The PVSRA TVT20 trade method is not an "original" work. As with our indicators, it is based on contributions over time but with a simple "gardener" to pull the weeds and straighten things up. So we should credit others that pioneered, contributed, and left noteworthy examples as clues for others that would follow.
And why so? The reason is that the Robber Bank MMs whip and whack prices, make the market choppy, and run their Head Fakes and Stop Hunts.....all designed to keep everyone but themselves at severe disadvantage when trying to make pips from what they "predict" will be good price moves.....to leave good intentioned traders with unintended losses!
Special credit goes to Fisher755, who diligently read what there was to read, absorbed it, learned from it, and eventually realized there was a gem laying there. It was not all cut and polished so that anyone could instantly be impressed by it. It was just laying there. Nobody picked it up and started to examine it. Nobody saw its true value,.....nobody except Fisher755, who had scrupulously done all the Homework, and was therefore in a position to recognize what others missed.
And so, we come to the PVSRA TVT20. TVT20 stands for "Trend Validated Trade for 20 pips (MOL)". This post will describe this method. It will identify the essential considerations of the method and sufficiently discuss them. Any need for changes discovered as the method is extensively used, will be incorporated into this post as time goes on. So, here we go.
The PVSRA TVT20 combines two acknowledged benefits to traders: one, that "natural" market momentum benefits traders unlike anything else, and two, that "FIFO" (fast in, fast out) trades are a very effective way to capture pips before the MMs can decapitate you! And, in the process, it is discovered that the age-old problem of SL placement is finally resolved to the benefit of the trader!
Here are the PVSRA TVT20 considerations......
1. Trade preferably the LS. Yes, sometimes the AS looks like a good start, but it is overall best to await the LS, or even the NYS.
2. Trade preferably only if Trend has good angle.
3. Trade only if PVSRA supports a Trend direction move.
4. Wait EP for these things....
* PA must exhibit a move away from the Trend (does not have to come from within the Trend).
* PA must exhibit a retrace back towards the Trend (towards/ into/ thru).
* PA must exhibit a move back away from the Trend, with a breakout or imminent breakout of a key S/R Level (whole, half, sometimes a quarter Level).
5. TP is 20+ pips, so pick a S&R or consolidation area really close in.
6. SL is placed somewhere just beyond the retrace move, maybe just beyond some historic S/R a bit further away.
7. Add to trade only close to SL. If you' add to a trade as MMs push price against you, an EP near SL will lose least if you later fold.
1. Trade preferably the LS.
The LS is by far the highest volume time each day for trading. If there is going to be momentum to carry a trade, if the Trend is going to exhibit that by showing good angle, then this is the time of each trading day that it will occur. Some brokers advertise the forex market as "24/5", as though that was a good thing for retail traders. Don't believe it! Remember, at the end of the trading day, when there is the "changeover" to the next trading day, the Robber Bank MMs will increase spreads! For some pairs, spreads can suddenly shoot from several pips to dozens of pips. They do this to hit stops and to discourage traders from trading during this period, while they use all available liquidity for themselves. Trade the LS only. Do not "carry" trades over to another day!
2. Trade preferably only if Trend has good angle.
As stated just above, the Trend must show good angle. For longs, that would be an angle of between 1 o'clock and 2 o'clock on the watch. For shorts, that would be an angle of between 4 o'clock and 5 o'clock on the watch. Anything less than that is not so clear an indication of good momentum to carry a trade. It is best if the angle is the result of market activity over time, and not the result of some sudden price spike maniuplation by the Robber Bank MMs!
3. PVSRA must support....
Your skill with PVSRA is a key element to your best success as a trader. It fills in the "blanks". It leads to "understanding" how the market REALLY works. It is what changes you from a blind trader that is at the mercy of a plethora of indicators, EAs and the Robber Bank MMs (good luck!), into a trader that wise, disciplined and patient. Do not forsake PVSRA for some "good looking pic", leaping into the action, and ending up cleaned out! As you can see in the example trade picture attached, previous to the TVT20 the MMs had previously sold off heavily from above the whole Level, a PVSRA indication of bears.
4. Wait EP for these things....
What you want to see is that price has already made a zig-zag move, first away from the Trend (does not have to come from inside the trend), then back towards the trend (towards/into/thru) and then that price moves back away from the Trend, having made a breakout or posing an imminent breakout of a key level (whole, half, sometimes a quarter Level). Think of it as "zig-zag, key Level breakout". This is the time for entry. And this is the place to mention entry size. If you have, for example, a $500 account, your entry size should be 0.01 (one micro-lots). This allows you to put on up to three such EPs, building your trade. As your account grows, your trade size can grow accordingly. It is recommended to trade very light relative to account size. This promotes confidence rather than fear, discipline rather than greed, and patience rather than over trading. Remember, as your actual experience mounts, and your actual account grows, you can increase trade size accordingly. You can see that things will improve only slowly at first, but with success they will actually, over time, be improving at an ever increasing rate! Be sensible; be disciplined and be patient.
5. TP is 20+ pips.....
The key to this TVT20 method is the "FIFO"....fast in, fast out!.....style of trading, Yes, there will be times price will run quickly further. Don't kick a gift horse in the mouth! Take the profit. And do not get greedy and wait for the gift horse to kick you, taking it all back, and more! The Robber Bank MMs whip and whack prices to decapitate traders looking for nice, smooth, forward runs. Don't believe it! Take your profit off the table. Await a decent retrace and the possibility of a repeat or similar trade.
6. SL is placed just beyond the retrace move
The TVT20 method relies on a price zig-zag and then a breakout of a whole, half level, sometimes a quarter Level, while the Trend has good angle. This situation makes placing the SL a no-brainer. Place it just beyond the retrace in the zig-zag move, or maybe just beyond some obvious historic S/R level nearby. Since price just broke out a key Level the probability is there will not be another deep retrace until the price first makes pips for the trade. Why? The Robber Bank MMs will usually allow more time and give more pips to coax more money into the market before running another retrace or a stop hunt.
7. Add to trade only close to SL.
More trades than not, you will suffer the MMs moving price against you after making entry. This is the result of a choppy market, the kind of market maintained by the MMs thru price manipulation in order to create liquidity to fill SM orders and to outright legally steal money from market participants. Done carefully, additions to the trade can enable us to take advantage of the MMs when they are trying to take advantage of us. Only add to the trade close to the SL. Such additions will lose the least if the SL is hit. They will profit the most if not. This is the utilization of probabilities, which should favor us if our TVT20 selections are of quality.
Summary
That's it for now, PVSRA TVT20 in a nutshell. The method is designed to allow you to apply your PVSRA to a specific trade style that favors you making pips with minimum risk, and a no nonsense SL placement, just in case. You understand now why the pips target is small. If you want more pips, as your account grows (and it will) simply enlarge your trade size for more "total" pips. You should experience that this "FIFO" trade method does not overexpose you to market manipulations, to swaps charges, or to severe draw downs. It is most unlikely you will ever be exposed to a "Black Swan" event. And you will have made it extremely difficult for the Robber Bank MMs to take your money instead of you taking theirs.
Attached is a picture illustrating this method. Additional information resumes below.
Sincerely....PVSRA, Discipline, Patience, Profits,
![Smile :)](./images/smilies/icon/smile.gif)
Dear PVSRA Musketeers,
After you have read all the above on TVT20 FIFO, if you still seek more "exactness" your question or questions might take the following forms:
Question Paraphrased: Can you give some words about MM (Money Management), explain what is your MM, describe how you handle MM?
Answer: Okay, let us accept that Money Management is involved throughout the entire process of picking a setup to trade, entering, placing additional EPs depending on how PA goes after the initial EP, placing the TP and possibly modifying it depending on how PA goes after the initial EP, and having a SL for the trade. What is our description on how to handle all of this? ......items #1 thru #7 above!
I understand that we will always be getting questions we have taken great pains to answer up front. This is because not everyone reads, some without retaining because they are only reading out of a feeling of obligation to do so, and because everyone thinks there should be more details, more "exactness". Learning PVSRA is a time consuming process. Learning HTMRW is a time consuming process. And by the time reasonable proficiency is attained, one also has a very healthy respect for the fact that no one can ever know just how the Robber Bank Market Makers will move price next! This fact is why attempts at "too much exactness" can damage a method, rather than improve it.
Do we know if these Market Makers will run a stop hunt? If they do, do we know how far it will go? If we set our SL just beyond the previous most significant high or low (for example), and price moves thru it, is it then always best to close the trade without regard for any other existing considerations? You can put exactness to items #1 thru #7. Or, you can give yourself some wiggle room. You have four options if a trade goes against you: fold, fold and reverse, hold, hold and add. It is an individual's choice just how they manage any trade based on what they are seeing. We can do no more than lay out the ground work of a reasonable trading method, complete with all reasonable parameters for the major considerations. We cannot force folks to read, to think, to apply with reason. If they apply much differently then we have specified, and start asking questions when things do not go well, we cannot force them to read, to think, and to apply as we suggest.
Providing more exactness IS NOT A SOLUTION! The character of the market does not lend itself to traders being more profitable by constricting their trading to more and more exactness in their trading parameters. Trading profitably is not easy. This is not a "get rich quick" endeavor. And the more complicated you make it for yourself by ever increasing trading parameters and their exactness, the more you can move past the point of "most profitable" into the area of "getting less profitable again". And what are those parameters and exactness thereof that yields the "most profitable"? No one can know because it depends on the current "conditions" in the market, to what degree the MMs are whipping and whacking price, which is something that can change in an instant.
This is like a child learning to ride a bicycle. The parent does not hand the child a complete list of instructions on how to keep balance. The child has to just take a go at it and over time gain the learning of how to keep balance under changing conditions.....doing different things at different times, because THAT is what it is all about. There IS no best single exactness!
Sincerely....PVSRA, Discipline, Patience, Profits,
![Smile :)](./images/smilies/icon/smile.gif)