charts)
I like big moves... this slow motion ranges we got since three weeks gets me crazy. I got burned a lot on range breaks this times. I don't know why, but it always point in one direction, build up a squeeze, break it, and then blop, the pressure evaporates At least in my view...
This week has been very good for me, but the last was bad... so it just depends. The conditions sometimes are good for continuation and sometimes not at all.
I take them all anyway, maybe in the long run it will pay off
But I should train my eyes to spot the right conditions.
I have a question for you....why do you trade jpy on top of the Eur?
Are you looking for more chances? Can you really switch your mindset when you move from one to another? I find the price action very different, don't you?
Below are my trades from yesterday. You'll find some that doesn't make sense at all. That's all me in the action!! haha
Sometimes I close it early by fear.
Sometimes I open one by fear of missing a move, at the really wrong place, but I still managed a 2% profit! I guess I was lucky...I'll say on two trades.
The rest was pretty nice I think
Have a nice day!

Kulpio

 

[Giorrgi]

"In your second chart, if not drawn, I would have not spotted this pattern at all."

It is your trade number 3, on chart 2 !!

Since I am very picky with my setups I usually spend days not taking a signle trade, therefore I watch another pair. JPY/EUR isn't as "technical" and regular as EUR/USD, but it does provide Volman type ranges once in a while. Therefore I observe both, but there are less trades on JPY.

One very good setup on EUR/USD today, wasn't near the computer

 

[kulpio]

'' It is your trade number 3, on chart 2 !! ''


Haha, what a joke... shame on me.
Well I guess I spotted it

My biggest struggle, as opposite to you, is that I should filter more my trades.
I take way too many....
If I could do that, keep my finger off the mouse, and filter out the very aggressive trades, I would end up very very good I guess we all have our own demons to fight.....

I wish you a great day, or evening....

See ya!

 

[Traderallen]

good trading to all

It takes time to work out our own individual kinks in our trading methods. Whether were jumping into early, to late, hesitating, or just plain old afraid to click the button. All in all these are small things you should not worry about they will correct themselves with screen time and experience. The important thing is to focus on proper trade execution and risk management and try not to make mistakes. Did you trade the correct position size? Did you manage your stop loss correctly? Did you exit the trade for a profit when you're trade plan signaled you to do so?
Did you miss the trade? Doesn't matter there will be plenty more
Are you entering too many failed trades? Easy fix, focus a little more on near-term support and resistance, always keep in mind if I enter the trade here is there room for the trade to follow through before hitting S&R. problem solved.
Forget to set your stop and the market tanks and you blow out half your account before you can close the trade. That's hard to fix!!
here is my last trade of the week.

 

[Giorrgi]

Hey traderallen,

Your post is reassuring. If the hardest things are respecting the tipping point (not holding till half your account is blown) and not exiting for profits too early, I think my problems are minimal. I didn't develop any bad habits when I started out (thanks to Bob's precise instructions on the tipping point technique!) so I have no problem exiting when it is required.

My trading stats are still not great. I am basically breaking even, which is progress compared to where I was 3-4 months ago but still isn't where I want to be of course. I think may main problem is to get better at reading price action, so the technical aspect (not so much the psychological struggle of holding too long etc. as I've described before - partly because I am still paper trading and it's probably easier to be relaxed). In this regards I wanted to comment on your advice.

You say that avoiding failed trades is easy: just watch out for support or resistance which might be blocking your way to target. My experience isn't as clear cut. Sometimes I take trades where prices revert and go in the opposite direction for a while (at least enough to break my tipping point). Because of this I became extremely conservative (only seeing maybe 1 good trade per day on EUR/USD during these slow months, taking even less trades because I'm not always in front of the screen). Part of this conservatism is that I only trade setups which display a clear SHS or double / triple bottom / top. And this brings me to your chart. Your block displays a fine barrier line, a nice squeeze before the break and was preceded by a small uptrend move. However, there is no clear double bottom or SHS within the setup. I wouldn't have taken that trade because of it.

This is my main concern right now. I am skipping lots of trades because of this. I see Bob taking these blocks without SHS or double bottoms sometimes and it seems to work out for him in the long run. Not for me. I was wondering whether you can comment on that in any way.

Thanks for your post.

 

[BLS]

Week 34 charts from Bob:
https://www.dropbox.com/sh/1amxmi9af0fk6ej/otxvkh6srN/2013

 

[kulpio]

Week 34 charts from Bob:
https://www.dropbox.com/sh/1amxmi9af0fk6ej/otxvkh6srN/2013

Thanks to you both, always appreciated.