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1. To make sure you get rebate money on every trade you make in your existing brokerage account get in touch with @justinhertzberg in the Slack room
2. To help you you auto execute VT Trades- download the latest package of Mel’s EA including all the instructions you can also get the link by typing mel_ea? in Slack
PLEASE DO NOT POST ANYTHING IN CHANNELS WITH NUMBERS IN FRONT OF THEM. THOSE CHANNELS ARE FOR SIGNALS ONLY
4.To ask any question post in #trading_chat_room
and see this page for helpful commands you can use in Slack to have the robot fetch you things
5.To learn more about Slack Click This Help File
What is the BK Chat Room?
The BK Chat room is where we live trade the VT strategy 24 hours per day. The VT strategy is the ONLY strategy that we trade in the chat room.
Who is the BK Chat Room Designed for?
The BK Chat Room is for active traders only that follow the market on daily basis. If you cannot check currency prices every 2 -- 4 hours for at least 12 hours every single day the CHAT IS NOT FOR YOU. Casual traders are much better served by BK Big Trades or BK News Trades. These are all displayed in the Slack channels as shown above but the chat room focuses on VT trades only.
Who Can Join the BK Chat Room?
Any BK members is welcome to join the BK Chat room.
What is the VT Strategy?
The VT Strategy is a high frequency day trading strategy designed to make 10 pips per trade 10 times per day for a total target of 100 pips/day. This is a GOAL and not any way a GUARANTEE of success and there will be many days when the VT strategy will lose money on a daily and even weekly basis, so all traders who engage in it must fully accept the trading risks it entails.
How is the VT Strategy Traded?
NOTE: ALL THE INFORMATION THAT FOLLOWS IS OUTDATED. AT THIS POINT WE TRADE
AND WE THIS METHOD
BUT I LEFT ALL THE INFO SO YOU CAN SEE THE EVOLUTION OF VT
VT strategy is a “fade” system meaning that it goes against the trend and tries to sell short term tops and buy short term bottoms throughout the global trading day.
VT strategy trades two portfolios -- the majors and the exotics.
The major portfolio is
The exotics portfolio is
There are no other pairs that are officially traded on the VT strategy, although many traders in the room trade a variety of other pairs such as GBP/CAD EUR/AUD etc “unofficially”. All unofficial trades are known as “bonus” VT trades
What are the rules of Official VT Trades?
VT Trades are initiated during the “QUIET MARKET HOURS ONLY” of 2200-1000 GMT. If we are still holding the trade past that time we let it float to its conclusion of stop or take profit. Occasionally if we are close to take profit and it is past 1000 GMT we will close any left over VT trades manually
VT trades with a 10 pip target and a -25 pip stop. The VT trades are initiated at least 25 pips and as much as 100 pips away from the current level.
For example if EUR/USD is presently trading at 1.1100 a typical VT strategy would be to place a limit order to sell EUR/USD at 1.1075 and a limit order to buy EUR/USD at 1.0925. The width of the range is NOT FIXED. Sometimes the orders will be spread out wider, sometime narrower based upon Boris’s analysis and assessment of the market.
What is FIXED are the STOPS. VT never MOVES its STOPS and only takes profits early if there is news ahead on a particular currency.
If the entry target is missed by 1 pip or less and the trade then goes on to hit TAKE PROFIT then the trade is known as “JM” Just Missed and the original order is cancelled and the trade is NOT DONE.
The trade is then moved up/down 25 pips.
For example let say you have an order to buy NZD/USD at .7525 stop .7500 target .7535. NZD/USD comes down to .7526 and then rallies to go back above .7535 -- that is a JM. You would then MOVE the trade down to the next level to buy NZD/USD at .7500 stop .7475 target .7510
If the trade is stopped out then a new VT trade is established at the stop level with bigger size -- this is known as “repair strategy”.
What is VT repair?
VT repair means that if stopped we will repeat the VT trade at lower/higher levels with greater size. To fully understand repair you need to understand the VT betting structure. The VT betting structure is based on the following rules.
Level 1 -- initial trade size -- is NO Leverage. That means if you have $10,000 in your account your opening trade size is 10,000 units (if you have $1000.00 opening trade size is 1000 units)
Level 2 -- second trade size (This can vary from 2X for more conservative traders to 4X for more aggressive traders i.e. second trade size can be as large as 40,000 units on a $10K account)
Level 3 -- third trade size (This can vary from 11X to 15X depending on trader preference)
Can you give me some examples of repair trades?
Example 1 -- Most conservative Level 1 Only
Buy EUR/USD 1.1325 Stop 1.1300 Target 1.1335
The trade hits target = 10 pips.
The trade is stopped at 1.1300 -25 pips on trade.
Example 2 -- Moderate Aggressive Level 2 with Various Lever Sizes
If the Level 1 trade is stopped as in Example 1:
Buy EUR/USD AGAIN at 1.1300 Stop 1.1275 Target 1.1310 at 2X Lever
The trade hits target = 20 pips. Total of Level 1 (-25) + Level 2 (20) = -5 pips
The trade hits stop loss = -50 pips. Total on Level 1+ Level 2 = -75 pips
(-25 and -50 pips)
Buy EUR/USD AGAIN at 1.1300 Stop 1.1275 Target 1.1310 at 3X Lever
The trade hits target = 30 pips. Total on Level 1 (-25) + Level 2 (30) = 5 pips
The trade hits stop loss = -100 pips. Total on Level 1+ Level 2 = -100 pips
(-25 and -75 pips)
Buy EUR/USD AGAIN at 1.1300 Stop 1.1275 Target 1.1310 at 4X Lever
The trade hits target =40 pips. Total on Level 1 (-25) + Level 2 (40) = 15 pips
The trade hits stop loss = -125 pips. Total on Level 1+ Level 2 = -125 pips
(-25 and -100 pips)
Example 3 -- Very Aggressive Level 3 with Various Lever Sizes
Note* Level 3 is only traded if Level 2 is set to no more than 3X.
If the Level 2 Trade is stopped as in Example 2:
Buy EUR/USD YET AGAIN at 1.1275 Stop 1.1250 Target 1.1285 at 7X Lever
Possible results: (assuming 3x lever on Level 2 trade)
The trade hits target =70 pips. Total Level 1 (-25) + Level 2 (-75) +Level 3 (70) = -30 pips
The trade hits stop loss = -175 pips. Total on Level 1+ Level 2 +Level 3 = -275 pips
(-25 and -75 and -175 pips)
Buy EUR/USD YET AGAIN at 1.1275 Stop 1.1250 Target 1.1285 at 10X Lever
Possible results: (assuming 3x lever on Level 2 trade)
The trade hits target =100 pips. Total Level 1 (-25) + Level 2 (-75) +Level 3 (100) = 0 pips
The trade hits stop loss = -250 pips. Total Level 1+ Level 2 +Level 3 = -350 pips
(-25 and -75 and -250 pips)
What is the official size protocol on VT Trades?
The Official VT Trades follow the following size structure:
Level 1 = 1X Equity of Account
Level 2 = 4X Equity of Account
Level 3 = 15X Equity of Account
Win Level 1 = 10 pips
Win Level 2 = 15 pips
Win Level 3 = 25 pips
Loss Level 3 = 500 pips
Are you insane? This sounds incredibly risky!
No we are not. The VT trade is very similar to the idea of selling term life insurance. On the face of it its seems risky to insure someone for $1 Million death benefit with only $1000 yearly premium. But the law of large numbers proves that this is a very profitable business for insurance companies as the chance of payout is very small. Similarly the chance of level 3 stop out in VT is usually 1/60 trades or 1.6% meaning that the cumulative profits offset the loss.
What are the official VT repair rules?
The Official VT Rules is that each trade will go to the maximum of 3 Levels.
An example of official VT trade sequence
Put out Pending order Short EUR/USD at 1.1025 stop 1.1050 take profit 1.1015
If Pending Order is triggered Put out a new Pending order called “repair” at
4X size of original at Short EUR/USD at 1.1050 stop 1.1075 take profit 1.1040
If take profit on order #1 is hit at 1.1015 +10 and CANCEL the “repair” order.
If “repair” order is triggered at 1.1050 and then the EURUSD comes down to 1.1040 you made +40(4*10) on Level 2 trade -25 stop on Level 1 Trade for a total of +15.
The level 3 pending order at 1.1075 is cancelled. If Level 2 Trade is stopped out then Level 3 pending order is triggered at 1.1075. If the EUR/USD then comes down to 1.1065 you will have made +150(10*15) on Level 3 Trade -- 100 (25*4) on Level 2 and -25 on Level 1 for total of +25. If the trade is stopped at Level 3 the cycle is stopped at the loss is -500.
What are my STARTING POSITION TRADES for Various Levels?
The VT Strategy Mandates that you start with NO LEVERAGE that means that if you have a $10,000 account your opening trade is 10,000 units or less.
For currency pairs that will never be traded beyond level 3 10,000 units is proper starting point.
For currency pair that will be traded to level 4 and beyond with repair ration of 1X 3X 7X 25X the proper starting point is 2,000 units
Here is a video that explains risk control in more detail.
What is the key factor that I need to understand about VT?
Frequency of trades determines both risk and reward in VT. Low frequency traders will have lower risk and the smallest reward while high frequency traders will have the most risk and highest reward.
Can you explain in detail?
Here is the most likely path of a low frequency trader. (ALL examples HYPOTHETICAL)
A low frequency trader is someone who trades 2200-1000GMT only using level 1 (no repairs)
A low frequency trader will do 5-7 trades per day.
On a good day 6 winners/1 loser for 35 pips
On a neutral day 5 winners/2 losers for 0 pips
On bad day 3 winner/3 losers for -45 pips
On a typical week a low frequency trader will have 2 winning days 2 neutral days 1 losing day for 25 pip week
Here is the most likely path of a medium frequency trader. (ALL examples HYPOTHETICAL)
A medium frequency trader is someone who trades 2200-1000GMT using level 2 (4X) no GBP or CAD
A medium frequency trader will do 10-15 trades per day.
On a good day 10 winners/0 loser for 115 pips
On a neutral day 9 winners/1 loser for -10 pips
On bad day 9 winners/2 losers for -135 pips
On a typical week a medium frequency trader will have 2 winning days 2 neutral days 1 losing day for 75 pip week
Here is the most likely path of a high frequency trader. (ALL examples HYPOTHETICAL)
A high frequency trader is someone who trades 24 hours/day using level 2 (4X) all pairs
A high frequency trader will do 15-25 trades per day.
On a good day 15 winners/0 loser for 175 pips
On a neutral day 14 winners/1 loser for 35 pips
On bad day 12 winners/3 losers for -230 pips
On a typical week a medium frequency trader will have 2 winning days 2 neutral days 1 losing day for 190 pip week
What type of an account must I have before I even consider trading VT?
You need a have a broker with RAW SPREADS + commission
The two best global choices are FXCM and Interactive Brokers, but there are many brokers that offer RAW SPREAD + commission globally. Here is a link https://www.100forexbrokers.com/stp-ecn-brokers
Why is RAW SPREAD so important?
In VT we are trading for 10 pips many times a day and the difference between losing and winning is often the spread as prices quickly hit targets and them quickly could move to stop out. In case of exotics -- traders can not even consider that portfolio unless they trade it on RAW SPREAD.
What should I know before I start trading VT?
The VT orders posted in the trade room are for SHOW only. They are traded on Boris’s live FXCM trading account with repairs going to level 2 at 4X size, Except for extraordinary events like NFPs, the orders are generally NOT ADJUSTED for NEWS and are traded 24/hours a day for the benefit of traders worldwide.
IT IS UP TO EACH TRADER TO MINIMIZE THE RISK OF VT BY USING THE GUIDELINES IN THIS FAQ AND SELECT THE LEAST VOLATILE POSSIBLE TRADES and REMOVE ORDERS AHEAD of NEWS.
Boris will make his best effort to WARN TRADERS of KEY RISK, but it is up to each trader to take responsibility for risk control.
Ok I am in the room -- what should I do?
WATCH for at least 3 days before making any trades or make trades on demo or 1000 unit size ONLY
Type “slackwords” (without the quote marks) to get quick access to various resources in the room
What is the BK Chat Lingo?
Board -- Orderboards of Limit entry/exit/stop order for Major and exotic portfolios published 2-3 times daily at
2200 GMT 0900 GMT and 1300 GMT
JM -- Just Missed
VT -- Official VT Trades
Repair -- Taking another position in greater size in the same currency pair after being stopped out
L1 -- Original Trade
L2 -- Repair Trade done after level 1 stops out
L3 -- 2nd Repair Trade in even greater size after level 2 stops out
Where can I get help?
Just ask any question in the room and we will all try to help you.
Will You Provide Copy Trade Capability for VT Trades?
We are working on it