William built his foundation from Nicolas Darvas’s book, “How I Made $2 Million in the Stock Market”, and by exchanging ideas with other swing traders. He discovered early on that swing trading suited his personality and character more. This evaluation was his debut to prop firm trading; passing his first ever evaluation attempt.
His style involves trading high-momentum stocks by identifying those with sideways consolidation. Looking for breakouts, specifically high tide flags, to make his entry. He emphasizes simplicity in strategy, using triangle patterns or similar setups for entries with a focus on risk management, never risking more than 1% per trade to mitigate losing streaks.
Tip 1
Exploring his $BFLY trades
It moved up 100%, and then it's consolidated for 30 days. Found this perfect triangle. For me, that Game on. I waited for the breakout. As soon as those breaks out, I set my, stop loss for the low of the day, and if it gets hit, no problem - I lose 1%, it's not a big loss. But when it does hit, it hits. Just a picture-perfect trade in my eyes.
Tip 2
Volume during consolidation
You want declining volume. A big spike of volume or price moving up. It doesn't matter how the price consolidates; if volume remains higher than before the big move, you're okay. Look for the price to get tighter, forming a triangle or square. When it gets tight, set an objective breakout point and buy in. My strategy works better if you wait for the breakout.
Tip 3
Differentiating real breakouts vs fake-outs
You're looking for volume in the breakout, if you wait for volume to come up, chances are you're not going to get very good entry. The honest answer is YOU DON’T. That's the whole idea behind risk management. You can have a picture-perfect setup, but at the end of the day you've got no idea.
