I have spoken to you in the past about Eliot wave, and I’ve talked with you about Fibonacci.  I’ve named them the vehicle and the navigator. Well now I want to talk about the potential you can get using strategies in combination with those two together. But before I tell you that, I have to tell you a little bit about how this came about.

I’m a Forex trader who’s come through a gauntlet of a school of hard knocks. I’m a survivor. I certainly wouldn’t want to see anybody else go through all the problems, the troubles and the losses that I had to go through learning how to trade. I was very naive when I started trading. I believed whatever was told to me out there by brokers and by companies that were doing multilevel network and trading. And there were a lot of good things I got from those sources, but by and large it was not the way to learn how to trade. I wish I could’ve had someone I could’ve worked with from the beginning; someone who already knew how to trade, who already knew the pitfalls, and who understood what the true expectations were.  

Understand that in that trading environment, although I had to go through a great deal of challenges, difficulties, and losses (sometimes great losses) as I attempted to be a live trader, that all of those experiences became tools for me, they became my teachers. They taught me how to coach, and how to teach someone else about what you need to avoid. And in the process of learning, especially once I found my own mentors and coaches that taught me what they knew already, I eventually got to a point where I learned to start developing my own trade strategies.  You’ve heard it said that when the student is finally knowledgeable, and if they survive, they one day become the teacher. And that’s what happened to me. I finally began taking this piece and that piece from what I had learned from other traders and different mentors who taught me.  

I eventually came up with a strategy of my own.  This strategy came because of a student that I was teaching to become a coach. I was teaching Eliot wave and Fibonacci, and all manner of different strategies. He wasn’t satisfied, but was actually frustrated and said, “Steve I’m a computer programmer for heaven’s sake, I need to know that I’m going to get this result when I do this thing.” I tried to convince him that that’s not how this market works, and that you’re not going to achieve a hundred percent of successful trades, and that you’re going to have to take some losses sometimes because that’s just the way the market is, but he was still frustrated. After he left our coaching session that day I sat back in my chair a little frustrated myself. How am I going to satisfy this coach?  

I remember thinking that there must be some way to view the market through eyes filtered in such a way that I could identify the most high probability trading scenarios that exist and if I could just learn how to identify and regularly recognize them, then I could satisfy this coach. And I turned around and looked at my computer screen with that perspective in mind, and it all of the sudden was just right in front of me. I could see all over my charts -1,2,3,4- there’s a spot, there’s another one, there’s one. Those are the highest probability moves that happen in the market place, and they happen every day. If I could learn how to be there when those were happening and capture that moment, I’ve got a 95% chance on that particular segment of the market. I put together a little strategy, a little test, and I tested it a day or two after that. Trading the pound USD. I started trading it in the late evening; I traded twelve trades in the next 36 hours. Out of those 12 trades, eleven out them were successful. That account doubled in 36 hours.  

I was amazed at how accurate my new perspective was for identifying high probability scenarios from what I saw on the screen. I began to incorporate it into a trade strategy. Now it’s been almost two years since I began testing that. I’ve written the whole strategy, I call it the BBR trade strategy. I’m not going to tell you what BBR stands for. Maybe we can get together and talk and get to learn more about that. But the BBR trade strategy incorporates and leverages the highest probability trade scenarios that exist in the market, bar none.  Back to the topic at hand, since then I have also learned to incorporate the BBR strategy with Eliot wave, which I call EW for short, and Fibonacci using certain supporting resistance lines, and certain combinations of indicators. I have ultimately evolved the BBR strategy to what I now call the BBREW strategy. The BBREW strategy has proven to have incredible capabilities once a person learns to master it. Now at the same time I have to be fair. This is a risky market, and if you don’t trade the BBREW or any other high probability trading strategy correctly, you can lose the shirt right off your back.   

Some traders will get to where they trade this strategy with a “lot loaded” trade, meaning a very highly leveraged trade. They’ll trade 30, 40, 50% of their account because they look at this with such a high probability, they figure, why not trade a higher percentage of my account? You can be successful with that, I’ve proven it. Since the first test I did a year ago, that doubled an account in 36 hours within eleven out of twelve trades, we have since the first of this year, actually the first week of January in 2008, took 400 hundred dollars and turned it into ten thousand dollars over night. That strategy is capable of unbelievable results. Now that’s high leverage, lot loaded trading, and I don’t recommend it to just any trader. You’re going to have to be very good, very proficient, and very polished at what you do as a live trader.  

You can trade this same BBREW strategy at all different risk levels.  It’s your choice as a trader to determine what level of leverage you feel comfortable with. I would certainly never recommend that a new trader trade at a high leverage. Even after you master this strategy at a demo account first, that strategy is one you’ve got to learn starting out with a smaller amount of money in a live account. You never want to risk a large amount of money trading a live account when you’re a new trader. You must master your skills before you trade live.

Frankly I don’t think anything in the market exists, that has the capabilities of growing an account more rapidly than this strategy. Elliott Wave Principle and Fibonacci are key components. Learn them. They will change your whole perspective on trading!