The T20 Principle

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AIMS
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The T20 Principle

Unread post by AIMS »

The T20 exercise is a way to Create New Habits and break old patterns of behaviours.

The important rule is

"Don’t wait for it to “feel right.”"
Improving your self discipline means changing up your normal routine, which can be uncomfortable and awkward.

Charles Duhigg, author of The Power of Habit, explains that habit behaviours are traced to a part of the brain called
the basal ganglia – a portion of the brain associated with emotions, patterns, and memories.

Decisions, on the other hand, are made in the pre-frontal cortex, a completely different area. When a behaviour
becomes habit, we stop using our decision-making skills and instead function on auto-pilot.

Therefore, breaking a bad habit and building a new habit not only requires us to make active decisions, it will feel wrong.

Your brain will resist the change in favour of what it has been programmed to do.

The solution?

Embrace the wrong.

Acknowledge that it will take a while for your new regime to feel right or good or natural. Keep chugging along. It will happen.

Keep Hitting those setups, keep adding your DS1's

5 Batches of T20 = 100 Trades

The T20 Principle. 100 Trades Using nothing but Setup 1.

3 Benefits of T20 Principle

It will do 3 things for you.

1. You will learn the importance of consistency and patience in trading and it will make you more disciplined. A Disciplined trader is a successful trader. A good system is useless in the hands of trader who lacks discipline.

2. You will learn how to think like a professional trader. Because this exercise should sow the seeds of probabilistic mindset in your mental structure. Most professional traders think in probabilities.

You will start to think in probabilities. You will begin to have a broader view instead of focusing on the result of a single trade. Because for any given set of variables that gives you an edge, THE SETUP Strategy for instance, wins and losses are randomly distributed. The outcome for the next trade is random but the outcome of a set of 20 and 5 sets of 20 is quite "orderly" and mostly happens to be within a range of possible outcomes.

3. This will get your read for Stage 2, that is Hunt strategy. It will be hard for most to understand why trade Hunt when we have perfect Setup 1 at our disposal. But...

when you will have completed your 5 batches of T20, the 100 trades, using setup 1 only, you will have generated a data that is more valuable than any other data out there, created by others. Yes, this will be your own data. The measure of YOUR performance. It will allow you to plot those trades on your chart, from history. And you can do alot of things with that data. But one powerful thing from AIMS perspective is as follow.

You can plot the trades , the 100 trade on the time frame you have traded them. e.g. you took all 100 trades on the hourly time frame. (and let me remind, you must take all the T20 batches of the same time frame.) After plotting the trades you will switch time frame to 4HR Chart (The next available higher time frame)

Make sure you have installed your AIMS The Hunt indicators. Now you will find that 80% of your Setup 1 trades were , what we call, the perfect signals as per the rules of AIMS the Hunt Strategy.

You can do this exercise even without taking the trades but actually taking those trades will create a concrete understanding of this method. And lets not forget, the T20 principle has other benefits too.
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What is the Secret of Successful Trading?
The Consistent Pursuit of DS1 :nerd

The thing that makes me money in trading is when I "Objectively Follow my Trading Plan".

I understand that I can't catch all the moves or all the signals but my objective is to catch THE VALID SIGNALS & ONLY the Valid Signals.

My Deathbed Advice "5:1 Reward to Risk Ratio".

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AIMS
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Re: The T20 Principle

Unread post by AIMS »

I'm amazed that nobody has EVER replied to this topic. :)
What is the Secret of Successful Trading?
The Consistent Pursuit of DS1 :nerd

The thing that makes me money in trading is when I "Objectively Follow my Trading Plan".

I understand that I can't catch all the moves or all the signals but my objective is to catch THE VALID SIGNALS & ONLY the Valid Signals.

My Deathbed Advice "5:1 Reward to Risk Ratio".

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AIMS
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Re: The T20 Principle

Unread post by AIMS »

Integrating T20's into your Trading plan for Stage 3.
In stage 3 you start to trade for profits. You now have assumed your discipline is at par or exceeding expectations.

(an excerpt from Skype)

Assuming 100%DS
A T20 with the T20 TM (1r2r1r)
will bring 5-10% profit. you will have 7 losers, 7 winners 6 BE. when you get 8-9 losers profits will go down to 2-5% on the other hand when the batch goes to the other end of the spectrum and you have 8-9 winners you are looking at 10-12% profit. but average 10 batches you will come to a conclusion. that will most likely be, that on average , T20's bring 5-10% profit . that means if 10% is your rough target per month, you need to trade 20 times a month.
Each currency pair, on average will bring 2-5 Setup 1's per month. If that is true, you only need 5 pairs. But assuming we go with 2 Setup1s per month per pair, then 10 pairs would be IDEAL. Now add to that hunt. and you are then talking about 100 trades per month.
strangely enough, Hunt signals also bring about 2-5 signals , good signals per month. so that is 10 signals per pair per month.
or 4.
so lets assume we get 3 setup1s per pair and 3 hunt signals per pair. then you only need 3 or 4 pairs to watch. to get to do 20 Trades per month.
6 signals 4 pairs = 24 signals/trades (valid and must be traded type of signals, not just signals)
which means, if you're trading setup 1 , you need to ensure you train correctly. keep the volume low. So stick with 4-8 pairs. may be even 10 if you like. but NO MORE than 10 AT ALL. NEVER
What is the Secret of Successful Trading?
The Consistent Pursuit of DS1 :nerd

The thing that makes me money in trading is when I "Objectively Follow my Trading Plan".

I understand that I can't catch all the moves or all the signals but my objective is to catch THE VALID SIGNALS & ONLY the Valid Signals.

My Deathbed Advice "5:1 Reward to Risk Ratio".

User avatar
AIMS
Founder
Founder
Posts: 9649
Joined: Mon Nov 22, 2010 4:46 pm
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Re: The T20 Principle

Unread post by AIMS »

Just quick note to say that I have updated the first post of this topic. So you might wanna have a quick read. cheers
What is the Secret of Successful Trading?
The Consistent Pursuit of DS1 :nerd

The thing that makes me money in trading is when I "Objectively Follow my Trading Plan".

I understand that I can't catch all the moves or all the signals but my objective is to catch THE VALID SIGNALS & ONLY the Valid Signals.

My Deathbed Advice "5:1 Reward to Risk Ratio".

danblockman
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Joined: Tue Apr 13, 2021 5:28 pm
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Re: The T20 Principle

Unread post by danblockman »

immy, i am so impressed with the amount of information and care that you have devoted, to make me a better trader.i do believe that your course and teaching, is the best money i have ever spent. i do realize if it is to be, it's up to me.