This document discusses 7 lies of trading and provides strategies for successful trading. The key lies discussed are that trading is like investing, discipline is most important, certain strategies or indicators are unique, technicals are all that is needed, automation will make you money, and that you need high reward-to-risk ratios. It argues the most effective strategy is to take partial profits on exits rather than needing large rewards, and provides examples of how this can be done successfully with moderate win rates and edge. Overall guidelines provided for real-life trading include judging results over batches of 100 trades, using algorithms for signals but discretion for entry/exit, trading a small number of pairs per strategy, and diversifying strategies not instruments.

1. The Only
Money Management
$trategy
That Work$
in Trading

2. BUT
Before We Start...

3. 7 Lies
of Trading

4. Lie #1
Trading is Just Like
Investing

5. Trading is
Nothing
Like Investing

6. Investing
is just BTFD

7. The
Simplest
Way to Make Money
In The Market Is....

8. Put
60€ into VTWSX
40€ into BNDW
Every Week for Rest of
Your Life

10. EXCEPT...

12. Trading is About
Absolute
Return

13. Trading is Also
About Proper
Gambling

15. (More on this
Later)

16. Lie #2
Discipline is what
Matters

18. No One Could Follow
Such Rules Consistently
Total
Nonsense

19. The Only Way To Create
Discipline is to
Institutionalize
FAILURE
Into Your Trading

20. Lie #3
Trading Strategies
Are Key to Winning

21. There Are Only TWO
Strategies in Trading
Continuation
|Reversal

22. The Key To Winning Is
To Figure Out If the
Market Is
Lying
or Not

23. Good Poker Players Read
The Table
Good HF Managers
Read Market
Regime

24. All Winning in Trading:
Apply Right
Strategy to
Market
Regime

25. Lie #4
Indicators are Unique

26. All Indicators are
Variant of
Rate of
Change
Calculations in Price

27. All Indicators are
Similar

28. All Indicators Generate
Basically the
SAME
Signals

29. Lie #5
To Trade - All You Need
Is Technicals

30. Elliot Wave
Fibonacci
Gann
Haromics
= ASTROLOGY

32. Candlesticks
Patterns
Indicators are Useful
BUT...

33. They Don’t Create Price
They Only Report It
NEWS
Creates Price

34. Lie #6
Automated Trading Will
Make Me Money

37. Why You Can’t “AI” the Market
1.The Data Keeps Changing
2.Data More Noise Than Signal
3.Edge Comes from Nuance
4.Complexity Kills

39. Lie #7
You Can’t Win Unless
You Trade 2:1
Risk/Reward

40. The
Greatest
Lie EVER

41. Backtest Any Strategy
And You Will See That
2:1 Trades Occur
25% of the
Time

42. That’s Why Everybody
Loses

43. 2:1 Trade is a
LOTTERY
TICKET

44. The Only Way to Capture
it Successfully is with
Short/Exit
Long/Exit
Setup

45. What is
R?

46. R = Stop
(i.e. 30 pips)

47. Strategy
Trade 2 Units
1.Short Exit->1st Unit @ 1R
2.Move Stop to Breakeven
3.Long Exit-> 2nd Unit @ 2R

48. EXAMPLE 1
52% Win on Exit 1
28% Win on Exit 2
+4R on Exit 1
+8R on Exit 2 (56-48)
+12R per 100 trades

49. EXAMPLE 2
48% Win on Exit 1
32% Win on Exit 2
-4R on Exit 1
+12R on Exit 2 (64-52)
+8R per 100 trades

50. NIRVANA
55% Win on Exit 1
35% Win on Exit 2
+10R on Exit 1
+25R on Exit 2 (70-45)
+35R per 100 trades

51. NOTE
in None of the
Examples do You Need a
Big % Edge to WIN

52. Takeaways 4
Real-Life
Trading

53. #1
Judge Results in
100 Trade
Batches

54. #2
Enter with Algos
Exit with
Discretion
(Adjust 4 Regime)

55. or #2
Use Algos to Signal
Use Discretion
to Enter and
Exit

56. #3
Machines Only Give
Signals
Regime Wins
Trades

57. #4
Trade 3 Pairs Only
Per Strategy
(Less is More FX Highly
Correlated)

58. #5
Diversification
in Trading Comes from
Strategies NOT
Instruments

59. #6
Trade ONE Times Equity
Per Trade
(i.e. 10,000 Units per
Trade for Every €10,000
in Account

60. 1 Million Years of Evolution:
I Want To Eat NOW!
I Want to F NOW!

61. #7
Understand Why You Will
Never Be Patient
(Build That Human Flaw
In Your Trade Plan)

62. Have
FUN:)
In What Other Business
Do We Look Forward To
Mondays?