The trading method seems simple enough, and it is represented as such: a glorified 'Slingshot' retracement scalping strategy with a modest profit goal.
Michael is able to manage several markets with the agility that few can. He has an experienced eye to know what he is looking for, and the skill and speed to execute.
It seems to me that the primary factor in achieving positive results is very aggressive trade management.
When I followed along, there were times that I knew his rules would not have achieved the results he represented on some trades. I determined that he sometimes didn't enter on the mini trend line break, but often waited for a slight pullback for a better entry. Then one day, Michael was reviewing a specific trade that would have been a winner, but, "I missed this one because I was trying to enter a couple of ticks better." It was the first time I had heard him admit he wasn't following the simple trend line break entry, but (at times) looked for a slight pullback for a better price.
I have a problem with anyone representing results of a strategy when they don't follow their strategy. The difference 1-2 ticks improved entry can make on a scalping strategy can be significant. And yes, you can miss trades as well. So does it matter? I don't know. It just bothers me when I am diligent to follow the rules as stated, don't get the same or similar results, then realize they don't follow the rules as stated. What else is being adjusted or changed on the fly?
Regardless, this faster scalping style with aggressive trade management may not be suitable for many. Like all trading methods, spend plenty of time on a simulator to determine if you can achieve profitability with just one or two markets at one time. Best of luck.
The following user says Thank You to laenxin for this post:
These posts are very helpful to me because I am a memeber and trying to figure out how to make this work. Michael does make profits the vast majority of days, I do believe he is trading live and does count his losses accurately because some days there are a handful or more. You do have to be quick to keep up with him, amazingly quick, I am still working on this. I believe if you can hone this skill very sharply, executing trades and drawing trendlines with rapid speed and accuracy, while being very disciplined to take your stop outs and break evens, you can make money with this, I am still working on this because I have not found anything any better. I am also learning volume profile with another system, GTR, but that will take a while to master as well. None of these rooms I have found will enable anyone to just walk in and succeed without a lot of hard work, and rock solid discipline, not easy at all.
The following 2 users say Thank You to Greg4hvn for this post:
The main problem with this style of trading is that it promotes over-trading. If a person is taking more than 2-5 trades in a day there is something serious wrong with that system.
Even if it works for Micheal!
I can almost promise you that he is not paying the same commission as you would be paying since they seem to promote Daniel's trading firm. Twenty trades on average = $100 in commission using his $5 matrix. Forget the $8 commission because no one pays that these days.
The other issue is how he state a blue day instead of a losing day. If he makes his goal early but finishes down after his two hour trading session he calls it a blue day which utterly ridiculous. If you're trading for two hours it doesn't matter if you made your goal in ten minutes, thirty minutes or hour. Its about how you've finished in that two hour trading session. NET WINS after commission.
This is not a sustainable recipe for success for the average trader, especially if the markets are choppy like the last two day of 11.2.15 and 11.3.15 even Micheal took a hit with 20 plus trades. Check his results for those days. So think about how you would have done trading this method for yourself.
I'm certain your number of trades would have been much higher with greater losses. I myself had a total of 5 trades 1 loss, 4 wins on 11.2 and 4 trades all wins on 11.3 but only took what the markets were willing to offer. I never pushed the trades for maximum gain and I didn't scalp for peanuts either. Its about having an efficient trading system/method that prevents you from over leveraging yourself and taking unnecessary losses.
Too many traders take below average or marginal trades and when the super great trades come they are digging themselves out of a hole. Also, if you have a system that can't differentiate between a below average or marginal trade than that system is not very efficient from the start.
Last edited by xtrader111; November 4th, 2015 at 04:10 PM.
The following user says Thank You to xtrader111 for this post:
Please excuse my mentioning that I think that statement might be something of an over-generalisation: I certainly know some long-term, successful, professional traders who routinely take more than 5 trades per day. It depends on one's trading styles, objectives and techniques.
The following user says Thank You to Tymbeline for this post:
I agree with what you say. I have been a CFRN member for more than a year and I take the same trades as Michael but due to account size can only take 1 trade at a time and when Michael is often in 2 - 3 trades at the same time the one that I'm in usually gets stopped out and between his 3 trades he will usually make a profit overall. He is usually exact in his entry's which he calls in advance and uses a 8 tick stop loss in case the trade goes wrong.
"... In total, I received about 30 emails from people that had either participated in the trial, had paid money to CFRN, or lost money trading in a live account. I even got a phone call from a lady in Oregon that had purchased the program based upon a review she had read about in Futures Truth and how Dean Handley had also written a positive review. ..."
The following user says Thank You to Cloudy for this post:
Hello, I also pray before I work, however I am not trading at this time as I have not found any edge, even with CFRN membership, I am finding it too tricky to wait around for these perfect setups which only happen every now and then, in a big trend with a tight pullback then move continuation, that is the best setup for this system, at least for me.
Any other advice to consistent positive results would be very much appreciated. I like the prayer method, sounds like a winner all around.