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ICT 2024 Mentorship \ October NFP NQ \ October 04, 2024
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ICT 2024 Mentorship \ October NFP NQ \ October 04, 2024

Non-Farm Payroll Insights and Trading Strategies

Introduction and Audio Check

  • The speaker greets the audience and requests an audio check, confirming that the audio is functioning properly.
  • Apologizes for being late, humorously attributing it to "Union rules" among traders.

Understanding Non-Farm Payroll (NFP)

  • The speaker describes NFP as unpredictable, likening it to a carnival ride where speculation can lead to significant losses.
  • Advises against trading before the NFP release; suggests waiting at least 15 minutes post-release to assess market conditions.

Guidance for New Traders

  • Emphasizes that new traders often lack essential knowledge about market movements, leading to losses during volatile periods like NFP.
  • Recommends that beginners avoid trading after Wednesday morning on NFP weeks due to increased volatility and uncertainty.

Market Behavior Before NFP

  • Discusses typical price behavior leading up to NFP, noting potential consolidation followed by sharp price movements.
  • Acknowledges rare instances of favorable price action in previous non-farm payroll weeks but stresses these are exceptions rather than the norm.

Learning and Development as a Trader

  • Warns against chasing quick profits through mentorship or courses without understanding market dynamics.
  • Stresses the importance of mastering trading skills before attempting to influence others or seek fast money opportunities.

Emotional Discipline in Trading

  • Highlights the necessity of emotional control when navigating live markets; emphasizes understanding over mere speculation.
  • Encourages traders to document their learning journey and grant themselves permission not to trade on high-volatility days until they are more experienced.

Conclusion: Preparing for Future Trades

  • Suggestion for future trading: wait until consistent returns are achieved before engaging with high-risk events like NFP releases.

Understanding Non-Farm Payroll Trading Strategies

The Illusion of Predictability

  • The speaker reflects on the misleading nature of trading during non-farm payroll announcements, emphasizing that initial excitement (e.g., 185 handles in two and a half minutes) does not equate to reliable trading opportunities.
  • There is no consistent method to position oneself ahead of non-farm payroll releases for guaranteed profitability; the speaker stresses sincerity in this assertion.
  • The speaker admits uncertainty about predicting non-farm payroll outcomes, highlighting the need to observe market reactions post-announcement.

Analyzing Market Reactions

  • A question arises regarding what defines minor versus primary buy and sell sides during these events, indicating a focus on liquidity pools.
  • The speaker discusses their approach to studying non-farm payroll with private students, focusing on identifying primary and minor liquidity pools before the announcement.

Pre-Announcement Strategy

  • Traders are advised to start analyzing charts around 8:15 AM, fifteen minutes prior to the news release at 8:30 AM.
  • The actual employment data number is deemed irrelevant by the speaker; they believe market sentiment drives price action more than raw data.

Market Sentiment vs. Fundamental Data

  • The speaker critiques reliance on fundamental data for short-term trading, comparing it unfavorably to long-term interest rate trends which may not apply intraday.
  • They argue that understanding market sentiment through price action is more valuable than focusing on economic indicators like PPI or CPI numbers.

Risk Management and Trading Execution

  • Emphasis is placed on reading candlestick patterns as reflections of market sentiment from less informed traders rather than relying solely on economic reports.
  • Caution is advised against entering trades right at 8:30 AM due to potential slippage and execution issues; patience is recommended instead.

Understanding Minor and Primary Liquidity Pools

Introduction to Liquidity Pools

  • The speaker introduces the concept of minor sell-side liquidity pools, emphasizing their simplicity and accessibility for traders.
  • Staying in the market post-entry is highlighted as a challenge due to emotional factors, despite the initial ease of entering trades.

Non-Farm Payroll Insights

  • Non-farm payroll reports can lead to unpredictable market movements that exceed typical expectations, complicating trading strategies.
  • The speaker suggests asking someone unfamiliar with trading where they think the market might go during significant news events, illustrating how perceptions can differ from experienced traders.

Analyzing Market Patterns

  • The importance of focusing on relative equal lows rather than consolidation lows is discussed; these are seen as more critical indicators for trading decisions.
  • Identification of primary sell-side liquidity levels is explained, which are positioned below minor sell-side liquidity pools.

Trading Strategies and Market Behavior

  • The speaker discusses potential upward movements in price driven by retail resistance and highlights the need for awareness of short positions in the market.
  • A reminder about previous predictions regarding non-farm payroll impacts emphasizes the unpredictability of market behavior around such events.

Scenarios and Predictions

  • Various scenarios are presented regarding potential market movements following non-farm payroll announcements, including possible run-ups or drops based on existing sentiment.
  • The discussion includes how current profits may influence trader behavior and sentiment leading into future weeks.

Real-Time Market Analysis

  • Observations on real-time trading conditions highlight rapid price changes within short time frames, stressing the importance of managing risk effectively.

Liquidity Analysis and Market Dynamics

Understanding Liquidity in Initial Trading Minutes

  • The focus is on observing liquidity within the first 15 minutes of trading, particularly regarding stop runs above and below market levels.
  • Traders are encouraged to reflect on their positions: whether they feel regret about missed opportunities or if they are currently profitable with their trades.

Non-Farm Payroll Event Insights

  • The speaker notes that during a non-farm payroll event, the buy side has been engaged first, indicating potential minor sell-side targets.
  • A critical analysis of market lows reveals that previous lows have been surpassed, shaping the liquidity pool for future trades.

Market Behavior and Positioning

  • There’s speculation about traders accumulating positions at specific price points before potential downward movements later in the day.
  • Despite attractive payout prospects, caution is advised against taking trades without clear framing.

Chart Observations and Fair Value Gaps

  • The chart's behavior is analyzed; a bullish run should not linger in shaded areas but rather move aggressively upward.
  • If prices drop back into certain ranges after an initial rise, it could indicate an inversion scenario worth studying further.

Current Market Sentiment and Predictions

  • The current non-farm payroll event appears subdued compared to expectations; there’s anticipation for more volatility as economic events unfold.
  • As the stock market opening approaches, there's concern over significant gaps between current trading prices and previous settlements.

Long-term Market Outlook

  • Speculation arises about how media narratives may portray market strength despite underlying weaknesses that could emerge next week.

Understanding Market Opportunities and Non-Farm Payroll

The Nature of Market Opportunities

  • The speaker emphasizes that opportunities in trading can often be misleading, presenting themselves as impossibilities under certain conditions.
  • A personal anecdote about orange juice serves as a metaphor for market conditions; sometimes the quality (or opportunity) is not what it seems.

Trading Strategy Post Non-Farm Payroll Release

  • After the non-farm payroll release, traders should analyze charts to identify potential price movements rather than hold preconceived notions.
  • The speaker discusses their interest in observing price behavior around specific levels, particularly looking for inversion fair value gaps.

Market Psychology and Public Perception

  • The concept of a "Judah swing" is introduced, where public sentiment may misinterpret market signals leading to misguided trades.
  • Many traders rely on indicators and patterns without understanding underlying market dynamics, which can lead to poor decision-making.

Anticipating Price Movements

  • The speaker notes that there has been a consistent upward movement since 8:30 AM with no significant retracement or stop runs.
  • There’s an anticipation of further price action within the 30-minute interval post-release, indicating potential entry points for traders.

Risk Management and Trading Philosophy

  • Personal distractions are acknowledged while discussing the importance of focus during trading sessions.
  • The speaker expresses confidence in identifying trade setups but also acknowledges the risk of missing moves by waiting too long for confirmation.

Execution Drills and Market Volatility

  • A method called "volatility pinball" is described as a drill for executing trades based on fair value gaps throughout the session.

Trading Insights and Strategies on Non-Farm Payroll Day

Understanding Market Behavior

  • The market exhibits back-and-forth movements throughout the day, particularly noticeable on a one-minute chart. This creates numerous trading opportunities, but high-probability setups are scarce.
  • Traders must accept that they may miss significant moves on days with high volatility, such as Non-Farm Payroll (NFP) days. Selectivity is crucial in identifying worthwhile trades.

Managing Expectations

  • It's important for traders to remain calm and not feel pressured by external perceptions of their trading decisions. Missing a move does not equate to failure or incompetence.
  • One-sided market movements can be challenging; however, it's acceptable to refrain from trading if the risk outweighs potential rewards.

Risk Assessment

  • New traders often seek validation through participation in high-stakes events like NFP releases, which can lead to unnecessary losses. A focus on sound risk management is essential.
  • Rather than seeking accolades for surviving volatile market conditions, traders should prioritize understanding price delivery and maintaining a disciplined approach.

Identifying Key Levels

  • Determining reliable stop-loss placements is critical; without confidence in where to set them, entering trades becomes risky.
  • Recognizing areas of liquidity is vital. Traders should understand that significant positions are often protected at certain price levels rather than merely reacting to inefficiencies.

Liquidity Pools and Market Dynamics

  • High probability setups often occur near relative equal highs or lows where liquidity pools exist. Traders should avoid making assumptions based solely on visible inefficiencies.
  • The largest pools of liquidity are consistently found above old highs or below old lows; any contrary theories lack substantial evidence and may mislead traders.

Understanding Market Dynamics and Inefficiencies

The Role of Candlestick Patterns in Market Movements

  • The market's upward movement is often a response to previous downward trends, necessitating the formation of specific candlestick patterns (black for bearish, green for bullish) to indicate future price delivery.
  • Acknowledging inefficiencies in the market is crucial; if only sell-side delivery exists, it indicates a potential for further declines until liquidity is engaged at old highs or lows.

Identifying Inefficiencies in Price Delivery

  • Single candlesticks can represent inefficiencies within the market; these isolated candles create ranges that need to be addressed by future price movements.
  • The time interval between a candle's high and low must align with price action, suggesting that prices will eventually rise to fill gaps left by inefficient buy-side deliveries.

Observations on Market Behavior and Liquidity

  • Efficient price delivery occurs when the market revisits previous highs or lows, indicating that orders are being executed effectively without significant imbalance.
  • Noting where actual liquidity resides is essential; markets often target areas with concentrated orders before making significant moves.

Impact of Economic Events on Market Trends

  • Major economic announcements (like non-farm payroll reports) can disrupt existing market dynamics, potentially leading to rapid changes in positions held by traders.
  • Such disruptions may lead to unexpected upward movements as shorts are squeezed out of their positions due to sudden spikes above inefficiency levels.

Strategies for Trading Within Inefficient Markets

  • Traders should recognize when markets have transitioned from inefficiency to efficiency but remain cautious about potential retracements as balance has not yet been achieved.

Understanding Market Dynamics and Trading Strategies

Analyzing Order Flow and Price Levels

  • The speaker discusses the importance of tools like book maps or liquidity maps to analyze order flow, emphasizing the need to observe price levels at highs for better trading decisions.
  • At 8:30 AM, it is noted that shorts are currently in profit, indicating a significant downward movement without establishing new lows, suggesting market consolidation.

Institutional Trading Behavior

  • The speaker posits that large institutional investors do not adjust their stop losses frequently; they maintain protective stops well outside typical volatility ranges to avoid being stopped out by normal fluctuations.
  • Institutions manage substantial amounts of capital and thus have different risk management strategies compared to individual traders who may focus on smaller positions.

Anticipating Market Movements

  • As the opening bell approaches, there is speculation about using the first 30 minutes of trading to drive prices into liquidity zones while considering previous settlement prices.
  • A significant gap exists between current prices and previous day settlements, which could influence market behavior during regular trading hours.

Price Action Scenarios

  • The discussion includes potential scenarios where price might rally up to disrupt short positions before possibly retracing back down towards mid-gap levels established from electronic trading hours.
  • The speaker illustrates a hypothetical situation where price opens at a certain level, rallies up to take out stops before potentially dropping back down.

Understanding Gaps and Volatility

  • It is suggested that if the market opens near previous settlement prices, it could lead to volatility as traders react to gaps created during electronic trading hours.
  • The speaker emphasizes that understanding these dynamics is crucial for anticipating how traders will respond during high-impact events like non-farm payroll releases.

Conclusion on Trading Expectations

  • There’s an expectation of increased volatility in the first 30 minutes post-market open due to existing gaps and trader sentiment around profitable positions.

Market Dynamics and Trading Strategies

Understanding Liquidity Gaps

  • The market is perceived to be selling off due to filling a liquidity gap, but there was trading activity in that area, indicating it may not be a true void.
  • Smart money can capitalize on buying pressure by selling short against buy stops, creating a flood of liquidity at higher prices for willing buyers.

Navigating Nonfarm Payroll Challenges

  • Nonfarm payroll data complicates decision-making; traders must possess extensive knowledge to navigate these conditions effectively.
  • In contrast to typical trading days, nonfarm payroll events present multiple scenarios that can confuse traders.

Mentorship and Trading Comfort

  • Mentorship helps bridge gaps in understanding, leading to more consistent setups and increased trader comfort during trades.
  • Effective mentorship is based on real market truths rather than conjecture, enhancing the learning experience for new traders.

Recognizing Market Conditions

  • Traders should recognize when conditions are challenging and have the maturity to avoid trading on difficult days.
  • New traders often chase excitement from large candles instead of focusing on consistent gains, which can lead to poor decision-making.

Daily Trading Patterns and Economic Events

  • The speaker plans to discuss daily ranges while removing previous market drawings for clarity before opening bell analysis.
  • During periods without significant economic news drivers, markets may behave differently compared to times with impactful announcements.

Anticipating Market Movements

  • External stimuli often influence market movements between 8:30 AM and 10:00 AM; traders should watch for these cues.

Understanding Market Dynamics and Trading Strategies

The Role of Liquidity in Market Movements

  • Liquidity must remain stable into the market close; if prices drop below a relative low, it reduces high probability setups for traders.
  • Live streamers often misinterpret price stability as a signal for further declines, while smart money accumulates sell stops during this period.

Asian Session Trading Insights

  • After initial trading in Asia, algorithms begin to influence price movements, indicating whether positions are favorable or not.
  • The last hour of trading can provide clues about potential price runs during the Asian session, but not every session guarantees profitable trades.

Economic Calendar Considerations

  • Successful trading requires avoiding high-impact news events between 8:30 and 10:00 AM in the New York session to ensure smoother market conditions.
  • Daily charts reveal that opening and closing prices are often closely aligned, suggesting significant market activity even when not at daily lows.

Optimal Trading Times and Strategies

  • Focus on the Asian session from 7:00 to 9:00 AM as an optimal trading window; extend to 10:00 AM only if conditions are favorable.
  • Taking profits by 10:00 AM is advisable unless expecting a continuation trend without economic disruptions.

Recognizing Patterns in Price Movements

  • Observations from previous weeks show that smart money uses market closes to position themselves before significant moves occur in Asia.
  • The first macro movement after the Asian open should ideally push prices higher; otherwise, subsequent sessions may consolidate rather than trend.

Analyzing Historical Data for Better Predictions

  • Not all days will exhibit strong trends; however, recognizing patterns can lead to substantial gains based on prior electronic trading hours' performance.

Market Observations and Trading Insights

Personal Experience and Data Utilization

  • The speaker shares insights from 32 years of market observation, emphasizing the importance of data collection for backtesting trading strategies.
  • Mentions dealing with currency futures and the significance of understanding opening range gaps in trading.

Analyzing Opening Range Gaps

  • Discusses a large opening range gap observed on a one-minute chart, highlighting its relevance to trading decisions.
  • Describes an ideal scenario where the price does not reach mid-gap immediately but instead drops initially, creating opportunities for traders.

Price Action Expectations

  • If prices drop to mid-gap before rallying, it indicates potential for higher consolidation rather than a downward trend.
  • Clarifies that certain chart elements are not inefficiencies; emphasizes a preference for naked trading without excessive indicators.

Trading Psychology and Market Dynamics

  • The speaker expresses a desire to see price action create fair value gaps as it approaches previous highs, indicating market behavior during nonfarm payroll events.
  • Highlights how nonfarm payroll can disrupt profitable positions, particularly affecting short sellers who may feel uncertain about their trades.

Community Engagement and Feedback

  • Acknowledges critical yet respectful feedback from viewers regarding the merit of concepts discussed in live streams.

Understanding the Teacher-Student Dynamic in Trading Mentorship

Building Trust and Engagement

  • The speaker emphasizes the importance of bridging the gap between teachers and students, highlighting that trust is essential for effective learning.
  • The speaker expresses gratitude for positive feedback from students, noting that it encourages them as a mentor despite challenges faced in teaching.

Defining Student vs. Parasite

  • A distinction is made between genuine students who seek independence in trading and those perceived as "parasites" who merely take without contributing or learning.
  • Students are encouraged to engage with price movements actively, using demo accounts responsibly rather than seeking validation through social media.

Celebrating Learning Moments

  • The speaker finds energy and motivation from students' "AHA moments," which signify breakthroughs in understanding trading concepts.
  • Observations of student excitement about their learning process resonate deeply with the speaker, reminding them of their own experiences.

Developing Independence and Skills

  • Students are recognized for their efforts to articulate their learning experiences, indicating deep engagement with chart analysis.
  • The speaker warns against misinformation prevalent in trading communities, stressing the importance of independent learning over superficial knowledge.

Financial Literacy and Empowerment

  • Emphasis is placed on developing skills that can outpace inflation, providing a sense of security amidst rising costs.
  • The ability to generate income through trading is framed as a powerful tool for financial independence, encouraging students to believe in their potential earnings.

Mindset Towards Money Making

  • Personal anecdotes illustrate the struggle with rising living costs while also emphasizing the value of financial skills learned through mentorship.
  • The speaker challenges limiting beliefs about income potential, advocating for an empowered mindset among students regarding wealth creation.

Observing Growth Among Students

Understanding the Shift in Trading Mindset

The Calmness in Execution

  • A trader reflects on how recent learning has led to a calm approach towards trade executions, contrasting past fears of account loss with current confidence and successful payouts.

Increased Success Rates in Trading

  • There is a notable increase in traders passing combines and receiving payouts, attributed to a shift from treating trading as gambling to viewing it as a serious business endeavor.

Paradigm Shift in Learning

  • A change in perspective among traders is observed, where urgency and necessity drive them to take lessons seriously, despite the content not being new but rather reinforced.

Diligence Shortens Learning Curves

  • While mastery takes time, diligent study habits can significantly shorten the learning curve for effective trading strategies.

Focus on High Probability Trades

  • Emphasis is placed on identifying high probability trades by focusing on specific gaps and market behaviors rather than impulsively entering trades without clear rationale.

Recognizing Market Manipulation

Understanding Price Action Dynamics

  • Lack of precision in price action indicates manipulation by larger players rather than typical buyers or sellers, highlighting the importance of recognizing who influences market movements.

Avoiding Impulsive Decisions

  • Traders are cautioned against making impulsive decisions based on emotional responses or perceived opportunities without proper analysis.

The Importance of Discipline in Trading

Protocol for Successful Trading

  • Establishing a disciplined protocol focused on obvious high-probability setups helps reduce risks associated with fear and greed during trading activities.

Student Success Stories

  • The satisfaction derived from students adhering to disciplined practices is emphasized, showcasing their growth despite challenges faced along their trading journey.

Simplifying Trading Strategies

Clarity Over Complexity

  • The speaker reassures that successful trading does not require an overwhelming amount of knowledge; instead, understanding key concepts can lead to profitability.

Essential Elements for Trade Setup

  • Key components such as timing, liquidity assessment, and appropriate entry points are highlighted as crucial for effective trade execution without overcomplicating strategies.

Navigating Diverse Trading Techniques

Avoiding Comparison with Peers

Market Analysis and Trading Strategies

Understanding Gaps in Market Behavior

  • The speaker emphasizes the importance of starting with a clear strategy and sticking to it, particularly in bearish market conditions where the upper half of a gap should ideally remain unclosed.
  • Discussion on various types of gaps, including discount wicks and fair gaps, highlighting that there is a 70% likelihood for certain gaps to close within the first 30 minutes of trading.
  • Observations on price behavior around specific gaps, noting how prices respect certain quadrants which can indicate future movements.
  • The concept of breakaway gaps is introduced; these are significant as they signal potential shifts in market direction. The speaker stresses the need for careful identification of such gaps.
  • A cautionary note about sharing trades on social media; the speaker expresses concern over followers potentially misinterpreting their advice and taking undue risks based on their insights.

Risk Management and Trading Psychology

  • The speaker advises against sharing personal trade successes directly with them, emphasizing that while they appreciate gratitude, they do not want to be associated with risky trading decisions made by others.
  • Acknowledgment of the emotional impact when followers experience losses due to impulsive trading decisions influenced by external factors or misinterpretation of advice.
  • An analysis of gap closures shows that price action often respects statistical patterns; this reinforces the importance of adhering to established trading rules.
  • Clarification on candlestick behavior within gaps; bodies respecting upper quadrants indicate potential future price movements while allowing for normal fluctuations outside those bounds.
  • Emphasis on being cautious during non-farm payroll days due to unpredictable market behavior; traders are encouraged to respect risk management principles during such times.

Strategic Insights into Price Movements

  • The speaker discusses scenarios where price may drop into gap closures without reaching higher levels, indicating potential bearish sentiment if lower halves remain untested.
  • A reminder that impulsive trading can lead to losses; traders should focus on understanding market dynamics rather than seeking immediate entry points based solely on perceived signals.

Analysis of Market Movements and Trading Strategies

Understanding Price Action and Fair Value Gaps

  • The speaker discusses the effectiveness of short positions taken on Tuesday, highlighting a breakdown in price action. They reference a fair value gap that initiated this price movement, acknowledging the potential for initial misanalysis.
  • Despite recognizing the lack of signals for long positions, the speaker explains how they identified a breakaway gap, emphasizing its significance in understanding market shifts.
  • The concept of "inefficiency" is introduced as the market fluctuates. The speaker aims to provide clarity by analyzing price movements closely, indicating that certain patterns can reveal underlying market dynamics.

Candlestick Patterns and Volume Imbalances

  • The analysis includes observations about candlestick formations and their implications for trading decisions. The speaker notes discrepancies in volume imbalances that affect perceived fair value gaps.
  • A distinction is made between proper fair value gaps and those distorted by volume imbalances. This highlights the importance of considering volume when assessing market conditions.

Identifying Bearish Signals

  • The speaker emphasizes specific price levels rather than general supply and demand concepts, suggesting that precise definitions enhance trading strategies.
  • By grading price ranges within defined quadrants, traders can identify bearish signatures through candlestick bodies, which tell a story about market sentiment.

Real-Time Market Observations

  • Observing real-time price action reveals critical insights; for instance, if prices close below an upper quadrant after opening outside it, this indicates potential downward movement.
  • After identifying bearish behavior in candlesticks, the speaker notes how prices moved down to mid-gap levels with high accuracy (70% strike rate), reinforcing their analytical approach.

Reflections on Trading Decisions

  • Personal circumstances are shared as the speaker mentions not intending to trade due to family obligations but reflects on valuable lessons learned from observing liquidity behaviors in markets.
  • Emphasizing that profitable trading can occur even when one’s analysis is incorrect illustrates a key lesson: maintaining discipline and understanding market mechanics is crucial for success.

Conclusion: Logic Over Impulse

  • The importance of logical analysis over impulsive reactions is reiterated. Successful trading relies on precision rather than emotional responses to market fluctuations.
  • As markets exhibit chaotic behavior at times, recognizing patterns amidst volatility allows traders to make informed decisions based on logic rather than fear or greed.

Rest and Recovery

Importance of Rest

  • The speaker emphasizes the need for rest, particularly after a demanding period, indicating personal exhaustion from working as a nurse.
  • Acknowledges the challenges faced during the night shift, highlighting the physical and mental toll it can take on healthcare professionals.
  • Expresses intention to prioritize self-care by attempting to get some sleep in the afternoon.
  • Encourages listeners to also take time for themselves over the weekend, promoting overall well-being.
Channel: The Inner Circle Trader
Video description

Government Required Risk Disclaimer and Disclosure Statement CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. Trade at your own risk. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person’s investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may under or over compensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you may be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a “limit move.” The placement of contingent orders by you, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.