This is pretty normal VWAP entry. It's not dissimilar to how I trade (though, I don't use any sort of range--those bollinger looking things centered on VWAP). So my guess is it's no more advanced than VWAP range based entries and targets and stops. The first bearish entry was an bearish engulfing failure at VWAP, the exit was a range-based target (not sure how to dissect this because it's not at all how I trade). The bullish entry was the confirmation of a higher-high after a higher-low. Range-based target for that exit. The last two (bullish entry and the exit) started as the bullish entry similar to the first bearish entry...not clear on the exit here unless he viewed that first red candle after entry as a failure of the reversal and tightened the target and stop...it's odd it passed the target before filling later. Edit: There's three trade here that are symmetrical. The first and last entry were opposite VWAP reversals. The second was a VWAP traverse. But here's the thing, you're not seeing pics of all his trades (or even a representative sample). He's not going to show the trades when he got emotional, blew his stop, added in wrong, and wiped out a month of gains. Nor is he showing you the run-of-the-mill trades where he does hold his stop and gets stopped out more often than not. So, just because he shows you pics of good trades he's made, does not necessarily make him a good trader. (and I don't know these are things he does, but that's where the skeptic in me would start my line of question)
Thanks all of you for insights. Now he refused for dinner / lunch / BBQS and doesn't want me around when he trades. Also, he said just sim it or practice in replay for all this. But I just cannot seem to figure it out. Some of you guys though have given extremely good spot on analysis. So, I'll be looking forward to see if that makes sense. Meanwhile, I'll be still checking this thread out because it keeps getting more and more replies! By the way, as per him, his win ratio is about 95% which is extremely good (although I don't have proof to verify this but taking a word of it).
Took me a while to recall but it looks like an early Nexgen chart style before they moved to a renko type bar. Use of tick (610 ish?) the Linreg 89? (yellow) and white EMA midband (50ish?) plus MACD is familiar from years back. Above or below .5 acts as a guide to the trade rule. Do you recall if he had chart trader open? This is the panel on the right. If white/grey it is on a live account, if blue on a simulation. Edit; ok see last post now, on sim.
^ You got everything right. It is on 610 tick chart with Lin Reg and EMAs. Chart trader was open with white background meaning live account. I think we're getting somewhere now.... Are there any threads on this forum related to trading what's been asked here? I mean the style of 610 tick charts. Thanks because that will just jump everything for me to know.
I don't know on the style used on ET, I have seen charts and know some schools used versions of the Nexgen system (which is not a company I'd spend money on). 89, 610 are a Fibonacci numbers of course so expect to see 233tick, 1597 maybe etc. You might google search 610 Tick chart and look at the images to find others. I'd expect he has a few setups so each trade could be based on different rules however live trading 70 lots with this kind of system?.. If he is then your problem is not what he is doing, it is the years he spent to get good at it. Things don't have to be rocket science to work but the trader has to be really attuned to his setups.
You write well explaining the VWAP, read couple times, informative. Sometimes I use BB's to keep chart centered in the screen, but don't use them for system am testing or trading. Am guessing he a member of the forum and saw his chart? There is greed for knowledge and there is greed for money, to be invited to watch another trade is priceless. Am guessing he might have 5% losses but not necessary 95% profitable trades? Of course you have to define what is a profitable trade. And 5% losses are not to be identified as small drawdowns.
This is a bit old pic. He is doing a staggering 100 contracts trades every single day. Goal is only for one point, i.e. 4 ticks PT with 5 tick SL. And he does 4-5 successful trades every day. This is confirmed. Funny thing is, this has been perfected in only about one year. He started to sim trade for two months last year, then live trading from one contract, going to two, four then multiples of that and multiples of that until goal was reached of 100 cars. It's amusing to know that this system is old, although he's still trading it very nicely though.
Hope he is young and is quite the autistic savant Enjoy teasing it out, knowing something can be done is a great motivation. Off to bed.