Market Mastery Bootcamp - Day 1

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Alrighty. Welcome. Welcome to Market Mastery Boot Camp. My name is Adrian Reid. I'm the founder of Enlightened Stock Trading and I'm so thrilled to have you here. We've got an action packed, knowledge filled couple of days for you, so I can't wait to share what, what I've got to present. I have been reviewing the presentation this morning and I got to tell you, I'm really excited about this. I think it's a great presentation, a lot of really cool, powerful insights which are going to transform your trading. So what are we doing? This is Market Mastery Boot Camp. Let's, let's get rolling. Day one. This is our first of two days. We're going to cover the entire journey from launch to mastery of systematic trading. And we're going to go for about 90 minutes each day. So stick with me. If you've got questions, ask them in the chat and I'll get to those as we go through the presentation. Alrighty, so before we get started, I just want to remind you that everything we talk about today is general educational material only. Please don't take this as personal financial advice. If you have any questions, contact your financial advisor. And with that being said, let's roll. Do you want a diversified portfolio of fully automated trading strategies that you can deliver, monitor and implement in just minutes every day? Does that sound like something you want? If it is, give me a yes in the chat. If you're with me on Zoom, I'd love to hear that you're in the right place. Absolutely. Great. So thank you, Neil. This is what I'm going to show you how to do. I'm going to show you the path to get from wherever you are to fully automated master of systematic trading. Now, the first and most important lesson out of this entire thing. If you don't take anything else away from this entire two days, take this. Learning requires energy. Now what does that mean? I'm going to put in everything I've got for the next two days. I've got a great presentation, I've psyched myself up, I slept well last night, and I've got a ton of energy to put in to help you learn, master and accelerate your trading journey. In order for you to get the best though, you've got to put some energy in as well. You. Here's how it's going to work, okay? I'm going to be delivering, I'm going to be asking you questions. I want you to play as if you were in the same room. As me, I know this is Zoom. We can't be face to face right now, but if you participate as if we are face to face and you answer the questions you answer in the chat, you write notes, you will get a heap more value out of this program. That's what I can guarantee. So please put the energy in. I'm going to do my very best to make this worth your while. And. And if you put some energy in, I know that you'll come away with some amazing lessons that are really, really powerful. Okay, so in the chat, I'd love to hear from you right now. Where are you from? You might be watching us on Zoom, or on YouTube or on Facebook or on LinkedIn. Wherever you are, in the comments or in the chat, if you're on Zoom, just type your city in so I know where you're coming from. I'd love to see the spread of people. We've got. We've got some Boston, we've got some Sunshine coast, we've got Melbourne, we've got Brisbane, Bris, Vegas, Gosford, Sacramento, London, Toronto, Sydney, India. Fantastic. What a great group. Thank you so much and I appreciate you being here. As I said, I'm going to do my very best to make it absolutely worth your while. I don't take it lightly that you've committed your time and energy to spend with me. And at the end of this program, I think you'll be pleased that you devoted this time. Alrighty, let's keep rolling. My goals for you during Market Mastery Bootcamp. Here's what I want to achieve.

First of all, the journey. I'm going to show you the fastest, highest probability path for you to get to Trading success. There's lots of things you could learn in trading, but if you could just get the path to. To take you from wherever you are to mastery of systematic trading, wouldn't that make all the difference? Rather than spending years faffing around looking at different books and different approaches and trying things and failing until finally you find the right thing. What if you just found the path now? What if I laid it all out for you so that you know exactly what to do step by step by step, so you could focus and get it done. Would that be good? Great. All right, cool. So what else are we going to do? I'm going to cover the principles. I'm going to teach you some of the foundational trading principles that you need to ensure that you are successful. Now, this is critical because if you don't, if you miss the foundational principles for success, Then something is going to come and bite you in the backside. Some big loss is going to wipe you out, or you're going to leave a ton of money on the table. So these principles are critical. And what I want you to do is make notes as we go through this presentation about anything that really stands out for you. And if you've got questions, ask them at the end so we can make sure that you walk away with as much clarity as possible. Sound good? Great. Okay, next thing, we're going to lay out the steps, the exact steps you need to take, take you from wherever you are to mastery of systematic trading. I want to show you the things that you have to learn and only the things that you have to learn, because I don't know about you, but I realized that there is a ton of information out there and there are so many different strategies, some weird and wonderful and crazy things. And.

What I found is that once I just narrowed down that path, calmed everything down, eliminated all the things that aren't important, then all of a sudden it became quicker and easier to succeed as a trader. And I've used these steps to guide traders to success now for over 10 years with enlightened stock trading. And we're getting to do it faster and faster and faster because. Because we've got the exact steps that you need. And I'm going to lay them out for you in this program. Also going to give you a strategy. I'm going to give you a complete trading strategy that I actually use and demonstrate how it works. We'll do this at the beginning of day two. At the end of today, I've also got a strategy which I'm just going to share as a demonstration as a illustration of what a good trading complete trading system looks like. So you actually get two example systems, one of which I actually. Both of which I traded, but one of which I really, really love. And I'm excited to share it with you. And then also.

During boot camp, we're going to have time to answer questions. At the end of each day, I'll leave time for questions. So if you've got questions as we go through, put them in the chat and my team will collate those questions. And then at the end, we'll go through and make sure we get everything answered for you. So that's what we're going to cover. And then finally, step six, right at the end, I'm going to share how enlightened stock trading can help you succeed, succeed and master the markets very, very quickly. All of this is Backed by our huge step forward guarantee. I wanted to guarantee this program, this is really important to me that I give you value and that you feel that you've received huge value for your investment in time. Right? So as a result of you attending Market Mastery Bootcamp, I guarantee that we will give you a huge leap forward in your understanding and the shortening of your learning curve. We're going to show you the shortest path to systematic trading and show you how to empower yourself with the knowledge to actually get there with it. And also with the trading strategy you can actually use at the end of this program. If you feel that you haven't got that, then my promise is that I will have a special one on one session with you to help you deliver the promise and make sure that you've got the clarity that you need. So, so that exclusive session, if we don't give this huge step forward, then I will commit to making sure that you get that huge step forward regardless. Good. So that's my promise to you for attending Market Mastery boot camp. Alright, so who am I and why are you even listening to me? Why listen to me when there's countless other people on the interwebs talking about trading? There's so many talking heads and so many supposed gurus in this space. Why listen to enlightened stock trading? Well, I've been trading stocks profitably for over 20 years. In fact, I've been in the markets for 25 years and most of that profitable and systematic. Now as a result of my trading, I managed to pay off all of our debts, build a seven figure portfolio, buy a couple of houses out of my trading account, all of that good stuff. In 2012 I escaped the corporate world to trade full time. So in 2012 I made more money trading just 30 minutes a day than I did in my executive sort of corporate job. And in my corporate job, I think that year I made. Actually no, I know I made 230 odd thousand dollars that year. And I worked about 14 hours a day, about six days a week. And in my trading I spent 30 minutes a day, five days a week, and I made more than $230,000 that year. So it was a pretty easy decision to step away. So I left the corporate world and I started to trade full time. Now I coach and mentor traders from all over the world to profitability every year. I still trading obviously, but now my trading is fully automated, which gives me a lot more time to work with other traders. And my trading has also allowed me to spend or allowed us to spend all of 2019 traveling the world with our family, which was just fantastic. We spent time in the us, in Europe, and then all through Asia. But since then, we have settled down for a few years, at least until the kids finish school, because our kids said after school, seven different schools in their lifetime, that was enough. And they wanted to stay in one place until they finished. So here we are in Port Macquarie, New South Wales, Australia, four hours drive north of Sydney, just near the beach. So happy where we are and looking forward to more travel in the future. Alrighty, so that's me. But before I go any further, I've got so much to share with you. But before I go any further, I've got. I want to address the elephant in the room because this is. There's some questions that are probably on everyone's lips, and these are the questions. The first question that you may be asking yourself is, Adrian, if you're so successful, why are you doing this? Why do you spend so much time teaching and educating and building a business and doing webinars and talking about trading? And then the second question is, are you going to try and sell me something? So if you've got those two questions, you're in the right place and your. Your thinking is spot on. Let me talk about why I'm doing this for just a minute. In 2012, September, I walked away from my corporate job forever and I went home and I continued my trading. And my trading approach is, as you'll see, pretty quick and easy. It takes me. At the time, it took me 20, 30 minutes a day, maximum. Most days it was about five minutes. And the rest of the day I didn't really have much to do. And so I was at home. I was doing my trading, living the dream, supposedly. And it took me about three or four months until I realized that I was bored out of my mind. I was lonely and frankly, I was. I was pretty depressed. You see, I didn't know any traders, I didn't know anyone else. I was literally isolated. All my friends were at work doing long hours in their corporate careers. And so I was really struggling emotionally, psychologically, and, you know, at the same time, it was really weird because I had all these people reach out to me and say, hey, Adrian, how did you do it? How did you, how did you, how did you quit? How are you supporting yourself with your trading? Can you show me how to do it? And I was bored and lonely and depressed, and other people were putting their hands up saying, adrian, how are you doing this? And so I started Meeting with people to teach them to share the skills that I'd learned. And as I was doing that, I got to tell you, I heard so many stories of people who had been scammed, people who had lost money unnecessarily, people who had not realized the true ramifications of what they would, of how they were trading and how they were making the decisions and had lost like life savings. And then more people who were scammed and had been ripped off with people who were supposedly going to manage their money for them and they lost their life savings. And I had grown men come up to me in tears telling me their story. And you know, I pretty much realized after a couple of years of this happening that I, I felt I had an obligation to help these people. And.

You know, I have a path to successful trading and I can show you how to get there actually remarkably quickly. And I can also show you how to avoid all of those dramas and all of the scams by empowering you to make the decisions yourself and to know yourself that you have a profitable, reliable, proven strategy. And so I started teaching. And at first I started teaching for free. And that was fine. I was taking an hour to go into the bus as you, sorry, an hour on the bus to go into the city to make people, to have a half hour coffee, catch up, but they wouldn't turn up because they didn't have any skin in the game. And I pretty much realized that if I was going to help enough people, I had to make it, turn it into a business. And so that's why I'm here, because I was bored, lonely and depressed. There's a humongous need in the marketplace for good quality trading education and a path that you can implement quickly to get there and empower you. Because there's so much training, education out there that is not empowering. It's just about having blind faith in some guru that says, trust me, follow these rules and you'll get to the promised land. But it doesn't, it doesn't work. The reason it doesn't work is because you're not being empowered. And so that's my mission, is to empower and help more traders, build a community of traders around me so that I can actually engage with people on the things that I love and help help more traders be successful at the same time. So that's why I'm doing it. So I hope that helps. If you've got more questions about that, pop them in the chat. I'll answer them later. But the second elephant in the room which you're probably wondering is, are you going to sell me something? And look, to be honest, I'm not going to disappoint you. I am going to offer you something. At the end of this program, I'm going to introduce you to the Ultimate Trader Success Bundle. This is the most comprehensive, the most effective trading program we've ever offered. And what you get is precision trading for analytical professionals. This will fully diversify and automate your portfolio in just six months. And the Ultimate Trader Success Bundle comes with our Success Assurance guarantee. You will be up and running with your first system within six weeks and you will have a portfolio of three or more fully automated trading systems, fully automated trading systems that you're confident in within six months, or I'm going to work with you for another six months for free to get it done. So that's what I'm going to offer you. If you like what you see. However, here's the trick. It's not for everyone if you're an analytical person, if you have around 50,000 or more to invest, if you're comfortable with computers, specifically Windows, not Mac, if you're willing to ask questions and you want to learn fast and save years of pain, then the Ultimate Trader Success Bundle, maybe for you. However, here's the catch. You can't buy the Ultimate Trader Success Bundle on this call on this training. You cannot buy it. So if you're interested, we'll talk afterwards. I'll give you a link. You can book a time to have a chat with me to see if it's right for you, see if you're right for us. But for now, I want you to just relax and know that I'm going to give you two days of fantastic training. You're going to learn a heap.

And at the end, if you like what you hear, maybe we can have another conversation. But there's no big pitch, there's nothing you're going to be pushed on. I just want you to enjoy the training. Sound good? Great. Okay, so let's just get on with the task. The elephants are out of the room and I've got some cool things for you. So here, what I want you to do is I want you to think about your trading right now. And in the chat, I want you to give me three words, three words that describe your trading right now. Now, if you had to describe your trading in three words, what would it be?

Money management. Risk management. Discipline. Hobbling along. Nice.

We've got no experience. Good work. Quantitative, objective and risky. Good. Well, not Good. But you know, it's. Thank you for sharing.

Long term CFDS Australia. Nice. Okay, good. So we know where we're at. We got distractible and not prioritized. Okay, cool. Thank you. Adam. Nice. Who else?

Successful, varied results, not consistent results. Nice. Okay, cool. So, thank you. I'm going to show you a path to get there, to get to the goal of consistent, confident trading as we move through this program.

All right? Okay. There is a number of challenges traders face. And I've put 25 very common challenges here. And I've got my first task for you is I want you to look down this list and I want you to count, just quickly take 30 seconds or so, get on this list and I want you to count how many of these challenges you are facing or have recently faced in your trading. Thinking about inconsistent results. Stress, it takes too long. Different, confusing, conflicting signals. Methods, confusing methods. Lack of an edge. Insufficient diversification. Occasional large losses that really hurt you and wipe you out. Difficulty finding reliable information over trading too big, under trading too small. Poor risk management, information overload, Market noise, decision making driven by emotions, Lack of community, failure to adapt, Overconfidence, FOMO paralysis by analysis. Lack of training. Financial pressure, unrealistic expectations, inconsistency, scams and frauds. How many of those have you suffered from in the chat? Give me a number. 9? 12? 8. Yeah. These are really common problems. Really common problems. And the great thing about this is that with one approach, we can eliminate all of them and more. That's what I'm going to be teaching you over the next two sessions.

So I'm going to share my journey because I want you to know that I've been where you are, wherever you are on your journey. I've been there. When I first started out trading, I was looking at multiple different methods. I tried fundamental analysis, I tried technical analysis, I tried listening to tips, I tried broker advice, I tried forecasting tools, I tried indicators, I tried chart action, price action, I tried candlesticks. I tried everything. For years, I would spend time, hours every night looking at my charts, trying to make decisions for the next day based on all of this multitude of information. And it was just intensely frustrating, tiring. I wasn't consistent. And frankly, I was on the verge of giving up. And I discovered technical analysis and charting. And that really resonated with me. And it resonated with me because I liked the mathematical nature, the analytical nature of it. Different rules, different indicators moving up and down, showing me what was overbought and what was oversold and which direction the trend was in. And it was fantastic. And all of a sudden I was obsessed with charts. But pretty soon I became so obsessed with charts that to be honest, I was drowning. I had charts with dozens of indicators on there and I would draw support lines and resistance lines and trend lines and all of these things. I'd look at chart patterns and I just didn't know what signals to take because what I found was that one indicator would tell me to buy, another indicator would tell me to hold, and another indicator would tell me to sell. And it was intensely frustrating and demoralizing. And after probably a year of this, when I was just a year just being obsessed fully with charts and indicators.

I was at the point where I decided I, I was on the verge again. I was on the verge of giving up on my trading. And it was either, you know, give up on stock on trading and go buy property or some other form of investment, or start a small business, or it was throw myself into this and learn everything that I could. And I was still obsessed with the market. So I decided to throw myself into it. And I, over the next 12 months, I read probably over 150 books on trading. I read countless books on different strategies and I just threw myself into it. And eventually I discovered systematic trading and I implemented my first system. And this here, this chart in the middle is the trade that changed everything. This was a resource company in Australia and it was my first big winning trend trade. And I took this trade based on an objective set of rules that told me exactly when to buy. And I followed the trade and the market went up and my account grew. And within a couple of months I had doubled my account size. And I was like, whoa, this is it. I finally found it. This is the answer, right? And so I had this trend following system I was following and I started making money and I kept, kept taking trades and my account was growing and I was succeeding finally, after years of struggle. But then eventually what happened is I realized I hadn't quite solved the problem yet. I had a couple of things go wrong. Firstly, I had 27 losing trades in a row from that trend following system, which is like, holy cow, I did not think that could happen. How on earth did that happen? 27 losing trades in a row. I thought this was a good strategy. And then the other thing that happened was I had some really long drawdowns, not terribly deep drawdowns, but just long. I just wasn't making money consistently enough. And yeah, I made money and my account grew, but it was just, it wasn't getting me to my trading goals quick enough. So I redoubled down my efforts and I looked at what I was doing wrong and what I was missing and I realized that I hadn't done two things. Two things I'm going to talk to you a lot about in the next two sessions. The first one was really deeply back testing and understanding my systems to know what was possible and how they would perform. And the second thing that I hadn't done was diversify. And because I was trading one system on one market, here's what happened. I just ended up with these long periods where I was either losing money in drawdown or had no trades to take. So I realized that I had to diversify and I implemented a whole bunch of different systems, all good systems because by this time I had learned how to back test and optimize systems and build them well. And I implemented a bunch of systems in my portfolio which was great, except then all of a sudden I was doing all of this work which I didn't want to do because frankly I don't like working very hard. You know, I'd done all that work in the corporate world. Long 12, 14 hour days. I don't want to do that in trading. So trading was becoming more of a choreograph with, I think I had nine different systems and I realized, oh my gosh, you know, this is just way more order entry and record keeping and everything that I wanted than I ever wanted to do. So I had to change something. And what changed was automation. And automation changed everything. It was an absolute game changer. All of a sudden when I automated my trading, my number of mistakes, well, my mistakes were basically eliminated. The amount of time I had to spend on my trading shrunk to just minutes every day for monitoring. My level of confidence skyrocketed, my lifestyle improved. All of a sudden my wife and I could go away for the weekend and I didn't even have to take a laptop. You know, I didn't have to stop on the side of the freeway trying to find a cell phone signal to get data to download my, to download my, my data update so I could run my scans to generate my signals because it was all happening in the cloud. And that is when for me trading became a serene calm.

I mean it was profitable the whole time, but serene calm and enjoyable experience. That's the journey that I went through. And you're probably somewhere on this journey as well. And I'd like to tell you, I'd like to let you know that I Can get you from one to nine remarkably quickly in just six months. So what I want to know from you is one word, one word in the chat that describes how you would like your trading to feel. For me, it's serene. I just want to know that my trading is just happening. My signals are just running and my trades are being placed and my executions are being recorded and that just all happens. And I can just sit over the top and just monitor it. What is it for you? What's one word that describes how you want your trading to be? I see comfortable. I see natural. I see profitable. I see fun. Nice. All good things. Confident. Yeah, absolutely confident. Another confident. Enjoying life with trading. Awesome. This is exactly it, right? We want to get to a point where we can achieve the life that we want through trading. And I believe this journey is the fastest way for most people to achieve that. All right.

So what is the journey? Let me lay out the five, the five stages of the enlightened stock trader journey for you. So you know where we are going. Good. Stage one. Launch. The first stage is where we empower you to launch your first strategy. That means you've got a strategy which is proven, which is tested, which you can follow objectively day after day without making mistakes, and you know exactly how to follow it so you can launch and get in the game. At this stage, you don't have to know all of the technical details. You just have to understand how to execute the strategy and how to manage your risk and your trades on each trade that you take. That way you can get in the game and start learning on either a demo account or a real account and start feeling how it feels when your account fluctuates because it's a really important part of trading. The second stage is stabilize. Stabilize is where you learn to basically stabilize your emotions around your systematic trading. And you do that by learning how to back test so you can build confidence in your strategy. And this is probably one of the most important things. If you have absolute 100% rock solid confidence in your trading strategy, then you can follow the rules no matter what happens, Whether you're at all time equity highs or whether you're at a drawdown. But if you don't have 100% confidence in your strategy, what happens while you're making money, it's great. But as soon as you go into drawdown, which is an inevitable part of trading, as soon as you go into drawdown, your confidence starts to suffer. And the deeper the drawdown gets or the longer the drawdown goes, the More your confidence suffers and eventually you get to the point where you capitulate and give up. But if you can have rock solid confidence in your strategy because you've back tested it, you've analyzed it, you know exactly what to expect, then all of a sudden you've stabilized your trading and you can keep going no matter what.

And this takes only 20 to 30 minutes a day to run a system like this. The third stage is diversify. Once you've stabilized, you know how to back test, you know how to build confidence in a strategy. The next thing to do is to implement multiple strategy systems into your trading. Because if you only have one type of system, then you can only make money in one set of market conditions. But if you have multiple different strategies in covering different markets and different types of market moves, then all of a sudden you can start to smooth out your returns and make higher returns with lower drawdown more consistently. So in the diversify stage, you'd be looking to have two to three, sorry, two to four systems that you trade live. And it would only again, still take 20 to 30 minutes a day. Each system is very quick to run, as I'll show you later on in the program. Once you've diversified, then it's time for automation. And again, automation for me was an absolute game changer because once I automated, all I had to do when we left the house, when we went away for the weekend was take my phone. Because my trading is on a virtual private server in the cloud. It boots up every day, runs the rules, places the trades, and all I have to do is monitor it and make sure that nothing goes wrong with the tech. And again, that leaves me free to think, free to teach, free to enjoy life. And automation gives you the ability to trade more and more systems on more and more markets without impacting your lifestyle. So typically, when my traders automate, they're trading five or more systems fully automated, and it takes them less than 20 minutes a day to run and manage and monitor the whole thing. And then finally, mastery. Mastery stage. Traders are in flow with their diversified portfolio. They have, they're constantly looking for gaps in the portfolio to add new systems to close those gaps and improve the overall returns, reduce the risk. They use more advanced backtesting techniques to continuously build their confidence and find new edges and refine their trading approach. And at this stage, trading is frankly just a profitable passion that you spend time on. And, you know, I can't stop thinking about, I'll write notes about trading ideas on my phone, you know, you know, when I'm walking on the beach, when I'm sitting, having a coffee, when I'm talking to friends, because, you know, I'm just using the stimulus around me to find ideas to make me a better trader. And I go back home and I test them and that creates better and better systems that I can diversify into. So this is the five stage journey to trading mastery. And I can take you on this journey from launch to mastery in as little as six months and get you up and running, automated, with a portfolio of systems that takes you just a few minutes a day to manage. Alrighty, so what I want to know is, out of this training journey, where are you right now? What stage do you think you are at launch? Stabilize. Diversify, Automate or mastery in the chat comment, just one word. Where are you up to? I'd like to know because that helps me kind of gauge what level to put this presentation at. So we got launch, another couple of launches.

Stage two. Yeah. Stabilize few people. Stabilize few people at launch. Awesome. This is great. Good news is you're in the right place. Because if you've seen systematic trading, if you've seen the need to have rules like I'm going to show you, then this is the right place to be because this is the fastest path for you to get to trading mastery and for you to get confident and consistent with your trading. Alrighty. Where do you want to be in six months time.

If nothing changes? If you don't do anything different, you stay exactly where you are. But if you change, if you invest some time and energy and resources to build and grow your trading and to learn, where do you want to get to in 6 months time? What would be a good goal? Mastery. Mastery. Karen says Rich. I like that too. Nice. Thank you.

Joe wants to be a Jedi. A Jedi mastery. Awesome. Fantastic. Yeah, absolutely. And look, the good news is you can absolutely do it. You just need the right path and the right training to get there. You know, I spent years, three years fumbling around in the markets, reading all sorts of different books on all sorts of types of analysis until I discovered systematic trading. Soon as I discovered systematic trading, it was a very short time before I managed to get successful and consistent. And now when I'm teaching traders, I can do it remarkably quickly because I've honed the path. Right, Alrighty. So today, for the rest of this session, I'm going to focus on launch because this is the most important stage for most of you. If you're beyond launch, don't worry, you're still going to get some useful tips out of this and tomorrow I'm going to cover the in session two, I'm going to cover the rest of the journey. But right now let's dig into launch. So what I want to do is I want to introduce you to a couple of my students as we go through this. We don't have a lot of time so I'm not going to bring them up in person. But these are some case studies of some of my trader Success system students. And this is Craig. Craig is actually one of my favorite people. I really, really enjoy time with Craig. Before he came to enlightened stock trading, Craig was very similar to what I was like at the beginning. He was trying multiple different methods. He did fundamental analysis, he did technical analysis, he at looked, he looked at charts, he tried price action and indicators and all those things and he didn't have a clear direction and he was searching for a solution and he discovered systematic trading and he discovered the concept of backtesting. That's what led him to enlightened stock trading. Now after working with Craig, he's got a fully diversified portfolio across multiple markets that he has personally rigorously back tested and fully automated been a total game changer for Craig. He's trading across Australia, us, Canada and cryptocurrencies, all fully automated. And that's what we've helped him be able to do.

So total transformation in how he feels, how he thinks, how much time it takes and his degree of confidence about the future. And that's what I want for you as well.

But right now you probably feel a little bit like this. Certainly if you're at the beginning of the journey. Yeah, information overload, lots of different conflicting demands, lots of ideas, sticky notes everywhere. If you feel like this, I want you to know you're not alone. This is absolutely normal and it's not your fault. Here's the reason why trading is so difficult at the beginning. Most traders start off by trying to make their decisions looking at multiple inputs. Inputs like price movements, inputs like news, analyst recommendations, tips, what's happening in their portfolio, ideas from their personal life. And they also have factors from their personal life like how much spare money they've got and money stress and relationships and all these things. They have multiple inputs coming at them. And then you process all of that information through many different beliefs and cognitive biases that you may not even realize you've got. And then you wonder why after all of that, all of those different inputs and all those different beliefs and all of those different biases, you end up generating inconsistent actions and results in your trading. It's absolutely normal, but avoidable. The reason it happens is we have dozens of biases that affect the way we make decisions. Dozens and dozens of them. I'm not going to go through all of these, but if you have a quick look across the page here, you can probably recognize some terms that you've seen before. All of these are three flaws or ways of thinking that humans have that make it very, very difficult to be a trader. Very, very difficult to be consistent and successful. Humans just naturally don't make good traders. And this is one of the problems. Our brain has so many shortcuts and heuristics and beliefs kind of tied up in there that we don't fully understand. It makes it very difficult for us to just subjectively take information in and make beautiful trading decisions that are profitable, inconsistent. It's almost impossible. So how do we fix it? Well, there's two paths. The first path is the slow, hard way. The slow, hard way takes years of psychology work. You've got to clear your mind, you've got to understand your beliefs, you've got to process through them, and you've got to get your mind to a state where you can just be kind of at one with the markets. And that sounds a bit woo woo, but that's kind of it. You take fewer inputs in, you process them through clear psychology and then you make clear, consistent, profitable decisions. At least that's the hope, right? But for most people, that takes years of hard work and no guarantee of getting there. And most people will never get there. So I want to give you a quicker, more reliable, easier path. Sound good? Great. Here it is, the quick and easier solution. I'm not going to say easy. I mean, I think it's easy. But you know, some people, I don't want to say it takes some work. That's the thing. But what we're going to do is bypass all of those psychological problems by systemizing your trading and all of your decisions. The way we do that is by taking price data. What the stock has done day by day over the years. We put objective rules in place that tell us exactly when to buy and exactly when to sell. If A and B and C happen, we buy. If D or E happen, we sell. These are objective rules that you can define mathematically, analytically on the chart. So you don't have to subjectively make the decision about whether to buy or sell. Right. And then you implement those rules and you finally get consistent results. Objective rules are like a system Some people might call it a strategy or an algo, but those rules make the decision about when to buy and sell. It's not us. It's not our psychology with all of our biases and all of our challenges and all of our moods and all of our fears and greeds and all of that. It's the system. And when the system makes the rule that makes the decision. The system is consistent. Now, it won't make money necessarily every day or every week or every month, but it makes decisions on a consistent basis. And so if we have a good, profitable system, then over time, our account should build, our psychology doesn't get in the way and we don't sabotage it ourself. How many of you have sabotaged your trading and only realized it later by making a mistake? Maybe by, I don't know, holding onto a losing trade or by cutting a winner because you just wanted to bank some profits and then seeing a winner go to the moon, or skipping a trade that you were nervous about, but then that trade turned out to be a winner. Like all of these things, these are psychological problems that cause traders to lose. But if you do this, implement objective rules in a system that you have got confidence in, then those psychological problems go away, right? Yeah, absolutely. I mean, all of us are guilty of those sorts of problems. When we trade with a discretionary, subjective approach, systematic trading eliminates them. Okay, so I want to give you a process, a game changing process that will make it all kind of become clear. Right. Here's what most new traders do. They update their data. Then they run their scans for their favorite setups. And they might run a scan and get a list of 100 stocks or 150 stocks that they want to look at in the charts. And they look at all of these charts and they check those charts and they flick through them one at a time looking for what's going on. They look for the patterns and they look for, you know, the charts that really appear the best to them on that day. And then you add support and resistance and trend lines and patterns, and you draw those on the charts and you start to refine down your list of charts that you got from your scan to the very best, highest probability ones that you think will make money. You're predicting that these make money because of some magical lines on the charts. And then you check for confirming indicators and news and announcements to make sure there's nothing coming up. No earnings or no bad news or no competitors taking over the world, or, you know, no overboard or oversold resistances and all of these things. You check for all of that on the charts, for every single one. And you decide on your entry price and the stop that you're going to place the next day. And then you open your chart and you, you calculate the position size based on how strongly you feel about the stock. Are you confident this really going to be the one? Is it going to make you money or are you just not sure? So do you bet, you know, do you bet big or do you bet small? You make the decision, and then you watch the live market. You, you go to a lower time frame and you go, okay, when am I going to buy? When am I going to buy? When am I going to buy? When am I going to buy? Buy? And then you buy and you're in, you're in the market. It's great. You've entered the trade. Brilliant. And you watch intradays. Okay, what's happening, what's happening, what's happening? What's happening? Should I sell? Should I sell? Should I sell? Should I sell? And then each night, you review the chart and you look at the trend lines, you look at the resistance, you look at the support, and you convince yourself what it's going to do the day after. And you spend all this time managing, managing, managing to try and make every individual trade count. Then you check the news and the announcements and the negative indicators to see if there's anything that tells you you should get out to save your money because you don't want to lose it. And then you exit the trade. Oh, my gosh. Trading is so tiring, right? I mean, crikey, this is exhausting. And I did it for.

Years before I went systematic. Exhausting. I was spending four to five hours a night on this garbage. But there is a better way, and I want to show you what it is.

Can anyone relate to that? By the way, is this something that someone else has experienced or is it just me? This is real, right? I mean, I see countless traders making the decisions this way. And they say to me, adrian, I don't have time to trade. You know, my partner, my wife, my husband has got the shits because I'm spending so long on my computer and don't see my kids. And I just don't think I can make this work. Right? But you can. Here's how you do it. The new way. Update your data, which means pressing the button on the data downloader to update it. Or in fact, my data just updates automatically, so I don't even have to do that. Once you've updated your data. Run the backtest to generate the buy and sell signals. Because your rules are all codified, you just press the backtest button. It generates the, the backtest and shows you the trades that it's going to take the next day and it also sizes them for you. Once you've done that, place the trades, job done.

Just want to let that sink in for a little bit.

If you're trading with a discretionary approach, there is a better way. It takes less time, it generates less stress, it's less frantic, gives you more consistency, gives you better results, allows you to diversify more.

And it's just calm, easy, serene. That's what systematic trading does for you. So if you're not on the systematic trading journey yet, you should be because it's game changing, life changing in fact. And we can even take the new way one step further by automating the entire process. My entire trading process is literally automated. The computer in the cloud updates the data, runs the backtest, generates a signal, talks to the broker, finds what stocks I'm holding, places the exit trades, places the entry trades, records, records all of the activity, sends me an email with, with my daily report. How does that sound? Would that make a difference to your life? Would that allow you to sit back and think about new trading ideas and improve your portfolio rather than frantically trying to find one trade that might, you know, generate a positive result for you? Of course it would. This is why systematic trading is so powerful. I want to introduce you to another student, Nico. Nico again is one of my favorite students. Nico lives in Singapore and before he came to enlightened stock trading, he said, I was driven mostly by my emotions. Trading was stressful and he was constantly overwhelmed and he had a big corporate job and not much time and young family and so that was a real problem. Now Niko is also managing a fully automated portfolio of systems covering Australia, US tsx, Hong Kong, cryptocurrencies. Nico and I were working on a system for Taiwan together. We've done plenty of work on systems for other markets together as well. He's fully confident in control of all aspects of his trading and just loves the trade success system community. We have one meeting called System Builders Club where we talk about new strategies that I'm building or the students are building and we work on them together. And Nico says this is a true like minded community of systems systematic traders and he loves every session. So again, from overwhelming stress to calm, diversified, automated, that's what we're doing, that's what I'm Talking about. So how do you do this in 10 minutes a day? The steps are remarkably straightforward. First, step one, eliminate all discretionary trading decisions. Instead of subjectively taking in lots of different information, we want to put objective rules in place.

That means typically buying or building a trading system that works. At the beginning. You probably want someone else's system system from me, for example, because you don't know how to make a good system. A lot of people come to systematic trading and they want to build a new system, their own system, unique on day one. But that's actually sort of a mastery level skill building your own system. If instead you could take a good system from someone else, like what you get in the trader success system, learn how to use it and operate it, then you can implement it much more quickly. Because I've been trading these systems for years and so I know they work, I can explain how you do it. You can get in the game with it really quick. So you get in the game with an objective trading system and eliminate all the subjectivity, then you back test that system. So use portfolio back testing software. You could use amibroker, Real Test, Wealth Lab. There's a number of programs that do it with historical data. I use Nor Gate and Metastock Data, Nor Gate for Australia, US and Canada, Metastock data for the rest of the world. I'm not going to get into all the details of why I use those softwares and data sources. But you basically need portfolio backtesting software to take your rules and test them over the entire history of the market to see how well they performed in the past, to make sure they're stable and they still have an edge today. Once you've done that, then you want to find your signals day by day. The only thing you have to do is update your data and find your signals. That's actually pretty quick because to find your signals, once you've got confidence in your system, all you need to do is run the backtest and it tells you, tomorrow I'm going to sell these stocks and I'm going to buy these stocks and you just do the same thing that the backtest is doing. So you replicate the backtest in your account.

So once you've found the signals, then you place your trades. I use interactive brokers. I use interactive brokers because they allow me to trade all the major markets around the world in one account. And it takes about two to three minutes a day, if that, to manually place those trades. So for one strategy, most days when I was trading manually, it was literally taking Me a couple of minutes. I say 20 to 30 minutes because most people won't believe me. That takes five. But for a single strategy, this is remarkably quick. Download the data, run the backtest, find the trades for the next day, place the orders. And you can do that if you've built the confidence in the strategy by backtesting it. That's the advantage of systematic trading. You do the work once to build the confidence in the rules and then you just follow the rules every day. You don't have to take into account all of this subjective information to make the decisions. How does that sound? Would that change your trading life if you could just have a simple process like that? Of course it would.

Only 10 minutes a day, and that's manual and it can be automated.

Okay.

Just a couple of points about trading systems. In order to.

In order for this to work, the trading system has to define every action you take in the market. It needs to define the exact setup, the exact entry, the stop loss, where you're going to get out with a profit, how much you're going to trade, how much you're going to risk on each trade, how you manage your overall portfolio, all of those things. It has to define fully every action you take in the market. There's no room for subjectivity. And this is the gold, right? Because if you eliminate all the subjectivity, then it can be back tested and it can be run very, very quickly each day. You don't have to think and consider every single trade. You just follow the system. But if you have any little bit of subjectivity in your trading, then that subjectivity takes up time and ruins your ability to backtest. It causes you problems, causes you inconsistency.

So we need a system that fully defines every action in the market. So it must cover all of these elements.

Setup, entry, exit, initial, stop, loss. I've got pyramiding there. I don't actually use pyramiding very much, but you can. Then how do you manage your portfolio, your risk management and position size? You just have a rule in the system to cover every aspect of this. And I'm going to give you an example system, actually two example systems, one today, one in the next session.

That give you all of these components. So it's purely objective and it can be tested. That's what you need. Okay, here's an example. This is a mean reversion strategy for stocks. This is designed for the Canadian stock market. Okay. It does work on some other markets, but not every market. One of the things you need to realize, or I'd like to share is that different stock markets have different personalities. The US market trades a little different to Canada, trades a little different to Australia, trades a lot different to Hong Kong, for example. And so these systems that we're talking about are market specific. Some of them work across multiple markets, but they have to be tuned for each market. This week I finished off in System Builders Club. I did a, I spent a couple of weeks adjusting or adapting one of my Hong Kong systems that I've traded for many years to the Taiwan market. And the Taiwan market is quite different. And when I took the Hong Kong system and applied it to the Taiwan market, it were, it was profitable, but it didn't make that much money. All the returns were pretty low and it was a bit volatile. But I went through my process that I teach in the Trade Success system, the experts guide to back testing process. And I did all of the adaptions. And at the end of the day we got this great system that has a beautiful nice smooth equity curve, good risk management, stable edge, easy to follow, simple because we had this, this process to adapt the system from one market to the next. So whenever you pick up a system in a set of, in a book or on a website or whatever, you've got to test it on your market. Because just because it works in the US doesn't mean it's going to work in your market. Or just because it works in Australia doesn't mean it's going to work in the US and vice versa. So this system was designed for Canada and here it is. It's really simple. It's got a trend filter.

The stock just must be, must close above the 200 day exponential moving average. So it's trending up. Right. This is a mean reversion system. I want it to trade volatile stocks. So the average true range divided by the closing price should be more than 0.8, 0.08, sorry, more than 8%. So the ATR is more than 8% of the share price. That means I want the relatively more volatile stocks. But it's mean reversion. They're relatively small short trades. So I want to make sure the stocks are very liquid so that I can get in and get out without too much slippage. So I want a 20 day moving average of price times volume to be greater than a million dollars. So more than a million dollars turnover per day on average. Then the entry trigger is if the three period RSI drops below 5, that means it's very oversold. Then I'm going to buy, I'm going to buy the next bar on the open and then I'm going to hold that stock until the closing price is above the three day exponential moving average or until the closing price crosses below the 200 day moving average. And if I do that, what's going to happen is I'm going to find stocks that are going up, that are quite volatile but highly liquid. When they take a little dip because of some panic or bad news, we're going to buy. And then very quickly over the next couple of days, high probability is they bounce and we get out with a, with a quick profit. So this system pulls these rules together, pulls the two exit rules together. We've got a stop loss here, which is a wide stop loss, 40%. And we risk 10% of our equity on each trade. So this is not quite as simple as it comes. The system I've got in mind to talk to you about tomorrow is even a little simpler than this. But this is a great simple strategy. It covers the setup, the entry, the stop loss, the exit, the position, size, everything. This is the sort of thing that I need. So if you don't have complete set of rules like this, then you've got subjectivity in your trading and therefore probably inconsistency. Make sense. So you've got rules like this. I really like this system, nice and simple. It doesn't trade very often, but it gives good signals. And our process is we code the rules, which I've done, we use our backtesting software, for example Amy Broker or Real Test or Wealth Lab, and we generate all historical trades over the last 30 years and assemble a portfolio. We don't have to do that. The software does it for us. You just press back test and it generates all of the trades and assembles the portfolio and tells us how well it performed. And we can look at the equity curve that we would have generated had we followed that system exactly. That's what we've got here. And then it gives us all of the performance statistics. And this system made only 6.6% return, compound annual return on average. So 6.6% return. Adrian, that's a crappy system, right? Why would I trade a system that only makes 6% return? But hang on a minute. The system was only in the market 1.3% of the time. It was spent the vast majority of its time in cash. And every now and then it took a trade which made money. And every now and then it took another trade and, and then another trade. But most of the time it was just sitting on the Sidelines waiting for the right moment. So if you could make 6% return while only having your money at risk about 1.3% of the time, wouldn't it be worth using the money 1.3% of the time to make 6% return, knowing that the rest of the time you could use the money for another system? This is the magic of systematic trading. We don't have to use just one system. We don't have to have one system that makes us rich. We just have to have good systems and combine many of them together. Right. So this system is actually brilliant. Makes 6% return. Being in the market 1.3% of the time, it generated 400 trades in the backtest, and the drawdown was only. The maximum historical drawdown was only 8 and a half percent. So 6% return, 8.5% drawdown. Okay, it's not the best system in the world, but it's pretty bloody good. And it trades very infrequently. So it's very easy to add this sort of system on top of another system to take some extra trades and boost your returns, get some extra diversification. Make sense. Awesome. If you've got questions about any of this, ask them in the chat and we'll address them at the end. Okay, so we're just starting to wrap up. We're having lots of time for questions today, which is great. Here is the enlightened stock trader journey. We got Launch, Stabilize, Diversify, Automate, and Mastery for the launch stage. You need to understand certain things. You need to understand why trading systems are the best strategy, and hopefully I've given you a lot of that today. Why they make you consistent, why they give you confidence, why they save you time, how they can be automated, all those things. You need to have the broker and the data and the software in place and have all of those things joined together. You need to understand the core trading strategies. And for most people, that means trend following and mean reversion. These are the two strategies that most people will start with. If you understand deeply how they work and you can implement them, follow them, and know what to expect, then you can launch one of them.

You need to trade using a profitable system like the one I've showed you. But you've got to have confidence that you've got a profitable methodology and it's fully codified and systemized. You need to understand risk management, individual trade risk, how to manage your exposure, and what the catastrophic risk is. Now, a lot of traders will trade not knowing. Maybe you know what your individual trade risk the distance to your stop loss is. But risk is actually risk management is more than that. Risk management is about your total risk that you're taking your portfolio. And if something catastrophic happened, you know, could get wiped out. And way too many traders, I see way too many traders trading in a way that if there's a catastrophic event, they could get wiped out. And my number one rule, and I suggest you write this down, my number one rule for trading is that no matter what happens, I must be able to trade and support my family the next day. No matter what happens. World War 3, pandemic, pandemic and war, financial meltdown.

Any of that sort of thing, I have to be able to trade the next day. That determines whether I've got my risk management right. So no matter what happens, if I can wake up the next morning and know that I'll be okay and I can keep trading, then my risk management is in place. But if you're not sure trading the way you're trading right now, if something could happen that could wipe you out, even if it's a hypothetical scenario, then you've got to do some work on your risk management.

You need to know how to calculate position, size to manage your risk. You need to be able to generate signals from your trading system so that you can actually place the trades consistently. You need to know how to launch a new system. You need to know what your daily trading process will be. As in update your data, run the backtest, check for entries and exit signals, place those signals and record your trades. And you need to be able to maintain a trading log and journal to both record your trades, but also record your.

Thoughts, your realizations, your ideas, so you can become a better trader. These are the steps that you have to take to be successful in the launch stage. Now, as we move through the Market Mastery bootcamp, I'm going to give you the steps that you need for each of the other stages as well. So by the end of the second session, you'll have all of the things that you need to have in place. And obviously I can help you on this journey and speed it up with the the ultimate trader success bundle, if it's right for you. But just by knowing what these steps are, we can shorten your learning curve and you can eliminate a whole bunch of junk that you don't need to worry about. Alright, so of these 10 things, how many of you, how many of these do you have in place right now? I want you to count how many of these you've got in place today and Put that number in the box. Out of 10, what's your score? Do this analysis real quick. It only take a second. What is your score? How far through the steps of launch are you? I can see a 2. I can see a 6. I can see a 5. I can see a 7. I can see a 2. Awesome. So there's a little bit of work to do, which is great, but it's focused work. You know the things that you've got to close, you know the gaps you've got to close. And that getting that clarity is half the battle. Because once we're completely clear on the next step that we need to take, we can take it with confidence, we can move forward quickly, and that's my goal for you. All righty. Here are the lessons from day one. I can't believe we got through that so quickly. That's so good. First of all, there are five stages in the journey from launch to mastery. If you follow that path and tick off those actions and those steps, you. You will save time, reduce wasted effort, and trading will be a far more pleasant journey with a much higher degree of confidence that you'll be successful. Secondly, human decision making is fundamentally flawed. It just is. I mean, there's nothing we can do about that. We have beliefs and biases and upbringings and the school system, which just completely ruins our ability to be a good trader, naturally. So in order to trade well, all of us, me included, we need a proven system with a profitable edge.

Third, most traders use a daily process which is broken and takes too long. We need to systemize your decisions so that you can get your decision, your trading done in minutes, not hours. And when you do this, it can be done in 10 minutes a day.

And then finally, great systems are elegant and simple. I gave you one example of a system today, and those rules are so simple, right? There's a setup, an entry trigger, an exit, a stop loss, a position sizing rule, easy to understand, a couple of filters to get rid of junk stocks we don't want to trade. That's what we need. Just simple, elegant rules that cover all aspects of the decisions we need to make in the market. Do that, you eliminate subjectivity. Eliminate the subjectivity, you improve consistency. And because you've got objective rules, you can test them. Because you can test them, you can build confidence. And because you can build confidence, you can follow them. Because you follow them, you can actually make money. That's the thing. Systematic trading with elegantly simple back, backtested systems is the path to the trading results that you want. It certainly was for me and it has been for hundreds and hundreds of my students.

Good trading is simple, but it's not easy. There are things that you have to learn, there are steps that you have to do. Like I've said, like I've explained today, but it's way simpler this way. It's way easier this way than trying to make subjective decisions and trying to clear your psychology and become a. A master of Zen so that you can just see and feel what's going to happen in the market. I mean, that's just not reality for most people. A very small number of unicorns maybe can trade like that and be successful. But for the vast majority of us mortals, systematic trading is the way to go.

Okay, next steps. I've got some next steps for you before we get into questions. First, if you haven't already registered for Market Mastery Bootcamp, if you're watching this on YouTube or Facebook or LinkedIn on the live stream, or click the link in the description and go register. You need to register in order to get A the recordings, B, the bonuses, and C, the free system that I'm going to share with you because I'm going to explain how this broadly, how the system works, and I'm going to show you the results and how to use it in the next session. But I'm not going to give you the rules unless you are registered. So if you're watching this on a live stream, click the link in the description and register for Market Mastery Bootcamp so you can access to the recordings and all of the bonuses. Second, learn more about trading systems. I've got a little homework for you to do. I've written an article on trading systems that covers in more detail all of the stuff that we've been talking about. So click this link and you'll get this by email as well. If you're registered, go to enlightenedstocktrading.com trading systems and read that article. And what I'd love for you to do is at the bottom of that article, post one great learning and one question that you have about trading systems and I'll answer them on the article for you. Good. Okay, great. And then thirdly and last.

Take five minutes to reflect on day one. How is this approach different to what you've done so far in your trading? Can you see how systematic trading could save you hours of time each day? Can you see how this would shorten your learning curve dramatically by focusing you on a smaller number of steps and eliminating a lot of the noise? Can you see how using a trading system would make you more consistent and having an edge would give you the confidence.

Hopefully, yes. Now what I'm going to do is I'm going to pause and take some time for questions and after that, what I want you to do is get ready for day two. On day two, we're going to discuss and demonstrate this complete system that I actually use. I'm going to cover the remaining stages of the journey. Make sure you remember to do these two actions. Do them today before the next session so that you've cemented your learnings. From today, ask any questions you've got on the post. If you're on the live here now with me on Zoom, you can ask questions. If you're watching the livestream, ask questions in the chat. My team's monitoring it. We'll try and get to all of the questions and make sure that you register so. So that you get access to the recordings and the bonuses. Good, that's day one. Done. Record time. We've got plenty of time for questions, so I hope you've all got some. What I'm gonna do is open up for. Open up the mics. I'll go to my team, see what questions we've got in the chat and let's help you out. So, yeah, let's go to questions.

So, Stephanie, if you can come off mute, I don't know if you've seen any questions in there. If anyone's got questions, please ask in the chat. What have we got so far?

There's quite a few in the chat. And going back to the system that you demonstrated, we had the first question was trade on open and trade delay equal one.

Yes. Yeah, absolutely. Good question. The entire code wasn't shown there because I didn't want it to be too overwhelming. But that system is a next bar on open system, so it always trades at the open. Ideally, your goal is to get the trade executed in the opening price match. So before the market starts trading freely, that's what the system is designed to do. So when you code that one bar delays for entry, one bar delay for exit, and buy price and sell price are both equal to open. Good question. Thank you.

The next question was, what kind of orders does the system use? Macron open VWAP extension.

Yeah. So that system, there's two ways you can trade it. You could use a market order. A market order will just. Will go into the market as soon as the opening price match is done and it starts trading freely. The trouble with using a market order is you end up paying the spread and you can also get slippage. So I'm not a huge fan of that. What I rather do is place a limit order before the market opens at a level that I am confident will get executed in the opening price match so that then the match happens, you get the opening price, then the market starts trading freely. So that's, that's the way I like to do it. But if it's a very, very liquid stock, you can also just use a market order. If you're on Interactive brokers a market, an adaptive market, adaptive algo order will, will do the job pretty well as well. Well.

Next question is, does the system work in Indonesia and or do you have a system that works in Indonesia?

Good question. To be honest, I haven't tested it, so you would have to test that.

Probably my biggest concern about mean reversion strategies for smaller markets like Indonesia is liquidity. So I've never traded the Indonesian market. But if you get the data, you can get that from Meta Stock. I'm going to give you a link to get a free month of the data subscription. What you can do is test it and see what the different liquidity levels of the stocks are and see if it's profitable. I would say high probability. You can adapt the system to work there just like most systems.

So yeah, I've tested on Malaysian stocks, Filipino stocks, Taiwan, Thailand, a number of other Asian markets and a lot of these systems work on all of them. So I've got a pretty good degree of confidence that could certainly be adapted. I just don't want to say use it out of the box for that market because I've not tested it. Exactly.

I need to find the edge systematically or I need a way to find the edge systematically.

Yeah. Okay, good.

I guess it's more a statement than a question, isn't it? But there's the key. The key thing to realize is that to get an edge you need objective rules. Tells you exactly when to get in, exactly when to get out. And then once you've got objective rules, you need to be able to back test them. So I have a whole process for backtesting and evaluating rules to make sure that that edge is profitable, that it's consistent, it's stable over time, it's not eroding, it's robust and likely to continue working in the future. That's a whole course that I teach in the Trader Success System called the Experts Guide to Backtesting. But the number one thing you need to learn is how to backtest that's the skill that is most critical to finding an edge. And I've got a bunch of resources about backtesting and YouTube videos and so on. So first of all, next step would be read that blog post on trading systems that I.

Put in the next steps and then have a look at my articles on backtesting and my videos on backtesting as well, and that'll help. But then when you want to take the next step, then obviously the trade success system is, or the ultimate trade success bundle is the way to kind of really learn and master that quickly.

How do you handle different time zones? 10 minutes a day in each time zone, aka market, or 10 minutes total?

Yeah, good question. Thanks, Joe. This was a real killer, actually. When I, when I first started diversifying, I was trading Australian stocks and US stocks and Hong Kong stocks and I was doing like, okay, I gotta wake up, I gotta do my Australian trading. Then a little later I did my Hong Kong trading. And then a little later, like late in the night, late in the day, I did my US trading. And it was taking more time than I, than I wanted. But what I realized was that I just need to do my analysis out of market hours because my trading is end of day, right? It's. And the trades are usually next, next, next day on open or next day on close or a limit order for the next day. So given that, all I had to do was align the time frame, the time zone to say, okay, well when are all my markets closed? So I can do all my analysis at once and just follow that process back. Just all of the systems, find all of the signals, place all of the trades so they would execute when the market opened next. And you know, it's actually pretty easy to do that. In Australia, the market opens at 10, you know, about 9:00 or 8:00 clock in the morning. The US market's already closed, the Hong Kong market's not open yet, so there's a sweet spot in there. I could just do all of it all at once. So yeah, 10 minutes in total is certainly doable. If you separate them into multiple periods of time, then, you know, might take you a little longer. But yeah, I think if you're, if you're trading just one market, you can do it in 10, 20 minutes. If you're trading two or three markets, then you know about the same as long as you're efficient once you get used to the process. Yeah. Now, of course, my trading is all automated and I run my automation at several different times during the day. And I just get sent an email and I just check the email report to make sure that everything is working smoothly.

Good one. Anything else?

If I'm not a trader, is the system any good for an investor?

Oh.

If I'm not a trader yet, might be a good way to think about this. I mean, what is an investor? Investor is someone who buys a stock and then never sells it because they are just investing for the long term, I suppose. Now.

I want to. There's an important distinction between trading, being a trader and day trading. This is probably something that I should have talked about, but when. When I say to Mo, to most people I'm a trader, they go, oh, you're a day trader. It's like, no, no, I didn't say I'm a day trader. I'm a trader. Now, a day trader is someone who sits in front of the computer and buys and sells stocks during the day as the markets go up and down and they place multiple trades throughout the day and they have to look at the screen and they have to be focused on that. You know, most people don't want to do that. I don't want to do that. It's horrible, it's stressful, it's difficult, and I just don't like it. I want it to be free. That's why I started trading, so I don't day trade.

What I do do is I use objective rules to tell me what stocks to. To get into and what stocks to get out of tomorrow. Those objective rules are trading rules or a trading system, and I follow them. So.

Being a trader doesn't mean you have to be very, very active. You know, you could say, well, I only want to spend 10 minutes a month.

That's all I want to spend doing my trading or investing. You can do that. I've got strategies that are literally 10 minutes a month. Actually, I've got one that is 10 minutes every six weeks. Right. And it's a great strategy, works brilliantly.

But you only have to take action every six weeks. Everything else in between you ignore. I've also got strategies that you have to do every day. So the point here is, don't define yourself with a word, oh, I'm investor, because this one works for me. I'm an investor. Think about your objectives. This is the important thing. What sort of returns do you want to make? What sort of drawdown are you willing to tolerate, and what level of activity can you fit into your life? Remembering that all of this can be automated. If you don't want to trade Very often you can have a longer term system that doesn't trade every day. I've got daily systems, weekly systems, monthly systems and like I said, once every six weeks system. I've got a system that only trades in November. So if you want to do it once a year, I mean you don't make huge returns by just trading any one of those, but you can certainly make good returns.

So define how much activity you want and then find the right system for that level of activity, build confidence in it through back testing and implement. That way no matter whether you're a long term person or a short term person, whether you're ultra busy or whether you're, you've got heaps of spare time, you can still do this. I don't really like the terms day trader, trader, investor. It's like we're all making money in the market or trying to, right? We just need a strategy that fits us, that fits our lifestyle and what we need. So I hope that helps. But yeah, it works for long term, for long term.

Approaches that don't take, don't have a lot of activity that you have to do day to day. You just need the right system.

That'S part of this. But what are your preferred timescales to trade on? Example, five minutes, one hour daily. And do you trade the underlying stock or futures, options, CFDs, etc.

Yeah, solid question.

I can't think of anything worse than looking at a five minute chart. Actually I can. I lie looking at a 1 minute chart or looking at a tick chart, they're definitely worse.

My personal preference is the daily time frame. I also have systems on weekly charts. But I think far too many traders try and focus on very short term time frames. And it's interesting, right? I think the psychology of this is that many people seem to think that if I look at very short term charts, five minutes or half hour or whatever, that you can make better decisions, you can have lower risk and you can make more money. And it's just not true. In trading a lot of things that work are counterintuitive. And one of the things that works is you need time in the market, you need to let your trades grow. And the smaller your timeframe, the shorter term your trades, the smaller your moves. If you trade on a five minute chart, there is no way you're going to have a stock that goes up 100, 300, 500, 1,000%. But if you trade on daily charts with a long term trend following system, you can. It doesn't happen all the time, but you can. So I really like the daily time frame because all the reasons I just described, plus most people can feel it into their life. You know, I don't want to stare at the screen all day. That's horrible. You know, I also don't want thousands of trades every week that I have to reconcile and monitor and track. You know that. That's horrible. What I like is a small amount of activity each day that I can do after hours in, you know, 10, 20 minutes and make money. That's, that's what I like. So daily is the short, short answer. All of that was the long answer. The other part of the question was, do I trade the underlying stock or futures options or CFDs? I trade the underlying stock. In the past I have traded CFDs, but what I realized is they are horribly expensive. The spreads you trade are typically wider. Even if you get the real underlying spread, often they don't let you participate in the auction. You can't necessarily buy in between the bid and the ask. If you trade the underlying stock, you get access to the order book. You can.

Place your limit orders and get better fills. And you can use all sorts of different order types that aren't available on CFDs. Also, CFDs charge you interest on your exposure. And this really, this burnt me so bad. One time I had this stock.

That I bought on CFDs way back at the beginning, Stephanie will remember, because I agonized over this a lot.

So I bought this stock inside Tech Pivot. And I think when I bought it, the position was about $15,000 worth. By the time I sold it, the position was 140, something,000 dollars. So it was a 10 bagger basically, but it was a CFD position and CFDs charge you interest on the exposure. So on day one, just keep the numbers simple. Let's say I was getting charged 10% per year interest, right? So on day one, it would have been 1400 bucks a year interest. But by the time I closed the trade, it was thousands of dollars in interest. I was having to sell shares one at a time to fund the interest charges on this freaking position that had 10x in value. And after that trade, I swore I would never trade CFDs again because they just ream you with commission with interest costs. It's horrible. If you trade the underlying stock, even if you had a margin loan and you borrowed money to buy the stock, you only pay interest on the initial exposure. But with CFDs, you pay interest on the entire position as it grows, which is highway robbery. It's criminal. So yes, I trade the underlying stock. No, I don't trade CFDs. Futures and options futures are obviously very well, depending on which contract, can be very liquid and good trading instruments. I'm not, I have traded futures, I don't trade them right now. But it is an area that I, you know, I want to expand into when I find time and energy and whatever options I don't trade. And the reason I don't trade options is because you can't effectively really backtest them. I want to know that I have objective rules that work. And when I backtest a strategy in stocks, I can backtest it on 30 or 50 years of market history even. I can generate an equity curve that covers thousands of stocks, tens of thousands of trades and see how it performed over time. But with options, there's so much data, so much complexity, so many strike prices and so many expirations that it's almost impossible to back test properly. And so without or in the absence of a proven back tested strategy, I won't trade. You know, I know I need to be 100% systematic to make this all work. Yeah. So I can be consistent, so I can keep control of my emotions, so I can be confident that I'm going to make money.

I can't really do that in options. There are some backtesting engines coming online. They're not very good yet, they're very slow, they're also very expensive. But that's going to get better over time. And when that happens I'll probably move into options. But right now stocks is my main focus. And crypto, because crypto you can do everything that you can in stocks. You get historical data, you can backtest your strategies and you can fully automate them exactly as we've done. So stocks and crypto are my main focus. And I get diversification in stocks by trading different markets. Australia, us, Hong Kong, Canada, Taiwan, shortly, various others. Good, hope that helps.

We still got time, so if you got more questions, make sure you ask them in the chat. I think we got a few more. What's next?

Can you manage some cash percentage of profit for some 8 to 12% drawdown?

Can you mention cash? Can we manage some cash percentage of profit?

I think so. I'm not completely clear what the question means. I think what it means is what sort of percentage of profit can we get while having only 8 to 12% of drawdown? If that's the question. Look, a good rule of thumb is if you're willing to accept a 10% drawdown, then shooting for a 10% annual return is probably achievable. If you're willing to accept a 15% drawdown, then shooting for a 15% annual return is probably achievable. Obviously it depends on what the markets are doing and the type of systems you're trading and all of those things. But if you want to say, Adrian, can I make 30% return per year and only have a 8 to 10% drawdown, 8 to 12% drawdown, I'm going to say it's probably not possible. It's. You might have years or months where you perform like that, but there's going to be volatility in your equity curve. I think one of the most important lessons is that trading is not a job, right? So when we have a job, we get up, we go to work, we come home and we get paid. The next day we get up, we go to work, we get paid and we come home and so on. We get paid for doing our work. In trading, it's not like that. In trading we have to follow our system. And some days we get paid and some days we pay the market and some weeks we get paid and some days, some weeks we pay the market. Some months we get paid and some months we pay the market. Right. There's some volatility in it and we, you know, drawdown is part of the game. Unfortunately, it's this. There's no way to avoid it. And I think this is why so many people struggle to be consistent and pro struggle to be consistent traders. Because the uncertainty and the volatility is, is difficult to accept when it comes to money because we're not trained for that, right? So we have to accept some drawdown. My personal drawdown target is 25% and that allows me to target an annual return of 25 to 35%. Now that's, that's the sort of the, the broad figures in my objectives that I work towards. I'd like drawdown less, but I have had a 25% drawdown. To be honest, personally, it doesn't stress me out.

But I know because I've got the confidence in the systems. And one of the things I've found is that as you get into systematic trading and as you back test and build that confidence, your level of tolerance for drawdown tends to increase. Because we've got the confidence that our strategy works right and if we just keep following it, we'll come out of that drawdown. It's typically people who are very timid with drawdown don't have the confidence in the strategy and so they're very skittish. They want to kind of, you know, quit before they lose too much money because they're not sure they're going to come out the other side and go on to higher and higher profits. So if you only could stomach 8 to 12% drawdown, could you trade? Yes. Do you have to be very careful with your position sizing and your level of exposure? Yes. You have to be careful about what systems you trade? Yes. But it is possible? Absolutely.

Okay, what else have we got?

There was a question, does IV support Taiwan stock market? But our lovely community has already answered that and said, yes, it does.

It does. Actually, it's funny because the reason Taiwan came up, right, is that I was talking to Nikko, who I introduced you on one of the slides and Nikko said, oh, I'm looking at Taiwan stock market. I was like, why? You can't trade it. He's like, yeah, you can. No, you can't. Yeah, you can. I said, on what broker? He said, interactive brokers. I said, really? And literal conversation happened a few weeks ago. And last time I looked at interactive brokers, you couldn't trade Taiwan. But I hadn't looked for a couple of years and I just forgot about it because I was looking at the time, I was looking for another Asian market to trade and they didn't support Taiwan, at least on stocks. But I think in 2023 they. They enabled it and so, yeah, now there's a. There's an easy way to trade it. I get data from Meta stock, I pull it into my Amy broker. I've got systems that I can adapt and use on Taiwan and away we go. So, yes, we can trade it on ib.

Some people have stop losses but don't want them in the system explicitly as the markets can go after you to take you out before they then go back the other way.

Oh, yes. Stop Hunters.

This is actually a really good question.

I think Stop Hunting is real, but I think it's nowhere near as big a thing as.

Some people make out. So, yeah, if you have your stop in the market, there's a chance it'll get triggered and there's a chance it'll get triggered at the absolute low of the day. It's happened to me. I've had stops in the market and the markets literally come down, touched my stop, I've been out and then it's just gone straight up for the rest of the day and then gone on to be a winning trade. So is that real? Yes, absolutely.

Does that mean you shouldn't have in market stops. Not necessarily. What it means is you should test whether you should have in market stops. And here's where back testing is one of the things that back testing is so powerful. You can code a stop loss in your trading system to be in the market. So if it gets touched during the day, you're out. And you can code your stop so that if it gets touched during the day, you get out the next day on the open. And you can code your stop loss so that if it closes below the stop loss level, then you get out at the open the next day. So there's lots of different ways to code your stop and backtest it. Now if you do it each of those different ways and you back test them all, you'll find out which one works best for the market and the system that you're trading. What's interesting is that a lot of the time it is better to exit next bar on open than it is to exit on an in market stop. Why is that? Because the market panics and so it collapses. But the next day people have had time to take a breath and realize the world wasn't ending. And often the stock began bounces. Not always, but often. So when you start to think about, I'm going to talk about this in session two tomorrow. When you start to think about your trading as a.

Portfolio of systems and each system has a portfolio of stocks in it, you don't worry so much about each individual stock. You think about the system. The system performance is what matters. And so if the system performs better by exiting next bar and open, even though sometimes you'll have a stock that hits the stop loss and then the next bar is way down because the market was right and it keeps collapsing and you have a bigger loss than you would have had on that trade if you had then, if you had of them exited in market every now and then that's going to happen. But on average you might find that the market tends to bounce a little bit by the open and you can get out at a better price. So the system might perform better.

If you change your stops to next bar on open. But you've got to test it and see, I had one system system in Hong Kong and just by changing the stop to next bar on open, I got a 40% uplift in expectancy just by making one simple change. Now that's not true of every system and it's not true in every market. You've got to test it. This is why backtesting is such a powerful skill. To learn. But that was like, whoa, that's amazing. Like, easy change, less work. I don't even have to place stops. I just run my backtest at the end of the day and it tells me my stop got hit and I exit next bar and open. So I had less work, it was quicker to run and the profitability was dramatically improved. Score. That's why backtesting is so powerful. So, yes, I have some systems I have in market stops, but actually most of mine, most of mine don't. I'm not recommending that. That's right. For everyone. The trap, the challenge with next bar on open exits after a stop loss is that you've got to take the exit if you're not disciplined. This is a real problem. Say, oh, my stop got hit. Oh, but I think it's going to turn around. I might just hold on. Right. I'll just wait. Oh, look, it's bounced a bit. Let me just hold on and see if it keeps going up. Right. These are the psychological games that you can play with yourself to completely screw your trading. So if that's the sort of thing you're going to do, if you're not going to be disciplined, then having an in market stop is better because that takes you out and you're done, you're out. Right. You can't argue with it. Your psychology can't screw it up. But if you back test it and you realize that exiting expir and open is better and you've got rock solid confidence in your strategy because of your backtesting and because you've done it over and over again.

And you actually execute that trade every time. Next bar and open. Maybe that's the right way for you, but you've got to be disciplined whichever way you go about it. Cool.

We're at time. We have a few more questions.

Yeah, let's keep going. I've got time.

How soon before AI generates backtest systems automatically?

Oh, good question.

Short answer is I don't know. I think the amount of time before AI can generate the backtest is probably not that long. The amount of time before it can make sensible decisions about is that system really stable? Is it overfit to pass data? Is it likely to continue performing well in the future? Is it robust? Did it choose parameters that were stable or did it choose parameters that were close to a performance cliff? All of those things. I think that's much further away. So I don't think AI is going to steal our job as a systematic trader and system developer anytime soon. What I can tell you though is you can start to use AI to enhance your system development efforts. So I use a bunch of AI tools to help me brainstorm ideas, to do some data analysis and so on, which is useful. It can speed up the process and can give me a degree of, you know, creativity and idea injection I didn't previously have. But I'm not, I'm not seeing it take over the world of trading anytime soon. There are some products like, you know, AI trading bots and so on, but to be honest, I would, at this stage of the game, I would be very, very cautious and wary about it. It's very much like the old black box trading systems that you used to be able to, where you can still buy, where you know, it just generates the signals and you don't know what's going on under the hood. AI is still in that stage. So I think it's very risky right now. There will be a lot of AI hype around trading. I mean, there already is, but there will be more and more. And my suggestion is you keep that skeptic skeptical hat on and, and really learn how to trade. Learn the principles of systematic trading so that when you talk to these service providers or these AI, when you find these AI trading approaches, you have your sound systematic trading knowledge in place and you can question them to make sure that they're actually, you know, sensibly designed. And that's going to become important because there's going to be good ones and there's going to be bad ones and most of them will be bad, to be honest. Most of them be overfit, you know, nightmares that will trade very frequently, make a fortune for the exchange that you're trading on or the broker, and ultimately make you no money at all. That's my, that's my thought. So regardless of AI, I think learning to do this is a critical skill if you're going to be a trader because at the very least in a number of years time when AI becomes more and more powerful, it's going to give you the knowledge to actually question and separate good from bad.

Okay, there's another question here about gaps. How does your systems handle gaps? So I'm assuming that's about overnight gaps. And look, I mean, gaps are part of the trading world when, when you back test your, your trading strategy over 30 years of market history, over thousands of stocks on the market, you generate thousands and thousands of trades. There's gaps in there, right? Because if you back test from 1990 to today, guess what you've Got wars, you've got famine, you've got pandemics, you've got financial crises, you've got bubbles, you've got bubble burstings, you've got bad earnings announcements, you've got good earnings announcements, you've got all of that stuff in the backtest.

Yes, the market will gap and individual stocks will gap. But the key thing to understand is does your strategy profit despite those gaps?

And if you've got a good back tested strategy, you know it'll, it'll cope. You know, every now and then markets, a stock you're in is going to gap up. Great. Every now and then a stop that you're in is going to get down. Okay, but remember, we're thinking, we want to think about our trading not at the stock at the individual trade level, want to think about the port at the system level. And then once we get to the system level, we want to think about the portfolio of systems level and each individual stock, each individual move, each individual individual gap shouldn't concern us all that much because we know that the system and then the portfolio of systems will profit over the long term regardless. So actually I'm not stressed about overnight gaps at all. I've had some big negative overnight gaps. I've had some massive positive overnight gaps. It's just part of the game and it's all in the backtest and it's in the summary stats that you see when you run the backtest. And if you can build confidence with that, then you can trade regardless.

Cool.

Do you place your trades when the market is closed? During the open market, I think you've answered the yeah.

Look, the vast majority of the time I'm placing my trades when the market's closed. A good tip for keeping your kind of psychology under control is to do things outside of market hours so that you're making decisions with a known static data set. As soon as the market starts moving, prices going up and down, you're going to start second guessing and your psychology comes into play.

So, yeah, how do you identify errors, execution errors, coding errors?

Yeah, that's a good question. There's a couple of things. The first one is the syntax sort of checker on the backtesting software. So Amy Roker, for example, has a syntax check that makes sure that all of the rules are written correctly in code. Then it's a matter of looking at the rules and looking at the chart and making sure that the rules generate, generated the trades and the price for your trade at the place and level on the chart that you Expect. And so what I do is I put the rules on the chart, like the moving averages and the average true range and the RSI's and all of that. And then I say, all right, was that trade generated on the day I expected and the price I expected based on my understanding of those rules? And I just check a large number of trades and make sure they're all executed the right way. And if you check a range of different types of trades, you know, you check winning trades, you check losing trades, you check stop trades that hit their stop. You check trades that hit their profit target, you do all of that, then you can be comfortable that.

Your code is executed correctly.

There's another question in the chat. Follow up from the question about investment. It says just correcting and investor is someone who buys medium to long term. It's definitely not buy and hold. You can use technical analysis. Yes. You can also still be an investor and use.

Use systems. That's true too. I just noticed a bit of glitching. Am I still live? Okay. Okay. And they can be treated differently for tax purposes. I'm not going to comment on tax. That's a comment conversation you need to have with your accountant. But just because you use a systematic approach to investing doesn't mean you have to be a trader or an investor. I think using a set of rules to guide your trading is.

A distinctly separate issue from the tax treatment. And that's a conversation for your accountant. So anyway, I hope that helps if, if you've got any more questions about that, you can follow up with me later. Okay.

How much? Oh, yes, we run 10 minutes over. I think there's three more questions.

Okay, let's, let's cover the last three questions. My Zoom is frozen, but if you can hear me, we can keep going.

How much time and effort is required to get to automating and mastering.

Yeah, good question.

I'll talk more about this tomorrow, I think, but I would say let me just turn my. Sorry, I'm very distracted because my video was frozen. See if I can unfreeze it. No, my zoom's completely crapped itself. Okay. It takes about. I can get you there in less than six months. So that's my guarantee with the ultimate trader success bundle. So. But you'll have to spend a few hours a week and you'll have to ask questions and you'll have to come to the live sort of mentoring calls and so on to get you through that. It takes some effort, but it's upfront effort and I think this is really important because.

You do the work once at the beginning to learn these skills. You do the work once to test and build confidence in a trading system, and then all you need to do is monitor those systems going forward so it becomes much quicker. So, yeah, it takes a bit of time and energy, but so does everything that's worthwhile. Everything that is worthwhile in life takes a bit of time and energy. It's not a 12 hour a day, six month job. It's a few hours a week of consistent effort.

And implementing and asking questions and you can get there.

I can hold the other questions over till tomorrow since we're glitching a bit.

Yeah. Okay, cool. All right, let's call it a day. Hey, thank you so much for being part of Market Mastery Bootcamp Day 1. Come tomorrow, we'll have a bunch of new content. I'll take you through the rest of the journey. We'll have more time for questions. So I hope that's helpful and thank you so much for your time and energy. I look forward to seeing you on day two of Market Mastery Bootcamp. Bye for now. It.