Secrets To Scalping For A Living - Jean-Francois Boucher | Trader Interview

the breakouts are fewer in percentage wise than the bounces and so if I'm here for high probability trades the probability is on the bounce not on the break right so if you think of a market top you can have a top of V top like one top and then few days later oh we have a double top few days later we have a triple top that's bounce bounce bounce do you hear quadruple tops or quintile tops that's usually when you see the breakout right so one two three bounces okay sure I'll play bounce on the

fourth I don't play Bounce I expect a break right so it's it's the logic you have to put yourself in the market shoes welcome with we had a discussion more than a year ago or so that video popped up on YouTube and got a lot of views so was should respect for dedication he is also within trading it D does just from from other people thinking very seriously also you're one of the biggest VI worship I had on YouTube in the past year or so I believe so good to have you back on the podcast

good to discuss tra again good to see what you're doing and how you like what you up to yeah yeah well glad to be here uh the last time we spoke it generated a lot of views on on your stream and it proved to me that there's actually a demand out there for what we do the skill we have and a lot of people came seeking me out because of that podcast and here I am willing to help some more that's awesome for sure yeah this tell me for since the last year and a half

or so since you last book what Chang exactly is it the same thing are you trading exactly the same or do something change in the market orot or the way you trade the stream of students that's been coming by has allowed me to forward test the strategy and so I used to operate like a business I still operate like a business but now my business hours have expanded and so originally in order to build consistency into my system I was focusing on two hours per day the same two hours every day and then I made

sure to finish trading every day and what's happened since the podcast I start trading at 7 and I pretty well finished trading at four or five and so I'm now forward testing the strategy all day I'm not trading all day but I am in front of the computer a lot more than I ever used to be and so I've seen the market under the conditions that this strategy never experienced before and so I myself I've tested it through those conditions and so it's made me a better Trader at the same time and teaching makes me

a better Trader at the same time so should everybody else be teaching definitely something I I saw myself the BU as well for sure so looks like I'm mean you busy but I kind of want to go back and discuss past you got us through your whole process everything I is know about we you trade and that was awesome but is there anything else that we kind of left out that you included in the past video that you want to maybe talk about on uh well in in general what I'm doing is focusing on small

achievable repeatable goals which is very different from swing trading and so in general what I'm doing is a shift in mindset once you have the shift in mindset the strategy becomes really easy to grasp right so instead of trying to hit the ball out of the park I'm really trying to make it the first base and if I can make it the first base I can make it the second I can make it the third and eventually I can make it all the way around and so I'm not trying to outdo myself day by day

I'm just trying to get an average and if I can get my average I'm happy and so I think last time I focused on the process and this time I it's more well since a year or so I've realized the strategy relies more on psychology than on rules and so this is really where the difference lies you know people need to have the right psychology to fit their model you know a swing Trader may not be a swing Trader internally and that will never work right so you have to find what works for you and

in this case I think this works for me and it works for the other 200,000 people that watch that video this something I want to hear about so you could give your strategy rules to two different people they could trade it like very well in the market but then they could also fail completely what could be good what could be bad with strategy so what do you think that is and how can we fix that uh in the case of this particular method we're trading solely for the reward and so our focus is on reward

not risk reward and so the focus is on reward and we manage risk whereas when you're a swing Trader the focus is on risk reward so you have a statistic that you're targeting and then you're looking for that statistic across a universe of instruments and you're hoping to find one or two pairs per day to trade one or two trades per day that leads to series of losses and once in a while you'll have a win what I'm doing is very different I've lowered the bar as low as the bar can go so now I'm

targeting two or three Pips and I'm doing it 20 or 30 times per day right so instead of having one trade waiting for one outcome I'm taking the same risk but I'm spreading it like you would spread butter on toast and now I'm having an average outcome every day and this is in my control I'm controlling the risk I'm not letting some stoploss tell me I lose right and so I I'm in the market passively trading not targeting a specific statistic my focus is on the process if I take a three four five 10 pip

loss I don't care I'm back on the horse and I Target the next two or three pip win right and so my focus is forward-looking always on that next trade next trade next trade next trade and the loss is something that gets recovered in the process most people that swing trade will lose no Mr Market please give me 50 Pips I'm willing to lose 25 and as soon as they lose 25 in their mind they now need 26 to feel better right and so that's an it's a cycle of death it's a Circle of Death

it never ends we have to get out of that series of losses and get into series of wins however small they may be just to change your psychology and so that's what we do we lower the buyer as low as the buyer can go so that gets us an income that's the reward and then on the flip side we now manage the risk and so because I have this stream of income coming in I have a high win rate if I take maybe a 100 trades I may have you know four or five losers out

of a 100 those four or five losers can take away all 95 wins and so I must must be on the lookout for those losers that's my job I'm a risk manager the income takes care of itself it's a very high probability trade two or three Pips it's almost unavoidable right so I'm not managing wins I'm managing losers that's in my mind you know that's that's where it comes from Trading happens between your ears right it's not the platform it's not the fancy colors it's not the tools you're using it's in your Ed and once

you have that sorted out and it's you you have it golden I be say about this because a lot of Traders have this kind of fear of loss that like when they have a shoot losing Trad they kind of start to like get all like stressed out and everything because they had losses they can accept that much so they want to move to strategies like EUR towards like a very high rate but then they're frustr because they cannot get the wins fast enough or the big profits fast enough they expect that because it's high win

rate they'll be able to make like a 60r in because of the high One Rate there's something with expectations something with losses but then what you see there and H yes you're absolutely right so in the beginning I think we we the industry has light to us everybody starts being told hey start on the daily chart and you'll have better results there right but they also neglect to tell you you're going to have bigger losses and so over time you find your way working your way down to like a one minute chart where you can

actually afford to lose right it's losing on the one minute chart is very very different than losing on the daily chart and here if I'm in front of a one minute chart and I'm witnessing the loss taking place I'm in control I can stop this at any time I I I don't have to watch it go to 36 Pips I don't have to watch it hit my stop loss I'm in control and even even as uh the the market is moving I can change the environment by adding an extra trade or two extra trades and

now all of a sudden I'm not only in control of three trades but I'm in control of the average of three trades and that's the line that you're you're moving you're putting that line closer and closer to the current price it becomes your break even all right so now you're controlling where your exit is you're not telling the you're not letting the market tell you where your exit is and so by trading like an insurance company by pushing back against losses right and taking in tiny tiny tiny premiums all day long you can profit at

this you need to manage the losses it's okay to lose it's part of the game we're expected to lose right but we need to control how big those losses are and if you if you find yourself revengeful that's 3,000 years of evolution you know if somebody rips you off you need revenge and this is It's senior d in it's in your DNA you're learning to lose you're learning to become a professional loser you're learning to become a monk right so taking a 10 or 15 pip loss you have to go back reverse engineer that loss

figure out where you went wrong and then tell yourself hey that's no big deal that's four or five wins and then just get back on the horse and create those four or five wins right so it's not one big loss and then one big recovery that just creates Mayhem we need to control the loss and then recover that loss slowly and and you know uh one trade at a time stick to your program stick to your process if I can share my screen here I have a couple of Trades under way already uh yeah and

that' be awesome to to have a look at sure okay so uh I would start on the daily chart today is Easter Friday a good Friday so a IL liquid Market very very illiquid Market we had uh employment data come out from the US and so my my process is always the same I typically would start this at 800 a.m so 40 minutes from now uh I'm about 40 minutes ahead of schedule but uh the news has already come out and so I sh kind of relieved and uh basically we would look at the calendar

then we look at the daily chart and because I live in North America the daily candle is already 16 hours or so old and so I'm comparing the daily candle with its predecessor and I can see we've created overnight a lower high and a lower low and that tells me that just today there's a lean towards bearishness and that could be just a result of the news event and so I need to go and see this on an hourly scale and sure enough we made the high in the middle of the night we made the

low as a result of the news event and so now I understand where I am in respect to support and resistance and I can start I can start drawing uh critical levels levels that I need to have uh a call to action and so from there I can start looking on a five minute scale and appreciate those same levels but now they're actually closer and I call these or we call them action points right we we have something to do here there's a job for us to do at some of these levels if we get

to these levels on the average if you draw these lines over and over know day after day after day you're going to find after a while that these lines are about 9 to 10 Pips apart on average that happens to be the standard deviation for the Euro on a five minute chart right so 9 to 10 Pips is the average move on the Euro chart and on a five minute Euro chart so I take that measurement and this now becomes Dynamic I can take that average support and resistance and now I can move it around

and with that I can now use this like a measuring cup in the kitchen I can measure volatility with my little box and so at the bottom when the news came out and we finally made a bottom what looked like a bottom I put my first box there and then I see we broke the Box almost immediately and so in my mind that tells me hey there's a lot of incoming volatility because otherwise we would have been in the Box for the duration of the box that's a standard deviation right and so if that was

standard up there why are we breaking the Box in two bars down here boom boom so that immediately begins a new box right so I'll just grab this and now in our mind in our mind we're waiting to travel through this box for the duration of the box and then boom we break the Box again very early that tells you there's incoming volatility and so you put another box there you still don't know the future and so you expect this most people would expect this to go oh oh my God it's going to the mo

and we know it's going to resistance it's going to one standard deviation and it stayed there right and so now we're in this box and we're back down one standard deviation and I'm buying at support right this is now support and I'll be willing to buy at this level of support down here and all the way down to the original support at the bottom and so this already defines my risk it defines how I'm willing to spend my money where I'm willing to spend my money and it's literally 1% per box and so if the

market keeps bouncing I keep targeting 2.7 Pips every time I click my mouse I'm taking a 35 pip risk right so my stop loss is down here and that gives me space to do the work I need to do to get out of this trade if it doesn't work right so I'm managing the risks and managing means I can add or remove trades at will right I'm not I'm not stuck having to obey a stoploss that's predetermined no risk to reward ratio right I I'm in control of the risk therefore I allow it to be

upside down and I'll tell you right now the average loss is about 10 to 12 Pips okay so it's about 1 and a half boxes my stoploss is literally four boxes four standard deviations right so if the stop loss is four times my boxes my average loss is just under two boxes okay so it's a it's a way of framing risk this is a measuring cup and I know by measuring volatility I can measure I can end up measuring the average daily range right so before the war in Ukraine the market was moving eight to

nine boxes per day and after the war immediately the day after the market started moving 10 to 12 boxes per day right the boxes did not change the recipe changed right the number of boxes changed and so now it's how the price is behaving this is a standard deviation at this price right now is behaving in a standard way it's moving nine Pips up and down and it's in the course of taking an hour to do it right and so this is a normal standard deviation and as long as the price remains normal I can

make my normal three pip money and then when I'm done I walk away because I turn off the faucet right I don't leave open trades if I have a scalp for three pip in the morning that is still open at 4 in the afternoon I'm breaking all the rules in the book right I can't allow a scalp remain to be a swing and then have it close at 36 pip in the middle of the night so it's up to me to take that loss before I turn off the computer every day right so this may

even break down but most people would go oh my God it's in draw down it's in draw down this the fact is simple it's not going here it's not it's not one straight shot and so if I can measure where it's approximately going I can then anticipate how it should be behaving and then it's a based on probabilities right I I set the probability and I play that probability and the probability is that it's highly highly likely to to stay in the box if it doesn't stay in the Box all right away your radar pops

up ding ding ding ding ding and you know you need to behave you need to do something if I remove the Box you are clueless if I remove the Box you don't know what to do where to do it when to do it how to do it right so the the box is framing the risk and it allows us to uh behave in such a way that you build consistency in your trading system if you remove the Box you the last variable are inconsistent right the variable I'm talking about is are are these variables you

your your trading definition right when you're swing trading you may have a 2:1 or 3:1 risk to reward ratio but you're looking for it across a universe of instrument and because of that no two days will deliver the same trades on the same pairs with the same size the same Target and the same stop loss swing trading is nothing but inconsistent what I'm doing here is quite the opposite I have one target one stop loss one size one time of day one instrument one everything and the remaining variable is me and I'm trying to Define

my behavior by using a box so each of these boxes are Prett much want mediation of the price so any PA so thate length yes so the box is uh it's a calculation that we go through but literally the way to to no the dirty math the way to approximate the box is to look on a five minute chart go to the Asia session right so for me in North America I'd be looking at 8 or 9 p.m. I live in the Rocky Mountains and so I'm two hours away from New York and so you

look in Asia and you look at 8 or 900 p.m. and the average the smallest Range that you see there is a standard deviation literally from there the market finds its legs and it moves that standard deviation over and over and over all day long right so if you if you can figure out what that standard is then the rest of the day you're just moving that same box you it so happens that every time frame has its own box and every instrument has its own box and so once let's say you're you trade the

pound your box will be 12 Pips okay so it's 12 Pips tall and the standard move approximately is between 30 and an hour so it could be 30 minutes it could be an hour but somewhere in there right so I use an hourong box that's basically one of these flat periods in the middle of the night right and so right away we see the market is it playing normally it's behaving normal I already made a little bit of money right and uh as long as it behaves normally I behave normally I make my money normal

way as soon as it breaks the Box it prompts me to expect more volatility more of the same and therefore I continue to make two Pips once we start to go sideways like this now I can play ping pong ping pong I can play Both Sides this is Trend inevent right I don't care if the Market's going up or down I'm making money sideways right so uh the market can have a trend it needs to I I need to find the the intended Direction so I don't get caught with my pants down right I don't

want to get caught by something like this but once the market settles down hey this is my playground right so this is how we we we exercise patience more than anything else I I'm patient avoiding the news I'm patient waiting for the news to come out I'm patient 101 15 minutes after the news I'm Trading through my little boxes and I'm patient waiting for the price to come to the edge of the Box all I do is exercise patience all day and in the last 30 minutes I made $84 and so two Pips two Pips

two Pips is nothing to laugh at especially when you're controlling the downside right so it's a very different approach and it it lends it it lends itself to small sessions so couple hours here couple hours there a couple hours here a couple hours there and but the way to learn this is to focus on the same two hours every day you want to be comparing apples with apples every day right so I don't practice this in the Asia session in order to be really good in North America right I practice this in North America so

I can become really good in North America right there are different markets different people on the other side of the computer and so we're learning to behave that's all it is and it it happens to be between your ears so not everybody is is built for this some people are meant to be swing Traders and that's their psychology it's not my psychology but you know it failed me swing trading absolutely failed me it just never worked because of the goal that I had right two to1 risk reward ratio now I'm free to create my risk

reward ratio and on average you know if I look at my statistics it's about 1 to one right because I'm in control and this is very very different than letting the market tell me hey you're a loser again right so my psychology my psych my psychology changed now I I start my day with two Pips hey hey success and it's easy to keep going from there right if I wake up in the morning I turn on my computer it's oh man I lost again it's hard and this is what created this created the solution for

me and I did not design this this was taught to me right and so as long as uh you know I I heard it from the horse's mouth I I could trust the people that delivered to me this information so it allowed me to step outside the box you know the the risk reward ratio know the daily chart it allowed me to step outside of the norm and uh trusting the source of the information was really really important and then practicing it in real time so in the demo account but in real time the same

two hours that I was hoping to work in that sped up my learning curve right instead of wasting 18 hours per day on random markets I focused two hours specifically on just what I'm trying to do and then I went about my day you know and that sped up my learning curve and so it the industry is designed know you've been invited over for dinner with a big smile but they never told you you were going to be the meal right so you end up on the table or on the menu and you don't know

you have to make that choice in real time along the way and every day you choose to lose when you choose to lose not when the market tells you to right and that's important it's a choice we make I think here for sure I that one sure it's good one no but get back those buses the reason why I like this by because many people have issues with like finding the support some charts but these boxes are very mechanical there's something thing that you Cann just like figure out by depending on like who you are

look left if you look left the the boxes relate to previous support and resistance today is kind of offbeat because of the news event but if I just stack the boxes properly right what we're what we find is the Box itself let me remove that Wick let me exclude that Wick and just count the actual green candles here what we find is that the Box themselves relate back to previous support or resistance right so the Box themselves are standard units of measure and the way that they line up they relate to what happened back here

hours ago or days ago or minutes ago right so they're all standard moves stacked up it's like Lego bricks right the Lego bricks can only give you certain structures it's like playing Tetris so this is kind of what I'm doing here right the box has never changed what's inside the Box changes all the time that's why I can't have a hard target I have an average income I just play what the market gives me according to my boxes at the end of the week I have an average week and that's not because I pushed 18

hours per day it's because I focused on one mechanical way of trading like you said and this is it the Box the box is a filter it allows my brain to recognize safety I'm I'm safe here and I know what to do on three sides of the box it's the same thing all the time it's always the same thing and because there's a sorry there's a downside to this there's an allowance to build into draw down it allows me to add to open trades these are not losers they're work in progress right so I am

I'm allowed to have three boxes of work in progress so all this is trying to make me three Pips by the time I find the overall move of the day you Al so I'm not getting caught with my pants now I I have pretty well closed all of my work in progress and so I'm I don't have high draw down I closing losers at the end of my two hours I'm walking away with my money I leave the casino every day right what happens when you win at the casino and you stay you end up

losing that's a cool point because a lot of people would want to be at the charge as long as they can to get from in as they could like play as long as they could but that like you said is just counterproductive yeah yeah if you make $20 and you know you make $20 every day take it and walk away take it and walk away at the end of the year you have 200 days of $20 why risk it why push for a 100 200 300 when you know you're going to lose that 20 keep

the 20 and leave the casino come back and do it again come back and do it again come back and do it again right so this is what we're learning to do we're learning to behave in an environment that is out to get us and so you're forever playing on the defensive and you can only be a offensive when the opportunity presents itself and so we know in Forex two hours per day is the best time for me anyways it that two hours that same two hours every day is my sandbox if I play outside

of that sandbox I'm risking outside of normal what I what I normally know feel safe within and so I don't start early because I'm facing news and I try to not stay late because I'm facing volatility that's disappearing and so I have to stay inside of my business hours optimize what I do there right and then once you have something that works you just repeat it you don't change it and so because I'm trying to sit here and you know make a couple of dollars on Easter Friday on Good Friday I'm really I'm pushing the

limit of this strategy you know I should be taking the day off there's it's an illiquid market and you know the Futures are closing in a few minutes everything's closing today spot Market will be the only thing open and the spreads will be widening in a few hours and I want nothing to do with this so yeah we we have to know our environment and as day Traders it it's in the title right you're flat every day interesting and this is why I think the are so powerful because like what you say makes sense but

people realize it sometime they not realize that they've been spending way so much time in at the charts or trading like every day and they just like by themselves they wouldn't be able to recogize it but he is someone else makes it that they they identify themselves they know that they're strong then you can readjust and get a so I think that's why B got many views maybe this one got that many which is cool but it's really the part of like these inter kind of hearing on Traders like what they do what they think

about and applying it to your own trading afterwards so yeah yeah yeah it's you have to design a strategy that works for you some people and enjoy running robots some people enjoy trading manually I do a little bit of boths for me when I run EAS I feel like I'm running a restaurant and I'm managing employees right it's like one one guy's not showing up for three days I have to fire him right this kind of stuff right you're turning on robots you're turning off robots you're you're managing trades you're managing robots I'd rather be

managing trades it's just in my mind I I I see risk Through My Lens not through the lens of the robot and so I would rather manage risk than manage robots but that's just me everybody's a little bit different I have friends that are you know great at running robots and and that's the way they make their living I have another guy that just trades news I avoid the news like the plague right we're all very very different we all have to do what works for us you can't copy me I can tell you what

works for me but you have to make it work for you right so yeah try trying to learn from a book in this business is pointless you you learn through experiences right so that means you need to show up and do perfect practice not random practice so th this is really it's a mechanical approach to success right step by step by step instead of randomizing you know Stepping Stones across the river I follow the beaten path and uh having leared this literally from the industry from the horse's mouth it allowed me to okay I know

this will work if I just practice it and so I just had to settle down and stop randomizing my approach to trading you know just settle down in one way and learn everything about it become a specialist that was it I shouldn't say that was it it's still it it's still ongoing it will never end what would you do if you didn't have that strategy stand at that process place what would you go looking to find something to shade these days well on a day like today probably nothing uh if I'm not using boxes I

would rely on Bullinger bands they're the next closest thing right so uh they allow me to measure volatility over 20 bars or 12 bars whatever you select and so this is kind of a similar idea uh but I would find a way to measure time because we've been lied to you know all this all this time we've been told uh the you cannot time the markets and I beg to differ right this is it this I I'm proving it to you here you know we can see when the next move is about to come because

they're standard moves and so you can anticipate this is a lot like forecasting the weather right if you think if I were to ask you where you live right now what's the weather next week your success dismal almost negative right you're going to lose every time I ask you the question if I ask you the same question but now I say what's the weather next hour your success goes up and here I am looking for the weather in the next few minutes right and so my success is extremely high and because I limit what I

look for and how far into the future I look for it I know when I'm wrong and I can stop it whoa enough that's it and then you know write myself or get get on to the other side or do whatever I need to do it's a it's a step it's a it's a logic kind of step right you you you do one thing it leads to a yes or no answer you do something else it leads to another yes or no answer and then eventually you run out of options that's box number four the

market has Tri you that's it you lose for today right but that's not the norm you typically would leave the casino with money right so we're here to fight every day and to overcome those losing days right the losing days are there they're they do exist I lose like all the time I took losses today uh you know I took a handful of losses today and this is normal that the the problem we have is we cling to our losses and then we forget that it's only a few trades to make them back right so

yeah uh right now see we're back to this support area here it's and if I put my boxes back to where they were uh you'll see how it lines up with the box right it lines up with the box right here and so uh this would be a perfect place to buy so I'm adding work in progress to an open position already right I'm thinking this is not going to China it's not going on all the way down here well China from where I live it's not going across the globe it's uh it's going to

find support and then once it finds support you know somewhere in this area or even in this box maybe even in this box somewhere before here the market will find a reason to rotate just like it did here and here and we will have a reason to get out of these trades with money or a break even right so I'm managing this away from these and I'm doing it by spending more money by changing break even right I am maneuvering the average of all my trades by adding more trades right so it's a it's a

maneuvering thing I'm I'm engineering my exits because obviously it's not making me the three Pips I was looking for right so I need to engineer a way out of this and I do that by adding a couple of Trades and now this number 8 99999 is literally like one or two Pips in front of my nose right I'm I'm within the PIP of breaking even and this is it I manage where Break Even is so that I can exit with little to no loss I take losses get don't get me wrong we take losses doing

this we managed them and so we do that so that the win rate still overcomes the losses right tiny tiny gains but lots of them yeah it's interesting a lot of people will be seeing this as a break to the downside of that case and there was Fe going long expecting B to go down and down and down forever yeah yeah but exactly they think it's on the way because it's on the way down most people think oh Chicken Little you know the sky is falling but in reality it's going to support and then what

happens at support there will be some kind of a bounce my job is to find support where is support and so is it here is it here is it here is it here is it here is it here is it here I I will keep trying to find it three box is worth and so I already know how much money I'm willing to spend how much money I'm willing to lose and I keep trying and the attitude of a lion you know you don't give up you just keep trying keep trying keep trying keep trying

and eventually you get what you're looking for and this is it you you pace yourself if you keep trying keep trying you do all your attempts in one box you run out of money you can't play you can't get out of that box if it keeps moving against you we are learning to Pace ourselves and manage your way out of a draw down right draw down is not bad people equate draw down with loss these are open trades loss is a closed trade right this is not a loss this is work in progress this remains

red until it closes it could close red but it will remain red until it closes and so I have to close it green right my job is to make sure these end up in the green somehow and I do that by changing the average right so it's a skill that you acquire you're building a position in order to profit from the next move just like Wayne Gretzky plays hockey right Wayne Gretzky always happens to be where the puck is how does he do that right how how does my take profit happen to be where the

next move is going right right so I play like Wayne grety I put my take profit where the next move is going to be right then I do that because it's off of support or off of resistance I'm not a swing Trader I don't care for the whole move I just care for that little bounce bounce into my takeprofit that's it and if if I'm bouncing if this is truly support because of what we see on the left because of the unit of measure that tells us we should be bouncing from here that's all I'm

looking for the market can do whatever the market wants right so if it does something like this right here guess where we're going oh to the bottom of the box I will be buying that too but so this is keeping in keeping in mind that you had a you're looking at the chart for down dat and you you using price kind of making a lower high making a lower low so that doesn't make you want to go short that dat that makes you actually want to go long that day mostly I I'm not trading the

day I'm only trading what I see for two hours and so in that moment right now what what are we seeing we're seeing pullbacks the pullbacks are made up of up legs and down legs regardless of the trend and here I am about to make a little bit of money again right so here let's close these Treads or no actually let's see if they actually go to the takeprofit boom boom there you go okay so yeah you have to really love trading to uh to get into this kind of mindset right yeah you're going against

the crowd you yourself were suggesting maybe we should you know be tempted to go short the problem is shorting is good there's nothing wrong with going short if we make it up to this level right there maybe I will go short right if we get to right there taking a short trade would be beneficial right there's room in this box to go short and back to the bottom of the box right it's all in the frame it's all H how can I squeeze three Pips out of this the market go goes up and down it's

not One Direction all the way to the moon and it's not One Direction all the way to Antarctica so yeah you know once you know your frame of reference this is it this is something I can lean against I can make a decision based on where I am in this box and once that frame of reference gets threatened I need to get out of there right and right here right now if we push if we can push into that resistance one more blue bar one more green bar I will sell that and we'd be able

to know maybe squeeze a couple of dollars out of this and the If Today Was a normal day not no not good Friday we'd probably have a lot more volatility and this would' be uh faster right we'd be doing this a lot quicker but this happens to be a good day to show you uh how this system works right but all all I'm targeting is support and resistance and I do it all day well within two hours and I do it in order to capture the bounce not the swing the bounce and that bounce over

and over and over fills my pocket full the change right and I then I walk out of the casino if I overstay my welcome the casino wins every day right that that that happens I finished a week with less money if I trade more than two or three hours per day and this has been a problem until about you know a year or so ago when I started forward testing this uh all day long I've become a lot better at this than I was before but yeah so start with two hours because you can study

your opponent and then from there you cannot expand your window and you know take on Challengers from different environments so uh we didn't quite make it there we came back to support I would buy this again right so now I have a new Target right there in front of me two and a half Pips 2.7 Pips or so and I match support this is all I care for I don't care about this I don't care about the lower highs the lower lows I'm I just care for support if I'm at support there's a possibility of

a bounce one bounce at the right time of day is worth more than my Target and I'm basically guaranteeing my exit by asking for less than the average bar right right now the average bar is 1.7 and my target is 2.7 and so right away I I need to wait one or two minutes to make money on a re on a regular day at this time this should be four or five Pips and I'm only asking for two or three so I'm asking for Less Mr Market give me 10 and he's already moving along giving

people more than that right so I'm asking for less than the ATR guaranteeing my exit right so we're testing that support area uh if that support holds I'll get back up to this Zone up here if the support fails I would expect a move to the Lower Side of the box and eventually a move back up these are all standard moves right and so depending on how far the bounce is How Deep The Bounce is I will build and build and build up to a point I know how much I'm willing to spend it's not

like I keep clicking until I can't click anymore right I have a limit and I know when to stop and then we stop and if we can't fix problems at that point because we can't spend any more money we actively take losers off right so we're not building into a losing position far far far from it the end goal of this is to have this come back up one standard deviation period right so I'm I'm trading because the market is moving if the market is moving one pip per you know per hour there's really nothing

there for us to do as long as I can shill a box I can make a little bit of money I something you said which is very interesting which is you're looking for the bounce not the swing so I'll stly think in my mind what percentage of Traders are actually looking for the bounce instead of the swing and I think not many probably very small percentage yeah everybody's trying to play their breakout everybody's trying to catch their breakout and what precedes the breakout false breaks what's a false break a bounce so if you learn to

learn if you learn to play bounces and then you fix breakouts you repair breakouts you you average your way out of a breakout oops did I give you their secret sauce so yeah Carr I should know a guy doing that too fting breakouts and was you offer him so yeah yeah yeah the the breakouts are fewer in percentage wise than the bounces and so if I'm here for high probability trades the probability is on the bounce not on the break right so if you think of a market top you can have a top a vtp

like one top and then few days later oh we have a double top few days later we have a triple top that's bounce bounce bounce do you hear quadruple tops or quintuple tops that's usually when you see the breakout right so one two three bounces okay sure I'll play bounce on the fourth I don't play Bounce I expect a break right so it's it's the logic you have to put yourself in the market shoes we've bounced once we've bounced twice we've bounced three times do we normally bounce four no let's go right and this is

kind of what happen here uh we're working with probabilities not Randomness right the market is on schedule all the time the news comes out as PR the calendar that's published a year in advance the Stock Market opens on time all the time the banks close on time all the time the stock Traders participants are Professionals for the most part they're on schedule for the most part hedge funds and mutual funds Buy on schedule right the Market's not random what is random is the people's uh reaction to news reaction to stuff right it we're creating reactions

we need to be patient and react to things not anticipate and so what we're learning to do is limit what we anticipate to the Box don't expect the weather next week expect the weather in the box and then play the box right and so this is really focusing in Z on what's happening right here right now who cares what the trend is it's Trend inevent you you need to know the trend because if you don't you're going to get caught with your pants down you know that's going to hurt but while nothing's happening like this

do you care what the trend is the trend Trader does because he's sitting here doing nothing I'm sitting here making $86 so far right so I don't need a trend right the trend is it's a make belief thing you can see it here this the trend right now this little up leg is three boxes stacked up right this down like oh GE wh it was four boxes stacked up there is no such thing as Trends it's just sideways markets on top of sideways markets right sideways Market on top of sideways markets I'll just leave it

at that yeah so just think so this why I have last chocolate to so I'm prob Never Gonna trade the same way as you but it's still like very like a big eye opener like we do things do things and it's just such a different way of trading that I'm not used to and probably I won't ever do but some things can take away from your sty any kind of other Style Trading she's very cool about it there's a million ways to skin a cat you know this is just one of them and it fits

certain people's psychology there's different types of Traders we all have our own pros and cons and this fits the model that I need right so it's it's copying an insurance company the insurance company will keep collecting small premiums every day and that if they receive a claim they push back right push back same thing this same thing I collect two Pips three Pips and if I come near 36 I push back I I refuse to lose like the insurance company I refuse to lose with logic not because I'm afraid to lose right I refuse to

lose that much [Laughter] right ethical lowy for sure yeah oh yeah it's a business model and it's a true legitimate business model and you seldomly hear of insurance companies going bust right and they collect a lot of small premiums so this is kind of what we're doing we're collecting small money and if the risk is approaching we start to push back and that requires money you need to spend money to push back back and so that's the only way because otherwise you're sitting there and it's approaching your stop loss and now you're going to be

tempted to move it right and no no no no no so you have to do what you have to do but in our case we're trying to profit from volatility because it's a measured environment right so right here this move right here boom boom boom nine Pips and we're just about to get back to my break even to my original trade I'm up to 93 and hopefully uh in the next know 5 10 minutes or so I will have tested the previous highs this is the eing part two is the fact that you show me

today that you can make money even if markets make no lows or highs on the balances which is very interesting to to to oh there we go we're just about ready to close the trade there uh so yeah they as as long as the market is moving it doesn't matter what Market you can trade this way you could be trading wheat bubble gum corn it doesn't matter as long as it trades it has a standard deviation once you find what is standard you learn standard and then your radar gets tricked when it's not standard and

so now you know this is risk and you don't jump into risk right so you you it's a behavior thing you you're learning to behave in the environment that it's in that is in front of us and these are measured moves I don't know who does the measuring all I know is it's moving nine Pips that's all they care right and so as long as it keeps moving like this which it has before a war after a war so it doesn't seem like War has an impact if War doesn't impact it what does right I

know news does this was news but even news only impacted it four boxes four boxes literally to the PIP right so we're not picky this is just like a a loose fitting shoe your best favorite slippers right it's an average it's good enough some moves are smaller like this and some moves are bigger right they poke outside the box but we know the average is nine and so as long as it's nine I'm going to take that M manually and then set it up again and see if it goes a little higher Inside the Box

you notice my trade is in the box at support right now I'm at support right here boom boom and so at support in the Box my target is in the box so the two elements are in the Box inside the standard ation high high high probability of success so I I'm not I I'm not hoping or daydreaming I'm not wishing that the market goes back up I anticipate that it will and if it doesn't I anticipate that it breaks down standard deviations at a time which are manageable units of measure in my mind I can

manage my way out of this even if it's working against me so it's not an element of Panic it's not oh no it's not working the internet is teaching everybody to take tiny tiny losses take small loss take a small loss take a small loss eventually you'll be right well what happens when you take a small loss and a small loss and a small loss when you are right you build back your losses and you break even you can't make money taking losses like that you have to allow some space a little bit of draw

down to get the job done right you need space to get the job done a tight tight tight stop is exactly that a tight tight tight stop and so my game here is to make tight tight tight profits with a big stop all right so yeah yeah uh as soon as this trade closes I'm probably going to flatten everything and just close all of the open traits and give back maybe $10 see let's see push push I want to see it go to the top of the box I'm not wishing or hoping or praying I'm

just telling you what I want to see and so right here right now I'll probably collapse everything and just give up and be done for today there you go so now I finished today with $95 pretty cool and it's only your what Your 9: a.m now uh right now it's 8 AM for me 8 amett yeah yeah so uh we've been speaking for just about an hour we generated $95 of oh US dollars of profit and and uh I took you know handful of losses along the way but still the profits outweigh the losses right

and this is income that is liquid it's a Forex account so I can withdraw this and go have dinner or in this case breakfast right so it's not something you can do with stocks you can't do this with fatures you can't do this with options you can trade this way with those markets but you can't withdraw your money on the same day right it takes two days to settle those accounts we have a very different environment oh man I closed too early oh darn it I'm leaving money on the table interesting but that's the other

part where you can't be just s table because you follow your plan then things right yeah exactly this is uh government work you know close enough I like it yeah and if figur that here we we spoke for an hour but what your Ben with you or find what you do and and kind of learn from you after the podcast here uh well uh same website as always Jasper forex.com uh use the blue button on there if you find time on my calendar schedule yourself in there we can talk uh I'm on all the social

media uh as Jasper Forex also and you'll probably find me uh I've done a couple of other podcasts besides just desire to trade so I have other videos out there you can watch cool yeah we got to get more often for sure said last time didn't do it then yeah look for say I do the future and see how it progresses it's interesting to talk all about yeah yeah it's uh it's definitely a different approach and there's a need for this right so people are looking for a way to make income every day and the

problem with the normal way of approaching the markets is you typically generate losses every day so this is the flip side to that and know it allows you to reach your goal as long as you manage the loss yeah for sure we reach out to you and let gu