RBT - Reality Based Trading

Reality - the state of things as they actually exist as opposed to an idealistic or notional idea of them.

Reality is the basis for success in trading any market. I'm assuming that the potential benefits of trading forex is why we're here in the first place - freedom, a good living and the knowledge that we're among the few who've mastered one of the most challenging professions in existence.

Reality requires us to be honest with ourselves, when confronted with reality, we need to be willing to jettison our preconceptions in order to embrace reality.

So what is RBT about? It's a trading paradigm that causes us to be in harmony with and not in conflict with the markets. A paradigm is a model of something, so RBT is a trading model. All good models allow us to adapt to changing circumstances while staying true to the principles of the model.

Let's consider the markets for a moment; we know that the markets change every day as people make new decision and act in slightly different ways from yesterday, we also know that the markets do not fundamentally change. Therefore a model that allows us to change (adapt) without fundamentally changing (constant principles) is a real model for approaching the markets.

RBT allows us to SEE what the market is doing and to profit from opportunities the market offers instead of forecasting what the market will do!

Let me share a little of my background - i was first introduced to forex in 2006 when i was seeking a way to make money online, i confess to being put off and turning to other things. In 2008 i took another look at forex and was hooked. Like the majority of noobs, i spent a while chasing the holy grail and wasting time and money fortunately that phase didn't last long as i'm naturally pragmatic and quick to dump whatever isn't logical and realistic.

It quickly became evident to me that the system wasn't the problem but myself, i first read 'Trading in the Zone' late 2008 and it changed my world. I began to focus more on psychology/philosophy as well as risk/money management while i continued to seek systems that would be a good fit for my personality.

I started developing my own trading systems in 2009 using various combinations of indicators, later settling on 2 main day trading systems based on a combination of either Moving Averages+ADX+OsMA or Moving Averages+ADX+Stochastics. I confess to doing quite well and eventually moved to managing funds with a partner. That didn't work out well and we had a falling out in 2011. I became disillusioned for a while, but picked myself up and returned to forex early 2012.

This time i wanted to do things different because i 1) didn't want to spend the rest of my life glued to the screens 2) didn't want to give up the benefits of forex 3) wanted to trade in a way that was independent of platform and 4) wanted to trade with much less stress and effort.

These reasons led me to review my studies since 2008 and refine and simplify my knowledge to develop what i call - the RBT Paradigm and DiLoTi/OSAME System.

The goals of the RBT Paradigm and the DiLoTi/OSAME trading system are 1. To allow me to clearly and objectively see what is thappening in the markets… i.e. to allow me to see REALITY and 2. To allow me to swiftly and unhesitatingly make trading decisions… in, out, stand aside. In other words, the RBT Concept aids me in executing REALITY BASED TRADING Decisions…

Remember that my 3rd condition was to be able to trade in a way that was independent of any trading platform especialyy MT4 with it's custom indicators - so i decided that a true test of the principles of the RBT Paradigm would be if i was able to move away from trading based on indicators to trading based on price action.

The bad news is that it took me a while, was a harrowing painful process and the result was a long streak of losses as i had to relearn how to see the markets and how to interprete what i saw accurately.

The good news is that it was worth it as since August of this year when i achieved maturity in my understanding and application of the entire RBT Paradigm i now trade the markets in a way which is based on the reality of the markets and allows me to be in harmony with the ebb and flow of the markets.

Since the proof of the pudding is in the eating i've linked my live account to myfxbook http://www.myfxbook.com/members/telios/mt4-36535/757201 and also attached the detailed account statements from August till November 2013 for comparision.

Subsequent posts will cover (not in any particular order) 1. the reality of retail forex trading 2. the reality of the forex markets 3. the internals of the RBT Paradigm and the DiLoTi/OSAME System 4. the core skillset required to trade successfully 5. what trading success truly is.

While i'm very proud to say that i've never blown up an account and even when i was a noob i was able to recover from a steep drawdown (greater than 75%) i do not view my self as a trading guru, but i know that i do have valuable experience to share with those who can benefit from it. My goal is to share and to learn and therefore i ask that all posts be respectful and focused on the issues we all deal with as traders. i welcome you all!


  • detailedstatementaugtonov2013.zip
    7.9 KB · Views: 172
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock    No Thanks