Mark Minervini Library

QuoteImpact 5/5VideoFCPO Connection

Direct Mentor Quote

your goal is not to try to come up with some type of strategy that figures out where these peaks are going to be

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Minervini emphasizes that after you enter a trade at your defined buy point, the future path of the stock can move up or down and you should not waste effort trying to predict exact peaks or how far a run will continue.

Trading success comes from having a repeatable entry and risk management plan, not from forecasting tops or timing the ultimate high.

Focusing on precise peak predictions leads to indecision or poor risk control, whereas accepting that prices will fluctuate lets you concentrate on position sizing, stop-losses, and letting winners run within a disciplined framework.

FCPO ApplicationRelevance 5/5

Bursa Translation

As an FCPO trader on Bursa Malaysia, don’t waste effort trying to predict exact top prices for CPO — you trade the contract’s trend and risk management within its MYR quote and 25‑MT lot structure.

Let seasonality (monsoon, harvest cycles, festive demand), MPOB releases, and CPO/soybean oil spread signals guide entries and exits, while respecting Malaysian market hours and liquidity rather than guessing peaks.

Focus on disciplined position sizing, stops and reacting to market structure; let the market tell you when a peak is forming, don’t try to invent it.

Bottom Line In Practice

Example: You monitor FCPO contract (25 MT lot, MYR) ahead of an MPOB production report.

Instead of forecasting the absolute peak, you wait for a confirmed upside breakout during Bursa hours with above‑average volume and a tightening CPO/SBO spread indicating firm vegetable oil demand.

You enter 1 lot at MYR 4,200/MT with a stop at MYR 4,080 (risk MYR 3,000 = 25 MT * 120 MYR) and a profit target based on technical resistance or seasonal patterns.

If MPOB surprises with much higher output and price quickly reverses through your stop, you accept the controlled loss and reassess—this preserves capital to trade the next clear trend rather than holding out for a predicted peak.

FCPO Lenses

SeasonalityFundamentalsTechnicalsRisk ManagementPsychologyPosition Sizing

FrameworkImpact 5/5VideoFCPO Connection

Core Idea

Buy Point Risk Framework

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Minervini frames a trade around a clearly defined buy point and treats the post-entry price path probabilistically: upside has no fixed cap while downside is limited to zero.

He uses a simple illustrative assumption that roughly half the time price action after entry will be positive and half negative, and that occasional short-term moves below the buy point can reverse higher.

The practical lesson is to plan trades using that risk/reward structure — limited definable loss versus large potential gain — rather than trying to predict exact tops or how far a stock will run.

FCPO ApplicationRelevance 5/5

Bursa Translation

For FCPO traders, define a clear buy point on the chart and frame the trade around limited downside (stop placed in MYR and converted to contract-level loss for a 25 MT lot) while leaving upside open, using seasonality, MPOB flows and CPO/soybean oil spreads to skew probabilities in your favor.

Use Bursa Malaysia market hours and typical intraday liquidity to execute entries and size positions conservatively, treating MPOB reports and monsoon/harvest season cues as catalysts that change the probability profile.

Keep the setup simple: entry, stop (in MYR/lot), and a plan to scale out into strength or cut losses quickly when the defined risk is hit.

Bottom Line In Practice

Setup: Daily FCPO chart shows a base breakout entry at 4,000 MYR/MT; contract size 25 MT so one contract notional = 100,000 MYR.

Buy point: place entry at 4,000 MYR.

Stop: set at 3,880 MYR (120 MYR/MT risk) → per-contract risk = 120 * 25 = 3,000 MYR.

Position sizing: retail trader with 30,000 MYR risk capital limits position to 10% risk → max risk per trade 3,000 MYR → buy one contract.

Probability tilt: MPOB monthly stock/production data due next week; recent monsoon reduced supply in key states and CPO/soybean oil spread is widening in favour of CPO exports, increasing upside probability.

Execution: enter during London or Kuala Lumpur overlap when liquidity is higher (Bursa hours 9:00–17:00 MYT), monitor intraday spreads; if price moves to 4,240 MYR (target >2:1 reward:risk) scale out half the position and trail stop on remainder.

If MPOB shows unexpected stock build or heavy palm arrivals, cut at stop immediately.

This frames a trade with defined downside (3,000 MYR max loss) and asymmetric upside potential using seasonality, MPOB catalysts and the CPO/soybean oil spread to frame probabilities.

FCPO Lenses

SeasonalityFundamentalsTechnicalsRisk ManagementPsychologyPosition Sizing

QuoteImpact 4/5VideoFCPO Connection

Direct Mentor Quote

this point right here this is representing your buy point

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Minervini emphasizes that a clear, predefined buy point on a price chart is the foundation of trading: once you enter, the upside is effectively unlimited while the downside is capped at losing your stake.

He frames price behavior after the buy point as roughly split between favorable and unfavorable moves, so the trader’s task is not to predict exact tops or continuous rises but to control risk and manage positions based on that defined entry.

By treating the buy point as the decision trigger, you focus on position management and rules rather than trying to forecast every peak or eventual long-term holding outcome.

FCPO ApplicationRelevance 5/5

Bursa Translation

In FCPO terms, this is your precise buy point — the price level where the contract (25 MT lot, MYR) clears a validated base and volume confirms a breakout during Bursa hours, signalling you to initiate a long.

Factor in palm seasonality (monsoon-related output dips and festive demand), recent MPOB supply data, and the CPO/soybean oil spread before committing capital and placing a clear stop under the base.

Bottom Line In Practice

Example: FCPO contract trading at MYR 3,200/MT forms a tight base and then closes above the defined buy point at MYR 3,240 on higher volume during Bursa derivatives hours (09:00–12:30, 14:30–17:00).

MPOB just reported a larger-than-expected output drop for the region (supporting a bullish case) while the CPO/soybean oil spread is tightening, indicating stronger CPO demand.

Enter one contract (25 MT) at MYR 3,245 with a protective stop at MYR 3,140 (105 MYR/MT below entry) — risk per contract = 25 MT * 105 MYR = MYR 2,625.

If you target a 2:1 reward:risk, set a profit target around MYR 3,455.

Adjust lot count so the MYR 2,625 risk equals your predetermined portfolio risk (e.

g.

, 1% of account).

FCPO Lenses

SeasonalityFundamentalsTechnicalsRisk ManagementPsychologyPosition Sizing

QuoteImpact 4/5VideoFCPO Connection

Direct Mentor Quote

the upside is infinity of course a stock can go up

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Minervini emphasizes that from a trader’s buy point a stock has theoretically unlimited upside but can only fall to zero, so risk is bounded while reward is unbounded.

He frames a simple scenario where price after a buy point spends roughly half the time above and half below that level, to show trading outcomes vary and you cannot reliably predict exact peaks.

The practical point is that trading should focus on managing entries, exits and position sizing rather than trying to time ultimate tops, because the asymmetry between infinite upside and finite downside is what creates favorable risk-reward opportunities.

FCPO ApplicationRelevance 5/5

Bursa Translation

In FCPO trading the upside is effectively uncapped — a 25‑MT contract quoted in MYR on Bursa Malaysia can still trend much higher when seasonal supply tightness, MPOB surprises or vegetable oil spread shifts kick in.

Traders should respect that a contract’s upside can be large relative to account size, but pair that conviction with Bursa hours, liquidity, and local retail behavior by planning entries, stops and position size around monsoon cycles, festive demand and CPO/soybean oil spreads.

Treat each long as having unlimited upside potential while managing risk per lot and fundamental catalysts.

Bottom Line In Practice

Example: A Malaysian retail trader spots bullish MPOB data showing lower-than-expected fresh fruit bunches ahead of the northeast monsoon and widening CPO vs soybean oil premiums, and decides to go long one August FCPO contract at 4,200 MYR/MT (25 MT lot).

With a stop-loss at 3,900 MYR/MT to limit downside and position size sized so max loss is 2% of trading capital, the trader rides the trend as regional demand and tight supply push prices to 5,400 MYR/MT.

The gross profit on one lot = (5,400 - 4,200) * 25 = 30,000 MYR, illustrating how an FCPO contract’s upside can be substantial while the trader still enforces strict risk controls and monitors Bursa liquidity and session timings.

FCPO Lenses

SeasonalityFundamentalsTechnicalsRisk ManagementPsychologyPosition Sizing

QuoteImpact 4/5VideoFCPO Connection

Direct Mentor Quote

of course downside is to zero a stock can go to zero right

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Minervini stresses that from any buy point a stock's upside is effectively unlimited while the downside is capped at zero, so the worst-case loss is losing the entire invested amount.

He frames trading as a probabilistic exercise — for illustration he assumes price moves are split roughly 50/50 between gains and losses — and argues the goal is not to predict exact peaks or perpetual winners but to manage risk and position so losses are controlled.

This perspective matters because it shifts focus from forecasting perfect tops to protecting capital and letting asymmetric upside work for you.

FCPO ApplicationRelevance 5/5

Bursa Translation

Downside is real in FCPO too — while a futures contract cannot literally go to zero because of margining, price can collapse to levels that wipe out margin and capital quickly, especially for small retail lots of 25 MT billed in MYR on Bursa Malaysia.

Factor in seasonality (monsoon-related output swings and festive demand), MPOB surprises, and sharp CPO/soybean oil spread shifts; trade with clear stop rules, position limits and awareness of Malaysian trading hours and liquidity gaps.

Never assume unlimited time to recover — manage lot size and margin so a single adverse move during thin hours or after an MPOB release cannot blow up your account.

Bottom Line In Practice

Example: You buy 1 FCPO contract (25 MT) at MYR 3,200/MT expecting a November production drop.

Your notional = 25 * 3,200 = MYR 80,000; initial margin ~MYR 5,000 (varies).

Ahead of an MPOB production surprise and a sudden narrowing of the CPO/soybean oil spread, price gaps to MYR 2,900 intraday.

Your mark-to-market loss = 25 * 300 = MYR 7,500 which exceeds your margin and forces a margin call or stop-out.

To apply the principle, you would have sized the position so a 10% move (MYR 320) would not exceed available equity — e.

g.

, trading 0.

25 contract equivalent via smaller lots or hedging with a soybean oil position — and set a hard stop or OCO order around MYR 3,040 to limit downside.

FCPO Lenses

SeasonalityFundamentalsTechnicalsRisk ManagementPsychologyPosition Sizing

WarningImpact 4/5VideoFCPO Connection

Core Idea

Warning: Trying to predict market peaks or how far a stock will run

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Minervini warns that trying to predict market tops or how far a stock will run is a poor approach for active trading.

Because price can move unpredictably — sometimes trending up for long stretches, sometimes falling to zero — attempting to forecast exact peaks leads to missed executions and bad decisions.

Instead, he recommends treating trades probabilistically: use a clearly defined buy point and a repeatable process rather than trying to call the ultimate high.

FCPO ApplicationRelevance 5/5

Bursa Translation

Warning: Don’t try to predict the exact peak of an FCPO move or how far a contract will run; FCPO trades are 25MT lots denominated in MYR on Bursa Malaysia and are driven by seasonal harvests, monsoon disruptions, festive demand and MPOB reports.

Focus on evidence-based entries and exits, use spread signals (CPO vs soybean oil), respect Bursa market hours and liquidity by trading the most liquid nearby contracts, and manage risk with defined stops rather than guessing tops.

Treat momentum runs as opportunities to scale out rather than hold hoping for the final top.

Bottom Line In Practice

A retail trader buys 1 FCPO lot (25MT) of the nearest-month contract at MYR 3,200 after a breakout confirmed by rising volume during Malaysian market hours.

The trader notes MPOB weekly stocks due tomorrow and the CPO/soybean oil spread narrowing (supporting CPO strength).

Instead of holding for an uncertain peak, they set a stop at MYR 3,120 (80 MYR risk) and plan to scale out: sell half at MYR 3,360 (target +160 MYR) and move stop on the remaining half to breakeven, watching MPOB release and spread moves before deciding on the remainder.

This protects capital if the breakout fails and locks in profits if the run continues.

FCPO Lenses

SeasonalityFundamentalsTechnicalsRisk ManagementPsychologyPosition Sizing

PrincipleImpact 4/5VideoFCPO Connection

Core Idea

Trade, Don't Predict Tops

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Minervini uses the buy point as the practical reference for trading: price can rise a lot or fall to zero, so you should concentrate on what happens relative to your entry, not on forecasting exact peaks or how long a stock will stay above your buy price.

He warns that attempting to predict where peaks will form or how far a stock will run is a form of speculation that distracts from a repeatable trading process.

The concrete lesson is to control risk and trade around your confirmed buy point—enter, manage stops, and let profits run—rather than trying to time the maximum upside.

FCPO ApplicationRelevance 5/5

Bursa Translation

For FCPO traders on Bursa Malaysia, focus on executing a repeatable entry and exit process around your buy point instead of trying to predict how high CPO will run or how long it will stay above your entry.

Use your setup (technical breakout, volume confirmation, or seasonal window) together with MPOB data and CPO–soybean oil spread signals to manage the trade, size positions in 25‑MT lots priced in MYR, and let the market tell you when to add, trim, or exit rather than forecasting tops.

Bottom Line In Practice

Concrete example: You spot a confirmed breakout on FCPO with heavy volume and a clean base during a seasonal up‑cycle ahead of festive demand.

FCPO is trading at MYR 3,500/MT so one contract = 3,500 * 25 = MYR 87,500.

You enter 1 lot on the breakout and place a stop 100 MYR/MT below entry (risk = 100 * 25 = MYR 2,500).

Before entry you checked MPOB monthly stocks showing a drawdown and the CPO–soybean oil spread widening in favour of CPO, supporting the bullish bias.

If MPOB data next week prints weaker than expected and volume dries up, you follow your rule and exit to protect capital rather than trying to predict a top; if momentum continues and criteria for adding are met, you scale in another lot according to your max risk per trade.

FCPO Lenses

SeasonalityFundamentalsTechnicalsRisk ManagementPsychologyPosition Sizing

Mental ModelImpact 4/5VideoFCPO Connection

Core Idea

Probability Thinking

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Minervini argues that after you enter at a buy point you should think in probabilities, not certainties — assume the stock will spend significant time both above and below your buy price rather than only marching upward.

That means the trader’s job is not to predict exact peaks or time perpetual gains, but to size positions and manage risk so temporary dips and swings around the buy point won’t destroy the account.

Treating outcomes as roughly 50/50 up or down forces concrete rules for stops, position size, and patience instead of relying on a belief that the stock will only go higher.

FCPO ApplicationRelevance 5/5

Bursa Translation

Think in probabilities when trading FCPO: every trade is a chance, not a certainty — factor seasonality (monsoon-driven supply swings, harvest cycles and festive demand) and data releases into win/loss odds, not guarantees.

Use Bursa Malaysia trading hours and typical liquidity patterns to size and time entries in 25‑MT MYR contracts, and treat CPO vs soybean oil spreads and MPOB reports as probability-adjusting information rather than binary signals.

Bottom Line In Practice

You see FCPOK24 bid at MYR 4,200/MT after MPOB reports stock build but soybean oil firm; instead of ‘must be wrong’ or ‘must be right’, assign probabilities: 60% chance of short-term pullback, 40% chance of quick rebound.

Enter 1 lot (25 MT) short at 4,200 with a stop-loss at 4,260 (MYR 1,500 risk) and a two-to-one reward target at 3,980; monitor Bursa liquidity windows (morning and close) and the CPO/soybean oil spread — if the spread widens favouring CPO, reduce size or tighten stop because probabilities shifted.

If MPOB next week prints heavier-than-expected exports, reassess probabilities and adjust or exit rather than cling to certainty.

FCPO Lenses

SeasonalityFundamentalsTechnicalsRisk ManagementPsychologyPosition Sizing

PrincipleImpact 4/5VideoFCPO Connection

Core Idea

Probability Mindset

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Minervini frames a buy point as a single reference and reminds traders that from that point price can move anywhere between zero and unlimited upside.

He asks you to assume, for trading purposes, that roughly half the time the stock will be above your buy price and half the time below it, so short-term movements are essentially probabilistic rather than certain.

The practical point is not to try to forecast exact peaks or how high a run will go, but to accept the uncertainty of outcomes and manage entries, stops and position sizing accordingly.

FCPO ApplicationRelevance 5/5

Bursa Translation

Treat FCPO moves probabilistically: when you buy or sell a 25‑MT FCPO contract (MYR‑denominated on Bursa Malaysia), assume there's roughly an equal chance price will be above or below your entry in the next session rather than trying to predict a peak or trough.

Let seasonality (monsoon harvest timing and festive demand), MPOB releases and CPO/soybean oil spread signals set the context and adjust position size and stops, but base decisions on risk per contract and market structure rather than certainty about a top or bottom.

This mindset keeps you focused on controlled loss limits, scaling rules and liquidity conditions in Bursa trading hours instead of emotional forecasts.

Bottom Line In Practice

You see FCPO at MYR 3,600 and your plan (based on technical breakout and seasonal pickup ahead of festive demand) is to buy one contract (25 MT).

Rather than assuming price will rally to 3,800, you set a stop at MYR 3,540 (MYR 60 or 25 MT × MYR 60 = MYR 1,500 risk) and size so this single‑contract risk fits your account.

You note MPOB will publish production data tomorrow and soybean oil is weakening vs CPO (narrowing spread), so you treat the trade as probabilistic: if price rises above entry you trail the stop; if MPOB surprises with higher stocks and price falls to your stop you accept the controlled loss and reassess—no attempt to predict the exact turning point.

Over multiple such trades, wins and losses reflect probabilities, with stop placement, lot size (25 MT) and spread/fundamental context controlling drawdowns.

FCPO Lenses

SeasonalityFundamentalsTechnicalsRisk ManagementPsychologyPosition Sizing

PrincipleImpact 4/5VideoFCPO Connection

Core Idea

Defined Buy Point

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Minervini emphasizes treating a clearly defined buy point on the chart as the fixed reference for a trade — everything that happens after that exact price is what matters for your result.

He frames post-entry price movement as having unlimited upside but a capped downside to zero, and for the sake of illustration assumes price spends roughly half the time above and half below the buy point.

The practical takeaway is not to waste effort trying to predict exact tops or how far a run will go, but to place and manage trades relative to a specific, predetermined buy point and its implied risk.

FCPO ApplicationRelevance 5/5

Bursa Translation

Set a precise FCPO buy point on the chart (e.

g.

, a breakout above a defined candlestick high or 20-day volatility pivot) and use that exact level to enter 25‑MT contracts in MYR terms; avoid vague entries driven by hope or FOMO.

Confirm the trigger with relevant local context — MPOB weekly stocks/production, seasonal harvesting/monsoon windows, and CPO/soybean oil spread behaviour — and only scale in or add after clear, rule‑based follow‑through during Bursa market hours when liquidity is adequate.

Bottom Line In Practice

Example: You watch FCPO9 (nearest contract) in MYR and mark a defined buy point at 3,700 based on a breakout above the last 10-day high.

MPOB weekly data released that morning shows falling stocks and steady exports, and the CPO/SBO spread has widened in favour of CPO, supporting demand.

At 9:15 MYT, price closes above 3,700 on volume within active Bursa hours; you buy one 25‑MT lot at 3,705, set an initial stop at 3,600 (risk ~105 MYR/MT or ~RM 2,625 per contract) and plan to add one more lot only if price sustains above 3,760 with confirming volume and no negative MPOB surprise.

FCPO Lenses

SeasonalityFundamentalsTechnicalsRisk ManagementPsychologyPosition Sizing

Mental ModelImpact 4/5VideoFCPO Connection

Core Idea

Asymmetry

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Minervini illustrates that a defined buy point creates an asymmetric payoff: upside is effectively unlimited while downside is capped at zero, so a stock can rise far more than it can fall from the same entry.

Even if price spends roughly half the time above and half below the buy point, a trader’s objective is not to predict exact tops or how long a runner will keep going but to select setups where the potential upside from the buy point materially exceeds the likely downside.

The practical lesson is to favor entries and rules that maximize reward-to-risk from the buy point and avoid strategies that require timing every peak or projecting exact magnitudes of future gains.

FCPO ApplicationRelevance 5/5

Bursa Translation

Asymmetry for FCPO traders means entering positions where your downside is strictly limited by a defined MYR stop-loss per 25‑MT lot while your upside can be multiples of that risk because Malaysian palm prices can spike on seasonal tightness, MPOB surprises or supply shocks.

Use Bursa Malaysia trading hours and typical intraday liquidity windows to scale in/out, factor CPO–soybean oil spread dynamics and seasonal monsoon/harvest cycles, and treat each 25‑MT contract as a discrete bet with clearly measured risk so retail traders avoid one large loss and let winners run.

This mental model encourages tight risk control, realistic position sizing in MYR per lot, and patience to capture uncapped gains when fundamentals and spreads align.

Bottom Line In Practice

Example: You observe MPOB monthly stock/production surprise showing falling stocks and a widening CPO–soybean oil spread; FCPO December is trading at MYR 4,200/MT.

You decide to buy 1 FCPO contract (25 MT) at 4,200 with a hard stop at 4,080 (loss = 120 MYR/MT → 120 × 25 = MYR 3,000 risk).

You size to risk no more than MYR 3,000 (one contract).

Target is MYR 4,560 (an upside of 360 MYR/MT → 360 × 25 = MYR 9,000), a 3:1 reward:risk.

Monitor Bursa liquidity around morning and late-afternoon sessions, watch MPOB weekly/monthly updates and CPO–soy spread moves; if spread narrows or MPOB prints weaker-than-expected, tighten or exit to preserve the limited downside.

This lets you accept a known MYR loss per 25‑MT lot while letting a fundamental/seasonal rally deliver uncapped gains.

FCPO Lenses

SeasonalityFundamentalsTechnicalsRisk ManagementPsychologyPosition Sizing

PrincipleImpact 4/5VideoFCPO Connection

Core Idea

Asymmetric Risk/Reward

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Minervini emphasizes that when you buy a stock at a defined buy point you face an asymmetric payoff: the upside is effectively unlimited while the downside is capped at zero (you can only lose your investment).

He frames a simple hypothetical where the stock spends roughly half the time above and half the time below the buy price to show that you do not need perfect timing of peaks—what matters is accepting that occasional setbacks will occur.

The practical point is to design a trading approach that limits downside (position sizing, stops) while allowing you to capture large upside moves, rather than trying to predict exact tops.

FCPO ApplicationRelevance 5/5

Bursa Translation

For FCPO traders, focus on asymmetric risk/reward by remembering each long in Bursa Malaysia is MYR‑denominated and in 25‑MT lots: your maximum downside from the buy point is limited to the contract falling to zero, while upside can be many multiples if palm fundamentals and seasonality turn bullish.

Use MPOB releases, monsoon and harvest cycles, CPO–soybean oil spread signals, and Malaysia trading hours/liquidity to pick high‑probability buy points and place disciplined stops so a small, defined loss per 25‑MT lot protects capital while leaving room for outsized gains.

This mindset counters common retail habits of averaging down without defined risk and helps size positions so one or two big winners offset several small losses.

Bottom Line In Practice

Example: You identify a buy entry at MYR 3,600/MT on FCPO for the next contract during morning Bursa hours after MPOB reports lower-than-expected output and the CPO/soybean oil spread widens supportive.

You buy 1 lot (25 MT) at 3,600 and place a stop at 3,300 to limit downside to MYR 25 × 300 = MYR 7,500.

If seasonality and MPOB momentum push the price to 4,200, your upside is MYR 25 × 600 = MYR 15,000 — an asymmetric payoff (15,000 vs 7,500).

Size the position relative to your account so that the MYR 7,500 max loss per lot aligns with your risk rules, and monitor liquidity around local market open/close and next MPOB release to adjust or take profits.

FCPO Lenses

SeasonalityFundamentalsTechnicalsRisk ManagementPsychologyPosition Sizing

QuoteImpact 5/5Video

Direct Mentor Quote

You're not looking for the biggest gain... the largest gain may cost you an opportunity cost

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Arguing that seeking very large single winners reduces the number of opportunities and can be suboptimal

FrameworkImpact 5/5Video

Core Idea

Win-rate × Risk-Reward Expectancy

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Evaluate edge by combining your win rate with average win and loss sizes to determine overall expectancy.

QuoteImpact 5/5Video

Direct Mentor Quote

The maximum level is not what you're looking for, you're looking for the optimum level so you can turn that edge over as many times as possible

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Defines the core trading goal of finding an optimal return target that allows frequent re-deployment of capital

QuoteImpact 5/5Video

Direct Mentor Quote

Optimizing your trading so you're getting the biggest return in the shortest amount of time and ... you're able to do it consistently, that's the main thing.

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Emphasis on focusing trading approach to maximize returns quickly and, crucially, consistently.

FrameworkImpact 5/5Video

Core Idea

Optimal Target Framework

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Determine a trade target that balances ease of occurrence with risk so you can execute that edge repeatedly.

QuoteImpact 5/5Video

Direct Mentor Quote

I want to have a two to one profit to a risk relationship but ... let's start with a three to one ... say you're able to capture 15 gains on the upside ... you're able to keep your losses contained at 5.

Holy Grail in Trading VideoPages 1-1

Original Mentor Insight

Specifies preferred risk-reward targets (3:1, example 15% gain vs 5% loss).