 The broadcast is now starting. All attendees are in listen-only mode. All right. Good morning everybody and welcome to the pro trader webinar series here at book map today. We have Kevin torch. It's part two of the webinar He presented on Thursday and did a fantastic job and I have to apologize guys like you had many questions in there We didn't get to any of them. That's what part two is is about is well part of it Kevin's going to finish up with his Presentation and go through some examples and he has even more examples from what I understand to go through. So it's a real tweet treat for us so I Won't introduce him or anything. I'll let him do that risk disclaimer though trading futures equities and digital currencies Involved substantial risk of loss and is not suitable for all investors past performance is not necessarily indicative of future results Kevin's Contact information is all here guys. I will be putting this into the chat periodically as well as the link to the recording From part one if you want to access to that. So don't worry. I'll put it in the chat In fact, here it is. I just put it into the chat and go to webinar for you So you have all of this information as well And without further ado, let's turn it over to Kevin Hi Bruce. Hi guys. Welcome to part two. So second round of this thing, I Have a little surprise for you guys. I've made a quick video today at the open On the imini so you really have something fresh I have received a lot of messages from you guys and thanks for that following the the session we had Thursday and A lot of you guys have told me that it was kind of hard for you to see The screen due to the fact that it was a vertical screen and it's a good thing because the volatility Is decreased a bit. I'm not sure if you guys have followed the VIX But it's not as volatile liquidity starts to come back little by little. We still far away from What we used to have but still it's not as volatile. So I was able to use an horizontal screen And I'm going to share a lot of examples And I think what we could do maybe if Bruce is okay with it We can go over the examples and then do a small Q&A session about the examples And then after that move to the next example and in the end we will wrap it up with all the Q&A from last session and maybe new Q&A questions that Came up during this session Okay, so let's start with the screen sharing Finding it's always the same game finding the right monitor with my multi-monitor setup Bruce do you guys do you see my screen? I see connected to go-to webinar Okay, wonderful. Okay. Let me click on the video I did today, which is 6th of April 2020 do you guys see my screen and let me also pop the Q the Q&A is the questions Not sure if you guys are able to answer as well Yeah, and good morning to everybody here. I'm in Europe. So it's not the morning we already In the in the late afternoon But good morning to all of you guys. Can you confirm if you see the screen in full? Yes Yes, wonderful. Okay, wonderful. I and I have now I'm a little bit more organized than last time I can see the answers flowing like a tape During fast market conditions. Okay. So, oh, no, I have even a more recent example, which is a very small trade just In a very quiet market Just to share with you let me find it back. Okay, this is a very small scalp here So this is In a very slow market and this is a setup that I wanted to share with you guys because it happens all the time and if you watch I've done a Presentation for book map Thursday, but I also did one in 2016 and I was already talking about this setup in 2016 I believe it was April 2016 and It's a W into a cluster liquidity zone. Okay, and look, it's the setup here. My entry is not perfect You see the cluster liquidity zone. It's very visual in book map You can see I put it the order fields We pushing a little the timing was not really perfect We pushing a little true Here I'm thinking what should I do should I keep already put an exit which is very conservative It's kind of a scratch. I will take two or three ticks because it's it's it's when the market is very slow Not sure at what time, but I believe it was before the the emini open Okay, but I thought it gave you a good a good idea of how it looks So you have a test of the of the of the liquidity zone and then a little rejection of it Me I chased it a bit. I was thinking of entering a second second contract, but we never went You see the second contract is at 562 and a half I'm ready to remove my order because I believe that it might push through so that was today and this happened today But in the end It's slow. So I believe I Here I'm thinking should I keep this it looks like it's not going anywhere, but I felt like the the Even when the market was going down because if you look the market kept going down for the last minutes But I felt that in the way it went down. There was still good buying pressure And then there is a very little push and I will be filled immediately if I remember At the level yet you see and someone is manipulating it. You can see it in bookmap. You see here the Yellow thing it pushes it into into the into my limit order So a question that you guys might ask yourself Is that Why Why did I and here I'm trying to work it again and you see what I did Is that I'm trying to work the level again? It's done I'm trying to work the level again because sometimes I work the same levels like 10 15 times in a period of 15 20 minutes, okay So That's an example when the market is very quiet Can you confirm that you guys can see the screen in full now with the new way? I captured it in a horizontal horizontal way to make it easier Yes, we see it just them that your your logo Rubik's Cube and Sorry, I'm not very familiar with this thing and someone did it The graphic designer set it up my Camtasia for me, and I don't know how to remove it The reason why it's there And I'm sorry about that. Yes. I'm sorry about that But the the main but the important thing here is other the color zones and now with the heat map You have with the liquidity on bookmap. It makes it easier to To see so regarding the trade I had before the question you guys might ask yourself Is why did I put my order at the place and it I was able to exit exactly at the place where I put it my order? Well, it's because mainly When I watch the book, I'm always evaluating the current volatility And when I say the current volatility, it's visually so I know how big the oscillations are and as soon as I see Move that thing to me Like it's bigger than the current volatility. I have an opportunity to enter Trade, okay, so here. This is very very interesting. Why because this is done about 125 Go and it lasts for 10 minutes and the market conditions Where pretty it's the open so it's a bit more volatile than what you think before but for an open It's pretty quite and the market makers are pretty much in control liquidity providers. Of course, it's not the yes We used to have But still it's It's it's better than what we had like one week and two weeks ago due to the COVID-19 crisis You remember I discussed Thursday the fact that liquidity disappeared from most of the books So here, of course, it's the it's the EMS MP and you can see it's only 16 28 48 at the bid which makes it very easy for the guy at 65 At 65 that has a large order and now I know a lot of guys are skeptical because the way we trade as professional Liquidity providers, I mean I see myself as a professional liquidity providers I'm putting limit orders the more I can in the other book and I give the ability to people to enter and exit the book and so the thing is that We see this as one single person and I know it's one single person Why because the way the order moves come back removes. This is not a market typical market maker order also because the market makers they tend to put an Equivalent amount of orders all over in the book They will not unless they're trying to control the range at a specific place But here there was no reason to do so and I have a good reasons to think that the order at 2,565 is one single player Another thing you can do if you watch You have in the data you will see from the CME you have the ability to see how many traders How many single orders I mean are at each price level and you will see that even when there is When there is one level with more more more orders It's not like there are 80 different trade traders with the 15 quantity for example You can see that you have about the same number of traders at each price level But one price level has way more orders than the other price levels So that's another indication that shows you that you have single Players that are able to manipulate this market in a normal situation someone with a copy with a capital that allows him to clip 100 150 Contracts should not be able to move the ES many in this time Those sharks are there in the market and and and they play that all day on the E-mini SMP which is usually a market that they cannot trade because there is no way to manipulate it When the liquidity is usual you can manipulate it, but not and it you should not be done it forbidden Don't don't misunderstand me but You cannot do it with such a small quantity, okay So let's take a look here Okay, what you need to know is that since the market has been selling off for for a long time I had them or more and and the pressure was to the downside I had a pretty in the beginning you will see I'm Making a mistake because I I'm very committed to the short side Okay, and you will see I will lose trades have more losing trades And then I will re-evaluate reevaluate completely the situation you see here. I put it In order to sell and and I was expecting since you see that we had a very strong Sell into the into the limit cluster zone And I believe the the market would go look here I put another another to exit at the entry because I think I start to doubt or Another order to add to the position so that my average position will be a little higher Okay, and you see The markets when you and particularly at the open most of the volume are done during the first hour And the last hour of trading and due to that It tends to go and check out if the volume is real you see I was pretty much stuck in this trade I exited close to the entry now I try and I have still the manipulation order at 566 so Here I try to reevaluate and I feel like I'm not able to read it So I'm waiting a little I'm watching my book map see that it starts to turn into a kind of market maker type Market why because you have a lot of cluster zones above and below I'm a little worried by the the contract you see I'm showing it with my mouse the 200 contract and I think I didn't check Verify, but I think only a part of it traded Because if you look to the bookmark balls the one that shows the Delta you see that the size is not The size of the ball is not that big. I think if the 200 contracts were executed Well The ball would have been bigger now. I'm still committed to the short side You see I'm trying and and now you can see that my initial trade was not Too bad ID, but again, I'm completely wrong. You see and and I'm trying to I'm trying to to find a way to exit. I'm scared to be squeezed. I'm thinking of taking a full stop with which will take probably five six seven times this time to to To make up the loss I will do for this But after I see I see that the market rejected the level of 69 And so I put another order to add and I'm thinking of exiting in the zone of 66 75 or something like that And look now I have I have I'm in a situation where I have the level here I'm checking my boot boot map and I have the level. I believe it's the level of 71 and it has been there for a long time and it has been rejected already once And now I believe because there is the order of 100. You see it goes fast Now we already cost my entry and I believe the market will go and check the order of 100 So I exited one of the contracts I'm ready to now I'm started to gain confidence that this market is going to the short side But I'm not sure if you see it's not flushing down when I'm watching my my other book there I would like to see kind of a flush effect, but it's like there is a power which are Beating algorithms that are pushing the level of 64 and a quarter. You see it's pushing pushing It's like very mechanical Bum two three ticks at once and so I start to to lose more confidence to the short side And I'm trying to exit and it makes it very hard to exit You see because we use limit orders you use a stop only when you you're getting killed But with the techniques we use you will have a very high amount of winning trades and the losing trades We walk wipe out like probably five six A seven winning trades, okay, if you're able to manage so here aggressively entered I Aggressively entered to the short side I believe the market will come again and try to see if the liquidity at 67 in a quarter is real But I start to feel stuck again and then I think in a couple of seconds I will start changing my mind and and seeing that I'm fighting against Some some bots that are on the long side Because it's like to go to the downside it goes a little bit then it stops and then it reverses and to go to the upside It goes straight for techniques. I'm fighting with the trend here Okay, and when I say the trend don't get me wrong They we don't really work with the concept of trend, but I mean the micro trend, okay? I'm not talking about the trend of a 60-minute chart I'm talking about the current trend for the last two three minutes in the book look I put another at the entry I exited with a one tick loss I'm expecting to show the level of 71 and a half. Why is that because it was rejected You see I was not able to be filled in my job when I'm not able to be filled It means that I'm at the right size side of the market. Okay, if it's hard for you to get filled Then it means That you're doing a good job if you feel in two seconds It means that there is another smart trader on the other side of the trade that is happy to give you the field Maybe me who knows or maybe not but We will always try to Trade levels that are difficult to trade and a lot of people that are doing the same as I do or both that are doing the same There's a do They they they compete to try to get an entry at these levels look I'm trying to exit with a scratch straight so no loss And I'm not able to so now again confidence and I tell myself mmm the long side is probably the side That should be but I'm still stuck with one lot here on the SMP I have someone that is pushing here You see he was pushing the price to the upper side And why did I keep this straight longer because I was surprised that even though he put at 575 contracts to the bid there was no real reaction to the upside and you can see it very clearly in bookmark you see the The order appeared in bookmark and the market did not really follow Did not really follow to the upside If if if there were a more aggressive sellers at this specific time the market should have rushed for 20 ticks Okay, so now I'm starting I have like a small long bias But I'm starting to to to doubt it a little bit and and here I'm ready to exit with a two tick loss on on on this thing you see on on the level of 71 25 and again It's very hard to get filled Okay, so I'm thinking of adding trying to to to make it a better average price and here The only thing I start thinking about is exiting and reversing Okay, because I feel like the market will go if I don't act fast I will have a loss that will take me two three hours to make up Okay Look here Try okay now I'm exiting with the loss But I gained confidence to the to the to the long side So I start to get aggressively Working levels that I seen that are defended by bots To the long side and putting an exit immediately because what I'm doing is actually I'm remembering the price that was rejected Before and now it starts to work for me again. Okay Now I still have one contract. I'm looking to see if we can have a push And I put an exit and you see I change my mind very fast. Okay, it's always like you You know when you do this type of trading It's always like you rethinking the situation every every 45 seconds to a minute Okay, and you know you do have an edge because the strategies you use allow you to have an edge book map on the right Helps helps you to have a clear understanding of the general context and the the type of market We are in because as you know guys, I've told you that last week the context is very key here. Okay, so here I'm pretty still I'm pretty committed still to the to the long side. You see I wanted I saw something that Made me remove my limit order To exit But I was not able to I was filled earlier. Okay, which means that There is a good conviction To to the long side, of course, it's a small volatility market only quick scalp for tick here to a tick there to tick loss Sometimes the losses that are not often They they they way bigger than the than the games. So you always need to try to manage the losses Another question that you guys might ask yourself is like yeah, but what are you doing you averaging down? No, I'm not averaging down. There is a big big difference between Scaling in and averaging down scaling in is having a pretty fine number of contracts. You're going to trade Those number of contracts you're going to trade You choose to enter them Little by little depending on your conviction if you have a very high conviction you can go two contracts at the time But if your level of conviction is low, you will just scale in here and there one contract two contracts Maybe three. Okay, so that's scaling in it's pretty fine You know already in what type of environment you are and how you're going to trade Average in down is when you start with one contract is going against you and it was absolutely not planned You usually trade one contract and you decide to put another one then another one just because you're losing So that's not a strategy. That is something dangerous that will destroy your account So it's very important to understand the difference between a predefined scaling in strategy and an averaging down Mistake and because averaging down is not a strategy Remember one thing that is very important. You see the pressure the the long pressure here are something that I almost don't do because the market starts to gain speed I exited with With the market order and you see the pressure continues to go And Yeah, and I think that's it for the video. Yeah, very exam very good example of a low volatility market So what I was saying When you enter you lose objectivity if you don't have a predefined plan regarding what you're going to do You're not able to take an educated And wise decision when you in the trade, okay It means that when I say an educated decision when you in the trade I mean regarding the size regarding the scaling in strategy like if if you you enter In the market and and you usually treat one contract. It's hard and guys I'm not going to lie to you if you treat one contract This is why it might be better for someone with a small accounts to trade micro contract instead of trading one Emini big for not the big but the Emini SMP the traditional one. Okay, because me I don't treat micro a lot but to learn it can be very good because Trading one contract puts you in a position where you either right or wrong I think I already said that during the last session So hey, so okay, that's it What are the questions Okay. Yeah, a few questions already And guys like I said, I apologize from last time You had so many good questions and we just ran out of time so Hopefully, maybe you copied and paste or copied and can paste your questions back in here Anyway, let's see here So someone's asking here about The Different if you can talk about different strategies make or And do you have an English room or trading room or subscription or you know something like that Yeah, you need to understand that I cannot talk while I'm doing that It's something when when you do that you need to be focused It's very hard and and it's also something that would be what's what's interesting would be to to To learn how to do it But if you want like for example if I if I'm sharing my screen and I have someone trying to replicate the trades I'm doing you will always be probably with the lag the time For my image to go to the computer it will lag and it makes it very hard to To copy so here what I did to to replicate the trades Okay, so it's possible to do it when you know the strategies that you're working then of course You know where to enter because it's pretty it's pretty simple the strategies are pretty simple The difficult party is to be able to recognize the context Why because if you use a market-making strategy in a trending context, it's very very difficult to To recover from the losses you can have from that Okay, why because when you use a market-making type of strategy you will you will Be scaling in and scaling up scaling out either part of a range But when you use a trending strategy, you will put some orders limit orders below the market on some levels that the book and bookmap gave you and those two type of strategies, but hopefully Thanks, God in the indexes. We don't have much much strength like for example a practical example I've been trading gold. I was not supposed to trade but there were too much opportunities on gold So I've been trading gold a little bit before the webinar was talking with Bruce about it before the webinar started If you use a strategy like that on gold You would be killed. It's not appropriate. It's a strategy for retracement market-making type of market. Okay gold Right now, you have a lot of people that are going Get that are going market because they buy and they will get the underlying delivery Of the market and if you follow even the comics communicate Posted something thing about a new contract with the delivery because Due to the the current context and the way central banks are Doing quantitative easing and printing a lot of money the the golden Bitcoin are two Instruments that bring a lot of interest. Okay, so probably a lot of central banks. I know that in Dubai, for example in the UI central banks, they buy gold they buy love a lot of gold and they buy market, you know So it's just to put things in perspective here. Don't get too overwhelmed Those strategies are working well, but you need really to take the the context Into into a state and that's the most difficult part. Okay, and that takes time it takes screen time Okay, the good thing is that you can work on a simulator if your simulator is replicating the exact to market conditions Like a fee for first thing first out and the queue Then you can practice for as long as as you need to and see if those things are working for you But of course those strategies, they have a very high Probability of working but when you have a losing trade, it's way more It's not like a typical reversal risk reward strategy like you use with technical analysis Okay, so I'm looking at the questions here. Yeah, and So I can I can read them out for you. Maybe that's a more helpful So let's see Thank you for the presentation. How does the COB information? Help you make a decision Tom. It looks like he's been using you know, he's using the TT dome over there And more than they are the book map dome. He's looking at book map. They're more for the the heat map and to verify The visual and also much bigger picture here, even though he's scalping on very low time frames Yeah, yeah, why why this is a very very interesting Bruce what you just said because I need to know where I am Okay, when you when you like this you don't really take you walk the floor you trade You know, it's it's probably the modern version of the of the the peat trading, you know, me I'm too young to I would have loved to be a bit a peat trader But when when Yeah, I was too young to trade in the peeps But I believe that it's probably similar to what the peat traders were doing So at some point when you in the action It's very important to have a general map that sets the key level that everybody's watching because if you if you Buying based on other flow trades into a major Multitime frame resistance. They are not a lot of those levels But you need to be aware of them and you need to be aware of their existence and this is why Generally before trading I write down on the paper the key levels. I'm interested in also something that I can do With book map is when there is a major Natural, okay, because me I make a big difference between what I called a natural support and resistance and what I called a predictive support and resistance A natural one is the one that is showing on book map right now A predictive one is the one that you have compiled right doing your research Knowing that this is a low volume note. This is a high volume note and so on and so far Okay so Book map helps me also to to know the levels where there are big order For a long time because in the book you cannot keep track of of everything sometimes you want the same price a lot of a lot of different times, but Usually you're not really aware unless it's a very key price on a longer time frame It changes very fast and the frequency is quite high So you're not always aware of those longer time levels with which is why it's important to keep a General map to have a leader idea of where you're standing in the range in the current range And and what are the the condition the market conditions for the longer time frame traders and when I say longer time frame Of course, you've seen the type of rates of trading that are that are that are practice So when I say longer time frame, it might be one minute You see one minute two minutes candles is kind of lower time frame to me, you know Yeah, so another question. Yeah, sure So a good question here from max about how do you gauge which state of the market is in maker or taker? Oh This is very good. That's a very good question well You need to understand when you read the The the exchange rules for market makers, they need to keep an orderly market Okay, they need to keep an orderly market The problem is that While keeping an orderly markets, they will gain a large exposure in the opposite direction of the move. Okay, so What you need to keep in mind is that they will always Try to protect themselves Why because they would like to increase the market impact as much as they can the more the market impact is high The less likely the liquidity taker is going to continue his large quantity order in one side of the market Okay, so as soon as you see that the market is controlled there is not much volatility in your book map You see a lot of price levels like we had in the first example You have two zones with a lot of yellow above and below And and you have the market stuck in into those two zone kind of a balance. That's a typical market maker type market Okay, as soon as you see a lot of trend the liquidity disappear a lot of speed and the market pushing very fast in one Direction and going to the other direction because the market maker needs to unload his exposure as much as he can well, you know, it's a Market market where the liquidity takers are in control in control, but most of the time the market maker Stays in control and when I say the market maker don't get me wrong guys I'm saying the market maker to make sure To make it easy to explain but it doesn't mean that there is one guy in a room with the hats with a market maker right around the head and that is that is working and Providing the liquidity alone for one market But it's like a pool of liquidity providers that have agreements with the exchange and that act like They act like one single player. They're not a competing among themselves. Most most of the time what I observe is that But there are also some markets where there is only one market maker and and to that guys go back and check The the bankruptcy of mfg mfglobal I believe it was back in 2011 and check out all many futures contracts Have been cease trading Till the exchange fund a new market maker and it was the case in Australia on a lot of I think of on some of the acts in Australia the market was completely closed. Okay, so that this is why I love team contracts because You know that you fighting against 80% 90% of the orders you will see in the book our market makers order orders Okay, and this is even something that is more observable if you watch it during the global session Okay, so not sure if this answers the question which was a very good question Yeah, I think so and I think you could also answer with with the context You know reply as well But the a few questions here on Bitcoin cryptocurrencies You know in these thin thin markets there the same kind of market making Strategies or things that you just talked about with gold and markets. It's funny. I had a debate About that with a trader. I'm not sure where he's located. I'm not sure if it's Hong Kong or Amsterdam, but we had a debate about that on Twitter just to make sure I'm a special I'm kind of a specialist. There are some things that I know very well And some things that I don't know anything about and big Bitcoin I've bought a little bit of Bitcoin in the past on the on the on the Bitcoin instrument to do some swings But there is a CME contracts on Bitcoin, but when I watch the book there is no real Scalping opportunities. I feel like it's a market maker market, but with not much volume yet And I watched it this morning to make sure and I've never traded it using futures Never traded it and I don't have much things to say about it because it's not really my Something I know I know about but I've been talking with a guy if you check out my treacher that is doing it And he's doing doing it on another futures exchange. I'm not sure which one Me I mainly trade CME and Eurex and I use some contracts of ice US as indicators, but I don't trade them Yeah, I used to trade the Russell when it was back trading at ice I'm not sure when that was but not moved to CME. So it's many CME and Eurex So I don't I cannot say much about it. Sorry Okay Sounds good. So Let's see Are using any other platforms for like higher time frame or are you just using basically that I use a lot of I use a lot of platforms I'm trying trying. I use a lot of platforms But but they have okay, and I'm not here to talk about I'm not affiliated to Anyone so I'm not here to talk about the only reason why I use a TT it's because the dumb If you do that type of trading And you am I used to it. I was used to extrader, you know, it's hard with traders are creators of habit And I've been talking with with Bruce. He tells me yeah use the door of book map I should try I should try to use it But it's not that there is anything wrong with something else than TT, but I've been using it for so long that I'm good with it regarding the other platform platforms. I use the Delta. I'm not going to to to Disclose any brand because I'm not here to do any kind of publicity But I use that I use the Delta the Delta is a pretty easy concept So you can have it on a lot of different platforms and I also use Charts a traditional traditional charts, but I have them on TT But there is another platform that I'm using just for the the swing not that I should be using it But I'm used to it and I love to things that have been doing like for for 15 years I'm just used to it. You know, I don't need to think for 10 minutes before Opening something because I don't know exactly where it is in the settings. So So, yeah, that's it. But Regarding book map. It's like When it first started to I'm not sure both when you guys started the company We we started I you were early adopter. I mean I think around 2015 or 14 something like that. Yes. So I really was one of the of the First time adopter of it. I had at the time I was I had one of my former students that was trading in a prop desk in in in Dubai and He told me about it and he started to use it and And then this is how I got hooked up with it And also I think at the time I was giving a course in London And I think one of the guys had book map I'm not sure exactly who and or he's still with the team had used the My course in some way and so yeah, so it was an immediate connection Because it allows me to know what happened in the book One hour ago and what she for level is being defended for a very long time and yeah It's priceless. It's priceless information because the other book is great, but it's gone It's the instant. It's the information of the instant and yeah, I immediately started to you to to to use it Yeah, yeah, definitely definitely Yeah, no questions about yeah using using the dome and also trading from book map You answered it already. I just wanted to mention something though that For for those of you out there wanting to trade from book map and the dome There is a lot of functionality. I mean you can basically Configure the dome and book map any way that you want so I mean and then some you can make quite a quite a dome out of it that Lots of different data columns are available. I just wanted to mention that Let's see here Does this mean that market makers Does this mean market makers orders and limits and are not real and then can quickly be pulled Actually, this is a subject that I discussed extensively during the first training that we've done together with book map in 2016 But basically market makers. They only use limit orders. Okay, so a limit order. It's real Till it's not really anymore. You can remove them put them back in and you can pretty much do anything You want with it, but again depending to the situation if it's a market maker market You know what to expect if it's a very directional market No one will start trying to to spoof around when there is real gene wine volume real gene wine Market taking and liquidity liquidity taking No one will start to play to play those games when the volatility is very very high This is usually something that is played when the market is kind of controlled and that people are confident to To manipulate it for those that have the ability to to manipulate it. Okay, okay Let's see. I Have a question actually for you while I'm reading through these here about the trade management because I Know that I mean you've already explained it and I know that you know the way that you are You know adding into scaling in and scaling out a type of thing and just doing that consistently throughout the entire time That but but like you had mentioned on Thursday So you you know things go very very well But then there is that that potential and it usually happens You know once in a while that there's this one massive move against you And then can can be a pretty big loss How do you handle or or try to manage that in this example? You just went through You were showing like okay. I'm waiting to get back to break even and I'm starting to scale and etc and What if you don't have that opportunity? Well you you you Normally if you able to it's a very good question. It's the whole It's probably the most important the most important thing here But you have you have different of possibilities the first one would be if you think That the the move normally okay first of all Nothing moves market, but fundamentals and and and use and those are legit moves Okay, so this is something you have in mind that every time that when there is something change as soon as something changes the the The perception of value from the value You know the market is moving and it will go and try to find the new price that is accord accorded and in in in line with the perception of the operators and Of the market, okay, so normally you don't have you don't have much Retrend when you work indexes those trends they come for good reasons, okay So most of the time what you have is the market going in one direction Retracing you pretty much always have an opportunity But you will have always during a year like those six seven days where you get killed like me my worst the worst time Was a trading crude I had a very big loss that took me like happened once took me probably Let me think About ten days to make it like seven seven to ten days. It was a crash stop, okay I had a crash stop and I was exited out of my position because there was a Unpredictable unpredictable move that came out from nowhere but if not if it's like a Regular move first of all you have an idea of the range of the average range of the predict you trade you You are just the size of your position Of the maximum position you trade accordingly And when it goes against you the thing is try to exit as fast as you can I'm always trying to exit as fast as I can but sometimes of course once in a while I probably I Would say ten ten percent of the time you will have some trades where you keep you will take a full stop You will just need to exit you cannot act to your scaling in position and yeah It happens if you cautious and you try to identify the right to market conditions It should not happen that often but it will it will happen During a year. The question is that when it happens? What did you do wrong? Sometimes and this is an important thing in the way. I see trading sometimes you make money, but You don't really have any You haven't done anything particularly well, but me how I see those times where You lose and you take a full stop actually you you did good because this is what This is what is called Equity preservation you preserve you you doing the preservation of your of your trading of your trading equity Okay And yeah, this is a little bit the the way I'm seeing things like in the beginning of course if you if you connected to it Very into it you will feel bad But after years you just know that those days will come one of those days The only thing is that trying to maximize as much money as you can when it's working so that you can deal with the losing days without Without wiping out too much of your of your monthly PNL for example That's if you you didn't do anything wrong, but there is a news that is absolutely Unexpected that is a put putting you out of the market because we need to keep in mind that will always be a possibility another Scenario is you know what's happening? You know you sometimes you know you watch the book and you know, okay? Someone is manipulating this thing and I'm right because he's pushing He's like basically he's trying to trigger all stops and then try to reverse the market if it's like that I will hedge myself on a correlated Okay, but but those are two different situations and and with experience you're able to see very clearly if It's like something you were not able to predict and you don't have any answer for it and there you just need to take the loss and If it's like something where someone is doing something and you write And if and usually if you able to hedge yourself and keep so by hedging yourself I mean to take the opposite position in a correlated contract or take the position in the same direction in a contract that have An inverted correlation then Usually those are the best rates Okay But that's it. Yeah, that's I'm not sure if it answers your question Bruce. Yeah. Yeah. Yeah, I Definitely, I mean one of the things I you know of this strategy as well. I mean I your point is it very very strong about being able to add in and scale out with multiple contracts just allowing you To trade a zone instead of being right or wrong and and but one of the things that can be kind of frustrating I think especially for newer traders with that kind of strategy is that Maybe they only get in with one contract and they just nailed it But they're only getting you know the profit on on one contract They would like to be able to scale in with multiples And and try to leverage How do you I mean, I guess that's just part of the strategy and you and you look for scaling in Opportunities, but you just don't always get them Yeah, as I told you the harder it is to get filled the harder it is to get filled and the better it is The better the treaties Remember you need to find someone willing to take the opposite side of your trade if your trade is a good trade It should be hard to enter Okay, sometimes something I do because I'm thinking of what you think but two additional things I would like to add regarding the the question you asked me before The first one sometimes if I'm filled too easily I exit immediately Because I believe that if I'm right, I should not be at certain insert using certain specific strategy I feel like if I'm able to be filled so easy then something is wrong It should not be that easy to to to get a few not at that place. So that that's something that will put a filter Then I found like years ago. I think back then I made a video in French in 2011 because I've noticed in my PNL that there was a positive correlation between the number of scratch trades and and The PNL so the mora exit at the entry because I believe it's not going well the better the PNL and also The harder it is to get filled the better the PNL if you find a feel easy like you put the order and you feel immediately It's usually not a good a good thing No trophy that helps. Yes, very very much so thank thank you Kevin guys There's a few more questions. I'm sorry just one last thing Bruce. I wanted to add us. I wanted to say it and I forgot it usually Regarding also the question How do you prevent the market to go massively against you the whole job here? The key thing is to evaluate the volatility In the period you're going to keep the trade. So if you keep the trade for one minute 45 seconds two minutes You should be able to evaluate the volatility as soon as soon as the volatility in the Scalping time frame you're working in starts to get bigger Way bigger or way smaller than what you predicted you wrong. You should exit Okay, so that that's another another filter because the volatility usually it's not like at once It will increase then it will decrease then when it's slow It will start picking up but usually it's not like at once without no news No reason the market will move 36 in one direction doesn't really happen that way. It might happen. Everything is possible But Having hours and hours of screen time It's not something I have seen pretty often Yeah, really really nice point guys. There's many questions here or you know still more questions Kevin I think it'd be great if we can go over another example. Sure. I have a lot A lot and all of them are for you know, I'm done with those I had done for For today Let me see what else have we won't be able to go through everything because I have too much Right. Yeah, people are already looking for part three It will start to become like a next season 275 Okay, let me check I'm not really sure what to show you guys I have like The six I tried to remember how it was looking but This is a son of the six was today, right first of April. I think the clothes was interesting Short screens and covering I think already. Do you see my screen better than last time this time? Those other examples were excellent. This is similar to the example you you were presenting on Thursday. Ah, yes Sorry, yeah, it's still the vertical screen because you see even even you guys you you don't really have a trained eye for The order book but when you look at book map and you look at the book you can clearly see that You can clearly see that the volatility is different If you look the size of the amplitudes of the move you do have on the on the order book You can see that it's not the same type of market situation as What we had in the other examples and this is also maybe why the other examples might be more Shootable to For beginners to understand the concepts because here it's going going quite fast and you see I'm stuck again I'm trying to exit this trying to entry to exit at the entry trying Trying to do whatever I can and I'm a little stuck And I'm Leaning a little bit on this own thing. Yeah, and here are so clear rejection of the 43 and one quarter So I believe I might add there and Have a little push again on on that price level And you see here. I'm already trying to find an exit The most difficult thing here is to reassess the market conditions all the time because if you take it in the middle Of a market shift It can be hard But here the volatility keep in mind the volatility is way bigger than what we had in the examples We had before so the market might go way more Against you than what it did when we were working in a short box But the market might go way more in your direction as well. Okay, so it's it's true for both So look here if you see at bookmark, there is the level of 449 And that's a level that I believe that the market will go and see and he does it why because market is attracted by Liquidity and now we're doing the last hour Last hour we're going into the close and most of the people asset managers hedge fund They try to do most of the business during the first hour and the last hour of trading. Okay So you see I'm keeping the last contract because since it's a short Actually what's happening here is a short squeezing. Okay, very typical action in the in the book very typical action on book map Look on the right. You see all those balls. Who would put a massive Massive buying order at the top of the move Usually it's a stop. Okay. Most of the time it's it's a couple of things that are mixed together It's some people that still have a big order to To fill those people they start to fill the market starts to push and it feeds on more and more order Yeah, yeah, you see here are exited it and the market push push push, but always remember that Some areas will give more steam and more steam to the move and it's some very very easily recognized recognizable price action In the in the other book very easy to to see if you know what to look for because in those times I am done the video is done here in those those times the market is not Is not retracing, you know, it's just pushing pushing pushing But those time you need to have your statistics in check because you know that If you trade a market, you know when those directional move tend to happen Okay, if you take the statistics and this is also something that you guys should do on daily basis and no matter if you trade like a Kevin like me like Kevin does like For for a couple of ticks. So if you trade along the time frame take an Excel spreadsheet and write down What's that you should know? What's the general the average volume of your instruments? What's the average volume pre-market? What's the average volume at 12 Eastern time? What's the average volume at? At 3 30 before the close, what's the usual average volume? What is usually the the the time where that markets makes directional moves at what time because you will see it's it's pretty in the way it works. It's pretty I won't say predicted because it changes sometime But it keeps doing over and over the set of of same things Okay, so you should know at what time it's more suitable to use a market-making strategy or a kind of what you guys would say like a type of Contrarian strategy, even if you use like a 30 minute candles or no 20 minutes Maybe a bit long but 15 5 2 3 minutes candles Or at what time? Should you use a trend? Trend strategies and and me honestly it's it's not often that I use trend strategies like earlier I was trading gold gold is my trending market if I want to trade the trend I wait for gold to be in trend and it's working wonders on gold It's something like again, I repeat if you try to do like those strategies that I just showed you on gold You won't be able to to do anything with it Okay, another video Yeah, I'm checking the time. Okay, we just one hour, so we still within the boundaries Let me check problem is that absolutely have no recall most of those videos. I've never watched them again. So Quick scalps into the clothes Well, let's see. I hope it's not the same. Oh I have my video software that is Making some trouble I have another one here early. This one is working. Yeah, I hope you guys will be able to see I'm not sure if we did this one already This is early afternoon first of April April's full And of course, I don't remember so I have absolutely no idea But it looks like the market is pretty pretty quite You can see that those market conditions are very different to Those ones of the video we just saw before Very different smaller Smaller volatility for now. I don't see much direction Don't see much direction. We kissing a large order and sorry about the logo guys I will I will ask her how to remove it. I have no idea how to remove that anytime I produce it That any time I produce a video it's there, but we just kissed and rejected On the order we went to the other direction for a couple of ticks and then we have continuation Here I believe that we're going to go and try to test more of the order at It's 483 So you see I already have an exit order at 483 and I'm thinking of scaling back in Where there was a cluster zone at 87 you can clearly see those levels in in bookmapper And I'm thinking of scratching you see I'm hesitating and I see I see someone that is pushing the yeah I scratch because I saw a hundred order of hundred twenty-four contracts that put you seeds back there And this is a fake order because as soon as the market went down you see here. It touched my I So slow pop can pop on the ES Inside it popped inside my order. I don't really know what Happened I had some orders that were above at a key level and Sometime this happens it happened to me With gold you don't even have the time to see your field that you already already positive Okay, let's see how long this one is It's So slow that a hundred twenty-five Can pop on the ES inside spread. Okay. This is very important This is what we call like a market maker look local market a little bit more volatile than the one that we We've seen in the first video You have people that are confident showing a hundred twenty-five Contracts order at the bid and probably his total quantity is not hundred twenty-five Okay, maybe I will post this so that because I saw another thing that I wanted to talk about Probably Not maybe not the totality, but at least hundred contracts were flashed at the bid Okay, normally if if if the market is volatile and there is activity and the tape is fast And you have a lot of orders coming in and and and hitting the market well You will have this order that will be filled and no one will have the guts to do it They will do it maybe at level two level three level four not even level two starting from level three to level a Good level will be maybe level four You know to pretend like try to push and manipulate you put another at level four and you remove it But if there is flow you won't ever be able to put a hundred twenty lots At the at the inside bid and spread without getting a Someone taking you or at least taking a good chunk of your of your order before you pull it So this shows that this market. It's it's pretty controlled and it's pretty a Market-making type type of market Okay, now we'll go through because you will see I will try I'm interesting in in selling for 2489 and three quarters And then you will see my mouse Going there and I hesitated and I'm not doing it. I feel like something was wrong In the way and also I believe that the order will stay there and that the market will touch it But the order was pulled so I start to think is it not someone pushing into the beads to try to To to buy so yeah, I hesitated and I didn't get it and it's it's it's sad because it would have been a good trade but I something and now I'm you see I'm putting another back and now I believe I Have I have gained more confidence toward that level and so I'm a little bit more aggressive I think I changed my order a little under it and you can see very clearly on on the book map and that level But you see again, I'm not filled And when I'm saying actually what I was and I'm getting more aggressive here. You see I Believe the market will go back to kiss that liquidity level And try to see if it's real But I'm I think when I'm watching this, I don't think it's a good trade I think it's something that was too aggressive with a poor risk reward when I'm watching it You see I'm exiting it When I'm watching it, I don't I don't feel like I should have done that trade. It's too aggressive And actually when I'm watching this I feel like I'm little out of sync with with the market. I'm not very Very in the in the flow because I miss the opportunity there above and then I think I'm maybe I was a little frustrated And I wanted to to work because the move to the short side was a little Strong so I believe maybe it will continue and go for another an additional ticks But you see I quickly changed my mind And and get my disciplining check and and exited it But that place to sell if you ask me this is not a trade that I should have done It was a little bit too aggressive. Now, of course, I have now here. I have only one Market that I can follow because I did not take all the markets at the same time Maybe the reason why I did that is because of correlated like the Russell was breaking laws And I believe the SMP will maybe follow that might be an explanation because when I'm watching that here I'm not really convinced by by that trade Okay, let's see how long this is Going okay here. There is a trade again Yeah, the most important another most important aspect is when to stay out you see at sometimes I feel like I don't have any edge I don't know what's going on and and you see sometimes for a couple of minutes I'm not taking taking anything if it lasts for 10 15 minutes, then I might just think there is nothing to do Let's go Let's go maybe a drink or some water or take a look at the economical news and economic news. Sorry, and that's it Okay, so here again quick scalp you see this is typical it's almost the strategy a level worked immediately and The level is rejected And I'm filled and I'm putting another immediately there so I have a good place in the line So I have a good place in the line in case the market goes back there and sometimes I walk For five time in a row the same price, but it needs to go fast. You see now we went away from it And it's I'm already in the next two minutes watching the next two minute time frame of my scalping watching What should I do? What can I do now and also something else? Because when I'm thinking maybe I want you guys to understood well what I mean when I when I say that It's important to to have difficulties to be filled when You scalping when I say difficulties to be filled I mean when the market is going touching your order, but you're not filled That's a very good sign. I do not mean when the market is too high and it's for example, you're trying to To buy it and the market is going too high and you're not filled because you're not part of the move so I mean when the market is going touching your order and Going away and touching your order again and you can see that there is some room There are some people in front of you and you're getting getting a better place in the line But it's still hard to get filled at that price. That's what I'm looking for So here I have a very Very strong bias of a reversal due to the price action and the way the market went Gradually down actually I'm expecting that someone was accumulating a position to the long side Pushing the market down into his buying orders and I believe that there will be a counter move And I believe that the first level the market should go is the bookmark level at 80 And we went through but I'm a little afraid because I believed it will push a little into it didn't happen So I'm re-evaluating re-evaluating the situation thinking maybe of Exiting at the break even up close to the break they break even with a small loss Now I see that I'm filled really easily at the level of 80 And I see that it's not going through so I'm taking of exiting the rest of the position there and okay Something else that I didn't mention when you trade multiples as soon as you have a risk-free trade You try to keep it as long as possible and it usually pays up. You see now. I have two contracts I mean for now risk-free kind of trade because I have already taken like About seven ten weeks on the two first contracts and I'm trying to to say, okay Let's see. I have another exit here at 81 75 and if that is touch I will try to hold the last contract as long as I can But you see it's not working very well quick sculpts here and there but nothing really Strong me I would like here to have the market when I'm watch watch bookmap at the level and I'm showing it with my mouse level of 82 And I'm filled and I'm done On to the next one but that level of 82 even now when I'm watching it is pretty predictable So a question you guys could ask yourself is why didn't I didn't keep it till the next level because Due to the price action that was early. It was a mistake I should have kept it, but I could not tell due to the price action that we had before I Was a little I lost a little confidence And here I thought of shorting it but I thought it was maybe a little too aggressive So I put it a whole order at the second level you can see on book map. You see right here at 88 At 88 And I put it a little above Expecting that if there was a push the market will retreat immediately for four or five additional ticks probably Yeah, so that's concludes this video and I think we almost at the end Bruce not sure if they are questions. We're gonna. Yeah, there's there's more I I'm sorry guys. I don't think we're gonna get to all of them. There's there's not too many left, but One more question here is about Are you looking for also, you know certain areas where trap traders are trapped? and then and then You know trying to enter knowing that there will be a squeeze I Tread what I see I'll try not to know anything like I know the context, but I try not to expect anything I Might increase my aggressivity like one of the examples I gave you it was a short covering So I was pretty aware that the short side was too easy that it was the end of the session It was Thursday Thursday and the market had been going down Pretty much all day and I was expecting some some covering to some extent And when I say going down I mean in in the book there was downward pressure So of course, I will be more aggressive in keeping a winner or more aggressive in entering a trade but Picking the bottoms is the hardest thing to do trading in the when you use those strategies trading the in the middle of The range is easy because it's going back and forward and back and forward and you make quick money But trying to catch a reversal is very hard It's not something we do and usually you never have the full reversal You will have some of the of the chunk of the middle of the reversal, but you won't have anything Everything but of course what I will do is if I know that situation that some people are trapped in the one side of The market and that the pain is increasing and that at some point They will need to to exit and it will trigger some stops and more more stops and more Acceleration in the in the in the order flow. I will be more aggressive in keeping a winning trade now I won't enter a trade based on that information It's it's something that it's part of my context info that will tell me yeah I want to to keep it keep it a little longer understood understood and And Let's see. Oh, just um, you know, I have another question and this would be for because this is rather in very intense trading and maybe This question will will help Other traders on higher a little bit higher time frames and and not not quite as intense And is that the same same strategy say you're using here? On these time frames and in range trading or you know scaling in and out of ranges Would you also recommend that you can do that on higher time frames and just look at larger Actually most of the consultancy I do when I work with hedge funds is based on Because those guys they enter trades like for I've worked for a fund that is a multi-billion fund So they don't care about a quick sculpts. It's like they have too much equity that They're not interested in in taking any type of scalping But they interested in that because they want to optimize their average entries and they want to be aware of How to reduce their market impact when they executing a major position because they've been using a lot of money on the on those Matter so all those strategies that I might use Me I don't know 300 400 500 the trades a day for quick profits those are Execution procedures for longer time frame traders and when I say longer time frame, it doesn't matter even if you trade Even if you trade on the on the daily chart, it's never bad to enter With the an optimization of the entry or for example 20 or 15 additional ticks It's always that to take him to take, you know, it's something that you can do If you treat like five minutes one minute, you can use the procedures of Entries using the the book and book map for longer time frame You know, or you can just use it as a filter or you can use it to exit the position You know watching the the current volatility having an idea in the book and on book map having an idea of the current market Condition market context. Are you in a market maker market? Are you in the directional market? Where are you willing to place your limit orders? Usually limit orders will always Help you to save on your average position. I'm not sure if you guys trade the How big you you trade on the longer time frames, but It will always save the fact of using a limit orders will only always save you Some money and some ticks, right, right, okay, so Let's see guys, I'm sorry if we didn't get to your questions though We've been going for an hour and a half or hour and 15 minutes Kevin we'd love to have you back again And we'll just do it again You know, we'll we'll we'll give you a little bit of a rest I didn't I didn't trade much I just treated for the example and I treated gold Which was a pleasure. It's very simple to treat gold I feel like even a small child when it's trending if you're explaining. It's it's so easy And I treated it for about 30 minutes gold and I did a little bit of SMP. So I'm pretty oh, yeah And I will I will paste last time. I I thought I was pasting it, but I didn't I will paste the The box I started to do videos in English. I'm not sure if I will continue I know that back in 2016 When I done the the webinar with With book map and it was already with Bruce and if you haven't watched it you should watch it because it's a good one Of course book map have evolved a lot and the markets have evolved also volatility wise Since but I share a lot of interesting Of interesting info and back then the only answers I had was mainly from the Institution of size side of things. So I'm not sure if you guys are interested that I've done now a market analysis video Which is free. So I'm seeing a bit if there is an interest. So if you guys like it just Send me an email and tell me to continue if not, I'm not sure if I will continue doing it But I have done a complete market wrap for this week And a little bit of research regarding the news so you can take a look at it Okay, excellent. So yeah guys, I he pasted it in there and I Repasted it so you guys have it for sure And you can you can sign up there and if we didn't get to any of your questions, please then you can reach out directly To Kevin I've put in here several times all his contact information as well as the recording from part one We will have the recording for part two here On our YouTube channel a bit later this afternoon. Give us some time to let it You know parse and and produce here so Other than that Yeah, any any parting words Kevin? No guys stay safe Feel free to send me emails. I'm locked down. So besides trading and Answering emails and making presentation. This is one of the reason why I'm very present online Those days because I have no way to go So yeah, feel free to send messages Don't get too overwhelmed The strategy has a very high ratio of reading but They they take some time and some work to be able to recognize market conditions and One one single trade can of course Wipe out 10 trades. So you need to keep that in mind but yeah, besides of that, thank you for attending and Stay safe all of you guys Okay, excellent. Thank you Kevin. Thank you very much everybody Thank you bruce. Bye. Bye. Bye guys