Volman Style (70-tick chart)

Hello guys! I would like to start a thread about Bob Volmans trading style. I read his book (Forex Price Action Scalping) some weeks ago and found it very helpful for those who would like to dare in the scalping field. He trades on a 70-tick-chart and all his trades are based on price action. He doesnt use any indicators except 20 EMA. In his book he describes 7 setups with many examples.

I will post all my trades here with some short anylisis. For this purpose I will use a demo account first to get confident, After some weeks, if I feel comfortable, I would try it on a small real account. I would also like to see some other traders, who use Volmans methods, to post some charts and learn with me. If you have questions about the method, so feel free to ask!

Thread Rules

- Not a word about other strategies! I want to keep this thread clean, so new traders can learn too!
- No indicators! (except 20EMA) So keep your charts cleen!
- No negativity! If you think its not possible to make money on such small "timeframes", so its your opinion and keep it by yourself. I know people, who are profitable with it consistently. This thread should stay positive as I am!
- No hate!

About myself

My Name is Andrey. Im 25 and have about 6 years trading experience. Im an economy student and a part-time trader only trading long term charts so far. Im pretty profitable with my trading since 2 years now, but my goal is to learn trading on very short-term charts too. Im sure I will master it!

My friends, lets get started!

PS: Over time I will add some more information to this first post to make it easier for those, who are new to the thread. If you`re waiting for me to post the rules of this method, so youre wrong here. I will NOT do it, because I have much respekt for Bobs work! If you want to get started with this method, so you can get his book on amazon. It doesnt cost much.

Shortcuts

DD - Double Doji Break
FB - First Break
SB - Second Break
BB - Block Break
RB - Range Break
IRB - Inside Range Break
ARB - Advanced Range Break
T - Tease Breakout
F - Fake Breakout
RN - Round Number

Here are some examples of what our charts should look like

For people, who don´t know where to get tick charts: First option is to get a package from an external provider f.e. prorealtime (It costs money). A free option is to open a ninjatrader demo account with FXCM. (It´s how I do it)

Hello andy
Good to see that you appreciated Bob Volman book and methodology.
I'm currently still reading his second book "Understanding price action practical analysis of the 5 minute time frame". It's really very interesting but not so easy to read.
It will required more reading to fully understand it.
Your charts look like his charts. Good job.
It's nice to find someone else to exchange opinions about this strategy.
Merka

Nice to see you here, Merka! I wondered that there was no thread about this methodology in this forum, as I was searching for this, so I thought I would start one. Nice!
I read this one too and there are a lot of good things to learn! But I have to say I like the first one more. Im not sure, but it feels like Bob`s main strategy is from the first book, also you will get much more opportunities on this one, because 70-tick chart is much faster than 5 min. I would say it equals maybe 30 sec. chart. I have never traded tick charts before, but slowly I`m starting to love them, because they arent based on time but volume. It makes them more accurate in my opinion. The good thing on his second book is, that it contains the charts from 6 consecutive monthes with great analysis. Also if you has read the second one, then it´s easier to understand the first one, because the principles are similar.

Cheers

Here is a link, where you can find bob`s analysis of every day started from 2012! Isn´t that nice? Enjoy!!

https://www.dropbox.com/sh/1amxmi9af0fk6ej/VA5_ZrjQF1

Hi Andy

I know this dropbox link. I found it here:
http://www.trade2win.com/boards/fore...lping-351.html
http://wallstr2easystr.freeforums.ne...calping?page=2
The second link is the web site of "traderAllen" that is using bob volman strategy with really great results.
Lots of people are saying the first book is really better. You are right, Volman's strategy is based on tick chart. I'm going to buy also this book.
I saw you are using ninjatrader with tick data. Me too but I'm playing on the demo account.
What about the licence and trading cost?
For scalping we need to find brokers reliable with tick data and low spreads/commissions.
Bye

Yeah man! We are on the same page! I know these links. TraderAllen seems to be a very good trader. He has a chat room on his website. Im there from time to time. He doesnt trade the method exactly as Bob. He adjusted it to his own style and with different money management. For example he uses multiple take profit levels. 3, 6 and 9 pips if Im not wrong. But its normal. After you master a method you often make it to your own. I did it with my long term strategy too.

Im using fxcm demo account with ninjatrader platform for my analysis, but trade with ic markets. They have low spreads and commissions. Bob mentioned that in his book too. Its better to use an external platform for charting and another broker for trading. It works well so far. If you want to use prorealtime for charting its quite expensive. It depends on how long do u want to use it, how many pairs etc. Once I calculated and I got 88/month to pay. After some time I would do it, if I`m consistently profitable with the method, but at the moment I have no need to. Demo ninjatrader is doing quite well for now.

cheers

START: 560 €

First trade for today. Its a SB (Second break setup)

EDIT: quick 10 pips. it took no more than 3 minutes. +5,5% -> 591,18€

cheers

2 losses afterwards. In many other threads you can see only profitable trades. Here not. I will also post my failed trades. It makes it easier to learn for me and for other people.

1. trade is a FB. hmm, the countermove was very aggressive, so maybe i should waite for a DD, to see more buildup.
2. trade was a block break. Also very aggressive without buildup.

EDIT: -4,3% for the day so far --> 536,45€

a winner now. A little bit aggressive, but with good odds. it was also possible to take it as a BB some bars later.

EDIT: +2,5% for today so far. --> 574,22€

I´m trading too aggressive today. Should concentrate only on 1A setups. Discipline and Patience are the keys in the scalping field.

After re-looking at my trades with neutral view now, I understand, that often there was no reason to take them. It was just greed. I took another two bad trades, that I shouldnt. ok, with some praxis I will be better with my patience.
After a break and red news I was back to the charts and spotted a nice range that I could trade for a breakout. Here are some reasons. Price formed a H&S-pattern inside the range, the upper range level was tested many times. There was also a nice build-up before the break, what is most important.

+10 quick pips and now Im only -0,8% for the day. -->555,70

Nice shot Andy and great start.

Bye
Merka

why not here?

Здравствуй Василий!

We are looking for two dojis or very small candles with equal lows at at the end of the pullback.

cheers

Hello,

I look forward to seeing some more, I also use this method.

Cheers

You`re welcome Jamos!

No trades today so far. How long do you use this method? Would be nice to see some charts from other traders here.

Here is a nice IRB setup that occured a couple of minutes ago. I didn´t take it becuase of the time. It´s friday evening... But technically it was very nice. The upper band of the range was tested 9 times and look at this build up.

Hello guys! My first trade for the week is an ARB. 1 and 2 are my tipping points where I trailed my sl above.

Cheers

another ARB. And done for the day! good start in the week

cheers