Our Approach

It may surprise some of you, but our approach to trading is very simple:

Before looking at any price chart, we must have a fundamental (medium term) or a sentiment (short term) driven view. Once we have it, we go ahead and look for an excuse (technical entry point) to trade in the direction of our bias. There’s nothing fancy when it comes to us developing a trade idea, it’s about knowing what’s going on and why it’s happening. You then put that asset on your watchlist until a trade looks technically viable. 

When it comes to the technical side of trading, again we keep it simple. We make sure that we’re trading in the direction of the recent trend (not something that was trending 6 months ago for different reasons that has no relevance to today’s price action). Once we’re confident that this is the most recent trend that we’re trading with, it’s a case of identifying a price point where we are proven wrong, putting the stop loss there and entering at a fair price to get to the next support/resistance level of interest – these could be pivots, moving averages, round numbers, Fib levels or closing prices. We use a few technical indicators, but price is the most important thing on the chart.  

One of the things that we say regularly is that “there is always tomorrow and the markets are not going anywhere”. What you’ll find is that we’re never in a rush or itching to trade the market. The feeling that you have to be involved in something is probably the biggest killer of accounts for retail traders in our opinion – it’s seriously not good to have the urge to click and be in something constantly. Trading is a game of patience and discipline; not quick results. In short, we’re not afraid of sitting in cash if there’s nothing probable according to our approach. Probability of expected volatility is what we trade, when that’s not in our favour, we simply do nothing. When things line up however, this is when we’re happy to trade. This structure and approach has been fundamental to our trading consistency. 

Risk Warning.