peter-davies

This weeks interview is with Order Flow specialist Peter Davies. Peter hails from the UK but currently lives in Bangkok. He’s been trading the e-mini S&P500 since the mid-2000’s and is the owner of Jigsaw Trading (the No. 1 rated Trading Software on Investimonials.com). These days Peter splits his time between running Jigsaw Trading, helping other traders develop and trading the S&P500.

In the show Peter reveals:

  • What Order Flow is and how it works
  • The two strategies he uses to day trade the S&P500
  • How “Permafaders” make his strategy work
  • What he wasted 3.5 years of trading education on
  • The steps you need to take to know if Order Flow is right for you

Your Episode Sponsor:

 

Recommended book

Golf is not a game of perfect, by Dr. Bob Rotella

Trading style

Order Flow, Day trader

Platform & Broker

Stage 5, Jigsaw Trading

Interview links

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Transcript highlights

Cam Hawkins:

Peter, tell us a bit about yourself, personally, and what first attracted you to trading?

Peter Davies:

I’m from England and I was in IT when I left school. Early on in my career I ended up doing a lot of 1-2 week consulting assignments, pretty much all over the world. And that’s something I enjoyed quite a lot so in ’97 I decided to take the plunge and live outside of the UK. I thought maybe I’d do 1-2 years away from home. So I lived in the US, the Netherlands, Denmark, Japan and finally ended up in Thailand. I’ve been in Thailand now for 15 years. Living in Bangkok; I’ve got a wife and two kids here.

During those travels I was self-employed working as a consultant and doing quite well financially. Like a lot of people I was kind of clueless when it came to financial stuff and just knew I needed to have a pension and trusted financial advisors. As an Ex-Pat I wasn’t allowed to have a UK pension at the time. So I trusted these financial advisors to manage my money for me and to cut a long story short. They put me in a bunch of high performing funds and the end result was a 30% draw down. They’d done something that I now know is a fairly stupid thing to do. They’d put me into a whole bunch of funds that had done really well over the last year or two and they all tanked the year after they put me in them. When we reviewed the results these financial advisors tried to convince me to leverage the remaining money in order to get this 30% back. Their argument was, with the leverage, they can get the 30% back. This is what they said, “With just a 10% gain”. So I said, how are you going to make that 10% gain? This guy looked at me and said “10% is fairly easy, most money managers will be able to do that”. He was saying it as if there was no risk. And I was like, we’ll if that’s true (10% is easy), how come you just lost 30%? He had no answer and that ended the discussion and ended my relationship with financial advisors.

I knew nothing about investing at that point but I figured, if I was going to pay somebody 1-1.5% a year to lose my money for me it would be cheaper to do it myself. I then decided to take control of it myself. I literally cashed in every mutual fund and investment these guys had got for me and decided to manage it myself. That’s how I got started.

Cam Hawkins:

Can you give the listeners some insight into your trading? Your trading style, strategy, time frames, ave. trade duration, % winner’s, typical risk reward ratio… those sorts of things.

Peter Davies: 

Obviously, I have long term investments. But my comfort zone is actually day trading. And really, trading is a journey and it’s just, that’s just where I ended up being more comfortable. Partly because I find it’s easier to tell what’s going to happen in the next 5 mins than the next 5 months.

My trading time is essentially cut in half because I run a company called Jigsaw Trading. And that’s been quite successful in being able to cut down the amount of time I’ve got available to trade. Right now, I trade the Eminis S&P500 and I just trade the US morning session. I trade 2 basic strategies and to do that, the most important thing is: I need to understand the state of the market and understand whether the participation (the amount of people playing in the market) is likely to result in a range bound or trending behaviour. I don’t mean trending all day either. I just mean good intraday swings.

A typical day for me would yield 2-4 trades. Sometimes I’m dipping my toe in the water with trades early on. So, sometimes I might just take 2 small losers initially when I’m trying to get the running I’m trying to catch. In actual fact, some of my best days are when my first trade is actually a loser.

Now, I start out, usually with a 4 tick stop on most of my trades, but as volatility increases that actually has to increase as well.

I the trend trades, I scale out at 4, 8, 12 ticks and then I have 1 or 2 more scales left which I try to let run.

I never fade momentum moves. If the market is moving in 1 direction I never fade it I never try and capture the entire move, I just try and let a trend establish itself and then take a chunk of it. Now, those are the kind of trend days. But if you look at the market now we’re having a lot of range bound days as we go into the summer time.

If I’m trading a range, my targets are somewhat different. I’m actually fading the extremes of the range. Kind of doing the opposite to if I was trading trends.

Cam Hawkins:

What do you mean by fading?

 

Peter Davies: 

Trading a reversal.

So with a trend trade. When I mean by trend, the S&P will move 12 points up, 10 points down, 15 points up. I call those intraday trends. You might have 3-4 of those on a good day. Other days it’s just very range bound and I just look for areas in the intraday profile to trade off. So I let a range form and I’ll sell at the top, buy at the bottom of the range. On those trades, it doesn’t make much sense to scale out because you’re not going to have the same kind of run. You can get in on the top of the trend and you might be lucky to see the trend trade break to the downside but really that’s more wishful thinking. So on those trades, generally speaking I’m all in or all out and just get out on the other side of the range. If the range is quite large, you know 10 ticks and above. We are talking about quite small range trades. I’ll scale out half way through and then take the rest at the opposite end of the range.

I believe in specialisation. So I trade 1 market and I know it like the back of my hand. I use to trade 1 European market and 1 US market. So, in my afternoon I would trade Bund and in the evening I would trade the ES. When I was trading those two markets I would get into the Bund and I would know where it’s been, I would know how it behaves, I’d know what it’s doing. I can watch the Bund open and know if it’s going to be a fast day or a slow day and generally speaking I know what news is going to hit it. So I specialise and really get to know something really well. I couldn’t just switch and trade a completely different market.

I also have a heavy emphasis on Order Flow. So I’ll get into a trade and even if price is moving on my side, if the Order Flow is not on my side or if I see the price come back and there’s heavy Order Flow against me I’ll get out of a trade. So that might mean I’m cutting trades at a small profit or 1 or 2 ticks. Small loss of 1 or 2 ticks. Basically I don’t wait for my stop to get hit.

Cam Hawkins:

Can you give us a bit of a background to Order Flow?

Peter Davies: 

Order Flow is nothing more than watching the order that are executed and trying to get a handle on which side is heavier. So I’ll give you an example. There’s one Order Flow indicator called Cumulative Delta which most platforms have and it shows Buy market orders and Sell market orders. Basically, the markets have two sides and no transaction can take place without a buyer and seller. But when you get a Buy market order, that consumes liquidity on the sell side and that allows price to progress upwards. So you’re watching that kind of liquidity consumption that allows price to progress. So what you’ll see is, when a move initiates you’ll see the buy side is much more heavier or you’ll probably have 1.5 – 2 times as many contracts hitting on the buy side than the sell side.

What you’ll find is, you’ll get into trade and it’ll go 2 ticks up and fall back, it’ll go 2 ticks up and fall back. And you might see it goes 2 ticks up and you see a lot of buying, a lot of buying, a lot of buying, a lot of buy market orders coming in but price doesn’t progress up. When that happens is the buyers are getting trapped. So there’s a seller up there that’s absorbing all that buying. And when that happens and you’re really close to your entry price a lot of the time it’s really just better to get out of the way. So it’s really just watching the behaviour of the orders being executed. There are a lot of different tools and ways to do that. But effectively order flow is really about watching the behaviour and all about the fact that market orders consume liquidity and that’s effectively what allows price to move.

Cam Hawkins:

What’s your typical risk reward ratio?

Peter Davies: 

Like I say, I get in with an initial 4 tick stop which could be, on a more volatile day a 6-8 tick stop. But I will bomb out of a trade at 2 ticks if I’m not happy and a lot of my trades are 12 ticks, but I’m prepared to accept a lower win rate for that.

So, the win rate depends on the day. My win rate overall is about 70%. But if I get into a trade where I’ve got 5 scales. If I get into a trade and I get 2 scales and then I get the rest at breakeven I still consider that a winning trade.

For me, a good day, 3 trades 1 loser. My best days are when my first trade is a loser believe it or not. I don’t really have drawdowns. Day traders don’t get huge drawdowns.

If I get 2-3 consecutive days of loses then I take a break. Just because it might be that the markets not for me.

If I get 3 losers in a row on a day then I’ll stop. So, I have some pretty hard rule in place to stop me continuing trading when I’m just not in the right mood for it.

In terms of returns, if you’re a day trader you’re getting paid for the time you put into the market. You’re taking more frequent risks, so the returns have got to be much higher than if you’re a swing trader who puts on trades and lets them sit there. So if you aren’t getting paid for the extra time you put into the market as a day trader you’re wasting your time. So if you’re trading 2 sessions a day you should be looking at a return of 70-100% a year. But this is an income generating method of trading. Day traders aren’t making 100% a year and keeping that money in the bank and compounding that each year because you need to eat. So, if you’re day trading and you’re making 20-30% per year I would say that some of the funds you’re day trading with should go in those longer term investments or it’s possibly not something you’re suited at.

Cam Hawkins:

When would you withdraw money from your trading account?

Peter Davies: 

Well, my wife asks for car payments and house payments, [Laughs]. So every month.

Cam Hawkins: 

What does your typical trading day look like?

Peter Davies:

I do some pre market analysis where I look at the market, where it’s been, and I’m picking out levels. I don’t believe in secret levels. I think the whole idea is nonsense. Because if only you and 2 other guys know about a level the market will not hold. So, I look for obvious levels that the market will react to. And that’s it on prep.

Once I’ve done that I like to go for a run or go weight training. I like to read my daughter a bed time story and try not to fall asleep myself. I have a chat room so chat with other traders. I like to try and relax, basically.

So, I’ve done my prep before, usually about 4pm in the afternoon. I’m trading at 9:30 at night. So I have this gap where I try and relax.

And just before the open, I sit down and read the prep and what I’m trying to do at that point is to mentally prepare myself to not make a trade and be ready to sit that entire session without taking a single trade. So, my prep is partly about where the market may go and partly about clearing my head.

Cam Hawkins:

In the beginning, what differentiated you from the average Ma or Pa trader out there? What traits did you have, what actions did you take?

Peter Davies: 

I have to thank the guy who lost 30% of my money. Basically, I came into this extremely cynical about the whole industry. I researched what mutual funds were doing and financial advisors were doing. And they were putting it in stuff that paid the highest commission.

I was an IT guy and when I started I grabbed this really famous book with a whole bunch of mechanical strategies in it and honestly, at this time people were absolutely raving about this book. I’m a programmer right. I started programing at the age of 13 and I had this mechanical approach and I tested every strategy in this book and not a single one came close to working. And it was sold as a book with a bunch of absolutely 100% complete strategies. Everyone was saying this book was great.

After seeing that, and reading a lot of the stuff that was talked about on forums I always asked why. So if someone said “When this happens get into the market.” I’d always ask “Why?” Why are other people going to buy after me if I’m going to get in? What’s the reason they’re going to buy? And if there’s no answer I just wouldn’t hang around. So, there are lots of things I didn’t look at because there was no answer to the question “Why?”

I went through the same stuff as everybody. I must have spent $15,000 roughly on education that was of no use whatsoever. A lot of my development was like a lot of peoples, trying to find something that makes sense. It took a while to find something but I kept looking and had a good BS detector basically.

Cam Hawkins:

What actions did you take to help you become profitable?

Peter Davies:

I met people in the industry basically. People who traded for a living. So I actively started networking and ended up finding friends of friends. There was one guy trading a $30 million account, trading stocks and I had a friend who was working for him as a researcher. I just spent a lot of time with those guys trying to understand what they were doing. Through that it gave me a bit of an idea of what was going on, what Prop Shops did and stuff like that. It was really finding out what actual traders were doing and trying to seek those people out. Because I’ll tell you most traders are just really nice guys. There’s not a bunch of secrets out there. They’ll sit down with you and tell you what you do. I have a friend who’s a trader out there who runs a Thai Bath currency desk and on a busy day he’ll put a billion dollars through his currency desk and he’s matching banks up on both sides. Now, he’s a great guy, great trader, but it’s not like I can do that at home right?

The guy that was day trading stocks, that whole methodology, that whole technique of looking for stocks in play at the start of the day and putting them up on your scanner and then looking for intraday and running scanners intraday for stocks in play. Bringing those stocks up and attacking those stocks specifically and doing a different set of stocks each day.

I did start out doing that and had a moderate amount of success but it wasn’t for me because what I found was there were too many components, too many things going on. I’d spend a lot of time searching for stock in play and you’d pull the stock up and you’d kind of be, “Well I’ve probably missed that move”. But a lot of the things I learned, a lot of the Order Flow components I was able to take to Futures trading. But meeting other traders was the key.

Cam Hawkins: 

If you were a retail trader working a day job, what 3 steps would you take to start earning an income as a trader?

Peter Davies:

The most important thing is to stop fading the market. Trying to buy the low or sell the high of the day. A lot of people are selling you this concept of “Make 10 points a day on the S&P500.” You’d be much better off trying to make 2 points a day on the S&P 500.

The second thing, focus on shorter term higher frequency day trading to get the most trade experience over the shortest period of time because trading is a skill. If you’re only taking 1 trade per week it’s going to take you a long time to build the skill. If you’re taking 5 trades a day, like 1 tick a trade, you’re going to get a lot of experience.

The last thing is to focus on building a track record. Because most of the guys I know who are institutional traders and then they went out and branched out on their own. They’re not trading their own money. And there’s a tonne of money out there to the point where I actually know a guy who has never placed a trade and he was given hedge fund money to trade because he had worked for a very large trader and some of that skill may have rubbed off. So build a track record and use that track record to find other people’s money to trade.

So, forget about turning a $5000 account into a million dollars.

Cam Hawkins: 

Can you explain to the listeners your preferred trading strategy, the ins and outs of how it works and why you choose this type of strategy over others?

Peter Davies:

I monitor the state of the market first and try and capture part of the trend or fade the range. But I always do that with confirmation from the Order Flow. So much of the time I can actually trade without using an intraday chart at all. So in a trending market, with a decent intraday trend, so a typical 12 points up, 15 points down, 10 points up. I let everyone else do all the heavy lifting. So, I never try and trade a reversal. I don’t need the whole move. If it’s going down I short it. So, when the market pulls back I have a way to gauge participation in a pull back to decide it that’s a pull back or a reversal. So, once I confirm if the price has already reversed, if there’s a pullback that occurs and I say, ok, there’s so much volume in that pullback and the size of that pullback was so high, I think the market’s turned. Then I’ll start taking longs. So when the markets moving down, I’ll short it, I’ll short it. It don’t care if the markets moved down 20 points, I’ll keep shorting it. But when I start to see the volume coming in and the participation to the long side and I say, ok, I think that’s reversed, then I’ll start to go long. So let everybody else do all the work reversing the market. Now the pullbacks tend to be kind of uniform in size. So on a day when the markets pulling back on an average of 8 ticks on the way down you can expect it to pretty much do the same on the way up. Or to be stopped by, sometimes we get very high volume areas on the volume on the way up. So either, when it comes back in a pullback I’m saying, “So, is that about the right size for a pullback for this day? Or is it pulling back to an area of high volume that people got stopped at before and I don’t expect it to get through”. That’s basically my pull back strategy.

For the range bound markets, for slow days, I tend not to use the chart so much. So, I just look on the volume profile for areas that traders are positioned. Obviously if there’s more volume in the volume profile there are more positions there. And this is the intraday volume profile and I’ll basically trade that. If I’ve got 10 levels where there is 15,000 contracts a level and outside of that there’s 2,000 contracts a level. I’ll try and buy the highest 15,000 contract level.

In terms of timeframes, I don’t pay attention to candlesticks or particular timeframes. I’m just focused on participation. So I could be looking at 800 tick chart, 900 tick chart, 500 tick chart, it doesn’t really matter to me. I just care about where people got in, where the markets turned, where people are getting out. This is based on the fact, on the S&P500, most of the trading there is short term speculation. It’s basically gambling on the S&P500. There are days when there is longer term positioning going on. But most days you can see everybody gets in, everybody gets out. Trying to capitalise on a movement.

Basically short term speculators behave in a certain way. So I care about, where those speculators are positioned, where there stops are and where they are likely to react and perpetuate a move.

There are a lot of people who want to make the hero trades and start looking for buying options as soon as the market starts moving down. As soon as the market moved down off the open, it went 2 points down, 4 points down, 6 points down, 8 points down. And all that time it’s going down they are looking for a long. And then it starts moving up and they’re looking for shorts. I call those people Permafaders. And those are the traders that make my strategy work. Because those guys will see a market going up, they’ll see a little bit of a pull back and say, “Oh, it’s a reversal” and they’ll go short. And I’ll say, “It went short there, 2 ticks from the high”, and a lot of people do that and it’ll go 8 ticks down and start to move back up and it’s those guys getting stopped out that make my trades work.

I guess, if there’s any drawback about the way I trade, it’s that being focused so intensely on once market, sometimes there’s nothing available. Between fading ranges and trend trades, if you looked at yesterday, you know 30 minutes in the range was only like 4 ticks (the tradeable range). But sometimes there’s nothing on and I can generally live with that.

Cam Hawkins: 

If you split your trading up into technical vs fundamental, what would that split look like?

Peter Davies:

10% Fundamental and 90% Technical.

Cam Hawkins: 

Diving a little deeper on fundamentals, what 3 things would you recommend a novice or intermediate trader educate themselves on?

Peter Davies:

The usual things: Scheduled economic releases of course, major company earnings reports, but also an ear to any unscheduled news. Also, knowing the contract calendar, knowing when the contracts are rolling over, knowing when the underlying market trades (if you’re trading derivatives). Because from a fundamental point of view, there are things that will occur that change the amount of participation in the market that might make it increase or decrease.

Right now, participation is quite low, partly because of the summertime and partly because we’re getting no move on interest rates from the Fed. You’ve got to know about these things. You’ve got to know, is this market going to be dull or is something going to happen that brings more people into the market? Because that completely changes the personality of the market and you need to understand and be alert to those kind of mood swings because they’ll occur intra day. Actually, it’s more essential to know the mood of the market than where to get in and where to get out. If you don’t know the mood of the market you won’t know what strategy to apply. That’s really where the fundamentals come in.

Cam Hawkins: 

Diving a little deeper, thinking about any price chart, what 3 things would you recommend a novice or intermediate trader educate themselves on when reading a chart?

Peter Davies:

When it comes to charts, don’t turn trading into a maths project. Trading is a skill. The number one thing a price chart is going to tell you is where the market went and where traders reacted. Now, I like to look at participation, as I said. I’ll look at the size of swings in the market. So you can bring up a swing chart or a Zig Zag chart, common on most trading platforms and look at the size of those swings and how much volume is associates with those swings. You will absolutely see, when the market is moving down, on the ES typically, each push down you’ll get 50-60,000 contracts traded and then it will pull back, and it might push down 12 ticks. Let’s say it pushes down 16 ticks and you’ve got 60,000 contracts traded. Then it will pull back 8 ticks, 15,000 contracts traded. There might be a bit of you that said, “It only took 15,000 contracts to go up that 8 ticks” but basically, what you’re looking for in that pull back with the low participation move, it’s just a weak move up and it’s just moving up to a buying opportunity to short. So, we trade on the side of volume. But also the intraday volume profile which you can put on a chart, not really on a price chart, is also key. Because basically, where people are positioned is where people will react, so, knowing how many traders traded at each price gives you a much clearer idea of why people may react in the future, if you leave or come back to that area.

I’ll give you an analogy. Let’s just say you’ve got 5 prices and 100,000 contracts traded on those 5 prices. 100,000 contracts traded, that’s 100,000 buy, 100,000 sells. Every trade is a buy and a sell. But as you leave that area, as we move up like 10 prices from that area, from those 100,000 contracts we traded, we’ve moved up 10 points or 10 ticks. It’s probably fair to say that the short term short positions from the area have been washed out. They’re out of the market, they’re stopped out. So when you come back to that high volume area, are they going to short it again there? Are people really going to short that area again, after they just got stopped out shorting there again? And the answer generally speaking is “No”. So you’ll have areas where you can see I’ve got a lot of positions here, I’ve moved away. When I come back there will be an imbalance there. Because the buyers will defend their position and the guys who got stopped out, they’re just not going to play it again. And the other thing is to just use the Order Flow to manage and monitor you trades. The charts and the volume profile, they’re going to give you trade locations, but it’s only the Order Flow that’s going to tell you if trader behaviour is changing when you get to that level and if you have true momentum on your side.

Cam Hawkins: 

How long did it take you to go from trading newbie to consistently profitable trader?

Peter Davies:

4 years. 3 and a half years of which was wasted.

Cam Hawkins: 

What’s your mental approach to trading and what special techniques do you use to keep your emotions in check?

Peter Davies:

I exercise to relax. But mostly I accept who I am and how I am. So, if I do something silly and off plan I don’t beat myself up. I just move onto the next trade.

Cam Hawkins: 

What’s your favorite entry setup?

Peter Davies:

Measured pull backs. If they’re 10 ticks on the way down they’ll be 10 ticks on the way up.

Cam Hawkins:

What strategies do you use to exit and manage active trades?

Peter Davies:

Trend trades I scale out. Range trades I exit at the opposite end of the range. But in between that I will exit if the Order Flow majorly shifts against me.

Cam Hawkins: 

What’s your recommended “must read” trading book?

Peter Davies:

It’s not a trading book. It’s a book called “Golf is not a game of perfect” by Bob Rotella. If you read it you’ll see why that is a trading phycology book in disguise.

Cam Hawkins:

Do you automate parts of your trading? If so, what have you automated, why and how does it help you?

Peter Davies:

Never used automation. That was part of my 3.5 years wasted.

Cam Hawkins: 

If there was one thing you would recommend any retail trader spend the next month mastering, what would it be, why and how could they go about mastering it?

Peter Davies:

I would say Order Flow, because you’re looking at the behaviour of a trader when he gets to levels and looking at the ebb and flow of trading. To get to that point within a month, not to master it but to find out if it’s for you, spend 60-90 minutes per session, 1-2 sessions per day watching the order flow, watching the trades hitting each level, watching the trade size, watching the changes in paces, and you’ll start to see particular patterns play out over and over again as the market gets to levels and traders get trapped and then the market pushes the other way.

Cam Hawkins:

What trading related internet resource, like bloomberg.com, do you always use?

Peter Davies:

I like the ForexFactory calendar. And there’s another website called Financial Juice which is kind of like a news website. It’s got audio news but it also aggregates news, but you can filter it to just show you the news you want. And it’s one of the audio news feeds that only gives you the macro stuff.

Cam Hawkins: 

What’s the biggest mistake most retail traders make?

Peter Davies:

Fading the market and trying to guess where the end of a move is.

Cam Hawkins: 

What’s your preferred broker and trading platform?

Peter Davies:

Stage 5 is my favourite brokerage and since I have my own trading platform, Jigsaw trading, it’d be kind of silly to say it’s not that one really.

Cam Hawkins: 

If there was one mantra or saying our listeners should reminded themselves of each day, to help improve their trading, what would it be?

Peter Davies:

I sit there and say “Today I’m ready to not take any trades.” That’s what I tell myself.

Cam Hawkins: 

If you could leave our listeners with one piece of advice what would it be?

Peter Davies:

Probably the most important part of trading is to get a good entry price. So it’s not enough to know the market will go up. Once you know the market will go up you really want a good entry price, or stay out. Because if you don’t, it’s the volatility that’s going to take you out. So, what you’ll find is you have an incredibly high rate of losing trades. It’s one of these things you can say, “I’ve got 90% losing trades, I’ll just reverse what I do” and you still get 90% losing trades, it’s because you’re not trying to get a good entry price.

Cam Hawkins: 

Perfect! For those not in the know, my mastermind community are working towards creating a profitable trading system. If you’re not in the mastermind yet, just jump on 52traders.com and join today while it’s free.

So, Peter, today your task is this:

We’d like you to help us find a high probability exit point for our trading system. We already have a market to focus on (namely the S&P500), and we’re looking for specific standard indicators, candlestick formations, market events, those sorts of things…

So Peter, to help us pinpoint high probability exit points for our trading system what “3 golden nuggets” can you share with us today?

Peter Davies:

We’re basically going through a series of inside days. Although they might not look like a series of inside days because we’ve poked out of the top. But every time we poke out of the top we fall back in. So, we’re looking back to the day we’re trading inside, and for me the high of that day is 1925. I’m not going to expect anything above that.

Within that range I can see, from the upside we keep poking through that and falling back down. So the downside, we haven’t got to the bottom of that day. So if I look at two days, two days we’ve had a low of 1125. So the downside, my target would be 1125, which is the two day low (we’ve had the same low for two days). But if it breaks I expect it to go to 20.97 which is the bottom of that day we’ve been trading inside for 3 days now.

Cam Hawkins: 

Before we wrap up what’s the best way for traders to get hold of you?

Peter Davies:

You can skype me on jigsawtrading or email me traders at jigsawtrading.com and we we’ve also got a website www.jigsawtrading.com so you can also get us through there.

Tell me what you thought!

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HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES, OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES, ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL, OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM, WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

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CFTC - U.S. Government Required Disclaimer:

Forex, futures and options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. Our website, product contents, and materials are neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our website or in any materials. The past performance of any trading system or methodology is not necessarily indicative of future results. Substantial risk is involved. Forex trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex markets.

Don't trade with money you can't afford to lose. Nothing in our course or any materials or website(s) shall be deemed a solicitation or an offer to Buy/sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of futures results. Trading involves high risks and you can lose a lot of money.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.