When Scott Welsh puts his mind to something, he’s a man on a mission. From his early days as a budding Tennis pro to when he first started trading stocks and now forex robots.

Scott’s attitude to tennis is the same as his attitude to trading (go at it with complete and utter dedication, commitment and focus). But it wasn’t always that way. There were a few bumps in the road, as is usually the case.

These days Scott auto trades full time and teaches others how to do the same.

In the show Scott reveals:

  • One change you can make that may revolutionize your trading
  • Why he eventually chose Forex over Stocks (#jawdropper)
  • Two indicators to help you pick the trend
  • How the turtles traded to make millions

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64: Scott Welsh on Stocks Vs Forex & His 3 Profitable Auto Trading Strategies
00:00:00 00:00:00

“You can’t learn Tennis on your own. Trading is much the same.” – 57:02

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Interview Links

Key Lessons

  • Find one thing and stick to it
  • Be deeply focused
  • Day trading is like going to work everyday
  • Look at maximum draw down (what’s the worst it has ever done)
  • Most of the time the maximum draw down will never be hit
  • Trade the way you like, i.e. if you want lots of action trade lots of robots
  • Trade back to fair value
  • All we want is a chunk of the market
  • Research the Turtles and Trend following to come up with a basic system
  • Consider using the momentum indicator or a moving average cross over to pick a trend

Scott’s Trading

  • Averaged about 33% a year on 1-2 stocks
  • Uses 3 auto trading strategies:
    • Day Trading – 15 minute chart, stays in a few hours, waits for a pull back and goes for small profit targets, high winning percentage
    • Trend following – low winning percentage, but you have big wins
    • Counter Trend Trading – determine fair value, wait for price to move away and trade it back
  • All his robots are based on testing and data
  • Likes to go to bed with closed trades
  • Gets about 1-4 trades a week
  • Likes to check his charts even though it’s all automated
  • Spends his days writing or researching trading

Scott’s Strategy of the Week

  • Take a daily or weekly chart
  • Buy one pip or penny above, when price breaks above the high of the last 20 bars
  • Put a stop loss at 1% of your account
  • No take profit, use a trailing stop or 5 or 10 bars (do your research first)
  • You’re not going to get the most, but you’ll get a chunk of the trend

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.