 Okay. Good morning, traders. This is Bruce at VLOX Pro. Can you hear me and see my screen? All right. Yep. Thanks, guys. Okay. We're good to go. Okay. And Jason, if you want to start the recording as well, hit the record button there. Okay. All right. Okay. Well, today we have Jason Love and we'll continue on with our professional trader webinar series. Each day we've had a professional trader in the room and they go through how they trade what their methodologies are and how they use BookMap to integrate into their methodologies. And today we have Jason Love from the Oil Trading Group. He's been an active trader for over the last 10 years and founded the Oil Trading Group seven years ago and has had the professional career before that, which includes serving in the Navy in Operation Desert Storm, which sounds like the structure and discipline there has really helped him with his trading. All right. Well, before we get started here, though, let me just go over the risk disclaimer. Trading futures and options on futures involve substantial risk of loss. It's not suitable for all investors. Past performance is not indicative of future results. If you want more information about BookMap, you can go to bookmap.com and you become a member there and you'll have access to a lot of free resources. So let me show you that. So this is where you become a member here from this member's area and once you're logged in here, for example, click on this Education tab. All of the recorded webinars are going to be under here. Okay. So you'll see it here. Click on this link. And for example, here is Farron Font that we had yesterday in his Maserati. So this was Wednesday. So if you click on the upper left-hand corner here, you'll have the playlist. All right. So this is access to all of the previously recorded webinars as well. All right. So you can see here's Farron. Here's Futures Trader 71. And then here is Met Day that was on Monday. So in a few hours, I'll have this webinar up as well. So you can take a look at that. If you want to give BookMap a try, this is where you can find it. It's under the Pricing tab here at bookmap.com. And there's a free trial here for 14 days, so you can sign up for that. And then you'll see the basic and advanced subscription versions here. 49 per month for the basic and 99 for the advanced. They are billed quarterly. And the distinction between the two is these add-ons here, especially the one-click trading, being able to trade right from the chart, which meshes very nicely with the new trading strategies that we have within BookMap. All right. Other than that, if you want to reach out to us at support.vlogspro.com with any insights or issues that you may have, we'd be happy to help. Other than that, let me just turn it right over to Jason. All right. Very good. So let me see here. I think you have to turn your screen off, maybe. Okay. Perfect. And let me see about sharing my screen. All right. So let's see here. Can you see? There it is. Perfect. It looks like, just want to make sure you can see the screen. Okay. Yeah. Looks good. Okay. Perfect. All right. Well, again, thank you very much for the introduction, Bruce. My name is Jason Love, and I'm with the old trading group. We'll talk a little bit more about me in just a few moments. But as you can see here, we're going to talk today about maximizing your winning trades, the art of achieving asymmetrical returns, or better known as cut your loser short and let your winners run. All right. So let's talk here again. First of all, thank you for joining us here today. This is our first time to present something with BookMap. We really like the tool, Bruce and I. We're talking about two or three weeks ago, and the tool has become, very quickly has become an integral part of what we do on a day in and day out basis. So what I'm going to talk to you about here today, we're going to take a couple of steps back. We're going to look at this from the big picture perspective. I'm going to talk to you a little bit about the process that we go through to get to the point where we have entries and targets, and that's really where the BookMap will come in. And then I'm going to talk to you a little bit again right at the end about these asymmetrical returns, and I'm going to show you a risk algorithm spreadsheet that we look at as well. So hopefully we'll be able to tie all this together for you at the end so that you have a really clear perspective of what it is that we do here at the oil trading group. So who is the oil trading group? Yeah, my name is Jason Love. I'm the founder and lead trader of the oil trading group. We founded, I started the oil trading group in October of 2010 when it was determined that there was a need in the vendor space for what I consider to be some professional application of this day trading chat room idea. I'll give you a quick story here. When I started doing this, one of the reasons that I got started doing it is I was kind of like you guys. I was looking for a home trading in front of your computer by yourself. It can be a lonely business sometimes. And I was looking around for places to potentially call a home. The first place that I ran into, this trader seemed like an okay guy, right? And so he starts, by the way, he starts the day, or I start the day every day with this, you know, most guys get a cup of coffee, I have a diet soda, right? So as we were going through this process of me getting acclimated to this guy, what I would hear is the familiar sound of a can pop, right? That familiar sound of the carbonated beverage. So after a couple of days of trading, I finally got the courage to ask him. I said, so, you know, I'm a Diet Doctor Pepper guy, are you Diet Coke, Diet Doctor Pepper? And he kind of laughed at me and he said, no, this is Coors Light. And so for every, you know, every 15 minutes for about four hours a day, he was popping one of these cans and I thought, my gosh, this guy must be hammered by the time he was over. Anyway, I moved on to the next guy and there was a singing clown and that's what he did, his day job so he would sing in between trades. It was a mess. And so I said, you know what, I think I can do it a little bit better from a presentation standpoint and from a trading standpoint, right? So I started the oil trading group back in October of 2010, so we've been doing this for nearly seven years. Out of this time, we've been using Bookmap for almost two of those years and maybe it's a little, it's almost two years that in one form or fashion, maybe it's a little bit sooner than that, a little bit less than that, but it's in that ballpark. And one of the things that is our claim to fame also is we've helped over two dozen traders become funded with one of the industry partners over at Top Step Trader. We all have an online presence at www.oiltradinggroup.com and our core trading philosophy is we try to break the market down into these manageable pieces. And so we start the entire day every day looking and talking about market direction. What direction is the market going to be going into? Is it bullish? Is it bearish? Is it choppy? What exactly is the market direction? Because then that kind of sets the tone for how we're going to be looking at the market from a trading perspective. From there, we identify our key decision points. We'll talk about those in just a few minutes. And then we use the volume and order flow tools to determine our entry and exit strategy. And then the whole lot of this core trading philosophy then is overlapped or overlaid by the cut the loser short and let the winners run idea. Alright, so ROI and risk management. Not the sexiest topic, I get it. Most traders want to talk about the newest shiny object trading tool, right? And you know what I mean? It's the one that gives you the newest and hottest idea on entry techniques. But the consistent traders know really one thing. And that is that managing risk is the real holy grail to long term trading success, right? That's what they know. So we look at what we call asymmetrical returns. An asymmetrical trade or an asymmetrical return is when the outcome of that trade has more profit than loss or risk taken to achieve that profit. Or the upside potential is greater than the downside loss. Simply put, it's that old trading adage of cut your loser short and let your winners run. That's really what we are trying to do here on a day in and day out basis. In a day out basis here at the old trading group. Alright, so one of our shining examples of that is a guy by the name of Paul Tudor Jones. I'm not sure if you guys are familiar with who Paul Tudor Jones is, but he is a legendary day trader. And this little picture that you see here to the right is taken off of his December of 2016 Forbes billionaire list, right? He is a day trader, runs a hedge fund. He's number 120 on the Forbes 400. He's number 308 in the world billionaires. And so he runs an investment firm and again he's a legendary trader. So when he talks about things, it's worth listening to because he has found success. So one of his quotes is he says he is looking for a 5 to 1 risk-reward ratio. 5 to 1 means that if he's risking $1, he wants to make 5. So what 5 to 1 does is allows you to have a hit ratio of 20% and still be consistently profitable, right? Or at least break even if you're hitting 1 out of 5. But what he says, which I think is kind of funny, he says, I can actually be a complete imbecile, be wrong 80% of the time and he's still not going to lose, right? And so one of his other quotes is at the end of the day, the most important thing is how good are you at risk control? 90% of any great trader is going to be the risk control. And so that's the philosophy that we try to employ on a day in and day out basis here at the oil trading group. We'll talk a little bit about how we get there, but that's kind of the process that we go through. All right, so simple enough, right? Lose a little and win a lot, got it. Really sounds simple, right? And so do you need to be this theoretical scientist in order to do this? Absolutely not. In theory it isn't hard, but in practice it can be very hard. And a lot of traders never completely embrace the concept for a really simple reason. They don't know how to do it. If they knew how to do it successfully, they would do it, right? That's really the question. So before I got into day trading, I was the VP of a travel call center, 300 people. That's a whole other topic for another show, but I was laid off and that's what actually got me into day trading. But when I was the VP of this call center, we would go through a process of performance evaluation like every leader in every Fortune 500 company does, you go through this process of performance evaluation, right? And so one of the questions that I would ask the people and one of the discussions that we would have when we started talking to people about specific performance is I would train my managers and directors with this simple idea. It's how you think about people shapes the way that you manage people. So for example, if you think everyone is lazy and you think that they're here just to get a paycheck and not actually work, that they're trying to get by trying to get something past you or whatever, right? Then you're going to manage people like that. You're going to put process and procedures in place that is real punitive because you feel like that everybody is not really trying to work hard. But if you take the approach that people inherently want to do the right thing, but they fall short, it's really because they lack the understanding of how to get the job done and traders are the same way. Let me explain. If I were to show the average person, let's call it in the call center business, how it is that they could make $500 on this incentive program or whatever program we had in place. If you follow these two or three simple steps, then because I believe people are inherently good and they inherently want to do it, then they're going to take the steps necessary to do that. And traders are the same way. They are not looking to, everybody knows that you want to cut your loser short and let your winners run. Everyone knows that, right? That's not a secret. What the trick is is being able to condition yourself to start to do those things, right? So what the typical trader, retail trader does is the typical retail trader gets into a trade and it goes 10 ticks positive. We're talking about the CL as an example. If it goes 10 ticks positive, then they immediately jerk that trade off the table and they immediately take that trade off the table and they say, I got my 10 ticks, only to have it run another 20 or 30 ticks down to some certain point before it turns around. And then they get frustrated and they say, well, look how much it ran and I could have done this and I should have done that and you've turned this sort of positive thing, which is a nice positive trade, into something sort of negative because it had a lot more meat left on the bone. If you know how to hold on for targets and you know the tools to use to be able to hold on to these targets, then you have the ability to, as Paul Tutor-Jones says, have a low win percentage and still be profitable because you were able to hold on for these bigger picture targets. So how does someone go about starting to do this? Well, our blueprint here at the oil trading group really is about work, plain and simple. Work which leads to confidence and if you don't put in the work, you will not have the confidence to execute. I'll give you a really good example. So before I came here today and started talking to you, I opened and ran the trading room this morning and we had a new guest in there today. And by the way, I got hit with no fill on this trade. I'm going to show you a little bit. I'm going to show you this trade here that we took based on the book map and our levels and some things like that. I'm going to show you that towards the end of this. But I got hit with no fill at this particular level. Well, there was a guy in the room that he was our first day with us and he took the short and he got filled and got in. It went down 15 ticks and came back up to break even plus six or seven for him and he got out because he had not ever held on for a target, big picture target. I was telling him that the target was down at 22 from the short of 59 that the target was down there at 22 and to just be patient with it. But because he had not put the work in and had his only his first day with us and so he didn't have an opportunity to put the work in, he had no confidence that that was going to be the case and he pulled it off at seven ticks or six ticks positive, whatever it was. And about 25 minutes later, the market flushed and at present, it's almost the 90 tick move to the downside. Now, I wouldn't have gotten all of that either. My target was 22. My target was going to be 37 ticks, which on two lots is $740. But the point is, this is not an easy thing to do and you have to be able to put the work in and be able to understand the process to gain the confidence to be able to hold on for these bigger targets. All right, so our approach to this, our blueprint is every day we sit down, we have a plan, right? You'll hear plenty of trading gurus tell you that you need a day trading plan. That is the truth. You need to have a plan in place so that when the bullets start to fly, right, in real time, that you need to be able to have a plan that you can fall back on. I was, as Bruce mentioned to you here in the beginning, I was part of the US Navy and we drilled and we drilled and we drilled all the time until I could in my sleep literally do my job as a related to being in the Navy. And the reason that you did that is that when chaos, if and when chaos ever happened, you had a plan, you had practiced it and you knew what you were doing. And that's the same thing here with day trading. When those real bullets start to fly, you need to be able to fall back into your plan and muscle memory. So again, our approach goes into determining the direction of the market. We have three basic type of conditions. We look forward to the market bullish, bearish or is it choppy sideways? We'll talk about that in a few minutes. We have decision points that we've identified and then it's about executing your trading strategy. All right, so I'm going to just really quickly here. I'm going to show you a couple of ideas here about bullish or bearish. And I'm going to let you decide kind of idea. So and I can't see the questions here right now, so I'm just going to kind of go through this. But looking at this chart, we would all agree that this snapshot of this chart is this is a bearish type idea, right? You have a high, you have a lower, a series of lower highs and lower lows from 50-21 all the way down to 48-70, right? So we would all say, man, this is clearly a bearish market and this is we need to be looking for shorts. All right, so I'm going to show you the next slide here. This is the same leg that I just showed you, 50-21 down to 48-70. Now, this is a 60-minute chart. The other one was a one-minute chart. Is there anyone that would tell me here that this is a bear move? Probably not, right? This is clearly a market that is moving up and you have one small pullback here on this retracement. So I say that to say this, when we are looking for determining what the direction of the market is going to be, we look for the bigger picture idea. We try to go to 60-minute, the four-hour chart, the daily chart. We really try to stay out of the one-minute, three-minute noise when determining bigger picture direction, right? So if you come back to this previous look here, there may be days where this is occurring and I'm looking to get long, right? And I'm looking to get long, maybe down here, maybe down here, right? And it's just not working out in the way that I want it to even though the big picture direction is telling me something. That's where the book map tool is going to help you understand what's going on in this area above you here. We'll talk about that in just a few minutes. But that's where the book map tool really helps zero in on being able to navigate this properly. But from a big picture perspective, we like to look at direction on the higher timeframe charts. So the second piece of this is to identify our decision points. And so there are two basic or there's the traditional type of SNR levels and then we have what we call our market maker levels, okay? So from a traditional support-resistant level type of idea or decision points, these are determined on higher timeframe charts. These are levels are determined based upon some of the following criteria. You look at previous areas of support resistance in the past, the daily range from the previous day highs and lows. You have confluence of studies that may be coming together like a moving average or trend lines or some fib levels or something like that. And this is how the more traditional support resistance levels are determined. Thing to keep in mind here is levels are zones of influence, right? They are not necessarily surgical precision. So for example, while there are times when these type of levels are hit to the tick, these areas should be considered as zones of influence more than surgical precision. Again, this is the kind of idea if you're using these traditional type support resistance ideas, this is where the book map will really highlight for you where those areas are. So you may have a level at let's say on the CL at 5310, but six ticks down the board, there may be a big pocket of liquidity at 5304. So even though your support resistance level might be at 10, but the real volume and support is down at 04, that helps you hone in and give you some precision on your entry when you are looking at these areas of influence versus the surgical to the tick precision. Now, we have something that is unique to us that we call our market maker levels. These are dynamic support resistance levels that are based upon previous price action and time cycles, and they provide structure within the structure. We'll talk about what that means more specifically in a minute, but we have three types of levels. So if you can imagine those Russian nesting dolls, right, that you had the big one, you open that up, and then inside that was a smaller one, you open that up, and inside of that one was an even smaller one. Well, that's kind of the way that these levels form and the way that these levels work, and they provide structure from your overnight training session all the way to dynamic support resistance that occur at certain points during the trading cycle. So again, these decision points are used as both entry and exit locations. So we'll talk about big picture targets. These are used for those big picture target ideas, and the market maker level decision points allow you again to identify those big targets and the small stops while cutting your loser short and letting your winners run. So what are these levels? Several years ago, I was taught this trading system in its raw form by a floor trader who had been in the business for 30 years in the S&P pits. And over the years, as the market has evolved, this trading system has evolved as well. So he was using this in the pits, right? This is the way that he was calculating what he was going to be trading inside of the pit on a day in and day out basis. Well, the market has evolved from trading pits to electronic trading, and now we've adapted this system to be as effective in the electronic trading as it was in the pits. And again, originally designed to be used in the S&P, however, we use this system on the CL as well. And while I don't personally trade these other markets, our students have successfully traded this system on the NQ, the TF Gold, and the YM. So basically any futures market that's out there, they use these levels and they can be adapted for those markets. And again, we've had students who have adapted this material to successfully trade the bonds. So again, almost any market you can use these levels on, right? Okay, so what are these decision points? And here's a few things that we think make these decision points unique and, in our opinion, better, okay? This trading program was developed and used by a market maker and insider in the pits on the S&P. How many other trading systems can actually make that claim? We also trade this program every day live in front of you in the day trading chatroom. And I'm going to show you trades in just a minute here with chart examples of things that we actually did in the trading room this week, this trading week. Most vendors will provide you with tools in a trading system, will not back it up, necessarily by trading it live in front of you, and that's what we do. And again, we have literally hundreds of videos showcasing and using the tools offered by us here. And they are not hand-picked locations on the chart. It's live recording from things that we've done in the live day trading chatroom. So let me, before we move on here, let me do one thing. I'm going to show you, before I move on to the examples of this, I'm going to take you here. So the website, our website is oiltradinggroup.com, okay? And so I'm going to pull this tab over in front of you just really quickly. So if you go to our website, oiltradinggroup.com, and you take a look here, this is February 13th. This is February 14th, and this is February 15th. I'm going to show you the examples, and then you can go back and watch the videos of how these trades unfolded live in the room. But this is this week's trading, so this is the most relevant activity that I can give you. So again, you've got videos there of us actually implementing and trading these ideas in the day trading chatroom, so let's talk about that. Okay, so I'm going to zoom in here, I'm going to zoom in here on the book map. So what I've done here for the book map, for these illustration purposes only, is I have made the settings very specific, right? I said I only want to see lots that are 75 orders or greater at the time that it was there. I also want to take out all of the shading and background and only really highlight these big pockets of orders, okay? And again, these videos are on the website, so you can go back and watch these videos in their entirety of how these trades were executed during the day. So here is the idea of cut your loser short, let your winners run. So if you take a look here, we had a short, I got short here at $53.09, right? And right here against this big pocket of liquidity and right up against one of my market maker levels. So let me explain this here, I probably need a little bit of explanation here before first. My initial thought today and the way that we look at these levels is I was looking long in this zone, right? And so my stocks are about 10 to 12 ticks on the C. I was looking long into this zone. We came down through it, we rallied up, we came back down a little bit, we rallied up, and we came back down. And what I began to see and notice in the print in the book map was that this was beginning to shift, right? We had run into a significant amount of resistance back here, and I don't have all of that on this screen, but we had run into a significant amount of resistance back here and you can see that this support area had developed as well, right? But what it was telling me is that our decision point based on these multiple attempts up through it here, one, two, three attempts to get through it, this is price action forming here, and that we had this decision point that it was, and I tried to get long a couple of times and I got taken out of break even plus one on a couple of these and then we were looking to get short and we were looking to target down here into this extension area market maker level down below. Well, what you began to see here very quickly and where I got in here at this O9, we came down into this pool of liquidity. I wasn't really sure if we were going to be able to get through it, but because we had made three attempts up here and you had all of this liquidity stacked up above you, right? These pools of liquidity that I was using and looking at up above you here provided me with resistance places on the chart, and I said, you know what? It's worth a 12 tick stop above this bar high back here, right above these bar highs back here. You could see that the liquidity was stacking up here above you, and so I got in short. When we came back up here and tested this line of liquidity and not able to get through it at O6, I felt really comfortable that we were going to be able to get done what we needed to get done. And so down here at 77 is this big line of liquidity, right? And that was going to be our we were actually targeting a little deeper. You don't see it on this chart here. I had what my projected to be was range low at 74. So this is 82 to 74 is eight ticks, right? And so you split the difference that 78, right? So that target right down here around the 78 level. Once we hit into this pocket of liquidity and pulled it off and said, OK, that's good enough. And it ended up being a two and a half to one risk reward. So we had a 12 tick stop and we had a 32 tick target. That's the two and a half risk to reward ratio. So we have our decision points on the chart that give us a potential target to the bottom. And then we were able to filter ourselves into this and provide a good. I'm able to say this differently. We were able to filter ourselves into this and then you can see the liquidity, the pools of liquidity stacking up around us as the market began to go in our favor. So you had these big lines and big levels here, right? And you had these little bitty pockets here that was that was beginning to follow price action down. That is a really cool observation on the book map is if you watch these pools of liquidity and if they start following price action down, so pocket, you got a pocket here, you got a pocket, a pocket, OK, we broke through, but then you had another pocket develop. You have this pocket up here and as the market begins to flow down through it, you can see big pocket, big pocket, big pocket, big pocket. All of this was beginning to follow price action to the downside, giving me confidence that we were going to end up getting to our target, right? And so this is an example of a trade that we took on the CL and you've got the video that you can go back and review it that we took live in the trading room for you to review on the website. So if you take a look at it, we'll take a look at an ES trade. Same kind of idea here on the ES. If you take here, we open the market. So one of the rules on our market maker levels is depending on where this opens and a bar closes, then that tells you sort of the initial direction. And so we got long here off of our daily structure signal. So the market opens here, closes below this structure signal. So it's not valid yet, right? And if you will recall, if you trade the ES, you know that this thing has been on a permable for quite some time. So we were looking really for only long ideas. Market closes below this daily structure signal. Finally comes back up, closes above, spikes up. We get in on the pullback and then we were looking to target right up here to this daily structure target. Well, what you can see here from the book map is that you had this pool of liquidity, you had this pool of liquidity, and this pool. This was providing nice, from the way that we look at the world, nice support against our decision point here, right? So the market comes down, gives us just enough to fill, rallies back up. And we were worried about this area right here. This was one tick below our target. So this allowed us to protect down here. Market goes ahead and pushes on through on this ES for a two-point target. And again, that is something that you can review on the website in its entirety on that ES trade. So the next day, this is Valentine's Day. We took this CL trade. This is a little bit, I had a little bit of bad luck here on this particular day, and I'll explain that in just a second. But if you take a look here, we got in short here at 53.65. We had one of our decision points up here at this, this was 72. And we were looking to target at 53.35. This is actually 53.36, and I'll tell you about that in a second. So my initial entry on this particular day, I was looking to get in short at 70. The market gets up to 68. I saw some activity in the print on the book map that said, I need to get in short at 64, right? And because there was a line of liquidity there at 64, I ended up getting in short at 64. It comes right up to 72. It stops me out to the tick, eight ticks. And then I reshort again here at 65. I was looking to target down to 35 or 30 ticks down here. So if I had an eight tick stop, I was looking for a 30 tick target. Again, that's a three to one risk-reward type ratio. It comes down to within a tick. It hits this 36, and actually I should have had it here at 36 because that is one of your decision points. And then rallies back up for eight ticks and takes me out. I'm talking about the book map part of this process in a second, but part of the discipline process is we went from, so ended up that day really only up 28 total ticks, could have been up 60 ticks. But I got stopped out to the tick on an eight tick stop on the first trade, and then I got taken back on a pullback at eight ticks from 36 to 44. So if you add those together, it should have been a 60 tick day. I ended up choosing to stop on that day, even though the market does give you a little bit more movement. I ended up stopping on that day because for me, those kinds of things become frustrating, and it's not good for my mental capital, if you will, to continue to trade. What would have even made that day worse is if I thought I was going to be up 60 ticks, and then I take a stop, and now I'm really at break-even, and that would have been sort of a frustrating day. But let's analyze this. So we get short at 65, we had our stop up here at 75, 10 ticks, and we had a target down here, what was going to be 35, and it, like I said, it missed me by a tick. So here's the way the book map looked at that point. So you can see this heavy line of liquidity right up here around this 73, 74, 72, 73, 74. My stop was right above here for 10 ticks, right? And so if it took me out of 10 ticks, it is what it is. It's only 10 ticks. But I knew my target was going to be down here at 35, and this comes down into 36. But again, one of the things that you can see here clearly from this book map display is look at how this volume, all these little pools of liquidity begin to follow it around and down, right? And so my, when we got down here, I wasn't quite sure we were going to make it through here to be honest with you, but I know the way my levels work, and I know the way that it reacts. And so I felt still okay, lots of liquidity above, lots of liquidity below, markets rotating back and forth. I have this line of resistance above here that I'm still feeling comfortable with, right? And surely I have this big line of resistance up here so that even if we did punch through, I was still going to be looking and feeling safe about this liquidity that was stacked above us. Then what happens is one of the things that I look for, one of the characteristics is that the volume began to follow price action down the chart, and you could see that we were really making lower lows, lower lows, lower lows, lower highs, et cetera, until we came all the way down. And again, if we were just, you know, if we were all just sitting here having a cold drink together, I would tell you that I misplaced and misplayed, rather, this target. Look at this line of liquidity at 36, and look how it bounced out of it, right? I was trying to go for 35 on the target. It came right down to the market structure mid, one of our market maker levels at 36, and we banged right into it, and it bounced aggressively out of it. BookMap did its job. The human being didn't necessarily do his job the right way, right? If that's okay, that happens. It was still, even with that, I was still able to have a very handsome trade because the BookMap allowed me to stay in, and I had a short stop because of the BookMap, and we knew what our bigger picture targets were, and so at the end of the day, this tool has become a key component to, again, holding on to these winners. All right, so I had a little bit of an issue with my Ninja trader today. My data wasn't populating on my Ninja today from yesterday's trade, so I'm hopeful you can see this. I'm hopeful that you can see this okay. So this was Crude Oil Inventory Report yesterday, and I didn't take a trade till after the number, and my first entry was a short right here in this area. So my first entry was a short right in this area. I had, like, an 11-tick stop, and you can see I got immediately railroaded out, right? It just banged right up through it and just took me out almost instantly for a small stop. Okay, I had another level here. At 5340, you won't be able to see it, unfortunately, because, like I said, my data is missing for this day, but we had a market maker level, and my entry was short. You can see the data, and you can see those entry points on the video if you go back to the website and take a look at the video for that day. One more time, I'll just push this out in front of you. This is this day's video. If you click here, you'll be able to go in there and see this is the video and its entirety there. There's the statistics for this particular day. That includes the win plus the loss, but anyway, that is the area, and you can see that video in its entirety there on the website. Okay. So if you... Hang on just a second. Okay, so if you take a look here at the book map, I had a short here at 40. My stop was above this big line of liquidity. My point here was, my expectation level for the market is that this market is in what I would consider to be choppy to sideways trading conditions over the course of... since mid-December, and so for me, it was playing the top of the ranges and bottoms of ranges, right? So I was looking to short into this line of volume, this... what you can't see here is that this line of volume goes way back. It goes way, way back and was there pretty much... Now, it's an historical idea, but as we approached it and got up into it, it was providing excellent resistance. My stop was up here at 52, right? And we hit that pull of liquidity at 51, 11 ticks, it kept me in, and then it flushed all the way to the downside and I hit my target down here at trail stop at 5305. So I went in short at 40, with the 5305, that was basically 35 ticks on two lots, which ended up being a $700 trade and we had a $240 stop on that particular trade setup. So again, same kind of idea. You see these big pockets of liquidity here. I had the idea to get short. You have these big pockets of liquidity following it down. Here's a line that follows it down. It's following it down here. You could see the big pockets that are above you here. Now you have some below, but at this point you don't care because you're in safe up here. Where you cared is up here, right? This is where you cared and the book map kept you in by a single tick. So if you watch the video and you see me enter the trade, you're going to hear me go, my stop is 51, and 11 ticks to 53, 51. You'll actually hear me say that, but at the tape, you'll see me move it almost immediately back one tick and this was the reason, was this big, heavy line of liquidity right here that pulled it back just one tick above this level here and then we obviously flushed down for a 3 to 1 risk-reward type of ratio. Now, I know there are going to be questions about some of this and I'm sure that there are questions already coming in about this. We're going to go back and answer these questions and we'll come back to some of this stuff as it is, but what I want to share with you right now is I want to share with you this thing that we call the OTG Risk Analyzer and this is why cutting your loser short and letting your winners run is an important component. So what is the OTG Risk Analyzer? Simply it's an Excel spreadsheet designed to help you analyze your risk given your current trading statistics and parameters. It models what-if scenarios to determine best-case scenarios for very trading conditions and again, I call it the desktop psychologist and you'll understand why here in just a second when I run a couple examples for you, but because during periods of drawdown, I use this tool as a reminder that the system is okay and that I need to stay the course. So let's talk about that for a second. I'm going to pull this down here for a second. Yeah, let me pull that down and let's take a look here. Let's pull up the spreadsheet. Give me just one second and I'll pull up the spreadsheet and we'll kind of tie all this together. All right, so this is what the spreadsheet looks like. All right, and so let's see, we want to enable content and the way that I have this setup is I have this let's put this in view so you can see it a little bit better here. So we're going to zoom to 100. We'll see if that's... Hopefully you can see that, okay? Maybe we'll zoom to 125, maybe 150. So we're going to assume here that our initial equity is $50,000 and you can plug in this is a tool that you can plug in the way that you see fit. We're going to run 100 total trials through this. Essentially we're going to run 100 trades through this example, right? And then your risk reward for me, it's $220, 11 ticks average stop, right? And so we're going to say the commission is 5% of whatever it is that you're starting whatever, 5% per trade, okay? So I'm using that, that's a very high commission percentage but it's going to account for things like slippage and commissions and those kinds of ideas. All right, so if you come back here I'm going to show you this now. Let's pull this out in front of you. So this is my trade review. I don't know if you guys are familiar with this but this is a tool that I can upload my daily trade performance into every day. So what you're looking at here is this is the way it's been for me from January to February. Some insight here by the way. There have been seven losing trading days for me this month, or sorry, this year since January. I've had seven losing trading days. The 11th, the 12th, the 25th, the 26th, the 8th, the 9th and the loan outside day is the 3rd. So it's like every other week I'm losing on Wednesday and Thursday. It's an anomaly, it's a crude oil inventory report on Wednesday, I didn't lose Wednesday this week or Thursday of this week and it's just one of those things that happened. But let's come back here into the detailed part of this. This is based on trading two lots and this is kind of where we are but this is the important thing that I want you to see. I'm winning only 43% of my trades. I'm losing 46%, almost 47% of my trades and I'm breaking even on about 10.5%. Now, you may go, wow, that doesn't sound very good but what you got to look at here is the reason this works is because when it's not working for me, I'm getting out, I'm getting out, I'm getting out, I'm getting out and then when it wins, then when you win, it's 3 to 1, largest gain is 1270, largest loss is 480 and you start looking here, my average whole time is 37 minutes on the winning trades and 9 minutes on the losing trades. Let the loser short, let the winners run. Alright, so let's come back to this risk analyzer spreadsheet. That's basically what you're seeing plugged into this spreadsheet here. So we'll go to view, we'll come back here to we'll do this at 150, that's too big, give me a second, we'll come back to 100%. So these are the statistics pulled directly from my January to present 2017 trading statistics. And so, right now, my risk, my average winner is about almost two times greater than my loser. I'm winning 43% of the trades, I'm losing 47% at 1 to 1 and I'm breaking even on 10% of my trades for a total of 100 trades. By the way, this has run, I've had 124 trades since the 1st of January. So this is going to get a pretty close approximation. So what this thing is going to do, what this spreadsheet is going to do is it's going to run you through randomly distributing every time it's going to randomly distribute trades based upon the statistics that you fired into this thing. So we're going to hit reset, we're going to hit start and we're going to hit run all trials. So what this spreadsheet is going to do is it's going to go through the process of randomly distributing trades and here's your results. You have won 62.57, you've turned your equity from 50 to 56 and that's based on a win ratio of 44%. Okay, well, what are the actual numbers here just so you can get a flavor for this? My actual numbers are pretty close to that, right? I'm at 69.85, this thing says 62.57, and that's based on 44% when mine was based on 43, so that's pretty close, right? That's pretty close, but here's why this thing is called the desktop psychologist. So let me just pick a spot here. Okay, let's run this from right here to right here. So this is a pretty decent patch, this is 39 trades down to 71, so that's 32 total trades. Well, during this 32 trade period you won 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 trades out of 32, so 11 divided by 32 is a 34% win percentage. Still very profitable during that 100 trade period, but I'm only 34% profitable during this period, and when you look here 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 there's only 2 winners out of that 11, right? And so if I'm only taking a couple of trades a day, that might be a 5 or 6 day window where I'm only 18% winners. Here's the deal. If you come into my day trading chat room right here and you see me do this you think I'm crazy. This guy's a joke. He's not very good. He doesn't have a good system. Whatever, I hear a lot of stuff, right? The point of that is this, that because I understand this is why I call the desktop psychologist the trader that's not very disciplined or doesn't understand how his system performs may quit and go to a different system during this period right here, right? And because you're cutting your loser short and letting your winners run, you can make up for all of that, right? Because you can make up for all of that when you are going through this period here because then you know that this period is on its way and look at that. That's 1, 2, 3, 4, 5, 6, 7 7 in a row, right? So what happens is with guys in trade rooms and guys that don't quite have a good feel for their particular system is they go through this period of draw down like this where here it's 1, 2, 3, 4, 5, 6, 8 1 winning trade out of 8 which might be over a 2 or 3 day period. That's only a 12.5% 1% right? They are moving on. New system moving on, right? And that's what I said earlier in our presentation about work. This thing requires work and discipline and study and confidence so that you really understand and you've got a flavor for your particular trading system. So let's do this again let's do this a little bit differently. Let's reset this and let's say you're only going 1 to 1 risk reward right? And you're 43 and 47 and you hit start and you run all trials and let's see what happens. This allows you to kind of play with it right? So this is you lost $1400 and you were at a 46% win percentage which is actually better than where you were right? So again that's just at a 1 to 1 risk reward ratio and the problem is what some guys do and this is okay we just have to make sure the numbers work for you but if you take an 11 tick stop on 2 lots and then you take one off at 10 ticks and the other one comes back to break even that's not a 1 to 1 risk reward ratio anymore. That's like a 1 loss to a half a win right? So this tool right here provides you with an opportunity to be able to plug in your statistics and I call it the desktop psychologist because when I can run scenarios and modeling scenarios just by plugging in a few numbers here that will help me understand and be able to withstand the periods of drawdown that naturally occur. So one last thing here before I get to the questions. We had a setup today that we were looking at on the CL okay? And this is the trade that I was telling you about. So we had if you measure from this week's high down to this week's low we have a setup that we look at here in red. This is a retracement area. That hit this area to the tick today. I looked to try to get short at 59 and if you take a look at today's book map okay? If you take a look at today's book map and we squeeze to see if I can get this squeezed in you can see right up here at the high this is a little bit harder because of the way I squeezed in. But you can see what gave me confidence. All of this liquidity up here was giving me confidence that this thing was going to head to the downside. And then you had the same pattern repeat. Liquidity, following big band, following it down. Another band followed it down and couldn't get through it. Popped down to, came up into another big band, made a trip down into a bigger band but again look at all of this area right here. So I got hit but no fill. My video today that will be posted on the website is me belly aching about the fact that I got hit but no fill. And I was asked today, well why didn't you why didn't you just jump in, mark it in at a different place and you know what? I try to be disciplined and I try to be patient and sometimes it hits me in no fills and there will be a bus down the path tomorrow. Right up here is that high at 59. We found support here at one of our market maker levels that was a rotational area and then look where we stopped. We stopped down here at this market maker level decision point. This was going to be the target though at 22. Right so 59 down to 22 would have been a $740 trade on two lots and this would have been able to keep you in because of the information on the book map. So anyway that is my presentation. Bruce if you're still there I'm open for questions and hopefully that made sense. A lot of questions here about your trading methodology of determining your decision points on the higher time frames. Yep. And then also well yeah if you want to start with that. Was there a specific question or just kind of generally speaking? Well there's a few on that so yeah people are interested in the methodology. How do you determine those points? Yeah and so unlike most places unlike most places I'm going to teach you how to draw them. Right so there's a lot of places out there that will charge you two, three, four hundred dollars a month to rent their levels. They'll never show you how to draw them. They'll they will rent you their levels. Right and that's not what we do. We want to help you become a successful trader on your own where you don't necessarily need us. We'd love to have you in the room every day. But I teach you how to draw those levels specifically. I have a training course we've got about 10 hours worth of video there's a PDF handout material we trade them every day in the chat room and I will teach you how to draw those from a high level perspective. Okay also a lot of questions here on some of the higher liquidity levels that you're looking at in some of your examples and how it appears that well there might be high liquidity on the offer and they're instead asking about well wouldn't you want to be short instead so well okay so we have what we call them this for a reason. They're called decision points right and so as we approach we know that these are going to be areas that a decision is going to need to be made right so again not to be redundant but they're the aptly named decision points right and so I'm going to this is why it's important to understand the prevailing direction in the market on a given day and I'm going to show you so I use I go to investing.com because it's free and you know I could show people you know they can go back depending on their training platform they all have some commonality so let's just take a look here at the CL right so this is if I take these trend lines and things off right here this is pretty much choppy trading conditions we'd all agree with that right you hit the bottom of the box you come to the top to the bottom to the top to this to this area that's been resistance in the past now became support we went to the top there was a trend line that's just choppy conditions right so what what is the what happens when you're in choppy trading conditions your expectation level is that it's going to get to the top of a range and then sell off right that's what your expectation level is conversely when you're in the ES right now and you look at this this is low higher low higher low this is the election doesn't count higher low accelerated rally right a bunch of higher I'm not looking for many shorts here so when you come into these positions where you have liquidity pools of liquidity on both sides two things are happening one you know you have the right decision point in mind because the liquidity and pools of liquidity are stacking up around it then you have to make your decision based upon what you're seeing in the print and what your understanding of the underlying direction is now I'm going to be wrong right I'm only I just showed you I'm only winning 44 percent 43 and a half 44 percent of my trades but when I'm wrong I get out and I'm wrong and I get out and I'm wrong and I get out and then when I'm right I'm right big right and so that's that's the that's how you know that's how you do it what we all would like to be is right 100 percent of the time today I would have been one and done and everything would have been hunky dory and I got hit but no filled and and then I had to come talk I had to get prepared so that I could come and present to you guys today right and so they're going to be pools of liquidity on both sides of the properly identified support resistance area and then you have to be take the take the direction of the way that the market goes into determination and then you have to tell do with the Prince telling you now I'm going to add one caveat to that the guys that are the most successful traders in our trading room they have their own methodology of entry and exit that they brought with them right so by the time somebody gets to me at the old trading group it's not the first rodeo right they bought a book or they watched you two videos and they bought a program and in many cases they bought many many programs but out of each one of those programs they have taken something along the way that has developed their own trading personality and style so the guys that are most successful listen to what I'm saying they see what they see on the book map and then they're applying these other templates of ideas that they've been said some success with in the past so it's an amalgamation of all of these different ideas and yes if you're not sure what the direction of the market is or you're not really sure how to read what the book map is telling you because you haven't put in the time to study your particular market and those kinds of things it is a difficult process and for me I'm only winning about 44% of my trades because I'm getting in and if I don't like it I'm throwing it back and I don't like it and I'm throwing it back and I don't like it I throw it back and then I get to the one that it all lines up and then I know where my targets are and we hit them and so hopefully that makes sense okay yeah I mean some of these questions about the order flow and reading the book and understanding it you know there's I answered one of the questions here just saying you know it's like footprint charts you have to understand what it's showing you and get a feel for it and you know feel for the auction process and and Jason's looking at it in a specific way with his higher timeframes so you know it's not like this happens therefore something else must follow it's a you know a combination of different events at various levels yeah and that's a great example so if you are an engineer type mindset and you require and if then process if this moving average crosses then I must wait for it to pull back and if it pulls back then I enter and my stop is below this point right here this recent swing low well you can do that and if that's your process but that's good but there's that's out of context in my opinion okay this is just my opinion one man's opinion that's out of context if you wait for that pullback to come into this moving average crosses an example but you've got big massive pools of liquidity that are chasing price action down it goes up you see let's say on the CL you have 200 at this level 200 right above that and 65 right above that and it's coming up into it and they're not fading away and they're filling a certain percentage of those and then it's coming back down man there's no way I'm getting long even though the if then statement says to do that right because that's out of context right and so you have to put all this in the context and that's what this tool has done for me we have a proprietary volume bar type idea but that we also look at but for the at the end of the day it's this tool that helps me decide okay these this is really sturdy down here that liquidity is not going away and not only that but as price is taking up so are the so those orders so let's say you had 100 on the CL 100 or greater is a pretty big number on the book and so you say you got 100 there at 01 and now price jumps up to 03 and now there's 102 your screen is black for the moment oh sorry if you're showing something there no I'm not actually but I'm just kind of talking there you go but here's a decent example right here okay let me see if I can spread this out you see this right here this is this 52 78 okay here's a good example so I've got a level right here at 52 79 okay that and now we've come down into it a few times and look what happened here that's 78 that's 79 that's 80 and look at all this little pockets here behind it so this big line here is following it up providing and you've got all these all these little bitty pockets here following it up as well now you have when you're looking at it this close yeah you may go man I'm gonna have a hard time getting up through this here right but if you're long from down here it's 78 and you're looking for the next target above you here at 00 right you're looking for that next level above you at 00 you don't care what's going on right here but by the way that's how you know you've got the right support resistance level when liquidity starts to pool around it there at 00 is one of your levels here today and look at look at all this pooling around it here right and so you've had look at how all this is following it up right you're getting through getting through getting through but you're not able to break down through this and then you have these pockets down here below that's just the way that I look at it okay see here I did see Bruce while you're going through that I did see somebody say ask me why the wind percentage is so low well the wind percentage is low because if it's not going in my favor I'm throwing it back right if I get in it's not going the way I want it to I throw it back if I get in it's not going the way I want it to I throw it back and so that may happen two or three times for these small losses but then my winds are 40 50, 60 ticks that's the key to long term my opinion consistency is in Paul Tudor Jones that's what he says right there's a link out there I'm going to let me see if I can find it while you're looking through these questions I'm going to see if I can find this for you really quickly you know everybody knows obviously who Tony Robbins is he studied Paul Tudor Jones and he put together a one minute it's the best one minute and 26 second video about Paul Tudor Jones that you'll watch it will explain this concept in great in a simplistic detailed type of way and while you were sifting through those and I can answer other questions while I'm doing this as well so okay well you know I just I mean there's a lot of questions here about reading the book and understanding the book and I just want to mention that you know that we hold you know daily webinars at this time during the week and we go over exactly that in detail there's a lot of resources on the website and it's an understanding I mean to understand the auction process and how to start to read that within the way that you trade just like Jason is covering right now he reads it within his context of his higher timeframes yeah so somebody asked Eugene's asking you know a question that may be kind of in the same vein here as I can see the questions now he may be asking me something that's in the same vein as everybody else he's asking me well how do you know if it's algo spoofing or not okay and I don't know right I don't know till you get there but my experience with just if I told you how many hours of time I've spent studying the screen you would clearly say I have no life right but I just stare at the screen and I begin to analyze the patterns of behavior that are going on order in and order out and I just it's like I said before there's no simple solution it requires screen time and work to get a feel for it where I've simplified it for me is I have this set of levels that we call decision points that give me the idea of when it's time to make a decision so this questions come up a few times about when percentage at the end of the day this is the basic question that I would ask do you get paid on when percentage or do you get paid on your profits right the when percentage is irrelevant and I'll tell you why without the additional factors for my opinion the when percentage is relevant if I told you I had a 90% winning system and I have a 10% winning system which one is the best well the answer is unknown because if my 90% winning system is one tick winners and I have an 11 tick stop and on the 10th trade I take an 11 tick stop that's a losing system conversely if I have a series of one tick losers and I have an 11 tick winner on trade number 10 that's the better system so when percentage is irrelevant is what's happening when you are winning if you're winning 5 ticks and taking 10 tick stops but you're winning 60% of the time you're not going to be successful in the end so that's why we talk about this asymmetrical with turns and holding on for big targets and that's what the print here on this book map is helping me do is as you have these pools and pockets of liquidity around it I'm getting out if I don't like it I'm getting out and then at my decision point based on what the book is telling me at a particular time I don't know if that makes sense I don't know if that's that may be like when you're standing in the kitchen talking to your mom about her favorite recipe and you say mom can you get I don't do it it's a pinch of this and a dash of that well there is an element to that when you are reading the print like this when you're reading the book there is an element to that based on what the direction of the market is that we've determined on a particular day and what the and what the decision point is telling you right what you should be doing and where you should be looking at and that's part of the whole process of training around those levels then it becomes it starts to come in and make a bit more sense yeah absolutely I mean you know just I guess I'll go back to that same example using a footprint chart or market profile with the alphabet I mean you know that's a stretch to understand you know it's the same here like we're reading not the traded volume we're looking at the auction outside of the traded volume and getting a real objective and clear understanding of that auction and that's how you know Jason's looking at it here is to understand like well are they really interested in buying or selling at these areas I don't know I hope that helps explain maybe a little bit more don't want to put words in your mouth just to further that along it is so there's a question up here that may help with this as well do you ever consider the delta and so today when I got into this short so I just opened up that widget the delta right now is minus 20 what is that 28 55 on the widget here at the bottom when I was here looking short today at this area the delta was plus 1100 so everything was telling you that hey there's more buyers and sellers entering into the market but I haven't known level that I know works and I showed you this there was a volume around it behind it and if I had taken an 11 tick stop I ended up getting hit but no fill by the way it's the third day in a row that this particular set up has called the days high right so I don't tell you about that in a minute but that's the third day in a row that this particular set up is called the days high on see on that does that happen all the time heck no right it just happens to be that it's a third time this week in a row but the point is as I was looking so if I were in this long from 78 right here right you can still see that there's decent volume in here below where and if my target was 00 well we're at 1115 I know that you know that's 1215 on the east coast it's going to be a lot of it's going to be a long time maybe to be able to get through this so I might tighten this up to right below this level right here at 91 and just say you know what that's 13 ticks I'll be happy it's lunchtime there looks to be a considerable amount of volume above me up here I don't know if it's real or not and I won't know until it gets through it but I'm tired of holding on to it and I'm going to go out get out at 91 but do you see what's happening every time you push down from 94 to 93 you get buyers step in aggressively here now there's 92 91 and I don't know how many were filled right there I can tell you that you just filled you just filled 95 orders at 92 right you filled 95 orders well there was 113 there so you had a few back out and what what now you see how this is following it down it's just a process of going through and understanding your market and having some framework around your particular levels so that you have you're putting all of this in the framework and context of your levels when I get to a decision point right that's when I look to start zeroing in on making a decision and this tool is invaluable to help you do that whether you are looking at a moving average cross or you're waiting for some overbought or oversold reading on a CCI or stochastic or you've got some other system that has you know if you're using the boomerang from mohan or whatever you're using knowing what the volume is telling you and understanding what it's telling you around your particular area is important right and that's what this tool will do there is no shortcut to being able to read the tape if you will to be able to read this kind of tool there is no shortcut to doing that there are there's videos and there's ways to look at it but you have to be able to go and sit down and look at it time in and time out and get a good feel for what it is that you're doing it is the best tool to be able to help you do that but there like anything else in trading and anything else in life for that matter there is no shortcut you have to put in the work to be able to make it work for you all right well I think that wraps it up quite nicely I don't know Jason if you wanted to share any links questions here about your trading room and yeah so if so we offer I'm going to show you one more thing Bruce thank you for allowing me the opportunity to do that I would have just probably forgotten if you go to this link right here and I think let's see let's see and we want to go to slash OTO so we offer an extended trial in the trading room right now we give you a free report if you only wanted to do that just to kind of this is how to select a day trading vendor we talk to you things about in this in this free report we talk to you things about how to select the right trade day trading vendor why performance results are not always the best right when you're looking when you're trying to select select the day trading vendor and they're publishing a bunch of performance reports and performance ideas why that's dangerous we give you some information some insight on that we tell you some of the tips and tricks that people have been in this business a long time now I know what the tricks are and I'll show you some of those and things to watch out for so we give you that report but if you wanted to get a five-day trial into the room we offer two-day free trial plus three additional days with this you want to get a five-day trial in the room plus that spreadsheet that I showed you plus this setup that's called the high of the high of the day like it did here right this particular setup for the third day in a row we're going to give you our trade plans for five days and things like that it's $47 so if you come to this alltradinggroup.com and it's $47 you get all that stuff so if you're interested cool if not that's okay too I've enjoyed the time spent with you here today okay great let's see here so I just inputted that link into the chat so you guys have it I also inputted the video yeah put it in the wrong place I think so you guys can link to that Paul Tudor Jones as well okay well I think that's it thank you very much Jason and we'll do it again yeah well thank you for the opportunity to come in here and present to your folks it's been my pleasure alright everybody thank you take care alright take care guys