About

fractal-trading.compicNext to studying capital markets from a holistic and trendfollowing perspective for a decade, I also engaged in studying at various german universities. I hold a Master’s degree in teaching English and Politics and I have lived in the United States for a significant amount of time as well as for six months in the Netherlands. During that time my eight-year university education was riping and studies in regard to psychology and human behavior became the focus of my interest. While acquiring knowledge in the field of psychology I was able to observe the outcomes of traders’ actual behavior by being active in financial markets. Since trading is the most naked form of psychology, because the market tells you right away on which trade you were right, wrong, too greedy, too fearful, I had a decent initial situation to master the art of being the trader as well as my own mentor at the same time. Having travelled to most countries in Europe, the USA and parts of North Africa, I speak German and English fluently and I have moderate skills in Dutch and Spanish.

The combination of those experiences enabled me to progress further in my own trading process. Especially in regard to trading system, risk management and trader psychology. Today I successfully and confidently trade my own approach.

Trading Studies:

I was fortunate enough to find a suitable Trading Approach to my liking right from the start. It is the trend-based approach by Bill Williams. I have studied and traded it with all available materials and personal contact to Justine Williams for ten years. I devoted all my time and energy to understanding the markets from a trend-trading perspective and endorse the trendfollowing philosophy which is mainly circulated by Michael Covel, but has its origins with Jesse Livermore in the 1920’s and lateron with the Turtles during the 1980’s. Today there remain many trendfollowers such as David Harding, Larry Hite, Salem Abraham, Bill Dunn etc. Many of them manage the most successful Hedge Funds using the trendfollowing approach to financial markets. Having learned from these elite traders, I am trading the major world markets successfully combining the Fractal-Trading System with the fundamental perspectives of trendfollowing. I am currently engaged in trading 45 markets ranging from indices and currencies to metals, softs, energy and bonds. I consider the daily and weekly timeframe the most worthy trading my approach, since the most stable, robust and ongoing trends can be found there.

Originally only trading with the Bill Williams indicators, I am now using a variation of them fitted to a purely trend-based strategy which was then backtested thoroughly. The Fractal Trading System is therefore a unique approach based on the trendfollowing philosophy.

Indicators necessary for the Fractal-Trading System:

On the chart apply the following tools:

Balance Zone EMAs – Differentiating between a trending market and a corrective market.

Three EMAs (26/16/10) with a future offset of 8/5/3 respectively.

Fractals – Identification of Support and Resistance levels.

5 bar sequence where middle one has highest high / lowest low and its preceeded and followed by two bars that have lower highs / higher lows

Momentum Indicator – Indicating the pressure and speed of the direction the market is going.

Difference between the 34-period and 5-period simple moving averages of the bar’s midpoints (H+L)/2

Trend Exit EMA – Trendfollowing Exit approach by use of Moving average.

EMA (6) with future offset of 2

 

The actual parameters of the methodology as applied by the author of this blog are much more defined and concrete than laid out here. They are also different from the original Bill Williams Trading Approach.

 


WARNING:

Trading Futures, Options, Stocks, Indexes,  Forex etc. involves substantial risk of loss. Please be advised that all information published on this blog is intended for informational purposes only. Do not consider any post, chart, signal etc. as trade advice. Only trade with capital you can afford to lose. The author of this blog is not in any way responsible for negative outcomes resulting from action taken due to information on this blog. Furthermore, all Coaching Sessions are intended to provide structured material and an organized approach to trading for clients. There is no guarantee the Coaching Sessions will deliver the expected results. It depends on each trader him/herself to improve their trading skills. I do not take any responsibility for any negative outcomes due to the information provided in Coaching Sessions. Clients signing up for Coaching understand this and agree to this policy.

Image Sources:

Charts created with Metatrader 4 and Prorealtime. All images are the property of their respective owners.