It was in late 2006 that I got to know financial markets for the first time. Two years later I was seriously involved with them. It took me a few years to study a variety of trading systems. But I just could not master some of them - some were obviously imperfect, others were rejected for being ambiguous in interpreting one and the same market situation differently. Two years of searching did not yield a single trading system that would help me in the profession I had chosen to pursue. It dawned on me that I would have to create one myself. Otherwise, I would have to forget about trading in financial markets once and for all.
It has been an open secret for a long time that a trader's success is based on trend trading, i.e. trading that follows an actual tendency of price movement. The reason is very simple - it's about objective conditions that facilitate generation of larger profits and, respectively, smaller losses when following the trend rather than a trader's personal preferences.
These conditions primarily include the number of pips an instrument covers in a period of time during a trend and a corrective movement.
Have a look at Figure 1. You can determine exclusively by sight that trending movements win in this respect. As a result, we can benefit more and, equally important, sooner from trades opened along the trend, get quite more profits than working in a correction to a trend.
Figure 1
That the price moves sustainably in one direction within a trending movement is another criterion. Small pullbacks, a powerful rapid movement. This is surely and indisputably one of the advantages of trend trading.
Once I understood this, I set out to learn to follow the trend and stay calm ignoring corrective movements. However, only being aware of advantages of trend trading does not offer much unless the trader has specific trading rules - his or her own Trading System.
When creating my own trading system (of course, based on working in price trends), I was governed by principles that, in my opinion, at least give a chance of not ending up among most traders who ingloriously finish their trading career or might as well become a general cure-all for error-free trading. My work is based on three main principles applied to make trading significantly simpler.
1. This is what was actually referred to above: "Trading exclusively along the trend". Trades cannot be opened in the direction of a correction.
2. "Letting profits run and cutting losses". Stop-loss orders are a must. Otherwise, this usually results in one unpleasant thing - ruin of the trading account. At the same time, a trade opened along the trend should be maximized and closed after a clear signal of the trading system.
3. "Entry on a pullback". The trade cannot be entered after a break of trend levels that are seen with 'the naked eye' by the entire trading community. It's hard to imagine the number of orders put on such levels. It becomes clear when we get back to statistics (over 90 percent of traders lose their accounts) what entries on such levels result in. Entering on a pullback rather than on peak breaks has become one of my major principles. As a result, when the price approaches levels of massive accumulation of orders my position should be moved to a break-even.
Figure 2
These are my three major principles of trend trading. Essentially, there was nothing to invent - it's ancient classics. However, these principles do not become less important with time. Nevertheless, increasingly fewer traders use such rules in trading. In my opinion, such ignorance inevitably leads to the ruin of accounts.
The trading system uses a minimum of indicators that were created long ago by other people. I have always thought there is no point in inventing new market analysis tools - you just need to learn to use what was developed and tested long ago by other people who are much better at creating such tools than me. I advocate the simplest technical analysis that you don't have to spend more than 5 minutes a day for all instruments and timeframes you have chosen to trade. As a result, most students of the FMA_SAR Department have no difficulty learning the rules of the trading system. If necessary, I try to find an individual approach to each student of the Department despite the fact that tuition is carried out in groups rather than individually. Nobody should finish the training without fully learning the trading rules.
Below is the feedback from a few students that studies at the FMA_SAR Department:
"Volodia, thanks a lot for your training! I liked the TS a lot, it is simple, clear, offers no ambiguous signals and really generates profits. I would never have thought that making profits could be so comfortable! The atmosphere in the Department is friendly, the material is laid down clearly, Vladimir leaves no question unanswered, and the training process brings pleasure and positive emotions. I have been looking for a system like this for many years and wanted to end up with it. Now I know not only when to trade, but also when to stay aside. Thank you, Vladimir, for sharing such useful knowledge, thank you for the work you have done, effort and patience and for what I now know about futures.
If there are people who don't know yet how to approach the market, I recommend starting with FMA_SAR. After it you''re unlikely to want to learn something else because this TS already has everything you need. So I suggest everyone study here.
I wish Vladimir health, major creative achievements, talented students and invariably profitable trading.
Vivat FMA_SAR! 25th full-time group".
"I am not good at writing feedback and will put it the way I can. I liked both the training and the system which involves trading only the trend. I started keeping records for the system on the 20th, kind of a trading log and felt yesterday that 10 days of trading changed a lot, I already know all filters and rules though still get losses for lack of experience. But yesterday I had such a large profit!.. Though I know only three systems I don't think it will be easy to find a simpler and more brilliant system. This system isn't exactly simple - it's as natural as could be in being based on the trend and ignoring the range where everyone's expected to lose money. To cut it short, it is as natural to trade this system as to breathe, in my opinion. Entry signals are as unambiguous as possible and cannot be interpreted dually. Vladimir puts stuff in simple and clear terms, the atmosphere in his lessons is very friendly and natural. I am really happy. Now I only got to absorb the system's rules, train every day to the fullest of my ability with complete concentration and make it automatic".
A few trades from the Department's students - both in professional terminals and MT-4
Head of the FMA_SAR Department, Vladimir Vladimirovich Novikov (Valadimir)
