Raman-MaladziashynRaman Maladziashyn, is a Belorussian Forex Volume Spread Analysis (VSA) trader who spends most of his time reading, researching and testing to gain greater insight into market microstructure. He put his trading knowledge and skill to the test and trades intuitively 2-5 times per week.

Raman stumbled on Volume Spread Analysis during his own research. These days he is mostly focused on VSA 2.0 and Market Microstructure.

In the show Raman reveals:

  • His personal VSA system you can trade on any pair
  • The key indicators he uses to detect volatility
  • Why there will always be losers in the markets
  • Alternative resources that help you understand market structure
  • The difference between VSA and VSA 2.0

Interview

29: How to Trade Forex using VSA 2.0 with Raman Maladziashyn
00:00:00 00:00:00

Recommended books

Master the Markets by Tom Williams
The Microstructure Approach to Exchange Rates by Richard Lyons
Empirical Market Microstructure by Joel Hasbrouck
Market Microstructure Papers
Trading in the Zone by Mark Douglas
Trading Risk by Kenneth L. Grant
Design, Testing, and Optimization of Trading Systems by Bob Pardo

Interview Links

Preferred Broker & Software

JForex by Dukascopy, ThinkorSwim and Metatrader 4

Key lessons

General

  • VSA has to be adapted to modern forex conditions, this is what he’s calling VSA 2.0
  • The point of VSA & VSA 2.0 is to help traders identify Smart Money on the chart but they both do it in different ways
  • With VSA 2.0 its where smart money enters or comes out of the market
  • Raman has done a lot of testing around money management and he has found the wider/larger your stops the better
  • Raman has 2-5 trades per week with winning trades running for weeks or even months and losing or breakeven trades lasting 2-3 days
  • Raman has 53% winning trades and the average winner is a little bit bigger than the losers, 1:3 or 1:4 risk to reward ratio
  • Raman spends most of his time reading, researching and testing
  • The more you read the more information you have programmed into your subconscious which will improve your trading over time
  • Most traders practice trading in the markets as opposed to learning about the markets
  • Good traders have to have victims/herds in the market who will be their liquidity provider
  • Avoid volatile markets – this is where Smart money is absent
  • Don’t focus on a specific currency pair, diversify to other pairs, see what works
  • You must learn to experience many losses in a row, but keep you risk low to accommodate this
  • If you’re happy and healthy in life then you’ll be successful in trading because nothing will bother, disturb or suck your energy away. This is what helps keep your emotions in check.
  • We look for immediate reward and we do stupid things until we (Cam’s article reference from the show)

Raman’s Strategy

  • Trade major currency pairs
  • Trend following
  • To catch the trend you have to be prepared to lose or breakeven on quite a few trades
  • Higher the timeframes are better (4 hours or Daily timeframe)
  • Identify the trend:
    • Use a 15, 20, 30 period Exponential Moving Average or Simple Moving Average or a combination of two moving averages (e.g. 15 & 30 EMA)
    • Or use the Displaced Moving Average by Joe DiNapoli
  • Look for low volatility markets as this is the best way to get into the markets. Use Average True Range (ATR) and Standard Deviations to determine a low volatility market – if steady, it’s ok; if they rise sharply then you need to be cautious
  • Breakouts are the most reliable in the direction of the trend (proven by Raman’s testing and experience)
  • Then enter the market with a wide stop, small stops will find you kicked out
  • No take profit, just trailing stops (quite some distance from the price so it doesn’t get hit by chance, e.g. 2 Daily ATR’s) unless the market becomes hectic and wild then close the trade fully or close half the trade if the price shoots in your direction
  • If the price continues moving slowly and creeping then it’s ok to stay in the trend as it means Smart Money (portfolio managers etc) are still there
  • Aim for clearly visible support or resistance as your target
  • You can trade the breakouts using lower timeframes, e.g. 1 hour or 15 minutes, where Support and Resistance are clearly visible
  • Keep Stop Loss 1-2 ATR’s away from the price when you are in profit

Have a question for Raman?

You can reach him on VSATrader.ru. Or, leave a comment below… I’ll make sure it gets to him.

Unlock All the

AMAZING Trading Strategies,

Tips & Soundbites

with Your "Free Pass"


No Spam Privacy Policy

Great! You're In. Check your email for your Login Details and Link.


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.

At all times any and all information on, or product purchased from, this website, is for educational purposes only and is under no circumstance intended to provide financial advice. No guarantee is represented from any statements about profits or income, whether express or implied. As no trading system is guaranteed, your actual trading may result in losses. You will at all times accept the full responsibilities for all of your actions, including, but not limited to, trades, profit or loss. You agree to hold 52traders.com, Ziba Online Limited, the site's legal owners, AT and any authorized distributors of this information at all times harmless in any and all ways. By using our product(s) this constitutes your acceptance of our user agreement.

You agree by using this site, and related sites of ours and any of our material content you may receive either from such site or in any other form and that, accepting our terms and conditions of purchase that you agree that you, and you alone, must ensure that the use of any of the materials purchased from our site in any manner or form at all, is in compliance with your national, local, federal, state or county laws.

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.