No nonsense Forex - VP

I watched all of VP's videos and listened to all his Podcast. It is worth the listen. The no nonsense trading gives you the foundation to develop your own strategy. He will give you the ideas, but you have to go out there and put in the work. By doing this, it makes you understand the concept of forex trading at a level that you never thought you could get at. I cannot stress on how important trade management and risk management is. Actually, I feel that it is just as important than my overall setup. I use more indicators than he does but the core is the same. I use a zero crossing, line crossing, volume, exit, atr, baseline. and a few others I have picked up through my experience and It has been working out for me. Trade management is the ATR to set my stop loss and take profit. When I am about to hit my take profit, I change stop loss to the price of the initial trade so I break even. The two major things that I do different than VP is the approach to trend riding and I use price action but in a different way than everyone else. I developed that on my own but the approach is similar to Stephen Kalayjian's. Overall experience with NNFX is extremely positive.

I have never seen him do a live trade but at the same time, I don't have to. The day is simple. When the day closes, go to forex factory and see what big news is going on today. If you find big news for a specific currency, you don't trade it. VP says it is best to stay away and I have experienced why. Next, you open your charts and manage all of your open trades. Go through each one and determine whether you are exiting your trade, moving your stop loss and take profits, shrinking your position to take whatever profits you made and leaving portion of your position open. Next, open your charts to see what of the 28 pairs hit all criteria of your algorithm. If you have any, open that trade and manage it day by day. It does not take a long time because you are swing trading. You are only trading the daily chart. You make money off of big movements in the market not like intraday where it small movements. If you like the smaller time frames, VP's method is not for you. If you think indicators are useless, VP's method is not for you. This is a thread for people that trade the no nonsense way.

I've also watched all of the videos and have gotten some great results with the NNFX system. It's a simple indicator trend following strategy that trades on the daily timeframe with a strong money management system which you can easily program into an EA. If anyone is using cTrader, I made a short video to show how to code the entire algo in ctrader.

Now, I am going to say some things that VP would possibly not agree with. This is not investment advice and if you do try this, make sure you back test and forward test. Remember when VP said that he does not like the RSI because there is no such thing is over bought or over sold in the FX market? What if you use the RSI kind of like a zero crossing. Now when I mean zero crossing with the RSI, that means add a 50 level. You can also play around with the settings for example, adding a 55 and 45 level. The reason why I say this is because overbought and oversold is not the only way to use the RSI. It can be used to filter out ranging markets. For example, anything between the 60 and 40 is a no trade zone. Anything that is above the 60 level or below the 40 level, is a strong trend zone. If you use strictly a zero crossing like a Chaikin Money flow or a rate of change, it does reverse to the other direction from time to time. If paired with the RSI with settings to filter a range, you could possibly sustain less losses. Again, back test and forward test.

Hey B

ive had some correspondence with VP over the last year and I do believe he has transformed a lot of new traders lives by giving them a great platform to work with

the cloned followers now are everywhere on YouTube and forums sharing and selling systems related to NNFX

reminds me of the turtles .....where some original turtles sold lucrative spinoffs based in their experiences

Patrick and I agreed to disagree on relative strengthmeters ....as that is my specialised edge in trading ...but that’s another story

the main factor in his strategy is getting newbies to accept the daily .......if you play this game the odds increase of winning ....it’s hard daytrading and takes a lot of years to do it well......it took me several years to get comfortable daytrading forex

the RSI is a much maligned indicator .....and as you say can be used very effectivelu in many ways .....I like it as a trend following indicator similar to your ideas.....also look at say a 2RSI stack on multiple time frames for any pair .....if they are all above or below my 50 that pair is trending well ....

so many ways to play the rsi

I like what VP has done. I have watched all his videos and listened to all his podcasts. I was hooked from the Big Banks video as I see this in the same way.

VP got me to go from short term to longer term trading. I now focus mainly on the H4. That he gives people (old and new traders) a structured way to approach FX should be commended. Do I agree with all his method? No. He is too conservative for my taste (or I am inherently greedier than his base method).

The main discord server is cultish. I am a member. I do not participate. Have not come across an invite to the less than Daily server.

I have set up a system with only 4 indicators (Looked at well over 4000 indicators, many which were mostly duplicates of others with different names.) and so far it is working like a charm. Buy/sell when the system says and exit when it says. This takes the subjective proponent put of trading which was my main issue. What I have now is a system that works on many pairs and catches the H4 swings. Unlike the main NNFX community, I have eliminated pairs that did not perform as well with my system.

I have always believed indicators were viable (Have attempted price action, supply/demand zones, and other similar methods and they are all also too subjective.) so I give kudos to VP for bringing me around to finally putting together my own simple, yet effective system.

I wonder that all you guys believe in someone that shows absolutely nothing about his own trading success. Neither trades nor performance. The only thing he has proven to be good is talking. Talking a lot.

And what he does is rather smart, because he left enough room for interpretation, so no one of us can nail him down for his statements, because the ones that are not already known (like money management), are all vague.

Funny is the advice to search and find your own set of indicators. Hopefully all of your guys are good in programming, because no one can do this backtesting manually with the combination he suggests. Otherwise the search for the 4-5 holy grail indicators is a nice task for the rest of your life.

Beside of the tons of bad trading channels out there, there are also more than enough good ones if someone is in need of some education. I can not see any reason why someone should be in need of NNFX. The greatest problem in trading is psychology nature and not finding a working strategy and I am sure everyone agree with this.
So maybe it is better to spend more time fixing the psychology (I do NOT mean the mental side) issues than wasting time with NNFX.

Kind of like here on FF.

If you want to be spoon fed there are plenty of other places to go.

This method that VP outlines makes you do your own work. His MM is something hardly any others talk about. Look at how may whine because of 4% DD restrictions from most prop firms.

What VP has done is set the framework for disciplined trading. You have to do your own work.

And don't bother with the discord as they are just like a cult and are of no real help.

Cheers

Lovely said sir, absolutely true thank you so much!

best regards!

Here is a NNFX strategy that some traders might like.

HI everyone

about VP's method (NNFX) here is my opinion

first of all as VP says disclaimer at beginning of every video: he is not a financial advisor and did not work in finance etc.. how you can take a trading strategy from someone who has never been into professional trading environment ( banks, funds, institutions etc..) EVEN IF FOR FREE it doesn't make sense, for example you need medical help and you go to a mathematician instead of doctor. this also applies on instagram gurus who sell courses and signals without proof that they are even trading real money.

NNFX method is nothing more than another retail technical method, based on randomness. he says that most of indicators are bad, in fact all of indicators available in mt4 are useless, thats for anyone wondering why mt4 is for free. if you google for example order flow charting its impossible to find free one, or level 2 data, these always come at fees$ why? because it gives you a sense of what happening in a market.

nnfx ""useful"" indicators are nothing more than common mt4 indicators with some coloring and slight improvement, for example as i saw on there discord they use RVI (relative vigur index) which is follow the same concepts of an oscillator (rsi, stochastics, macd, etc.. ) also what called baseline which is usually some sort of moving average with different settings, if you are looking for new indicators every time and wonder why tweaking the settings is not giving what you want, the problem is not in the settings or what moving average number should i put, the whole nnfx method is waste of time, come on who trades 1D timeframe ?? rember you are a trader and not investor.

most of retail traders are under capitalized, so of you are looking for 20% annual returns on less than 10k good luck wasting your time, thats beside 1.5 atr stop losses which can wipe out entire profit, we are talking about 1D timeframe which is you would be lucky if you enter once a week.

AVOIDING NEWS really?? then it will reduces your chances of entering a trade even though its already low.

he says things like no supply/demand in currencies ((im not talking about random levels on chart)) or currency has no intrinsic value really?? how can you say such things if you didnt work in finance?? have you ever heard of currency devaluation? inflation? etc.. if you are non US or EU citizen you can feel how currency can loose value or gain value vs USD & EUR .. funny thing is nnfx community follows what he says as it written in stones, even though he said "im not a financial advisor".

Then you see his vids about BIG BANKS and stop loss hunts,, really?? trading now days is more than 80% automated, do you think a bank is waiting for bunch of stops that equal 1000$ to take ?? clearly he doesnt know how banks operate in FX. SL hit is nothing more than entry based on randomness whether its indicators or chart pattern.

the thing is that big banks, hedge funds etc.. are involved in stocks,bonds,etfs etc.. FX is the least traded assets by the big guys, its true that FX daily volume is 4T $ but its not all coming from financial trading. we have around 200 countries in the world that they do import/exports, tourism, airlines, arms sales etc.. all these involve FX. 4 T usd is the sum of all currency transactions around the world, so the FX volume traded in financial markets is not 4T, for example CME chicago exchange is the largest central exchange for FX futures with average daily volume of 100 billion $.

for example if you want to buy/sell a car, would you go and ask around how much it worth? and how much people are willing to pay for it?? or you will put a fibonacci and moving average on car price and wait for it to show you how much does it worth?

this is GBP/USD on 4 month period

?? shows where entries conflict with indicator in the algo and would be winning if entered.. but again during that time trader would not know because the price still forming. and probably would have taken loss according to VP rules, we are talking about 1.5ATR SL here, on GBP would be 200 pips

new traders with low capital should never trade on high time frame because of wide stops and holding position overnight= -swap and commissions also stress

now a nnfx trader will jump and say oh we trade 27 pairs and you are showing 1 pair that gave few entries.. ok first of all how can you manage many entries on several pairs.. and how much margin required to enter 1 order on lets say 10 pairs during 1 week.. and you have to watch 10 different charts to manage trades, because there is no such thing as place and go. many things can happen during a day or a week

I've seen him too, he's one of the good ones hopefully always. feels great to see that he confirms some of my trades here Easy Price Action System | Forex Factory

I have been trading this way for a long time. There is a lot of truth of what you say and I would have to agree. I feel like because we are trading 27-28 pairs a day, and we are avoiding news, there is not a lot of opportunity to enter a trade. It really tests your patience. You spend most of your time improving your algo. from what I have experienced, the win and loss ratio is not the best and you are basically finding ways to cut the losses to a minimum. the candle closed below or above the baseline, my two lines crossed, it is below the zero line, I have volume. I enter a trade and poooffff the price goes in the opposite direction. I suffer losses with this method but I do end up in profit in the long run because when I hit a good run, it makes up for all the losses and then some. I am still to this day trying to figure out how to remedy this.

hey bento

I dont trade vp method or any technical analysis, im just showing some problems with (vp method) because he is going popular and many traders are using it, i can show you failures of any technical method you want btw.

this approach is not trading, algorithmic trading is not with mt4 indicators. vp method is like doing a puzzle with no scientific background. who wants to use a method that it constantly needs upgrade and configuring.. and the 27 pairs thing. its really non sense, trader must focus on 1-2 pair at beginning to understand them correctly, for example how they react to certain news, how they traded at the open...

first of all you have to ask yourself why to trade FX instead of different markets.. why not stocks for example or futures?? in FX 95% traders loose money, do you think they loose because of psychology non sense? or banks trading against them?? thats absurd. in FX 10% of trading activity is observable, and with most of retail traders using mt4 and tradingview for technical analysis even this 10% of FX volume they cant obtain. while in futures market you can access 100% of trading activity plus it traded on exchange and fully regulated, you can at least analyse futures and open trades on cfd mt4

I think my last thought about the NNFX method of trading is to be taken and built on your own and I do not agree with a lot of things he spoke on like his opinions on various indicators. Some of the ones that were on his videos were trash but I know it was supposed to be used as examples and we are supposed to backtest ones that are like it. Because I swing trade, I do look at all 28 pairs and thinking about adding more like the singapore dollar.

Please tell us a scientific background for trading. Is ICT's way scientific?

A lot of people because it works for them.

That's your view and props to that but they have different view and it works for them. Dude, if everyone is as narrow minded as yours, we would still believe that earth is flat and earth is the center of solar system.

Actually yes. Forex is 90% psychology and money management. The fact that you call it nonsense is unscientific.

Just like the way VP shows us the failure of price action and institutional trading.

What you don't get is the end point of forex trading is to make profit regardless of how you do it. Price action, indicators, news, institutional etc, as long as it makes profit, it's all cool. Plus, it's impossible to be consistent in forex and at the end of the day as long as you make a good return yearly, it's all good.

I listened to all of VP's stuff on YouTube back in November after I stumbled on his channel when I was looking up how to use either Ichimoku Cloud or the Awesome Oscillator, I cannot remember. Full disclosure, I am a stock trader, not a Forex trader but a lot of what he puts forward makes sense and is generally sound trading advice.

1) Make sure you are never risking more than you can afford, and when you do trade, make sure the risk is low enough that if you get stopped out, you will live to trade another day.

2) Stop outs and "bad" trades happen, you just have to suck it up and let it happen because no trader is immune to this and just take your small lumps and move on.

3) You want the odds in your favour as much as possible to have as little of #2 happen while also practicing #1 so that you can be profitable week over week, month over month, etc. You don't want to be caught short in a squeeze or longing the top of something watching it freefall while your stubborn and not cutting.

As for the debate about whether what he presents is new or not, whether he is some high dollar profitable hot shot, who cares? He is preaching sound trade execution and that in itself should be enough to give him a listen. Do I agree with everything he says? Absolutely not. There's been dozens of back-tests on the MACD that have confirmed it is probably one of the most useful indicators out there, but he snubs his nose at any and all histograms. The DMI he dislikes but really enjoys the Aroon, which is essentially a worse version of the DMI if you look at how they are calculated. The DMI takes into account the price range along with its ups and downs, while Aroon only calculates ups and downs based on time. Which, in practice, time has little to do with trading unless you follow market cycles, Gann techniques, etc., which at its core he seems to be against as these are essentially reversal trades as they try to call when the market has been down or up for too long and needs to cycle back over. What he does very, very well and why I disagree wholeheartedly with the one poster saying he is all smoke and mirrors is that he advocates for using a system that works for you and your style of trading.

There are hundreds of articles disproving indicators and saying price action and volume are superior because they are the only two things that matter in trading. True, 100%, but I would rather have an indicator confirm if this move is superior compared to another move that failed with similar criteria a few candles ago. The market makers, be it banks, hedgefunds, whatever, also like to play games with this by running up on low relative volume (but the volume is still highish comparatively), slamming it down to a level, reversing it a bit and then tearing it back through or up and past it, etc. This is where indicators come in and I personally find them very helpful and I think this is the way VP intended to discuss them, to cut down on the market noise and random peaks and valleys to see as best you can the continuation of a present move/trend to help you make an educated guess whether right now is a safeish time to enter or not, that's it.

One thing I will say that I think he overlooked, and maybe it is in a video I unintentionally missed, but to look at the calculations of your indicators and figure out exactly what they are doing and whether they will talk to one another well. For instance, in my testing, I found that Williams %R or a Stochastic is a nightmare when you try to pair it with something like a DMI, Aroon, or Random Walk Index as they are just fundamentally totally different calculations. So the "trend" indicators fire too late when your stochastics are saying the momentum is waning. With this in mind, I looked to pair indicators as best as I could that would talk to one another and compliment each other without always agreeing, if that makes sense?

Out of all of this came my settings that are working extremely well in backtesting, and I am going to begin implementing them in demo trading this week as a whole system, as I have not used this collective together yet.

Baseline x 2: 200 period EMA (200 period weighted close) and Kijun 26 period (essentially a 26 period average of the highs and lows divided by 2 that plots like a Donchian Channel). I also add VWAP in for when I am day-trading stocks but it is not useful on super long time frames (2hr +), so it gets removed.

Confirmation x 3: SSL Channel 13-period (EMA of the candles highs and lows), Williams %R 21-period (close in relation to highest high and lowest low over this period), and Woodies CCI (price in relation to a 6 and 14 period SMA -- used for over-extended move identification and trend...I know he is a controversial figure in the futures market but this indicator is damn good for what I need it for).

Volume: Volume Flow (volume of most recent candles against the SMA of the user defined period).

ATR: ATR x 1.5 for Stop Losses. Set to just inside break even once I hit the 1:1 and take 50% of the trade off at this point.

Exit: SSL Channel flip or hitting stop loss.

Of course this system is not perfect, none are, but I see people in my discord chat getting into really bad setups based on price showing a wick at a moving average or one wash candle or a failed breakout on a head and shoulders and they lament why they a) got smoked on the trade or b) why price just kept rallying without them. I have tried to show them how useful indicators can be but it always falls on deaf ears. At any rate, at the chance of rambling, I just wanted to drop in with a newer perspective using stocks and options that his ideas and system building also works there as well. Picture of my setup below with the 7-candle or less rule VP discusses in his "Advanced Strategies" video being implemented on the opening and close of a position on the S&P500, which would have netted a 2.33R return.

Thanks for your share.
Do you think it works on forex and lower time frames like 4H? Why do you prefer 16H?
Do you take trades if the conditions met on the second candle?
Also how do you use Woodies CCI to get in the trade?

Regards.

I actually trade this on all time frames. Swing trades I use the 16hr. It is different in Forex but for stock trading the hours are 4am-8pm EST, which is 16hrs. I find it more accurate than the daily chart (9:30am-4pm only) as it takes into account the extended hours trades that are otherwise ignored on the stock daily time frame. I use this anywhere from 3min all the way to the 16hr. Obviously the longer the time frame, the more reliable the signals, but I find the 5min to be pretty sufficient if I am going to day trade a stock or an option (say a Call or a Put on Tesla, Apple, or the S&P) intraday.

The Woodies I get into a trade once the 14 period CCI aligns with what the %R and Volume Flow is saying. The 14-period CCI is the area graph, while the 6-period CCI is the black line. I use the 6-CCI as a continuation or a late entry if I missed the original entry. These are called "zero-line rejects" or "hooks from extremes", where the 14-period CCI is in a trend (i.e. a yellow bar has printed and the area graph has changed from gray to either blue or red) but the 6-period CCI goes down to the 0 level or breaks past it into opposite territory or a candle or two and then comes back into the trending side. A really good example of this is in mid-November. It did the same in mid April but it looks like you probably would have been stopped out at the beginning of May depending on how wide the stop was based on the ATR.

As for the conditions met, I have figured out that my indicators are going to align more often than not at the first candle. If anything, the Woodies CCI is going to say not to enter because it is too strong of a move and is overextended. I wait up to 7 candles to get in sometimes Overall, in my manual backtesting over 10 stocks, I averaged about 7-8 trades over each one over the course of 2 years, and netted a 75% win rate. I based this on hitting at least my 1:1 as that means I am now in a winning trade even if it hits my stop loss. Of course, in real life this is probably going to falter down a little bit because you aren't going to get filled exactly on the close and may take some slippage (in stocks anyway, not sure about Forex), but my goal was to find a system with approximately a 70% backtesting win rate.