Trader's trading algorithm- a step-by-step scheme of trading during the working day. An important tool for every successful trader, thanks to which it is possible to maintain trading discipline and follow a well-defined trading strategy. Ready-made algorithms for traders have already been published on the site:

but this time the algorithm is published, which many traders are looking for, both the stock market and the FOREX market - this is

Gerchik's algorithm:

Working day schedule:

1. 07:00 - The begining of the work day.
2. 07:00 – 07:15
3. 07:15 – 07:30
4. 07:30 – 09:20 Preparing homework.
5. 09:30 – 09:55
6. 09:55 – 11:45 I trade stocks with selection.
7. 11:45 – 01:30
8. 01:30 – 03:45
9. 03:45 – 04:00 Watching the output of imbalances .
10. 04:00 – 04:15 Statistics and results of the day.
11. 07:00 – 07:15 Re-analysis of yesterday's trades, with a fresh look.

• View both negative and positive trades from the previous day.
• Evaluation with a "fresh eye" of the entry point, stop and potential.
• Analysis of moments that were not taken into account, but should have been paid attention to.
• I write down all the shortcomings and errors in a notebook in order to avoid them in the future.

07:15 – 07:30 News. Their analysis and the state of world indices.

• View what macroeconomic indicators and news are released today in the US.
• Which sectors can be active when a particular indicator is released.
• On the www.bloomberg.com resource, I watch how European and Asian markets closed, if I find general trends of decline / growth, I determine the news that globally affected the markets. I analyze and try to guess what trend this news will give to the American market.

07:30 – 09:20 Preparing homework.

The best, in my opinion, broker - for day trading, for scalping.

1) Analysis of post- and premarket SPY. Futures and currencies.

• I watch how the market traded after the main close (04:00) and also how it trades on the premarket. If any important news has already come out, I evaluate the reaction of the market to them. I draw the previous day's close level and important SPY support/resistance levels. I determine the general mood of the market.
• I look at the value of the main futures for gold and oil, as well as the ratio of the EUR/USD pair. If there are strong movements in one direction or another, I determine the cause and possible reaction of the Market to them.

2) Based on all the collected data, I am compiling an algorithm for selecting stocks specifically for today's trading session.

Primary requirements:

• The stock is traded on the NYSE and NASDAQ and these are its main trading floors (not ADR)
• The share price ranges from $5 to $50.
• The average traded volume per day is from 300K to 15M
• The stock has good liquidity, no 5’ gap, as well as large candle shadows on a small timeframe.

Additional requirements based on the analysis of the “mood of the market”

Auxiliary tools and method:

• In the TOS program, the watchlist contains promotions that fall under the above requirements and, in turn, are divided into separate groups for convenience:

• The NYSE is broken down into 12 major sectors such as: Basic Materials, Capital Goods, Conglomerates, Consumer Cyclical, Consumer Non-Cyclical, Energy, Financial, Healthcare, Services, Technology, Transportation, Utilities. This allows you to quickly find out if any of the sectors is showing increased activity and pay attention to it.
• "research", where I drop shares to trade for today's trading session.
• "penny stocks, list of cheap stocks under $10
• "earnings", a list of stocks that have a quarterly report yesterday today or tomorrow. The list becomes more relevant in the earnings season.
• "NASDAQ" includes all stocks traded on the Nasdaq that meet the basic requirements.
• "Pump'n'Dump", to this list I add stocks that, during the research process, showed clear signs of this trading strategy. The list is compiled solely for observation and possible further use of acquired skills.
• Russell 2000, a list of 2,000 small cap companies. Used during intraday research.

The main idea behind the selection is to find stocks that behave differently than the rest. All stocks go with the market, but if there is no well-known news for the stock, and at some point it tries not to obey (resist) the market or even goes in the opposite direction, then there may be a strong player in it. And at the slightest signal of the market in the direction of the stock trend, it can easily strengthen its movement. An idea based on greed and panic, and this is characteristic of any person, especially a trader.

You need to form your strategy based on correlation, potential, risk assessment and a point as close as possible to support/resistance

Given the market chart over the past couple of days, I'm looking for stocks that, with increased volume, resisted the direction of the SPY move or (better yet) moved in the opposite direction. On the daily, I should see that this correlation is rather an exception and the stock, as a rule, "obeys" the market.

As for volatility and potential, on the 5’ chart in TOS, at a normal scale, the grid division should be at least 0.25-0.50s, otherwise the stock does not suit me due to the small, most likely channel movement.

The main research I do is among 12 NYSE sector listings and one NASDAQ listing. Looking through all the stock, a total of about 1000 pieces. Applied to the main additional line chart, SPY visually facilitates and speeds up the selection process.

When selecting, I also take into account at what volumes the stock approaches a non-breakthrough level of support/resistance and what the market was doing at that time.

I pay more attention to stocks that, for example, do not go up on +SPY, stand or slowly but surely slide down.

The gap at the opening also plays an important role, if it is in the opposite direction from gap SPY, and did not bounce back during the day, then the stock causes me increased attention.

On the day, the potential for movement should be visible. Since the trading strategy is to trade from the level. When selecting, pay attention to strong support/resistance levels at which the stock is traded.

Having selected a certain number of shares, I look at them again. I try to reduce the list to 15-20 pieces. I also look through the stocks from yesterday's selection, and leave the ones that suit me according to the selection algorithm.

Having made the final list, I draw on the daily, as well as the open / close and hi / low of the previous day.

09:30 – 09:55 open. Watching stocks from homework.

• I watch how shares from my selection open. I pay special attention to those that made a gap in the opposite direction from the market or opened at a strong level.
• I evaluate the strength and direction of SPY, as well as the strength of resistance and movement of the stock. I identify stocks that move in the opposite direction from the market movement or form a shelf at a certain level.

09:55 – 11:45 I trade stocks with selection.

• You need to look for support and resistance. That is, where the action rests and where the movement can come from.
• I choose a couple of stocks that better than others follow the idea of ​​​​my trade. I upload it to Time&Sales and for some time I watch the printout in the stock.
• In the tape and on the chart, I should see that when the stock approaches the formed level, they begin to actively push it away from it, at this time, as a rule, the volume is many times larger than the average by 1 '.
• An important signal is the almost complete absence of sellers (in the mood for a long position) in the stock, or at least a small number of them compared to buyers. That is, the return of the stock to the level should not occur due to active market sales, but due to the buyer’s unwillingness at the moment to hit the offer at an overpriced price.
• The stock must form a certain base, with a clearly defined, as a rule, not in one price, but in a range of several cents, depending on the situation.

• The stock must have potential. This is one of the first things I pay attention to before entering a position. I pay attention to strong levels, patterns, as well as the direction of the market trend and whether it will give this stock movement.
• When trading from a level, risks should be assessed, and by prints, you need to see a big player who is ready to accumulate a position (keep the level) for a very long time, otherwise do not enter!
• If the stock is strong, my entry is not at Hi, but at the lowest possible price, where it rested. If the stock is weak, I need to find the maximum short point.

Important!

• stock direction (trend)
• where who buys and how aggressively
• where who sells and how aggressively
• what happens when it allegedly seems that everything is a reversal

The goal is (for example, for long) to see that there is no one to sell the stock, but there is a buyer or they start buying very aggressively, which means that there is still a lot to buy.

You should take from the level when it is the worst, when the stock is pressed to the level as much as possible, then the risk is minimal.

As a potential position, I consider stocks where you can only put a technically correct stop within 5-8 seconds.

Having chosen a stock for trading and having determined the level of support / resistance, stop, potential and having received all of the above signals, I am getting ready to enter the position.

I put limit on (the lowest possible for long and the highest possible for short) the price at which the prints passed in the formed base. I immediately prepare a stop market order for the price chosen for the stop.

When I receive a position, I send a stop market order and begin to observe the further behavior of the stock.

If the stock does not go according to a predetermined plan or has ceased to comply with the above signals, then, without waiting, I close the position on the market.

If a position is not given for a long time and the situation in the stock has changed, you should cancel the order and continue to monitor the stock. Take a position only at a predetermined price, there is no time to catch up with the stock.

Holding a position is accompanied by the following actions:

• monitoring by time&sales of the distribution in the stock, the balance of forces and the size of orders put up for purchase/sale.
• according to the chart, monitor the approach to levels and price figures. See how the situation changes when you approach it.
• look at what volumes and in which direction SPY is moving.
• keep track of what volumes and candlesticks the stock is moving on. Whether momentum is maintained in the stock, fight off the pullback levels on a small timeframe.

Analyzing all these points and drawing certain conclusions, the position can be covered by the market or a closely pulled stop.

Risk management with an open position.

Initially, the risk is given no more than 8s and the minimum ratio to the potential profit is ¼. Depending on volatility, volume, momentum and other particular factors, the stop in a stock moves in different ways. But having a single meaning of setting a rollback level or a new formed base. The first movement of stop is made to the level without loss (that is, +2...3s from the entry point). In slow stocks, this is done when moving away by 10-12s from the entry point, in fast stocks, the initial correct technical stop is held until the stock leaves the accumulation base and begins to consolidate to a higher level.

Exit from a position:

It is carried out when a pre-planned potential is reached and a signal is received about a reversal or a stop of movement due to the withdrawal of an active player from the action.

It is carried out in various ways, depending on the volatility of the stock and the current situation. A fast stock uses fast orders such as market and stop market to exit. In slower stocks, you can exit with a limit order, placing it at a price that has become a new level of support / resistance in the zone of the achieved potential.

11:45 – 01:30 Dinner. I've been watching promotions from homework. I am doing a re-research.

• I continue to monitor the shares from the selection, which are going according to the plan, but due to various reasons, they have not yet given an entry point. I pay attention to whether the volume and trend in the stock has decreased during lunch, or if the big player in the stock is still active. I single out particularly active stocks and watch them.
• The watchlist in TOS sorts stocks by Net Change criteria. Accordingly, the stocks that have gone up the most are at the beginning of the list, and those that have gone down the most are at the end of the list. Based on the SPY intraday trend, I look through and select the top gainers and top losers in each sector separately and in the list of stocks traded on the NASDAQ. When choosing, I also pay attention to strong and weak stocks.
• In the observed stocks, I spend all the same opening / closing levels, as well as strong support / resistance levels that have formed within the current day. I identify new potential entry points based on their behavior of the stock and its movement trends.

01:30 – 03:45 I trade stocks from selection and new research.

• Following the same formation, I continue to trade stocks from homework and a new intraday selection.

03:45 – 04:00 Watching the output of imbalances .

• I look at the list of stocks that had imbalances MOC orders at the end of the day.
• I filter stocks by price range from $10 to $50 and volume above 500K.
• I pay attention only to those stocks whose imbalances are > 15% of the total traded volume.
• On the chart, I should be able to see that the stock has normal volatility and an average intraday range. And it is desirable to know the minimum information about this action.
• Having decided on a few stocks, I load them into the feed and look at the chart.
• For the last 15 minutes I have been watching how the imbalances are changing. I make certain observations and keep a record of them.
• I compare the results obtained in the end with the expected ones. I am looking for certain patterns of stock behavior, taking into account various factors such as (price, average volume, sector, market strength, etc.)

04:00 – 04:15 Statistics and results of the day.

• I sum up the day. I fill in all the statistics on transactions for the last trading session with brief explanations of entry points.
• I write down all the observations for the day in a notebook.
• I fill in psychological and technical diaries.

1. I do not trade for the first hour, I watch how the instrument is traded (breakouts of levels are traded for the first hour).

2. Trade strictly according to the algorithm.

3. Enter into formations that I see and understand.

4. Trade only rebounds from levels.

5. Two timeframes are used for trading:

a) daily - determination of levels, trend direction, ATR and power reserve;

b) 5 minutes - determination of the entry point.

6. Trade from the stop.

7. Power reserve:

a) daily ATR - up to 75% entry along the trend, after 75% entry into the countertrend;

b) look at the nearest support / resistance levels.

8. Wait for the entry point, don't look. Who seeks will always find.

9. Enter with limit orders.

10. Start trading with one contract:

a) if the week closes with a profit, I increase the volume;

b) if the week closes with a loss, I reduce the volume.

11. The maximum risk per trade is 1% of the deposit.

12. The maximum number of losing trades per day is 3 trades.

13. If on a profitable day a losing trade takes 30% of the profit, the working day is over.

Markets (forts)

Traded Instruments:

Futures contracts for shares

• JSC "Sberbank of Russia" ordinary shares
• Gazprom"
• Si - dollar-ruble exchange rate

Trading time (forts)

Work schedule

10.00-14.00 Beginning of the main trading session.

14.00–14.03 Intermediate clearing session (day clearing).

14.03–18.45 End of the main trading session.

18.45–19.10 Evening clearing session.

19.10–23.50 Evening trading session.

From 10.00-11.00 I watch the market, I do not trade. I do not trade the evening session at the beginning.

Levels (forts)

1. I determine the levels on D1, the day is always primary.

• Level - the point (price) at which the issuer changed its direction, i.e. where the level was, we do not know, we take only historical events. Post hoc.
• Levels are formed only by trend breaks or long trades.
• The strongest levels are formed by tails and false breakouts.
• We believe that everything goes from level to level.

2. Level can become.

• The closing price of the instrument on the previous day.
• The opening price of the instrument on the previous day.
• High/low of the year
• High/low of the previous month/week/day.
• Lower pullback point on up-trend and upper pullback point on down-trend.
• High/low spikes on high volume.
• Boundary gaps.

Levels that have been "worked out" in previous days.

3. Strength levels (from weak to strong)

• Air level (1 + 2 + 3 + 4 in a bunch, BSU has not been seen before within the screen).
• Air level + round number.
• Previously encountered level.
• Previously encountered level + round number.
• mirror level.
• Mirror level + round number.

4. Air level (+ 1 point)

• The weakest model in terms of information content is the air level.

BSU-bar formed the level.

BPU- a bar that confirmed the level.

This is where BSU; BPU-1 and BPU-2 go all in a row, without gaps.

• At the air level, do not enter the countertrend! Only on trend.

Air level + round number (+ 2 points)

• There is such a thing in technical analysis as a round figure, for example, the level of 79500 or 39000.
• Usually the strongest option levels are located at such levels.
• These so-called round numbers - they strengthen the levels, that is, if the level is located on a round number, then its strength is stronger.

5. Level that has been encountered before (+ 3 points)

That is, somewhere here there was some kind of trading and a limit order starts back. The level that was encountered earlier is naturally more informative in terms of strength.

There can be any number of bars between BSU and BPU-1.

6. Previously encountered level + round number (+ 4 points)

7. Mirror level (+ 5 points)

8. Mirror level + round number (+ 6 points)

Mirror level, i.e. in a simple way, where the support level becomes the resistance level (and vice versa) - this is the strongest level in terms of information content.

9. Level boosters

• Tails (wicks) - if there were long shadows during the formation of the level.
• Round numbers - psychological level.
• A false breakout is a breakout formed by two stronger bars.

There are also two levels that are not suitable for creating a trading model and carry only information:

• Floating - there is no clear limit player in it;
• Internal - clamped and has no power reserve.

Trend (forts)

• For us, the trend is where we are relative to the levels.
• On the daily chart, we look at the current price relative to current levels, i.e. below the level - shorts, broke through the level down and fixed - we go short.

• If we are above the level, it means that we are in the long zone and we look at all transactions in long. They broke the level up and fixed – long.

• For us, the zones are our trend.
• There is only one task: above the band - we buy, Below the band - we sell.

Conditions for entering a trade

1. We determine the levels on the day.

2. Share trend global:

• If we are above the level, it means that we are in the long zone and we look at all transactions in long.
• If we are below the level, it means that we are in the short zone and we look at all transactions in short.

3. Potential (reserve) of the course.

a) Look at the average ATR for the last 3-5 days;

• Trend entry - when the instrument passes up to 75% ATR;
• When passing 75% - ATR, we do not trade with the trend. We are looking for a countertrend entry point.

When the instrument is near the record values ​​– rewrites high/low – you can close one eye on the past ATR and continue to follow the trend.

b) I look power reserve to the nearest support/resistance levels.

4. If there are no shadows on the candle of the previous day, it is likely that the movement will continue - someone did not manage to buy / sell everything yesterday (it is also a “panic” candle).

• Closing the deal at the highest/low - 9 out of 10 continuation of the movement - not everything is bought/sold.
• A backlash of no more than 10% is allowed.

5. I am looking for options for a short stop - a strong level.

6. Calculation of the risk in the stop (Stop loss)

• Max. Stop loss 0.2% - a trade with a trend. 0.1% - against the trend.
• Si = 20 points (not calculated)

7. Profit calculation (Take profit)

• Risk/reward ratio of at least 1:3
• If the input is more than one lot, I go out in parts of 50-60% - 1:3, I break everything else into parts - 1:4, 1:5, 1:6, etc.
• When the price passes the target 1:3, I transfer the remaining parts to 1:2.

8. Backlash calculation \u003d 20% of the Stop loss size

Si = 04 kop. (fixed)

9. TVX - BSU; BPU-1; BPU-2 TVX

• Entry into a trade with a pending order + backlash.
• Stop loss set immediately.
• Take profit immediately.
• Do not go into compression.

Position entry

Model

1. We have a level.

• BSU is the bar that formed the level.

2. BSU is a post factum phenomenon that confirms the presence of the previous level.

3. BPU is a bar that confirmed the level.

4. There can be any number of bars between BSU and BPU. BSU and BPU must beat point to point.

5. BSU can be located in any plane relative to the BPU, i.e. it doesn't matter where it is located.

6. After BPU-1 comes BPU-2. There can be no other intermediate bars between BPU-1 and BPU-2, i.e. they must be a bundle. BPU-2 may not reach the level for the size of the backlash.

7. TBX is the entry point.

• 30 seconds before the closing of BPU-2, a limit order for sale or purchase is placed.

8. After placing a limit order, I immediately put Stop loss and Take profit in the order.

9. A buy or sell limit order is canceled when the instrument passes 2 stops.

• The main condition for 2 stops is the closing of the bar or candle at the level of 2 stops.
• If the price approaches the next level with abnormally large bars - a signal to exit the transaction, a rebound from the level is likely.
• If the price approaches the next level with small bars, this is an accumulation of a position, a breakdown of the level and Support Resistance is likely.

Models we are looking for

• At the levels, you need to learn to see the battle plan of buyers and sellers and choose the winning side.
• Traders' belief in support and resistance levels form these levels - they are self-triggering mechanisms.
• What triggers the logic of traders, what puts pressure on the brains of traders? – Templates! Templates work, and it all works on the analysis of the past, on the analysis of charts.
• Everyone sees the same thing. But still, the binding will always be the same - to the level.
• Everyone is looking for something to attach to.

entry points

There are situations when there are limiters at the top and bottom. Provided that the price is clamped from above and below by limit levels, the work is carried out according to the local trend.

• We come from below, we go up.
• We come from above - we go down.

The exception is the previous historical level.

• If there was a historical level, we go into a countertrend.
• If there were no historical levels, we follow the trend.

Range (RANGE)

In RENGE we have the simplest. We have a corridor.

• And naturally, the lower and upper boundaries of the corridor are our levels.
• Trading is carried out from level to level.
• The width of the corridor must be at least 3 ATR.

Trade Exit

The most difficult is the simplest, oddly enough. These are exits.

I go out extremely simply: 3 to 1; 4 to 1 and 5 to 1. This is any intraday deal.

• 3 to 1 - we exit 50-70% of the transaction volume.
• Everything else I break into pieces.

Only when we break down by exit is it possible to learn to sit in an issuer.

Successful traders almost always work on their own trading strategies. They approach their development very carefully and scrupulously observe all the established rules in the process of trading. This article will review Gerchik's strategy, focused on finding entry points to the market, depending on the position of the price relative to important levels.

All trading systems of Alexander Gerchik assume the maximum reduction of losses, which results in an increase in profits. To do this, it is necessary to constantly keep trading statistics, recording in detail all the decisions made, including on the basis of which exactly such levels of entry, exit, StopLoss, etc. were made. Only constant personal development and improvement of the trading methods used can achieve real success on forex.

The essence of the Gerchik trading system

The main idea of ​​the described strategy lies in the fact that 60÷70% of the time the quote fluctuates in the zone between two horizontal levels. The rest of the time, the price moves from one zone to another, breaking through their boundary levels. At the same time, certain candlestick patterns are formed, which confirm either a breakdown or a rebound.

As a candlestick combination of Gerchik's trading system, a sequence of three candlesticks is used, High-prices or Low-prices of which form a local maximum or minimum, respectively. As soon as such a pattern is identified, then after the third candle closes, you can enter the market:

• buying - if the Low prices of three consecutive candles (highlighted by a red rectangle in Fig. 2) formed a local minimum (limited by yellow horizontals in Fig. 2);
• selling – if the High prices of three consecutive candles (marked in Fig. 1 by a red rectangle) formed a local maximum (limited in Fig. 1 by yellow horizontal lines).

Since the position is opened on the fourth candle (indicated by a white arrow in Figures 1 and 2), the described trading system is also called "Gerchik's Strategy 4 Candle".

It should be borne in mind that the level of a local maximum or minimum is described not by a specific price, but by a price range. Therefore, Low-prices or High-prices of three candles that form an extremum can be located at different price levels, but in an interval not exceeding the amplitude of these candles. In trading, such levels are called basic, so another alternative name for the trading system in question is “Gerchik's base strategy”.

Each level formed in this way has a certain strength, the relative value of which is determined by the number of candles involved in the formation - the more there are, the stronger the base level (the level in Fig. 2 is stronger than the level in Fig. 1).

Features of making transactions according to Gerchik's strategy "4 candles"

In the previous section, the conditions for entering the market were described. But a complete trading strategy should also include a method for placing StopLoss and TakeProfit on each trade. In the Gerchik Base strategy, StopLoss is set:

• for purchase - under the formed base level;
• for sale - above the formed base level.

The distance between the StopLoss and the formed base level is selected on the order of several points and, in general, directly depends on the working timeframe - the longer it is, the larger the StopLoss size.

And the size of TakeProfit depends on two parameters - the number of tests of the formed base level and the StopLoss size:

• if there were 3 tests, then TakeProfit is equal to three times StopLoss;
• if there were 4÷5 testings, then in TakeProfit it is equal to four times StopLoss;
• if there were 6 or more tests, then in TakeProfit it is equal to five times StopLoss.

At the same time, it is necessary to check whether there is a strong level on the way to TakeProfit, which will most likely slow down the movement of the quote. If there is such a level, then it is better to set TakeProfit on it.

Peculiarities of trading according to the "Gerchik Bases" strategy

Consider making a profitable trade using the example from Fig. 1 (Fig. 3). A short position is opened at the level indicated by the red horizontal line (at the Open price of the 4th candle of the pattern). StopLoss is set at the level indicated by the white horizontal (at a distance of 9 points from the formed resistance). Since there were 3 tests of this resistance, then TakeProfit is equal to triple StopLoss (its level is indicated by a blue horizontal line). On the candle on which the deal was opened, and TakeProfit was reached.

Now let's take a closer look at the example in Fig. 2 (Fig. 4). It was necessary to enter the market at the level indicated by the red horizontal, and StopLoss had to be set at the level of the white horizontal. It can be seen that the size of the StopLoss is too large, and when testing the formed support by the price four times, TakeProfit would have to be placed too far (equal to four times the size of the StopLoss), which would make it unlikely that the price would reach it, which is shown in Fig. 4 (the price did not reach TakeProfit and reversed by activating StopLoss).

Therefore, for each transaction, it is necessary to check the feasibility of opening it by the estimated StopLoss size - if it is too large, then it is not worth opening a position. Solutions in this situation can be the following actions:

• making a deal not at the opening of the 4th candle, but a little later, if the price again approaches the formed extremum (or enters it);
• opening a position in several parts, each of which is closed after the price reaches the level of a three-fold, four-fold, etc. StopLoss with its simultaneous movement to the breakeven area.

“Desperate people do desperate things.” In the language of the market, it sounds like this: “Desperate traders always take too much risk and almost certainly lose.” In order to avoid this fate, I am sharing with you 10 commandments of trade from Alexander Gerchik.

I found them in his book The Active Trader Course. And if you trade or decide to trade intraday, then you should definitely read it.

Commandment 1. Trade for success, not for money. The market is not money. Your motivation on it should be a well-executed trade. Focus on the trading process, and the profit will come by itself.

Commandment 2. Remember discipline is the key to success. Without it, you will not be able to handle risk, listen to your own, and consistently follow its signals.

Commandment 3. Know yourself. If the thought of putting money on the line makes you sleepy, then a low-risk, diversified one is for you. But if you can manage risk with discipline, then maybe trading is for you.

Commandment 4. When you trade, forget about your ego. Allow yourself to quickly exit losing positions when the market proves you wrong. And when you achieve success, never let it hit you in the head.

Commandment 5 When it comes to the market, there should be no question of such things as prayer or hope. When the market reaches your level, get out. Even if the market then reverses and immediately begins to rise in front of your eyes, you should congratulate yourself on having the discipline.

Commandment 6 Let profits run and cut losses quickly. Get out when your losses are small. Then reevaluate the market and make a new trade. When you reach your target profit, don't get greedy, but exit. You will never go broke taking profits.

Commandment 7 Know when to trade and when to wait. Be present in the market with your mind, not with your money. Trade when your analysis and your system says you have a buy or sell opportunity. If the market doesn't have a clear direction, wait for it to pick up.

Commandment 8 Love your losing and winning trades equally. Perhaps even more unprofitable ones, since they are your best teachers. When you have a losing trade, something is out of phase with the market. Determine what went wrong, correct your thinking, and re-execute the trade.

Commandment 9 Take a break after three losing trades in a row. This is not the time to take more risks. Take a break for a while, watch the market, clear your head, re-evaluate your trading strategy, and then open a new trade.

Commandment 10 The rules cannot be broken. We all know that sometimes you can break a rule and get away with it. But sooner or later, the rules will catch up with you. If you violate these 10 commandments of trading, you will eventually pay for it with your profits.

And as usual, a question for you: Which of the following commandments do you keep? And which ones cost you dearly if you didn't? Share in the comments below.

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A. Gerchik is known among traders as a successful investor who has achieved high results. Each participant in the Forex market heard that Gerchik conducts courses, webinars, etc., perhaps even you opened his articles.

Such a personality was able to cause an ambiguous opinion among investors. There is a group of practicing speculators who consider Alexander the guru of the foreign exchange market. And there are those who insist that this is an infotrader who makes a profit by selling his own courses. Who is A. Gerchik for you?

So, in this article, we will consider a trading strategy for the Forex currency market. Moreover, we bring to your attention recommendations from Alexander.

So, this is a Ukrainian who emigrated from Odessa to America in the late 90s. Initially, he worked as a taxi driver, dreaming of becoming a trader on Wall Street. But, for this it was required to take 4-month courses and pass exams.

Then Alexander took courses, and even got a license from a stock market broker, and began working as a trader's assistant in a small firm.

Worldco - this company became the place to start the success of Gerchik's career as a successful investor. After a while, a brokerage company was created along with other traders -. Then the investor began to compose courses, webinars, write articles and books.

As we can see, it was not an easy way for Gerchik to become a professional, well-known trader in the world.

TS "False breakdown"

• Type of tactics— trading from levels.
• Trade- once a day.
• TF- one day.
• Trading assets: British pound-dollar, dollar-yen, Australian and American dollars, gold.
• Recommended Broker— Gerchik & Co

Features of finding levels on the chart

In the technique developed by Gerchik, the designations of certain moments on the chart specially compiled by him are used:

• BSU- a bar that was formed by the level.

This bar is taken into account only when connecting the bars of FLU 1 and 2, which act as proof of the level.

• BPU- a bar confirming the level.

This bar is based on the level formed by the SS bar with the same number of points. In this case, between the bars of the confirming and forming levels, there may be an unspecified number of intermediate bars.

Even more, the bars on the chart can be on different sides of the level. But, in this case, the level can be formed both by the shadow and the body of the candle.

Between the bar of confirming levels 1 and 2 there should not be buffer bars, they must be located one after another. At the same time, the bar confirming level 2 should not approach the level up to points, even more, there may be a slight backlash between the levels.

It turns out that the SU bar and the PU bar are located on different sides of the level. In this case, the bars PU 1 and 2 should be located in the same plane.

• Level round- a level ending with a round number.

A level is powerful if levels of historical and mirror type are formed on it.

Trading according to the method of A. Gerchik

So, everyone knows that there are three possible scenarios for the development of an event in the market:

• Level breakdown.
• bounce off the level.
• As well as an incorrect breakdown of the level- this is a situation when the price breaks through the level on the chart, after which it turns in the opposite direction. Please note that this type of breakout can be of several types: simple (the price breaks the level and returns to its original position) and complex (the price breaks through the level, fixing behind it, and after one of the previously placed bars it will return to its place)

Incorrect breakdown occurs most often in such cases as:

It should be noted that a successful investor works only with complex and incorrect breakout levels. Alexander uses the system he compiled:

• Power levels are calculated.
• We expect the breakdown of the level and fix the price behind it.
• Orders are placed, while taking into account the fact that the cost will unfold in the opposite direction.

So, in order for you to understand what the essence of the technique is, let's consider a clear example of a deal.

First of all, before trading, you will need to mark the levels on the chart. Initially, a weekly chart opens and, in accordance with the trading method presented earlier, we form levels on W1, after that you can switch to a one-day chart, and there you already need to find the closest powerful levels.

After that, we expect one of the levels to be broken. Then, as the level breaks through, at the end of the day we place an order.

As an example, consider the conclusion of a transaction on the Australian dollar - US dollar currency pair. After the formation of a complex incorrect penetration of the level, an SL order is placed.

You need to put it behind the tail of the bar that broke through the level. The size of the TF should be calculated at a ratio of 3 to 1 of the SL.

The position is split. As an example, by moving to lot 1.2 with a TF of 3 to 1 and 1.1 lots with a TF of 4 to 1, the first TF is triggered, which means that the second operation can be transferred to breakeven.

If the order is inactive, the price pressed the movement more than half the distance to a further level, most likely the breakdown can be considered active, and the order should be deleted.

Conclusion

The strategy from Gerchik is not easy, but at the same time, the trader has the opportunity to work with the methodology of a successful investor. Please note that it is recommended to work out tactics on a training deposit. Since there are really a lot of conditions, plus do not forget about the basic rules in the field of trade.