World's #1 Scalper Just Gave Away His ENTIRE New Strategy for FREE (Live On Chart)
By IQCapital
Summary
Topics Covered
- Data Sets Don't Replace Trader Skill
- Stack Multiple 1:1 Trades Over One Home Run
- Correlation Hides Different Market Microstructures
- Trend Following Requires Accepting Weak Seasons
- Partial Profits Sabotage Directional Assets
Full Transcript
This is Fabio Valentini. He's a
professional scalper, alpha researcher for multiple seven-figure corporate entities, and ranked podium four times out of four quarters in the futures audited challenge of the Robbins World
Cup. But, over the last 6 months, Fabio
Cup. But, over the last 6 months, Fabio has been building a new day trading strategy.
Imagine it like this, Brandon. The
NASDAQ effort is trying to simplify [music] when a specific side is dominating the market. Okay? By studying multiple
market. Okay? By studying multiple [music] forces, imbalance, absorption, aggression, and path of least resistance. So, if you are good
least resistance. So, if you are good [music] at understanding the main direction of the day, you can scalp every single movement in that direction.
The process tracks value migration to determine direction, uses delta and absorption to see whether aggressive buyers or sellers are actually moving price, then layers in large orders, and
Fabio's proprietary NASDAQ effort model to confirm which side is taking control.
In all these instead of setup that have all the confirmation, we will take this value here, this value here, this value here, this value here, this value
here, and this value here. Also, we'll
take six trades, five tick profit, one stop loss. When I have, okay, a value
stop loss. When I have, okay, a value migration that is going higher, and also the area telling me, "Look, the pressure is still on the upside." I have all the information that I want
[music] pointing up at the same direction. Let
me show you for example.
In this episode, Fabio breaks down the entire NASDAQ strategy live on the chart. How he identifies direction,
chart. How he identifies direction, where he looks for confirmation, the exact information he uses to enter and exit, and how he manages the position
once he's in. Nothing in this video is financial advice. We're here to study
financial advice. We're here to study how an exceptionally successful trader actually builds, validates, and executes [music]
a strategy. Now, let's get into it.
a strategy. Now, let's get into it.
Fabio, let's go over the last setup you took and how order flow can help you define bias and also potentially find opportunities.
Let's go over it together, Brandon. So,
uh Friday was a consolidation day, okay?
So, the main problem that people have during consolidation day, it's identifying the relevant swing. They
don't understand when an impulse is finished, when they can take buy on the second one. So, they usually get
second one. So, they usually get confused. This is a template from the
confused. This is a template from the deep team deep team that they did that is identifying the pressure area. So,
who is dominating? And I want to guide you from the starting of the session till the end, helping you to understand how you can refine everything here. So,
we open here during the session, okay?
And you can see that as soon as we open on the top, this was the first drive of the opening. You see this red cluster
the opening. You see this red cluster area. This is an area where we saw
area. This is an area where we saw previously strong absorption to the downside, okay? So, the buyers try to
downside, okay? So, the buyers try to push, you see this triangle? They got
absorbed heavy, and this area printed.
So, first of all, if I want to get a first confluence area of where to engage the market, this area here for me it's super relevant. What is
the problem? The problem is that as you can see, I don't have yet an identified swing point that starts from here, okay?
So, what I want to do when we are choppy, because we can see that the session started with an absorption from the sellers, we came down, and then we had an absorption from the buyers. This
is what I call the cage, okay? Why the
cage? Look on the right. This one was from the beginning of the session always balanced. This profile here is telling
balanced. This profile here is telling you that buyers and sellers are at fair value. So, you don't have buyers taking
value. So, you don't have buyers taking control, you don't have sellers taking control, and I want always to engage when I have directional auction outside
the value, okay? Because this is where you can have directional movement.
The first setup that I saw is this view up coming here. The view up is the volume average weighted price, and it's where in terms of reload of the players,
you can see the maximum amount of pressure to the downside, okay? I will
mark the area and then I will show you also how I reason about execution, okay?
So, we see that this area collapse, and now these sellers here told you, "Look, these players are stronger than this player." This is pure logic, okay? The
player." This is pure logic, okay? The
sellers who control. The next area that we had, okay, was down here. So, I had all this movement from point A to point B to take my trade, okay? This one then
we go in technicals, the market reach here, this one, okay? And once reaching the bottom, you start to see that the buyers take an important aggression to
the upside. This one already tell you
the upside. This one already tell you immediately from the deep swing, okay?
What's happening at the moment. The
volume weighted average is engaging the price to the bottom side, and all these delta candle color here are telling you that buyers are dominating this auction
at the moment, okay?
Another information that I want to show you, that when we came back here, the market went back to the value area, and you had another trade of confluence here because you had at value area low,
and you have you see this line?
This is where the buyers took complete control. This is an absorption, so the
control. This is an absorption, so the sellers tried to bring the price back, and they failed again.
Let's build other contexts. I will make it even easier for you now to refine because I will remove everything that is not interesting for us at the
moment once we finish the analysis, and we will go on the delta. You know that the delta is the main force of the market, okay? So, when you consider
market, okay? So, when you consider taking a position like a mean reverting from the beginning that we saw, you want to have to your side a strong
aggression, okay? So, you want to have
aggression, okay? So, you want to have on your side the sellers taking control or the buyers punching a wall. Can you
see this outline of buy aggression that you had on the top? All
this power was absorbed here. So, they
didn't had any reward, and we'll go also on this one. This one is what I call a mean reverting setup, okay?
On the one of consolidation, we have on continuation of the move, we have the same, because as you can see the buyers are pretty aggressive at the top, but the result is zero. On this aggression here, you also had a negative candle.
What does it mean? That all this buy power got absorbed to the downside, okay? And I like to use also the delta
okay? And I like to use also the delta candle, as you can see, to know when it's time to put my risk to zero. Let's
say I enter here with a stop loss here.
When I see that the sellers take control, I put my risk to zero here. And
then we go to the other setup that was the reload of the buyers.
You can see here the same. You can see a lot of pressure from the sellers, this candle here, no result, so getting completely absorbed, and the buyers taking control. Now, this one setup was
taking control. Now, this one setup was impossible to take because was the bottom side, but when they come back to test, this one is possible. You can see the sellers not making any result in
this area. Now, keeping this information
this area. Now, keeping this information here, I will go to the study that I've made during the years, that is a proprietary model to understand when
buyers or sellers are actually dominating the area, okay?
So, we remove everything else because we don't need, and we just put here the NASDAQ effort.
Imagine it like this, Brandon. The
NASDAQ effort is trying to simplify when a specific side is dominating the market, okay? By studying multiple
market, okay? By studying multiple forces imbalance absorption aggression, and path of least resistance. So, if a number of contracts
resistance. So, if a number of contracts and contracts make easier to move the price up, it means that the book is thinner on the upside, so the market can explode there. And these are my
explode there. And these are my confirmation that I use for my setup.
Let me give you an example. I have this area here. When I see that the sellers
area here. When I see that the sellers take control from the box, I have also my timing. This area here. So, I could
my timing. This area here. So, I could have tried an explosive position back to the next area here.
When I come back to this area that already show me absorption, I don't know if it's visible, but you should be able to see that this is a stack of two sell control area of the sellers. This is an
additional confluence that I use. And on
the buy side position that we took on not the first one because it was too fast, but the second one, I have my timing and confirmation at the closing of this candle. This candle is telling
me, "Look, it's time for you to go up."
And also on position management, Brandon, how I follow my position. I
trail my position below the last aggression. So, I will be taken out
aggression. So, I will be taken out below this low because the market I was expecting the market to continue. It
take goes down and then resume. And if I want to enter, I can reload my position when we get back inside the area. But
here, I will be taken out from this.
This is the NASDAQ effort I use, and the other one that we we saw before is to identify the swing, and then we have the signature of MBO orders.
I show you here. This one you can set in multiple ways. You can set with MBO
multiple ways. You can set with MBO data, so to see if these 345 orders were from one single market participants or
were from multiple market participants.
For example, Brandon, if I'm in a long position and I start to see that on this level you have all this aggression of the buyers, but the price cannot advance,
instead of waiting, maybe I will start to trail my stop loss below the last aggression because if this one fail, the market will reverse. If on this opposite side,
on the bottom side, I start to see the buyers, okay, pushing the auction with 300 contract, confirming the auction. This is what I use when I want
auction. This is what I use when I want to trail my position, okay? So, when I have in the body, probably I cover below here. Why? Because I know that this
here. Why? Because I know that this player will come to reload the position exactly there. Look at this aggression
exactly there. Look at this aggression at the bottom side. Let's go to the other setup that I show you also here.
How much was easy. I don't know if you can see that here there are 111 contracts absorbed on the top. So, the
order flow is giving you just a data set, Brandon. You need to validate it
set, Brandon. You need to validate it with your bias and your idea, but this kind of data have countless application that you can make on the algorithmic and on the
discretionary side. But if you tell me,
discretionary side. But if you tell me, "I don't know anything. I don't have a bias. Can I just buy, okay, a data set
bias. Can I just buy, okay, a data set and be profitable?" No, because it will just be the same of saying, "Look, I am a data analyst. I I buy a data set and I
become a data analyst." You need to be a data analyst before, no? And also here you can see how much aggression the market supported here. So, you can see that the market was following up on the
aggression and when they came back, the buyers tried to push the auction higher, but got absorbed again. So, this is what I usually use and also when I see
huge contract, like 167, it's a lot. And
then buyers pushing on the other side, usually the market bottomed down in this way, okay? Because it's a confirmation
way, okay? Because it's a confirmation on the opposite side. Another thing that is really objective data that I would like you to to take a look to is the profile, [clears throat]
no? You can measure this in price
no? You can measure this in price action, you cannot. You can measure from the bottom swing to the top top swing and remove the price, okay?
Why this one is useful? Because we can go directly in the analysis of who is dominating this auction here. And
we can see, look here Brandon, that we have the land of nowhere because this is balance and then we have what is called
discounts. Imagine you are in the Apple
discounts. Imagine you are in the Apple Store, this one is the price of the new iPhone. If you go below, you are
iPhone. If you go below, you are discounted. You want always to mark this
discounted. You want always to mark this area. So,
area. So, when you take this area into account, okay? This area here. Let's make with
okay? This area here. Let's make with the marker so it's even easier. One
and this one here. We can see that we have buyers aggression really relevant.
A lot of sellers absorb and you have the value area low.
Okay. When we go back to price, if you do proper testing, you can notice that price fill this level. And this is
not for me, for you. This is just executed order. Everyone can see it,
executed order. Everyone can see it, okay? So, the buyers aggression that
okay? So, the buyers aggression that executed from here was way more relevant that everything that happened here. So,
if you want to consider a buy, you want you want to have your confirmation, but try to use your confirmation to buy from levels that are relevant for the order flow, okay? So, this one is just
an additional layer that it's adding to a trader to refine the entry that is making.
And then the entire model, as you said on the exit side, just to clarify, Mhm.
this would be more of a longer position holding.
This is uh scalp to intraday. So, he's taking short-term position to get the intraday drift. And then you can have also
drift. And then you can have also aggressive scalping. Aggressive
aggressive scalping. Aggressive scalping, Brandon, is not to take the main drift. He's taking position. Let me
main drift. He's taking position. Let me
show you, for example, I use the order track. This one is watching a different
track. This one is watching a different thing of the market, okay? This one is watching in each single candle who is dominating, the migration of the value
area, okay? Let me give you an example.
area, okay? Let me give you an example.
The sellers are dominating on this one.
You can see this big delta. And you can see that the profile is pretty balanced, okay? Let's go on the next candle. We
okay? Let's go on the next candle. We
see a lot of sell aggression, but candle closing by, and value area still lower.
When we have the confirmation that we are switching value from the closing of this value area. Why?
We were in a downward drift. Value area
was shifting lower. Value area now is switching higher.
Here sellers were dominating. Look here.
Who is dominating? Buyers. This one is what I use to load my one to one. So, you will say I'm at one to one is not This one is in the correct direction of
the order flow with a really consistent method in risk to reward, okay? So, if
you are good at understanding the main direction of the day, you can scalp every single movement in that direction.
Instead of taking one to five risk to reward, taking maybe three, four position one to one. Why is smart this?
Because even consolidating market will give you profit. When you go one to five, you can stay in one position for long term. Let me give another example.
long term. Let me give another example.
This was the first one, no? We continue
higher. You can see that the value area migrate higher. The candle still green.
migrate higher. The candle still green.
If this idea is validated, what I expect? That the value area will protect
expect? That the value area will protect and reload higher. So, I can put my position at the value area, coverly covering below, going for another one to
one. The same when I close this candle
one. The same when I close this candle and here it's where I don't know if I would have taken a stop loss, but let's No, one to one also this one that goes against you, maybe it will take your
stop loss before, okay? But anyway, you have opportunity where the market is compressing and you still go to take profit, okay? Let me give you some sell
profit, okay? Let me give you some sell example.
Value still switching higher, but here the value is switching lower. The
sellers are dominating, so an example for the sell side will be stop loss above the value area I protected still machine gun to one on
one. The market continue lower, okay?
one. The market continue lower, okay?
What I can see that this candle close here, I take a target and I need to wait for the market to realign. This sell
candle is still closed inside here. If
we break below, I will make the same position. The market tell me no, we are
position. The market tell me no, we are not going down. The market flip from value area to value area high. My
position here.
Stop loss below the value area low. I
will take another one to one, another tick take profit, okay? Look here, we switch lower with this, but it's a green candle. I don't take. We stay red and
candle. I don't take. We stay red and then we switch lower, we have another position.
The same logic, yeah? Value area here.
And then you say can you use discretionary analysis on this? Of
course. Okay, so when you go inside the candle, you can read who is dominating. Let me
give you a perspective on this. This is
the maximum the the point of control of the candle, no? Is switch lower from the free previous one? Yes. What does it mean? That the value is migrating lower.
mean? That the value is migrating lower.
Okay, perfect. What do we have here? We
have the next candle trying to engage and break this level. A lot of buyers activity, zero result. What does it mean? That there are a lot of passive
mean? That there are a lot of passive order continuing also if the candle is developing. When I see all this
developing. When I see all this absorption, I can also try to go a little bit more aggressive and squeeze the a one to two, okay? But the
objective of the model is not to build huge risk to reward, it's to build consistent equity, and then maybe risk the equity of the profit that you made for bigger position.
And you know, obviously with reward reward risk ratio and win rates have a symbiotic relationship in a sense. Obviously,
higher reward risk win rate goes down.
So, we know win rate isn't the most important thing. But with this one to
important thing. But with this one to one, sometimes one to two, do you have a um a a win rate that comes with this model?
It's not always the same.
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You can have also three four take profit in a row when you take a drift. Because
let's take for example this one you switch lower. First one position TP,
switch lower. First one position TP, second one unfilled. Second position TP, then you switch one another position long because you switch on this one, take profit, okay?
This one stop loss, and then you start to go down. Take profit, take profit.
Of course.
So, you can have a positive drift. It's not distributed, okay? But you can have a positive drift.
okay? But you can have a positive drift.
The win rate of this model is really high. But if you tell me, "Would you
high. But if you tell me, "Would you automate it?" No, and I explain you why.
automate it?" No, and I explain you why.
Because the automation don't take into consideration all the analysis and refinement of the position management.
Let me give you an example. Let's say
that you enter here, okay? This candle
close here.
The model will leave the the risk here.
But here I see that there is a big buyers absorption. So, I trail my stop
buyers absorption. So, I trail my stop loss and I reduce the risk to zero. When
I see that the drift is sustained like the one that we had in the closing range, I build my position. Let me give an example of position building. We flip
higher, okay? What does it mean that I can position myself here at the absorption or here with a stop loss below here. The market confirm, I take
below here. The market confirm, I take my my first position to risk free because I can cover below this aggression and I can load another position on the extreme delta and the market confirm reward. Then the market
was closed, but in days where you have drift Brandon, you can build three or four rolling position with the initial risk of one.
So, it's not linear the reward, it's exponential, but there are also negative days with this model. For example, when it's extremely choppy, you can have a win rate around 40-50%
that is break even because it's one on one plus commission. So, it's not the holy grail, unfortunately.
Well, does this only work in the in specific markets or what do you think this is applicable I took time only to test Nasdaq, but I think this is
this is the nature of the market, how the value migrate, the actual data set of the orders. I think it can work in other markets, but I don't want to say it because I didn't do proper testing.
So, I don't want to spread misinformation on this one.
Right. And so then basically your answer to that also opens up that just because a strategy works one market even in a highly correlated
market like ES doesn't mean it can just jump right over to the I have models that are profitable in Nasdaq and lose money in ES and opposite. They are correlated The fact
opposite. They are correlated The fact that it is correlated doesn't mean that the micro structure is the same. This is
micro structure pattern, okay? And
it can be different for a lot of assets.
So, also people taking this profitable strategy on gold pretending that they can apply on Nasdaq and be profitable is just because you are you are doing a big assumption. It's like you are saying uh
assumption. It's like you are saying uh you have been successful in trading, so I also will be because you have been.
It's it's not uh it's not like this.
And when did you develop this model?
This model here, it's 6 months. It's got
built in 6 months. Before it was not using the value area, was using only the aggression and the big trades. But then
I find out that the value area is adding a lot of value.
Mhm.
It's like it's a It's a game of words, but it's adding a lot of value because it's giving you how much sustain is the drift. The more the value area continue
drift. The more the value area continue to drift up, and you see building building building building build, the more you can build your position. And
sometimes it's not like this with big order because they can be distributed in all the candles. So, the next candle can retrace. You see a big order here and
retrace. You see a big order here and you close. But the value area is making
you close. But the value area is making sure that you keep all the drift as much as it last. And you can see also here.
These are directional moves. Then you
have also these choppy moves where you give back some profit of the market. I
only trade trend following model at the moment. So, it's normal that when the
moment. So, it's normal that when the regime is not correct and the market is just not moving, you will give some profit back of the market. It's part of the game.
market. It's part of the game.
Now, would you say that um with a model like this, is the value area then the most important piece of this, would you say?
I will say that value area associated with delta it's incredibly important for this model. And the last tweak that I
this model. And the last tweak that I had to it is the Nasdaq air for area that is the one that I'm using also in the other model. When I have, okay, a value migration that is going higher and
also the area telling me, "Look, the pressure is queue on the upside." I have all the information that I want pointing up at the same direction. Let me show
you, for example, if we only filter for setup that have all the confirmation, we will take this value here, this value here, this value here, this value here, this value
here, and this value here. So, we will take six trades, five take profit, one stop loss. Okay.
loss. Okay.
Here, when we are migrating lower, I will only take this one, take profit also this one. So, it's a it's a confluence of information without overfitting, because the risk is that if
you continue, like you know what they say, Brandon. They say
say, Brandon. They say if you stress the data long enough, it will tell you what you want.
Okay, and you know because you were an algorithmic trader, so you you you you know that if you stress, but if you go on we go back and you start to see how the price, this
is real-time, how the price react to this area, you can understand that the order flow is actually influencing the next drift on the short term, okay,
and not the only grail. You can
really bad choppy moments. Now, this is not an example because it was an amazing buy opportunity drift. Echo, this is an example when you have choppy money. You
have an amazing sniper short, an amazing sniper short, a stop loss long, but look in this moment. One, two, three stop loss that you take in a row. This is
part of the market and is part of how the market is developing.
So, would you say that's the biggest Every strategy has a weak point, right?
So, would you say that's the biggest Achilles' heel for the system?
All the trend following system suffer from consolidation regime and I accepted it.
I accept not blame myself where I have a consolidation week.
My goal there is to protect capital.
So, if there's consolidation and with this model, for instance, and obviously it's a trend following, it'll struggle a bit.
This is a necessary trade-off, right?
And It's it's like a physiological physiological risk for a businessman, no? If you want to run on the tourism
no? If you want to run on the tourism and if you want to run on the tourism in the UAE, you need to accept that during the summer it's hot and you don't have a lot of tourists for 2 months per year.
You know it, you accept it. For trader
there are costs, there are commission.
Can we be profitable with commission?
Yes, but you need to have an edge that go over the commission. And this is the same for the trading space, no? And
this is of course the impact on commission on the short term is bigger, but if you have a model that is keeping you in the correct direction of the market, you can do. And also, let me clarify
this for everyone listening to this podcast.
I don't want you to switch your brain off and think, "Okay, I will use this one." I want you to always keep your
one." I want you to always keep your your attitude of "I don't trust this model. I will test for myself. I will try simulation money.
for myself. I will try simulation money.
I will do proper research and only when I'm 100% convinced that this is an actual edge, I will execute." That's the best approach that you can have.
If If you were going to improve this if possible I'm doing a lot of studies at the moment. Like I spend a lot of money on
moment. Like I spend a lot of money on quantum research and I am studying by a system that take into account also the option flow pressure, the hedging activity.
It will It will require more time, but I think I can improve this a lot.
And you said this was developed 6 months ago. How long does it actually take you
ago. How long does it actually take you to get to a validated model like this to start using?
This one I use at least 3 years of data of testing for validation and then the out of sample process requires 3 months of testing and watching because it's 100 of execution. So, in 3 months you can
of execution. So, in 3 months you can collect maybe 300 rates.
But still, I didn't plot this as a standalone strategy, but as proprietary study and indicators because I always want people to use this in confluence with their model. I don't
want that they abandon. I want that they use the data set to improve what they already do. I don't want that they only
already do. I don't want that they only rely on the data set because the big error that everyone can make is that you make indicators your God and you stop using your brain to go in the direction
of the market.
So, if someone understood the entire model and everything that we just covered and they still struggled, what do you think would be
the problem they're having with applying this model?
I think that every model, if you take this for a specific moment in time, can be profitable or negative because the edge is on the long term.
The the best advice I can give to people starting is not relying only on one model. So, the diversification of the
model. So, the diversification of the portfolio and the strategy that you use, for example, I show you also the mean reverting long-term setup. So,
trend following but on the long term, no? I have some days where this model
no? I have some days where this model doesn't perform and they have the long one. I have days where these two models
one. I have days where these two models doesn't perform and they have the crypto one. I will strongly disagree of relying
one. I will strongly disagree of relying only in one model, Brandon, because I've made countless testing and I didn't find one model that can be profitable in every market environment. So,
specifically, for example, if you engage prop firm where risk constraint is crucial, no? Because if you go
crucial, no? Because if you go underwater, you can burn the prop. So, you should have a diversification system or a system that at least keeps you out of
the market when you say, "Okay, this one is not working." For example, look here.
Trend following, trend following. You
see that in all this area we don't have anything because the system is building a way where it identify the best opportunity, okay? And it filter out
opportunity, okay? And it filter out when the market condition are not there.
If you tell me, is it capable of doing this? No, otherwise I will be
this? No, otherwise I will be billionaire. If every consolidation
billionaire. If every consolidation phase will be removed and I only take directionally, it will not be a system, it will be a a money printer, you know.
So, you know, another Achilles heel for trend following systems is the balance that comes with verifying the trend is in motion and
not taking every signal that possibly comes. Basically, not wanting to miss
comes. Basically, not wanting to miss the trend, but not wanting to jump in all the time hoping to get in so early, you know. So, there's always that
you know. So, there's always that balance with early early entries with more losses, late entries, but missing the trend. How would you say that
the trend. How would you say that I have both.
Yeah.
This is my one daily shot, so it's my area of confidence to take my long position.
This is my momentum model, you know. So,
on this one I accept that if it breaks, it's done. This is the the setups of the
it's done. This is the the setups of the day. On this one is momentum, so let's
day. On this one is momentum, so let's say it breaks this area and it continue to print area, the momentum setup tell me, Fabio, you can be here, but you can go here with this pressure. So, as long
as you keep a positive risk to reward and a sustained win rate, why you should avoid the setup?
That's my goal. The the the problem is if you pretend to take a drift with a target here from the top, because in this case you are overpriced on the asset, so probably the market retrace,
you close in fear, and there is all this emotional chain of errors that you can make.
So, then with the trend following system, you said you take partial profits up, right?
Yeah.
And basically, you take partial profits up until it reverses, you get stopped out. Correct? Do you have a specific
out. Correct? Do you have a specific trailing Yeah. Yeah, the trailing
Yeah. Yeah, the trailing um you said you'll take at value Yeah, for this model here I use two NASDAQ for box to trail. So, let me give
you an example. Let's say that I jump in this position here, the first one, okay? The first green box. Once I print
okay? The first green box. Once I print at the second, I cover my stop loss at risk free.
Yeah.
Okay?
Let's say that I take this bounce.
The market print a second box, I cover my risk risk free, okay? It print
another box, I cover my risk below the second box.
Okay.
It print another box, okay? Here the
risk goes here. It print another box, the risk goes here. Print another box, the risk goes here. It takes me out here.
So, it's not partial profits then, it's just trailing all the way.
Just trailing. I I tested partial profit, the problem Brandon is that specifically on NASDAQ that is a an asset that can expand directionally all day.
Mhm.
Partial profit can take you out here and then you have 200 points of rally and these days where you have really good rally pay out for all the Yeah.
partial profit that you are not taking.
So, it depends on the asset. If you tell me on the currency, I take a lot of partial profit because the currency is more mean reverting, but NASDAQ have a directional skew up, so it's a
Have you ever successfully deployed a partial profit strategy that uses partial profits?
No. Partial profit, no. You you tested on the algo side?
Yeah, it's it it always hurt gains more than it reduced risk. It always
disproportionately though. It was
I'm happy that you validated it because [laughter] manually I I noticed that it's eating a lot of profit when you are right, but at the same time when you are wrong anyway, you take a full stop loss.
Yeah. Yeah, it just risk went down small.
Profits went down Yeah.
really small. So,
Yeah.
Yeah, never worked for me either. But
Fabio, thank you so much for outlining this model. I think for the first time, I don't think I've seen it in your content. So, and I'm happy you showed it to me, and you let me ask
every question I could possibly want. Uh
I know I'm uh I got a lot of questions.
[laughter] Thank you.
Some people like it, some don't. Um
but thank you so much again.
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