Smart Execution
Smart Execution
*BTMM SIMPLIFIED*
*Disclaimer*
Nothing presented here either vocally or visually, is to be taken as trading
advice. All content presented here are for educational purposes only. Any
trades taken which are influenced in anyway by your participation, in any facet
of the Beat the Market Maker are strictly at your own risk. You should consult
your broker or financial advisor before placing any trade.
No presentation is being made that any trading account will or likely to achieve
profits and or loss similar to those discussed here. Past performance at of any
trading system or methodology is not indicative of future results. Trading
involves risk of loss of all part of your trading account or more. Always use
discretionary funds when trading. Never trade any market with money you
cannot afford to lose.
*NOTE THAT*
We don’t offer / give signals neither do we sell btmm videos or material.
_SMART EXECUTION_
BTMM SIMPLIFIED
Areas to be covered today
1-
(a) Psychological part about trading.
(b) Introduction to btmm basics and how it works.
I will breakdown the whole strategy in stages to keep this short and straight to
the core. Remember this are just the basics but build a strong foundation of the
btmm strategy.
I Am Kevin Mabgazara.
A trader.
Under Smart Execution.
We are a group of traders.
We use btmm method to trade.
I believe we all gone through trading pdfs and authors will always talk about
psychological part of trading and how it works.
But there are just 2 aspects l want traders to take note of today.
As a trader you should stop living in the land of goals rather live in the now than
to centre our attention in the future. We can't concentrate or even accurately
observe what is happening now. We can't dance well while thinking about how
we are dancing. We can't trade well when we're planning what we are going to
do (trade) tomorrow. Living in the now is an important need to good trading.
2. Belief
Well l feel this part is important and that we traders have a big challenge. To
say trading is easy or simple and profitable is incredulous to most traders and
absolutely absurd to others. Almost all traders experience a great deal of doubt.
We don't have faith in our method of trading. Let me rather say we lack
confidence in our strategies. The key to rising above to again realize what game
we are playing. The game is trading our own belief system. If you don't believe
in your method of trading, if you don't have confidence surely it will not work for
you. If we want to change our results we must our beliefs.
We almost not question our own beliefs that is what exactly a TRADER must
do.
_SMART EXECUTION_
BTMM SIMPLIFIED
So one might have a question of how the market maker works. The beat the
mm you need to understand his basic objectives
1. Inducing traders
As a trader u are tricked to take position in the market by the mm and then the
MM reverses at that setup going for your stop loss. They usually provide
evidence that price is or going to move in certain direction. Presenting this fall
move more traders enter that position only to be stopped out especially thru
margin call. Automatically you are out of the game.
2. They create panic and fear to induce traders to become emotional and
think irrationally
. Quick moves
. Spike candles
. News releases
. Inexplicable price behavior
3. Hit stops
This is when most traders enter margin trouble, and ultimately get out of the
game. All these l have mentioned above can be also called trade moves.
.
Sessions
Asian session
London session
New York session
Sydney session
Tokyo session
We focus on just 3
Asian Session
London session
New York session
So as a trader who trades London setups. You always looking out for setups
out of the Asian Box. So as trying to beat the market maker you are looking for
patterns.
1. M formation patterns
2. W formation patterns
_SMART EXECUTION_
These are some of the moves we spot before they happen. There is a lot into it
and personally I have at 6 things l look at before l enter a position. If I don’t see
at least 5 of those then l have no reason to trade that pair.
So as trying to beat the market maker you are looking for patterns.
1. M formation patterns
2. W formation patterns
1. Once they move out of the Asian Box into the London session (will
explain what an Asian Box is)
2. They may form the second leg out of the Asian box into London
session.
For you to be able to trade these patterns in sessions you will be trading the
London and New York session.
: Trading times:
Asian session
1100pm - 0800am
*Note that these are according to how I broke them down. Then may
depend with seasons, countries, etc*
These patterns appear everyday on forex pairs. For one to be able to see these
clearly.
Out of the Asian box they create a High of the Week… Once you see them do
that you can enter your trade with NO hesitation. They can never move up once
they setup the High of the Week (H.O.W)
Same thing there (picture below) where the LOW was created and then you
trade away from it.
This is what they do every day. Now it now up to you to open your eyes to see
these patterns.
Practical example
Like every day you can find a good setup and trade. Just train yourself to see
these patterns. That all you need. Trading does not take 2days to master it. It’s
a journey of learning and correction until you master the behaviours of
currencies.
Trading times:
Asian session
1100pm - 0800am
So as a trader who trades London setups. You always looking out for setups
out of the Asian Box. The market maker before he moves he always presents
setup that show he was to move in a particular direction. So as trying to beat
the market maker you are looking for patterns.
1. M formation patterns
2. W formation patterns
He always presents these patterns every morning on most forex pairs. How
does he form these patterns anyway? We just wait after 0830am out of the
Asian session he might form a M or W.
These are the probable scenarios. Remember he changes everything just to try
to confuse you. So you should be aware of that.
1. Once they move out of the Asian Box into the London session (will explain
what an Asian Box is)
2. They may form the second leg out of the Asian box into London session.
M pattern Or W pattern
These are the types of Ms and Ws that are usually presented by the market
maker before moving into any particular direction.
If they don't form the pattern in the London session definitely it's coming in the
New York session. What you have to do is to Wait and watch. Patience is
needed in this business.
Scenario 1.2 they formed the first leg for their W pattern in the Asian box. The
second leg was formed just after the Asian box signalling a buy
Scenario 2. A clear W was formed out of the Asian box signalling a buy setup
Scenario 2.1 A clear M was presented out of the Asian box signalling a sell
Scenario 3. In this situation the pattern is not clear. They hid the M pattern as
well. But we have a tool (TDI) that can clearly show us. The TDI showed a clear
M shape.
Scenario 3.1 In this situation also the pattern is not clear. They hid the M
pattern as well. But the TDI showed a clear W shape or pattern. (Squared in
blue below)
So this is how they usually move in the London session and New York Session.
So for you to be good at identifying these patterns you need to practice.
You should perform analysis of your charts going back over history on pairs and
looking for setups that would have given up to 50 pips.
You draw your Asian boxes, identify and Mark-up the patterns
We are looking for candles what will confirm our entry and patterns. These
candles are formed within the patterns.
They confirm what the market makers are about to move or reverse. So what
kind of candlestick patterns would one look for? Pictures on the way.
Things to take note off about patterns then we will move to levels thereafter but
the pattern is more important to master first.
Free tip
*M or W PATTERNS*
Check for a good NEW YORK SETUP between 1415hrs and 1515hrs
EVERYDAY at 8AM. They move out of the Asian box to create the Low of the
day (LOW) or High of the Day (HOW)
~Take profit you work with targets. If you reach your targets, close the trade.
~ If the pattern does not appear in the London session it will surely appear in
New York session.
You never know what kind of setup market will present to you, your objective
should be to find opportunity where risk reward ratio is best.
I hope you are applying what l have been revealing to you. If you are getting
positive results, that is good progress. Open demo account practice what l
showed you.
_SMART EXECUTION_
LONDON SETUPS
There are types of London setups. There are also known as Safety trades. Best
trades especially for beginners and newcomer to this method of trading.
These trades still come out of the Asian box
Trapping Setups often occur when we are going into level 2(topic to be
discussed) where moving averages 50/200 cross (topic be discussed)
These are the types of trades that give you more pips.
You should always tend to hold them. I hope you find this information helpful.
Note that we are still on M15. What usually happens is after the moving
averages cross they will cme back and pin Moving Averages 200 (EMA 200)
with an M pattern. Remember this pattern is coming out of the Asian Box. This
London setup doesn’t occur every day. Please take note of that.
Type 2 London Trapping Setup. Still coming out of the Asian box. M pattern
produced a pinning EMA200.
Type 3. After the PFH (peak formation high) has been formed. A drop will
follow. Then out of the Asian box a pattern is formed. Take note this time it is
formed in EMA50 (M pattern).
Below a PFH M was created. At A the EMAs crossed in the Asian box. The
EMAs were pinned whilst they were in the Asian box. You should always expect
what’s out of the ordinary
Above a W PFL was formed. At A the EMA 50/200 crossed. At B they pinned
the EMA200 out of the Asian box, that would have been an entry. C was a
possible entry if one missed the first one.
The PFL was created. A reversal in the NY session came in and pinned the
EMAs. At A the EMAs crossed and B they pinned the EMAs. That was your
entry point.
PFH was formed. Next day at point B they created the second leg of M out of
the Asian box. After that they crossed the EMAs. See here the pattern came
before the EMAs crossed. The pattern, the pattern, the pattern is key.
PFH M formed. At A the EMAs crossed. At B they pinned EMAs 50 and 200.
That would be your entry. Or the HOD (HIGH OF THE DAY) just after the Asian
box.
The PFH was formed. At B the EMAs 50/200 crossed in the Asian box. At A
was your entry because they pinned the EMA200 with a small M pattern.
Above a PFH M formed. At A EMAs 50/200 crossing and at B they pinned
EMAs 50 twice (2 times) then dropped.
W PFL was created. At A the EMAs crossed. The next day at B out of the Asian
box they created a W also pinning the EMAs 50/200. That was your entry.
*Introduction to levels*
Levels are the Market cycle. A market cycle is a pattern in the market that much
like a bike wheel will go round and round and round. Meaning there is repetition
in the market. Hence is was called Weekly cycle.
Weekly the market moves in LEVELS. These LEVELS can be basically
identified by:
BUT it’s also important to note that the market cycle happens on every time
frame, Lowest to the Highest. The difference is the timing.
Levels are the Market cycle drawn over 2.5 to 5 days of movement in a
particular direction depending on what they (market-makers) want to collect in
contracts. Please study pictures l always send below
Ok now the question will be how can one identify levels?
4. EMA CROSSES
(a) LEVEL 1 : 13/50 cross
(b) LEVEL 2 : 50/200 cross
(c) LEVEL 3 : 50/800 cross OR EMAs will be fanned out
At the end of the day you are gonna have to combine all this just to increase
your accuracy. The choice is all yours.
When counting level or periods always start with the peak formation
Typical examples
*LEVEL 1*
We expect:
*LEVEL 2*
We expect:
We expect:
A Stop Hunt (an aggressive move by the market maker to trigger the stops of all
traders.)
When counting level or periods always start with the peak formation.
Peak formation being the last level 3 or where the market changed the direction
after 3 levels of rise or drop.
When drawing your levels always start from a higher time from like the daily
chart timeframe.
So start by drawing the levels on day chart then you draw on h4 then h1 and
m15 for entry.
Peak formation: the highest point on the chart. (Can occur intraday and intra-
week).
Reset: (Trend Reset) the market maker will make a pullback to book a profit,
but needs to continue with the current trend direction to achieve the larger goal.
Remember the most important thing in the cycle is the patterns not levels.
If you are struggling don't get stuck up on levels. Levels are not as important as
recognizing the pattern the timing and the pushes.
I hear alot if people saying they are struggling with identifying the levels better.
So Yes you need to do more practice. It’s good that you want to learn that and l
do suggest you learn it but it's not gonna happen right away, it's going to take
some time for you to get adjusted to recognizing that stuff on the charts and it
will come to you eventually.
But l don't want you guys to focus drawing the levels or knowing the levels
before you recognize the pattern or recognizing the behaviour that happen in
the London Session or During the Asian session or right after the Asian
session or New York session open.
These are more important to get down to learn than knowing where you are
interms of levels.
And of cause LEVELS will help you with direction of the trend.
I always draw up my levels on H1. It’s easy for me to see them in H1.
One may choose M30 chart. It’s almost the same with H1 chart.
(Example coming)
Key note
BTMMInstaller_03-19-15 (2).exe