Success Story Of A Profitable Trader - Denis Switalski | Trader Interview

and sometimes you have new training concept but in fact I think it's always almost the same because the the market it's changing but the structure of the market are still the same wel s down with Denise vaski looking forward talk about this trading more on the mechanical side definitely a lot of good knowledge to that a naked trader so we'll kind of go into that so the new on the podcast have you here and uh please tell me a bit more about kind of yourself and sort of what you do these days uh so I'm a naked trader I'm trading for myself and I'm the owner of a back testing software it's pretty recent because uh it's I think uh I buil this software almost two years ago and uh I've been uh busy because I have different activities I like to I love to to change my activities to being bored uh so I have some other activities in it as well as a pentester it's uh it engineering to assess the security it's a professional hacker professional hacking but it's pretty rare right now my the the most of my activities are related to uh trading and the software engineering naked Market the back testing software nice what brought you to trading in the first place how did you begin trading like a lot of people uh it was uh I think now almost yeah 10 years ago and um like a lot of people I was looking for the Holy Grail you know uh some perfect trailing system and uh it was interesting because coming from the it field uh I had some uh psychological bias uh because uh when you an it engineer you like to automate a lot of things you know and uh like a lot of people when you see when you discover you enter the the trading Journey you you want to to earn money quickly and you want to automate it so uh you understand quickly that it's not so easy and it's very hard in fact and so I coming uh I went to the to this world through this through this window and I I spend a lot of time learning from forums from books and like a lot of people I I change a lot of my um training system uh I have a friend uh who calls this this process the cycle of Doom in fact you find a training system you test it uh you're happy with it a certain period of time and after you have the draw Downs during the draw Downs in fact you live you quit the system and you change the system and you can do it during months years so at the step you have to to stop that and to be uh responsible to be in charge of your loss understanding that and you can become a profit table Trader but yeah it's a a study like that like a lot of people by learning on internet but there is more stuff right now than uh 10 years ago of course did you start with indicators in the beginning or did you were you like fully naked from from the start yeah I think like a lot of people uh you think that there is some magical indicator that will help you to trade and be right all the time so yeah I I started with indicators uh when if you go to some Community I gone to Forex Factory you can see all the threads with this charts that they are so ugly with a maybe 2030 indicator on the charts it's really hard to to see the price action so yeah I started with it with that but I understood that uh the simpler the better so uh one day I I stopped uh using indicators I met uh one of my friend now water Peters who is the the one of the many mentor of the naked trading Community he's using no uh no indicators so just price action it's easier to understand it's easier to to analyze the price without some you know uh indicators so I started with it and and now no just pure price action with two information the value the price itself and the time because I like taking this parameter in my training system and sometimes it can be underview underrated the time the timing of the markets are very very important for me you have an IT background and I feel like with an IT background it's hard to like indicators are very like like numbers based very clear like it's very clear if it's like a specific number on indicator uh naked charts like only candles sixs can be a bit kind of subjective sometimes so how did you find structure into a kind of naked chart without indicators very good question yeah uh as you said uh we love statistics when you come from the it field and you like to automated you know to frame everything the thing is you can't frame the markets uh the markets are uh sometime unstable it's very hard to forecast them over the long run so yeah um it's important uh for me to I understood an important step in my learning process was to understand that there is always in any every trading system two sides two components the first one is the systemic side and the second one is the discretion discretionary side sorry and uh both are um representing the whole training system so uh how as an IT engineer you want to have a systemic training system the most part of the training system to be syst static but in fact I I think uh during my 10 years of activity in this field I almost never met a very good Training System relying 100% just on systematic side you always have to include some discretionary uh component inside and this is in fact the the most important part because the systematic side is when you have a trading system you have some rules it's all often pretty easy rules you will not trade the Monday or the Friday you have some chart patterns some price structure to follow this is the systemic site can be transferred between Traders it's easy and when you're learning when you have a mentor it's easy to to inherit from this systemic side because it's just rule to follow you know it's pretty D but the discretionary side is the main component because this is what it will U decide if you are doing a good action or wrong action in your process in your execution uh with this discretionary side in fact it represent your your experiences your feedback your uh loss feeling so this kind of thing can be transferred between between um uh uh a Traders so uh I understood that the discretionary side is almost uh um mandatory for every trading system so as an IT engineer what we can do is trying to maximize to to have a systemic side maybe ideally I think maybe 95% of systemic side and the rest 5% of discretionary side and this is a fair point to this is what you don't get when you strategy jump when you go from one thing to the next thing you can't really get that understanding of things that's as deep as if you kind of stick to one thing yeah yeah it's in fact yeah it's very important it's crucial to stick to to your to your system because um I think uh a lot of people when they are still in the learning process you have to uh inherit from the information from somewhere so it can be a mentor it can be uh I don't know some for some friends uh and they will give some information to you to uh to to to to to address the the market and to trade but at some point uh to break the cycle of Doom you have to be in charge of your own action and your own mistakes because um you have to become an independent thinker you have to cut at one time C the link between you and your Mentor you it's important to to understand that you stick more to to your own IDs to uh to other IDs to somebody else so um you have to cut the link between you and your and your mentor and understanding that uh if there is a mistake you are the SLE person in charge of this mistake and when you understand when you understand that in fact yeah you are you able to trade for yourself and become uh successful because uh you can uh take notes you can uh be honest with yourself and stop uh changing all the system and just saying oh it's not working in fact this is because my mentor in fact just a scam is not good at it no it's just because the discretionary side is different between you and his so yeah uh it's important to to become independent thinker at some point I think how long did it take you to become a profitable Trader I think how long uh I I I read so so many uh books and um forums some Concepts you know the the Elliot waves the now there is a lot of Training Concepts uh the industry is like that today and is uh there is a lot of scam there is a lot of TRS you know and sometimes you have New tring Concept but in fact I think it's always almost the same because the the markets are the markets it's not it's changing but the structure of the market are still the same over the year I think so I spent a lot of time learning a lot of Concepts during one year uh maybe two years and uh after that to become profit I needed to I didn't want to risk my money directly on the the market so I knew that in the process I needed to back test uh to back test the my trading my ideas in fact uh when you have ideas concept you have to test them against the market but without risking real money so back testing is very important for me it's a it's a it's a tool it's very crucial to become successful because like every other activities you have to train yourself to become good you have to regularly train yourself um to repeat the same um action and back testing in that regularly uh going offline and testing your your IDs over the long run and it helps you to gain confidence over the time because when you see that during the back testing you have a training system making money during the 20 last years you can expect uh you can um say to yourself okay it's not losing money I can train in live training it in live and uh maybe I'll make money and you see that in fact when you define um that was an important step for me to become profitable it's to define a framewor um a frame where you uh are doing your your training stuff to be uh to to have some stability and uh just do always the same action have your execution always the same and do always the same action so uh yeah to almost one or two years to become profitable and uh it was mainly based on yeah on the back testing and uh understanding that I have my own uh system I have to build my own system and stop just copycat just follow other uh trading systems from a lot of people out there that's a good point so how long of already take is it about three years or is a bit more than that or yeah yeah yeah I have um I I don't know uh if we can uh uh forecast my screen or or or something else but in fact I have another uh n websites where I show my my results so yeah I I I needed two years to become profitable and after that I be I came in the public world if can if we can say that and I uh my track record was public it's still public but it's I think now it's about seven or eight years ago um it's yeah it's pretty old uh but I have I think three or four years of public track record and it it's swing trading uh and uh yes so during this time it was it was public but it was as I said sometime it could be some kind of annoyance because it's important when you're trading uh to have your framework and as I said because I had a lot of uh inquiries a lot of request incoming ma of some retail customers saying uh for example why I was not trading today because I was a swing Trader very slow uh Trader so sometimes a lot of people uh can uh send you a lot of email uh requesting why uh why you don't trade like that why you trade like that so at some point I stopped that because it's it's very time consuming in fact you can have a lot of emails you have to to to repl but uh it depends a lot of the maturity level of the customers this is what I experienced in fact there is two world the retail world and the institutional world in the retail World um it depends on the customer sometimes you can have a very interesting customer understanding that uh you can take time it's your own stuff you know but the majority of people wants to understand I want they will leave as I said before if they it doesn't fit their expectation they will stop following long story short and the institutional side is very different because uh the approach is very different it's not about winning money it's about not losing too much money it's uh um risk oriented approach and in very interesting because you have to be tested in fact you have some period of time when you're training for Edge fans where they are testing you you can have six months one year of real money and they see how we how you you you you're earning money and uh they know that stuff so they're just looking at the risk you take and most mainly and after that they can adjust the risk factor to uh gain more or less money but yeah uh it was interesting just to say that yeah this uh this past period of time it was public and uh it was uh swing trading so it doesn't fit everybody personality because a lot of people like to be active in front of your in front of their charts um it's not my case I like to analyze to look at my charts but I don't want to spend all my time all my day in front of my charts I love doing a lot of other things so I think it's important as well to to to find the place where in your life in your in your frame again uh your training activity how do you want to to to to where do you want to to to put it in your life how much place do you want to take it all day long or some one hour per day so yeah string training I had some um difficulty to to to make understand the people that uh it's my uh own Rhythm own pace so yeah it's really funny you mention this because I have the same issue have people who reach out to me they say they want to see live trades and they want to see me getting in out in like five minutes but that's just not what I do I do I do like longer term like you do it's same swing trading where like you take many days maybe many hours you know at the chart like watching the whole trade for the whole hour or the whole like multiple hours so it's a different style of trading for sure and you're right mentioning the fact that institution look at different thing than retail Traders are you kind of dealing more now with institution or are you kind of trading on your own mostly mostly uh uh today it's mostly my own money my own money uh um at the time I was uh I was training for two Edge different hedge fans uh I had some I had to stop with one HED F because of some new regulation at a per of time it was a bit complex and uh the other one it's uh the slow uh rhythm of my own trading system it was good for the taste at the beginning and less at the end uh but I think this is uh the main point very important uh you don't have to to change yourself you don't have to change your mind your framework your your your training point of view your your way of thinking of viewing the thing related to the circumstances you know I think I have my own system it's making money maybe not enough money for a lot of people but it's my system and I will not change that if you want to change your system uh I'm afraid you you're you're likely to to fail so so uh what I do now and this is the the point this is why I I design my uh trade back testing software I wanted to find other uh setups other trading system always in the swing training framework and uh I found other so I I'm trading other system it's very uh you know uh system with one to four trade per month I know it's not a lot but uh over the time it's uh it's for me it's great and that's why I I I uh I designed this back testing software because at the time so three four years ago uh I didn't find uh any interesting back testing software there was forx tester mainly M now we have a FX replay but it was not uh very efficient for me and uh I found some issue with with them so I designed my own back testing engine without user interface and after that it was mainly for me in fact to to to to to test my own concept my own training idas with a lot of statistic as we said before with a very accurate statistic with a lot of ratio to to to to assess the the strength of the the of the system and after that in fact I I I had to to use a user interface and from this time I decided maybe it can be interesting for other people and uh like that naked Market was born and now we have a significant uh uh user basis and uh we have a different interfaces it's very interesting because uh we are very transparent we have a road map where we explain everything you do we do everything we plan to do uh there is a lot of user request at the start we had only a Meta Meta Trader interface now we have a trading view interface so the customer are helping us to improve the software and in fact you pay one time and uh after it's a free support and you can do a you can request whatever you you want so it's interesting uh experience as well to see the retail side as a software engineer to help other people become successful with a with a tool to to test yourself to Trend yeah you told you right it's pretty cool that you made your own software for that I think to be fair I never tried it but I if you have to go and try it for sure after this this to see how it is but it's pretty good that you made your own thing and I have issues with like a lot of back Ling platforms whether you do like complex like you know for sessor is like really complex sometimes uh like you want to find a quick thing to do it it doesn't work uh there's other softwares that are pretty good too but they have other issues so it's good that you yeah you all definely check it out and uh tell us a bit more about kind of how this differentiates from the other back testing platforms out there the main focus for me at the at the beginning I was the the sole user of this software at the beginning so I wanted to test quickly ideas and Concepts so I did want even as an IT engineer to code to use uh coding skills to test my training ideas so I created what we call the module in the software called the rule manager this is a module where you can Define the way of you are entering exiting the market without coding it's just pure graphical interfaces with some graphical module with some uh easy or more complex rules and you can Define the uh setups you want to see you want to to analyze on your uh on your charts for example when you're back testing you can spend a lot of time uh just hitting the Press Bar to just to to see the the the bars displaying forward and uh with the rule manager you can define a rule when you want to see for example I don't know um uh some condition some price pattern some indicator the Bing b or some em um moving average breakouts you can Define this kind of condition easily graphically and you just have to to to press uh to hit the the the key and always you will see the uh the condition the the state of the market you want to analyze and you can uh Define easily uh entering the market you know instead of always uh setting your stop loss your entering uh price with the risk you can easily automate it but again just graphically so the main point was to save time you have an IDE you saw recently on the market maybe new patterns new new setups quickly you can test them and there is a module called Fast Back test when you def Define your rules and you can run your concept over 20 years in a few minutes so the main point yeah it's different to be very efficient I hope and but I use it for myself as well so very efficient quick without coding skills and after that uh with the help of the other uh uh user the interface is very better now with trading view I I know that lot of people like uh using uh trading view so we have exact the same interface and a lot of lot more statistics than other uh softwares because statistics is crucial again uh it's not because you you have I don't know 100% earning gain per year and that it's a good system you have to assess the risk related to risk you have the ratio you can do some monteal simulation you can analyze deeply the draw down so all this stuff is is including the software to to help the Traders I think it's important to that sounds like it's going to save a lot of time for sure so that that's pretty cool I'm going to try that to throw interview here and see how that goes but definitely it's a big time saver for sure why would you tell people who want to get profitable D and trading should they kind of go and read the for runs like you did before is there a better way for them to learn and kind of get possible faster where with the time so yeah it's now 2 years ago yeah yeah we I have some interesting feedbacks from from user and uh helping them in fact as I said we are very transparent and uh often it's interesting to see how the customer how the user want their back testing program work to be fast and to to help them in fact uh less uh friction there is and more likely they they are to to find something interesting to go deeper in their system because it's always the same thing you have you can have some training ideas uh you have to um to analyze to test them deeply and when it's deep when you're very uh when you stick with the system even back testing you can start having some interesting results so we can help the the the users and after uh when we see that their framework even in back testing is almost perfect for them we can see yeah they can test a lot a lot a lot and when you can test a lot a lot a lot you have a lot of Statistics you can learn from the mistakes and yes and you can see customers having profitable results over the time in back testing and after that eventually in the live training session you know the funny thing is that this IDE has so many places like you can listen to interviews get ideas from trailers about what to trade but then if you never test it or if you never go like in a back testing platform even like just on your CHS and test it then you don't have confidence in it you cannot R Trade It live after then you jump from one thing to the next like you said you go from strategy to strategy and you kind of just not get any results that way so having a place to tested first I think is a big key and I think people should just practice that more yeah yeah exactly I think yeah it's it's very important as I said previously uh when you want to be good at any activity you have to train yourself you have you can become successful uh there are some other activities like arts or Sports it's not so hard and so not so risky but on the market we have we know when you're successful you know it's in theory it's easy uh to become successful in theory why because it just uh probabilities you know uh winner losers with risk exposure uh I was looking enough to come from the it so from the security field so I I knew all the the risk exposure uh uh information but uh in in practice it's very hard it's very rious to become profitable because there is all this psychological aspect which is crucial again you have to feel the loss really before uh becoming profitable this is my point of view I think if you go to the market without turning yourself risking all your money the odds are are very high to lose your money but uh it's not a failure because you can learn from it you have to to to remind the feeling what is to to to lose a lots of money in few seconds maybe and learning from that you can adapt yourself uh analyze your personality it's very important to find um a training system uh that suits your your personality it's very important uh very uh stressful not stressful myself it's a swing training so it's very uh Zen In fact but I'm I'm not a nervous people so I like this kind of of training style and uh yes so um it's very important to to to to to train and to the live trading uh after that it's just back testing system so back testing and demo trading is not live trading it's a whole different world uh demo trading is easy uh there is no risk exposure you when you live trade uh it's very different but your back testing session are here to feel you confident to say to you you know uh you you already did that in the past the HS are high that you're likely to to to earn money over the long run uh with the with the live training sounds good I love it for sure so why can people connect with you or find out more about your back testing software for the back testing software so it's called naked markets okay.com so we have um we have a website uh maybe I can give you the link after if you interested or I can yeah yeah on the on the on the screen but uh we have uh yeah an important thing as I said we are um we are very transparent I think it's very important to to to show to people how we work in what our plant but for information on our website we have it's possible to download all the data for free I think it's not um in fact the our data are coming from free and paid services but this is my point of view I think this kind of data you know it's just historical markets data I think this data should be public in fact uh it's just you know uh the price in text file at the end of the day uh over the last 20 years so it's possible on our on our website to download it for free with it's a good quality data you know with a thck format data so you have a lot of stuff it's very uh it's pretty big but um just for information and on the website there is this uh kind of stuff and uh we have um a Wiki and we have a forum so on on on the on the website NE markets.com you can find all those stuff about it there is a demo version and and you can ask everything you want on the Forum or by email awesome looks like you do a lot of good work for the train Community I'll put the link below the in the show notes for this uh this back platform people can check it out they can try it out and hopefully they can reach out to you and uh get start with the back test so thank you Denny for this interview I really appreciate hopefully we can catch up soon and discuss more really cool

Channel: Etienne Crete - Desire To TRADE

Views: 4,928

Keywords: b the story, day trading, day trading for beginners, day trading live, day trading strategies, day trading tips, desire to trade, learn to day trade, learn to trade penny stocks, stock market for beginners, stock trading, success story of a profitable trader, success story of a trader, success story of day trader, success story of stock trader, trader, trader success, trader success story, automated trading, algo trading, nakedtrading, price action

Id: mWShpm4LZIg

Length: 33min 59sec (2039 seconds)

Published: Sun Mar 24 2024