Trading methods shared by FL:

  • The lowest quality trade in terms of expectancy or "quality index"
  • The hardest to do successfully because of the level of expertise, attention and screen time required
  • The trade most sought by new arrivals, but not recommended or supported by FL
  • Scalps are backtested here mainly to define advantageous entries into bigger trades
Dot trades
  • dot1 and dot2 are the main trades defined by FL's "dot trend"
  • provide a clearly identifiable opportunity which can be backtested
  • provide a road map for determining what waves will be acceptable to trade or campaign (see below)
  • are best used as swingtrades (hold overnight or longer)
9-day method
  • uses a 9-day moving average as a simpler alternative trend definition to the dot method
  • a method developed by FL, inspired by conversations with Marty Schwartz (see Pit Bull autobiography)
  • usually doesn't identify a trend change as early as the dot trend
Daily Window
  • highest quality trades in terms of expectancy or "quality index"
  • low frequency of occurence is overcome by following multiple markets
  • best trade for those who can't be at the screen all day
  • FL recommended as most profitable and least demanding
  • after some work to get the trade on, little attention required
  • swing trades that may last days weeks or months
  • entered on 3m or 15m chart to reduce initial risk
  • a trade management style which can improve most swing trading methods
  • uses tested auxilliary trades within the framework of a tested base trade
  • done properly can improve the expectancy of the base trade
  • psychological advantage because of freedom from close stops