Veteran Australian currency trader Richard Jackson found his interest in the markets 15 years ago, but he didn’t start out in the Forex markets. He started off trading the E-Mini Futures on the S&P and the Russell 2000. It wasn’t until later in his trading journey, he made the switched to Fx. It all came down to the late hours he had to keep to trade the US session where the bulk of the Futures market action played out.
A proficient coder also lead him down the so called “easy path” where he had plans to automate his trading income, but decided it wasn’t for him and instead focused on his manual trading.
It took Richard 5 years before he fully understood how the market works and the ideas around it. As proof of his success, he established Lepus Proprietary Trading and Jackson Capital where his focus now lies in managing funds at the same time as giving new and experienced traders a better chance of success in the markets.
Podcast Interview
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Interview Links
JacksonCapital.asia – for Investors
LepusProprietaryTrading.com.au – for Prop Traders
Recommended Books
Fibonacci Trading by Carolyn Boroden
Harmonic Trading by Scott Carney
Trade What You See: How to Profit from Pattern Recognition by Larry Pesavento
The Complete Turtle Trader by Michael Covel
Broker and Platform
MEX Exchange
Blueberry Markets
Pepperstone
MetaTrader 4
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Key Lessons
- [13:50] It’s very important that retail traders understand that leverage is a double edge sword. We can make a lot of money on the upside but also, we have to risk a lot.
- [14:25] You have to accept risk if want return. If you want low risk, you get low return. If you want high risk, you get high return.
- [16:01] Trading isn’t something that you can set and forget or just do on a part-time basis, it does take active trading that is quite intensive.
- [18:58] What we need to do as traders is we need to really look at our risk to reward ratio, and soon as we can reduce our risk then we’ve got the ability to have a high win with risk to reward ratio.
- [19:59] I’d say, 90% of being able to be a good trader is having the experience and having the right psychology.
- [23:11] An EA should never be left alone to run on its own. Turning your back on an EA is probably the most dangerous thing that anyone can do.
- [24:38] Human has the ability to adapt and to be dynamic where a code can’t be.
- [35:59] The only thing that’s really moving Cryptocurrency is the People who are investing in Cryptocurrency.
- [36:13] Two things move the Cryptocurrency – 1. The investors who are speculating on it and 2. The underlying algorithm of the blockchain.
- [42:01] You don’t have to be a coder, you can manually trade, and you can manually trade well.
- [43:17] I’ve been doing this for 15 years. It took me 5 years before I was any good because I have to go through all that pain. I have to go through the pain of realizing that made you not a hero. You’re not good. You gotta knuckle down and you gotta do the work!
- [46:38] People, when you get a loss you tend to not wanna get a loss again where as a trader, you have to accept losses.
- [48:14] If you wanna be a trader, you can still have a job and trade that’s no problem but you gotta knuckle down, you gotta learn, and you gotta get the experience as well.
- [50:30] There is no secret sauce, there’s no holy grail, there’s no secret to what we are doing. We are trading in chaos and chaos means that you have no ability to predict the future in any one given outcome. We have to use probabilities.
- [54:15] Common mistake that a lot of traders make – holding on to your losers because you don’t want it to lose, you’ve got to hope that it’d be coming back and cutting your winners short. Good trader has the opposite psychology.
Richard’s Trading
- He trades Forex, Indices, CFDs and Stocks
- He was able to code and establish MetaTrader 3
- He read a lot of books to educate himself
- He had written about 800 EAs in the last 10 years
- He’s using EAs mainly for alerts
- He has 2 styles of trading – 1. Swing Strategy using Fibonacci and Market Harmonics. 2. News Release Strategy.
- He uses Daily to H1 timeframes for his Swing Strategy and M5 for his News Release Strategy
- His Swing trades run for a week and News Release trades run for an hour to a couple of days
- He has Reward-to-Risk ratios of 1.5:1(stop not reduced) and 5:1(reduced stop)
- He has 40% winning rate
- He trades all the Forex Majors and stays away from the exotic pairs
- He has 10 to 15 open trades at a time
- He doesn’t trade Cryptocurrencies right now
- He’s using 60% technical and 40% fundamental analysis
- His favorite entry setup is 50% convergence strategy
Richard’s Strategy of the Week
- He sets up his trend lines on the daily or the H4 chart and sticks to the Major pairs
- He starts off with the trend lines on the wider time frames, drills down to the H1 chart and looks for a reversal pattern (e.g. Head & Shoulders, Double Bottoms, or a break of a trend) with divergence
- He draws a Fibonacci using the AB leg and looks for the 50% to 618. If it converges with the 100 to 200 period moving average or trend line then he has a high probability of that working on his favor.
- He puts his target at D point and stop at A point.
Click Here For Richard’s “Strategy of the Week” Downloads
