B.I.G. Trading System #2

1. Lecture 2
Lets Make Money

2. Recap
• ANALYSIS ON
• Btcusd
• Gold
• Gbpusd
• DOGEUSD
• Eurusd
• Ethusd

3. The TDI
• The TDI is the only technical indicator that can read the market
sentiment, market volatility, and momentum at the same time.
• It utilizes the Bollinger bands and moving averages.
• In our methodology the TDI is used as a confirmation tool.
• Usually the market makers can manipulate candlestick arrangements
but in doing so they cannot cheat the market volatility.
• This operation will effect what we call DIVERGENCE within the markets.

5. Our Golden Pattern and the trading strategy
• Before we talk more on how we use the TDI we will need to define and
illustrate our golden pattern that you will never go wrong with.
• The M or W pattern is a frequently identified pattern and is a
particularly the best pattern.

6. Not every M/W is worth it
• Ms and Ws are thrown everywhere on the charts
• Its not every pattern worth trading.
• The following is the criteria of taking a setup,

7. Criteria of trading an M or W
1. The M or W must be away from the Peak and in line with the Bias
2. The M or W must have 3 by 5-13 ema crossovers
3. The M or W must be confirmed with divergence on the Tdi
• Lets now go over 1 by 1 point.

8. M or W must be away from the Peak and in line
with the Bias
• In our past lecture we talked about how we attain bias using the ema
theory as well as levels.
• In doing so we emphasized that the most important thing is to locate
peaks.
• After location of the peak we will need to wait for that peak to lock.
• Peak locking can be seen by a 50-200 ema crossover on the M15 strike
zone timeframe.
• So the Ms and Ws must come after the peak has locked.

11. The M or W must have 3 by 5-13 ema crossovers

12. The M or W must be confirmed with divergence
on the Tdi

13. Divergence

16. GBPCAD

17. GOLD

18. Resets Anatomy (non-template users)
• As defined earlier a reset is a cycle restart,
• In a complete cycle we will have 2 resets.
• Zone of Market / 61.8 Fib Level
• The second one at 50 Ema of the particular higher timeframe of
observation or 38.2 Fib Level.
• Resets of the H1 occurs at the low of day
• Resets of the H4 occurs at the low of the week
• Resets of the Daily occurs at the low of the month

19. The M15 timeframe cycle
• As mentioned in other parts of this method, the market maker cycle is
the same in all timeframes.
• The perfect timeframe for entry is the M15.

20. The M15 Timeframe
• The M15 timeframe is the one we use in micro analysis.
• Levels in this timeframe are more subjective and to reduce that we try to
define them as
1. PREVIOUS LOD
2. PUSH AND BOUNCE ON 13
3. PUSH AND BOUNCE ON 13
4. WE HAVE REACHED HOD

21. Illustration

22. Where to enter the market
• After all the explanations you are probably wondering where you will
actually enter in the market.
• We only have 2 High probability points to do so
• M15 - M/W away from the peak (Intraday TYPE /SIMPLE)
• H1 - M/W at the peak (SWING TYPE / HARD)
• These must be taken in line with the determined bias.

23. M15 - M/W away from the peak
• Using all the tools we have defined attain the H1 peak.
• Wait for that peak to lock by a 50-200 ema crossover
• Look for Ms and Ws following the criteria of selection we discussed.
• Entries are to be done after candle closure below or above the 13 ema.
• SL =15 PIPS
• TP=30 PIPS/25 PIPS
• USDCAD EXAMPLE

24. H1 - M/W at the peak
• After 3 levels of rise or drop we expect the market to reverse.
• At this reversal point we will usually attain a W or M pattern.
• If inline with HT bias tp 250 pips Sl 40 pips
• However this particular type of trade can be taken at reset points

26. Pairs that presents better setups
• EU XU
• GU AU
• GJ EJ
• EG EA
• UF CJ
• FJ CF
• UC BTCUSD

27. Risk Management and trading Psychology
• Knowledge is important but with wrong psychology it may be of no use.
• Trading is a business and all the losses must be taken as business
expenses.
• When we are right we must take as much as we can.
• It is not necessary to win every trade since reward to risk ratio will
cover us up when we are wrong.
• The amount to risk per trade depends on your aggression
• Recommended is 3-5% per trade

28. Forex Calculator
• This enables you to calculate the required margin, pip value and swaps
based on the instrument, as well as the leverage and the size of the
position. In short the best lot size.
• Firstly, enter the currency pair you are using, followed by your account
base currency and leverage.

29. The Forex trading Business plan
Capital: $x
Maximum risk per trade: 5%
Amount to risk per trade: 5%
Expected gain per trade : 10%
Accuracy: 50%
Trades per month: 12
Anticipated profit per month – 30%x

30. Trading for a prop firm
• Ftmo website

31. How to trade a 200k account
• Trading on a big account is highly psychological
• Therefore to remove this we try to risk less per trade
• The maximum risk per trade is 0.5% = $1000 and gaining $2000
• Therefore to reach the monthly target of 20k we need 10 winners.
• This applies in both the evaluation and verification.
• The following trading process flow is the best for trading this.