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  • Writer's pictureAlpesh Patel

How To Learn to Trade The Right Way With Alpesh Patel – 2

Trading 101

I teach you more about the essence of how to trade and learn trading essentials. What we’re going to do instead, like I said, already ABCD, that’s all it is. It’s the entry, stop loss, adding to winners, losses through any strategy that occur small in size and short in duration.

Let’s now focus the article on the two last things: the business plan of how much money you might be able to make and how long it would take, and entry. How do we know when to get in?

This is what your performance is going to look like. If you’re going to become a billionaire at trading, it’s going to look like this. If it doesn’t look like this, you’re not going to become a billionaire. It’s as simple as that because this is what every billion-dollar hedge fund looks like in performance and what every rich person does.

You don’t have to take my word for it. Let’s do the maths on it. Out of 100 trades, you will get 20% which are big wins, and those are the winners that add to winners. Why aren’t all of them? Because nobody has a crystal ball. You’ll have some small wins. Why small wins? Why aren’t they all big?

Well, because Donald Trump has a tweet, and the market reverses. Or there’ll be small losses. Why small losses? Well, because we don’t want big ones. Why won’t there be big ones? Because losers add to losers, so we’re going to make sure our stop loss is not too far away. Simple, it’s simple. I’m giving it simple.

So here’s how you should do; let’s work it out. Everything I’m telling you, I’m reiterating, I’ve published before in the FT and wherever else. The strategy we’re using is the strategy used by billion-dollar funds like Winton. This is the slide from a $350 billion hedge fund, and we use the same principles they do.

Copy rich people to get rich

Why? If you copy rich people, you might get rich. It’s as simple as that. When I looked at what strategy I should adopt, Bill Lipshutz said to me; this is what we do. I discovered a whole bunch of others do the same thing. It’s called trend following, and it’s called momentum-based trading. It is not what market gurus on the internet teach you.

It is what Winton Capital does, it’s what AHL does, it’s what Renaissance Technologies does, it’s what Aspect does, and it is what Brevan Howard does. If those are names you’ve not heard of because you’re not in the industry, but I’ll tell you, it’s what they do.

The trend starts there, and we buy after a lag. Why after a lag? Because the profits have increased and we don’t have a crystal ball. Trend peaks there, and we sell after that. Now, we expect to make more money trading than we do investing. We intend to make more money trading than investing. Otherwise, we’d invest more; it’s a lot less hard work.

Taking risks

According to Bill Lipschutz, we expect to make 100% per annum if we’re a private investor. You can’t do that as a hedge fund because you’d have too much capital and restrictions placed by your investors to try and do that. But as a private investor, you can take a little bit more risk.

On the risk, I’ll talk about the business plan. He said, not me, so blame him if you don’t achieve it; he said you should be looking to make 100% per annum as a private investor. Why? Through the business plan, he gave me what I used, which allowed me to have, let’s put it this way, confidence in him 20 years later. So thanks, Bill.

The way we’re doing it is this. We don’t need to worry about that: Assets in trend- following strategies. Well, this was published in the FT; they’ve been going up and up every single year. The latest data I’ve got is till the start of 2016, so it’s a little bit out of date, but it’s been going up and up. Assets and trend following keep on rising.

Later I’m going to tell you some technology my hedge fund has spun out. We copied Jeff Bezos, the founder of Amazon, who used to be a hedge fund manager at D.E. Shaw. He spun out some technology called Amazon and became the world’s richest man. I’ve got similar ambitions, and we spun out some technology out of my hedge fund.

Trading strategies

When we look at entries, how we’re going to pick our entries? All of these people also use the trend-following momentum-based trading strategies that I use. They all use these strategies.

You can Google these people. There’s John W. Henry who owns Liverpool Football Club. He is a trend-following hedge fund manager. My favourite, David Harding, a trend-following momentum base.

I’m building the credentials of how we pick our entries because you know it’s not something that I just pulled out, but it’s something used by Man Group, a favourite of mine because it’s British, as well. All of these use the same strategy.

They don’t necessarily have the same formula. It’s like Pepsi and Coca-Cola. They’re both colas, but they have a different formula, get it? But they both give you the same similarish taste, but they have different formulas. To provide you with an example, we’re all trying to get into the trend, but we might have a different formula for knowing when to get in.

Some might get in one period later, some one period early. The whole point is it’s still cola, and you’ve got Kentucky Fried Chicken and Tennessee fried chicken. Can you tell the difference? Well, they’re all trying to do the same thing, and they’re pretty similar. That’s all it is.

Business plan to trade

All of these people are me, and we’re all trying to do the same thing, which is get on the back of trends created by others. That’s it. That’s all we’re trying to do and keep all the other rules I mentioned. If we don’t do the other rules, we’re screwed. Now, I know why you’re all here.

I don’t know this broker, I’ve never used them, and I don’t know anything of them, but their data said the average profit of the top 100 traders is £100k. So I understand why you’re here, so let me talk about the business plan.

The reason why you’re here is how do we get to a business plan? So let’s do the business plan and then the entry. Those are the last two bits and the last 10 minutes of the article, which is the business plan I’m going to give you.

The business plan, that’s this part, and then I’m going to give you the entry signal, and the strategy is then finished. I’ve given you all the parts of the strategy.

Let’s talk about the business plan because you first need to know and everyone else. Is this worth doing, can I make money on it, and will it be enough? What my wife needed to know was can you make enough? So let’s do the business plan first.

Learn the trading skills

How much money can you make to decide if it’s for you? Now trading initially, and everything I’ve said to you might look like it’s not worth the effort because you think it’s a bit like when you learn to drive, and that’s the analogy Bill Lipschutz gave me.

I’ve got a wing mirror, I’ve got a rearview mirror, steering wheel, accelerator, and brakes, and it’s too complicated. Just like stop losses you’ve mentioned, Alpesh, adding to winners you’ve mentioned are all too complicated, and I don’t want to do it. I’ll leave it.

Well, you learned to drive, didn’t you, and it gives you freedom and fulfilment? Well, trading is the same. Learn the skill; you’ll get freedom and fulfilment.

Here’s the business plan; please write this business plan down. A business plan is where we intend to get to. It’s not where we are now; it’s where we intend to get to.

The maximum loss we’re going to set ourselves is 1% of our total capital. Bill Lipschutz taught me this; he said to me, this is what we’re going to do. Because I said to him, “How much can I make? Should I be doing this full time?” And when we finish this, what I’m going to show you, I decided I wouldn’t be a barrister. I decided I want to do this for the rest of my life.

Total capital

The first thing on that business plan is 1% of total capital. The total capital you don’t have today, but you will eventually get it. If you learn the skills, you get friends and family giving them to, just as they did me.

I didn’t have much money when I started as a student with no silver spoon. Total capital: 20,000 pounds, so 1% of that is total maximum loss per trade 200 pounds, so you’ve now got your answer.

When you put your stop-loss, and you have your volatility base position size, how much would you lose, Alpesh? There you go. There are the numbers on the screen. That’s eventually, not today.

When you start with just £1000, you’re not going to lose £200 on a trade. You’re going to make commensurately less, and you can pro-rata this down. But this is telling you if this business is even worth doing.

My wife asked me, “Is this even something I should be doing on the side? Tell me what my plan is.” If you haven’t got a plan for 2021, then how the hell are you going to know if you’re going to make any money anyway?

Winners add to winners

Okay, so that’s why. I said the win/loss ratio we’re just going to assume we’re a bit better than a coin, a bit better than 50/50, with an edge. We’re going to follow the trends and the entry strategy I’m going to give you in the next slide. I said to my wife; we’re going to know that we’re going to make a bit more when we win than when we lose. So the average loss is 200 pounds, and the average win is £300.

Why? Because the strategy is winners add to winners, and we make more when we win than when we lose. That’s an important part. So Bill said to me, let’s say you make 100 trades, 60 of those are winning £300, and that’s a profit of £18,000.

God, I should have your attention now because he had mine. When Bill and I were going through the business plan, I did this, and I went, “Oh my God, tell my parents I want to leave university” because that’s where I was when we did this and all I want to do with the rest of my life is trade.

£18,000 is more money than any university student has ever seen like, as most of you rightly know. You want to make an extra £500 to £1000 a month because that’s the difference between rich and poor between paying down credit cards, rent, mortgage, topping up your pension, paying your kids school fees, and all the rest of it.

Now, don’t confuse it; you’re making it too complicated. You make it way too complex. It’s a lot simpler. Look at what’s on the screen. 40 x 200 pounds, losses will be 8000 pounds. Hang on, Alpesh, you’re still making losses of £8000, but my net profit would be £10,000 per 100 trades, and you can imagine I was excited.

I said to Bill, “Call my parents and tell them all I want to do is spend my life in front of the computer banging the keyboard, sitting in my underpants, eating nachos and getting fat and making £10,000 per 100 trades.” I said, this is it; I found the secret to wealth and success.

Obviously, he said to me, “Calm it down.” I said, “No, no, no,” and the following calculation I did, he really got annoyed at me. I said, “Look, I’ll be a day trader,” because 20 odd years ago, that was the thing to be.

I said, “I’m going to be a day trader; I’m going to make 100 trades per week. One hundred trades every week, and over 50 weeks in a year, I will make 5000 trades per annum at £10,000 profit per 100 trades. I’m going to make half a million pounds, Bill,” is what I told him.

I know what you’re thinking, and you should. Don’t be stupid, Alpesh; we’re not going to do 90% of that. We’re not going to do three-quarters, two-thirds, half, a third, a quarter, or a fifth of that. Alpesh, don’t be stupid; we’re not even going to do 15% of that.

You’re right. Let’s say our business plan and our skills and abilities have totally exaggerated. Our capital is overstated, our skills are over-exaggerated, and our abilities are. Let’s say we only did 10% of that business plan; that’s still £50,000.

I said to Bill, “Yeah, Bill, okay, let’s say I do £50,000?” He said, “No, no, hang on. You’re not even going to do that.” Remember, our goal was £1k, and that was his goal for me, £1k or £500 -£1000 per month.

He said, “No, you’re still optimistic. Great, you’ve got a business plan, which is over-optimistic but too optimistic. Tone it down, and dial it down, Alpesh. Make it more achievable.”

I said, “How do I make it more achievable?” He said, “Keep your day job, have something to fall back on, and continue being a lawyer,” because he didn’t want to talk to my parents and say I want to leave university and said, “Instead, make 100 trades per six months, don’t make 100 trades every week. You want to change every six months because you won’t find quality trades to do 100 every week.”

And I said, “Well, 100 trades for six months is one a day.” Remember I told you earlier one a day? Why aren’t you doing more than one a day? You could if you wanted, but I’d rather when you’re starting when you’re learning when you’re getting profitable and everyone else, I’d rather you did one a day.

So that’s 200 trades per annum and 20,000 pounds per annum. Hang on, that’s 4% of our business plan, but it’s still almost double our £1k per month target, so it’s a good business plan because eventually, we hope to have that much capital.

Even if we only achieve 4% of it, we would still almost double our target of £1000 a month. That’s a lot of room for failure in a business plan; that’s a good sign. But at this point, you should all exactly be asking what I asked him. “Bill, if these numbers are right, then how come everybody isn’t rich?”

And he said, “One of the three key reasons everybody isn’t rich, bad teachers, bad mentors, and bad strategy.” Let’s talk about strategies and close the webinar with the entry part. How do we know when to enter?

Remember 100 trades per six months, 200 trades per annum that’s £20,000. That’s my mom again, an honourable visit in all my articles. Well, actually, no, that’s not the figure. It’s not £20,000. Remember, it was £1k per month, and that’s all we’re going to do.

And I said to Bill, “Okay, how the hell do I do that? How the hell do I do that?” And he said, “Trend following momentum is probably the easiest way for a poor student” because I was then “for a private investor like me to do.”

After all, I couldn’t afford all the expensive paraphernalia that went with trading. He said the best way for private investigators to do it is by trend following. It’s easier. It’s easy to see, and it’s simpler to do.

I wanted to show you guys, and as I said, we’re looking at the Dow and the FTSE I’ve not shown at the moment. We are short on it, and you can see it there. Boom, and it collapsed at the opening, and there it is.

Now that’s a 15-minute bar, but as you can see, we opened that trade on the 17th of December. So 15-minute bars have still lasted six days. People make this mistake. They should only be doing daily charts because they’ve got a day job.

No, that’s too high risk and too few entries. You’re wasting your life, and you’re taking big risks to do it. Momentum-based trading or trend following is this part; we’re going to be that guy.

I’m going to show you how to do it properly, and it’s this. I need five minutes of your time, and I’ll also show you how to download the same stuff as well.

We’re going to ride the coattails, and we’re not going to step in front of the market; this is Goldman Sachs in purple or whoever moves the market. We’re not going to step in front of them trying to guess things because that’s called gambling. Instead we’re going to be this guy who’s back here and who follows their trends.

That’s why we’re getting in a little bit later. Then I said to Bill, “How do I do that?” Bill told me, “You’re going to measure strength and momentum. The best way to do it as a private investor is to measure how close to the high the price closes in any given period.”

This is the entry strategy. Remember, we’re talking about either going long or going short. Short means to sell the market, buy back cheaper, and profit that way, and long means to buy low and sell high.

I said, “Why am I doing this? Why am I looking how close the price closes to the high?” He said, “Because probabilistically if the price closes near the high, there’s increased probability the price is going to rise, and therefore there’s a trend.”

I said, “Yes, but there are lots of ways of measuring this. You could measure higher highs, higher lows, or if the price close near the high. How do I know which of those to measures?” Well, you’re going to use the same three principles all hedge fund managers do. So again, best practice.

The first one is you’re not just going to use one measure or one indicator or one indication. You’re going to use multiple indicators, and only if all of them show the same thing would you consider getting in.

But you’re not going to use the indicators which are freely available on the internet the way the textbooks do. You’re going to tweak them slightly because most of the textbooks they’re too lagging, the indicators are too obvious.

If they could appear in textbooks, then everybody would be doing it, so we’re not going to use textbooks, and I’ll share that in a second. We’re also not just going to look at one timeframe.

You’re going to look at multiple timeframes because that reinforces a trade. It increases the probability of a higher move. So whatever the indicators say, you’re going to see if they do the same in the next time frame. Are they closing near the high? And finally, you’re going to look at PC and PR, and I’ll come to that in one second what that is.

Let’s do number 1, so I said, “Well, how do I find these indicators if the price is closing near the high?” He said, “You’re going to look at the free indicators, which are available on the internet because you’re a poor student, but the way you’re going to improve them is you’re not going to look at them the way the textbooks do, and you’re going to look at multiple ones.”

In other words, do they all in alignment across multiple timeframes, say the same thing? So if we use freely available ones, which don’t work and are too lagging, and they don’t work all the time and only some of the time, the way we get it right is we change what the textbook says, and we look at them if they’re flat to rising.

Because the indicators in textbooks are too lagging and too slow, we speed them up. How do you speed them up? You look at it at an earlier stage. So is the indicator flat to rising because what the indicator, such as the MACD, Stochastic, or momentum are all measuring is this price making high highs?

In other words, is it closing near its high and so on? It’s a bit like those auctions you see. I’ve got 50, can anybody give me 60? I’ve got 60, can anybody give me 70? And believe me, they measure the speed of that movement. The way we’re going to do it is to look at multiple indicators, and they are flat to rising.

Multiple indicators flat to rising across multiple timeframes. All hedge funds look at various indicators, and they might not look at the same ones; they’re all trying to make the same chicken, but they might have different recipes to make it like Kentucky Fried Chicken.

To find those trends, multiple indicators, and multiple timeframes, those are the first two assets. That is not enough to make you money. Let me repeat it. Not only do you have to do all the things I’ve said, but it’s not enough to make your money.

Because he said the final thing, the third thing, not just multiple indicators and multiple timeframes flat to rising, the third thing is PC and PR.

PC is price confirmation. What’s price confirmation? Has the price made a two-period high whichever time frame you’re looking at? Whatever the time frame is that you’re looking at, has it made a two-period high? That’s the critical factor. I just want to keep an eye on some of these trades because I want to share some of them with you. I’ve got Marks, which I’m not sure if I’ve shown yet. It’s barely moving, but it’s still long.

So what happened at that point to show you live and we’re still long Marks is multiple indicators, well, flat to rising at that point, across numerous timeframes.

We have a PC, which is price confirmation and PR. What’s PR? It’s pattern recognition. Now, don’t you worry about pattern recognition. Microsoft uses artificial intelligence on pattern recognition, but you don’t need to worry about that. You’re not going to do that, and you’ll still be good enough without it. You’d be better with it, but you’re not going to do that. Let’s not focus on what you’re not going to do.

So those were the essential three aspects, and that isn’t complicated: multiple indicators, multiple timeframes, price confirmation. That’s the manual rules.

Let’s take Bitcoin, which has been wonderful for us. Well, that’s what it’s doing – multiple indicators, multiple timeframes, and price confirmation. We used to do that all manually, and it used to take a lot of time, and now, of course, we get the computer program to put in the stop loss.

I’ll show you how you can download that if you wish. You don’t have to if you don’t want to. We spun it out of the hedge fund, and we think it’s a technology that will be a billion-dollar business because it disrupts how people are going to trade.

It’s the first hedge fund industry that has made available how it does it. Why? Because that technology like Amazon, making that technology available, can make you a billionaire, and that’s what we plan to do.

We plan to have venture capital investment into it and then IPO that technology on the stock market because we know technology companies become billion-dollar companies.

It’s worth our while, and the money is worth it. That’s why we wanted to give it out to the broader market. I’ll show you how to download it in a second.

That’s not complex. It’s as simple as that because people mess up complex systems. That’s why I’ve kept everything extra simple.

When I was at university, I developed this when I met Bill and everybody else for the books. I perfected it, and I used it to win awards like that in the Financial Times. That’s me on the front cover of the business section of the FT. ‘Patel is top FTSE 100 forecaster’, and I then used that profile to write books to raise my profile, which allowed me to raise a hedge fund.

You can’t raise capital for a hedge fund unless you got a profile. The way to get a profile is to be good enough to be in the FT, be good enough to publish, and be good enough to have your own TV show. That’s why you do the fame bit because that profile allows you to raise your own hedge fund, which is what I did.

That’s me and my first set of offices in Regent’s Street because we couldn’t afford St James’s or Mayfair, and Regent Street sits between the two. Then we moved to St. James’s at 4 Waterloo Place, and then we moved to where we are now in Mayfair, at 84 Brook Street, opposite Claridges.

Merrill Lynch HSBC licensed my know-how, and they, amongst others, paid a million dollars, which is what it costs to set up the hedge fund. You’ve got to pay auditors, custodians, and all of these lawyers, accountants, and all the rest of it. Then people said, why didn’t you make this available? For years when we had the hedge fund, we said no, I’m not going to do it.

And so one guy from Barclays Bank said to make it available, and we’ll do the IPO. His name was Biku Ahluwalia; he’s the guy I owe all of this technology to because it’s thanks to him and that plan to IPO. I thought, yeah, actually, you’re right.

He said, “Look; if it’s your baby, just like Steve Jobs, talks about it, you’ve got to be the CEO talking about it on the internet, not somebody else. You can’t have somebody else doing it for you. You’ve got to give that mentoring, you’ve got to give the software to people, and don’t charge them a daily, weekly, or monthly fee, and don’t do subscriptions.”

He told me that, he said, “Give them one-to-one attention,” and I said, “Where am I going to get the time?” “Because if something works, they won’t need it, but you make it available to them to prove to them it bloody works. Make it convenient, do some videos and articles, daily updates, and give them your own instant messenger to see the trades.

They can look over your shoulder to see your trades, and you can look over their shoulder in one-to-one calls. But give them education material for those who want to know more and be hedge fund managers, provide them with course material, and update it daily.”

At one-to-one id, you must be bloody insane for me to do that, and then technology came around, which allowed us to do that. Zoom came along, and I could do those calls with a select group of people, and we found we’ve got no competition.

Look at these people. They’re charging two grand, and then it’s a bloody subscription. I hate subscribing. People who ask you to subscribe, shoot them. Do not pay anybody every day, every week, every month; they’re ripping you off. Do not pay subscription fees. All of this data, real-time, live, free forever – You’re not paying for it.

So he said to me, “You’ve got to make sure the other benefits we have were there were not too many signals and not too few.” Great because you don’t want somebody giving you signals all day long or just giving you something once a year. It can’t be backtest fitted. That’s rubbish because history never tells you and never repeats. The past performance is no guarantee of the future.

They said to make it lifetime upgrades for life. We’re on version 4 of this, not subscription, so people have peace of mind, even if they’re busy that they have got it forever. They’re going to keep getting the upgrades and the updates and everything else.

Mentoring from a hedge fund manager, nobody else does that. Lifetime updates, nobody does that. Small gains: we’re not talking about getting rich quickly; we’re saying let’s try and make money slowly.

And a career option, give them course material as well. We do a 12-week course or a 30-day course, it’s yours for life, and it’s updated daily. I did that for those who want to know more and become fund managers, but I give them the software and the indicator on there as well.

And a career option, give them course material as well. We do a 12-week course or a 30-day course, it’s yours for life, and it’s updated daily. I did that for those who want to know more and become fund managers, but I give them the software and the indicator on there as well. Because what we realised with that indicator, this was the problem, people were doing this, and that’s no good.

With an indicator, there was automation to save them hours. They had confidence in the strategy, lower stress, a business plan, clarity of exits, entries, and stop losses with an indicator. And this is what it is.

I’m going to let you download it, and we call it Pips Predator. We call it Pips Predator as separate standalone software because technology companies were becoming billion-dollar companies. If you spin out technology coming out of a hedge fund, and then get venture capital investment, and then IPO it, you’ve got prospects.

That’s my logic behind it, and it was straightforward. I said to my team, go and create this for people on webinars: ‘Buy when the price goes above the horizontal line because that confirms price momentum and the odds of a profitable move are increased.’

It scans all of these markets. Now, you should only ever trade with risk capital. You’re going to start with a demo account just until you’re consistently profitable. Should you ever then open a $1,000 account with any broker of your choice and trade the smallest amount. Got it? Because 70% of private investors, as we know out there, lose money.

The idea was because it’s scanning all of these markets in real-time and can send you alerts, but actually, I don’t want you to use all of that. I want you to focus on the trade selection parts I tell you about. I’m focused on those and not just any other thing, just willy nilly.

I’ll give you an example. This is GBPNZD, and you can look at this right now if you wish. We get the signal, now we might have missed it, but it’s okay if we missed it. By the way, in case you’re wondering what that is, that gives me a traffic light signal of how things are doing. It’s really this indicator, which is the most important, and that’s the Pips Predator.

Now people are saying, “Why are you holding me back? Why are you telling me to start small? Why are you doing all of this?” Well, look, I’d rather you started slow and safe than fast. It’s like driving a Ferrari. Go on the motorway on your day one-off driving lessons, and you’re going to crash the bloody thing, and you’re going to think nobody can ever drive. Instead, if you learn to drive in a Mazda, or a Fiat in a Tesco car park, guess what, you’ll have a long, happy life.

The best timeframe, one-hour timeframe – I’ll show you how to download it in a second, don’t worry. I’ll come to brokers in a second, Fred. The number of trades in a month is 25. Now, some months you might do 40, and some months you might end up doing 16.

This was one trade a day, remember, and this is what my team had to do so we could showcase it. Net pips captured in a month means winning minus losing, net pips captured. 2250 on average, some months that could be as high as 4000 and other months zero.

Anybody who tells you that every month, they’re just making profits, they’re lying. What I’m saying is some months, you make more, and you save that for the months in which you make less. That’s how you iron out the ups and downs because not every month will be great.

I think January and December are going to be really good, because we’re going to be, psychologically, I think there’s going to be more movements in the markets as people reassess, get ready for the next year, and put this year behind them.

The best winning streak, just like you can have a winning streak of heads, 70 out of 30, the best losing streak, 30 losing trades. But that doesn’t matter because it’s this number that matters: 2250. Now, let’s say you did $2 a point, which way too much. Why is that too much? Because by the time you get a stop loss, you’ve lost $100 on a trade. That’s too much.

But bear with me a second; $ 2 x 2250 means in a month, you’d make 4500. Okay, some months more and some months less. No, that’s too much. Remember what I already told you. It’s 500, we want to try and make them up, and it’s 10% of that, which means we can do 10% of our stake, which means we can do 20¢.

When we knew when we did this exercise with our traders in the team, we’ve got a mass-market product, a Google of trading. Google’s an algorithm that searches the internet for information. This is an algorithm that searches the market for information. It’s a similar kind of thing.

I want you to look at GBPUSD. Now look, I don’t know what’s just happened in the news. What I do know is we have that buy signal all day long. And I do know that sterling’s just shot up to 1.34. For some reason, sterling has just popped. We’re in that trade without having to look at the news or gambling on the information, without being a news addict and without being on my screen. We don’t want to do any of that. Why?

Because we’re just falling on the trends of somebody else, somebody else has done all that research. We’re riding their coattails. I am lazy. Like most entrepreneurs, I’m lazy, and I’m risk-averse.

Therefore, I need to mitigate my risk, and the GBPNZD trade is a classic example. Why has it shot up? I don’t know, but what I know is major versus a minor currency. You guys are making me money, thank you very much. I’m not going to share it with you.

So we thought, are we sure we want to make this available. After all, we’ve got no competition, and we’ve got a monopoly. That’s how we know we can be a billion-dollar business. All billion-dollar businesses are monopolies.

Bloomberg TV paid me for my TV show; I was paid by the Financial Times for my column. They’re the only two respectable publications in finance and absolutely amazing—both of those paid me.

I’m a visiting fellow at Oxford University, a visiting fellow in Business and Industry at Corpus Christi College, Oxford. FT awards, etc., you don’t care about that. What you should care about is we don’t have any competition.

The question then became, can it make money? Is it easy? Yeah, it is because you’re just following the signals like this. You’re just following the signals. It gives you an exit, but you can also use the trailing stop-loss.

This was one of my apprentices, who used five-minute bars. Don’t use five-minute bars; please use 15. I think five minutes is too much. You’re going to be too addicted. Three hours, 75 pips, now because he’d been doing it for a long time, he did $30 a point. That’s up to him; he also happens to be relatively rich, as well. So that’s his recent one, but that’s not going to be yours.

The amount of money you make will depend on the number of signals you follow and your capital. And risk warnings, always with this, that’s why we start with a demo account first and foremost and learn it. The best review we’ve had of the Pips Predator is this, and it’s in print so that you can check it on the back of my Financial Times book by the chairman of the Chicago Board of Trade.

The best review I’ve ever had: ‘Gets to the heart of the matter of trading by clearly elucidating the methodologies of successful trading strategies. Successful trading strategies. I’ll tell you how to download it. Without it, I think this is what you’re doing, you’re diving, and it’s going to take ages. With it, this is what it does.

I give you 30 days. It’s yours for life, but 30 days to trial it and a 100% money-back guarantee, and you don’t have to send me your trades. Try for 30 days and if you don’t like it, give it back. I’ll tell you what I’m going to do.

I want to get, in groups of 25, 1000 people through this and get them properly through this. I’ve got through 850 odd people. Once we get to 1000, we get venture capital investment into it to prove to them it works, just like if you’re on Dragon’s Den.

You say give me 30 million for 10% of my company. Those are the figures we’re playing with for this. To entice you to get you to try it, I’m going to give you signed copies of two of my most recent books to keep. Even if within 30 days you say it’s not for me, I don’t think I can learn, Alpesh, at least in 30 days, you’ll know whether for the rest of your life this is for you.

There’s no ongoing subscription cost, so you don’t have anything to worry about, and you’ll know in 30 days. The other thing I’m going to give you is headphones like these, like the Apple iPhone headphones, a phone stand because there’s course material which you can then read on the phone and this broadcast that I do, and all the rest, but you don’t have to.

I’m going to let you look over my shoulder; we’re going to have calls in that timeframe, and you’re going to look over mine, and I’ll look over yours to make sure you’re doing everything correctly.

You’re going to get access to all the course material, a 30-day course, which is updated daily, my telegram channel, my private telegram channel so you can see what trades we’re looking at over my shoulder, and I’ll look over yours. I’m going to have one-to-one calls, and we’re going to have as many one-to-one calls as you need.

This is the guy whose idea it really was when he was at Barclays, Biku Ahluwalia. It was created for him. The idea was he said to create it for me, and we’ll IPO the whole damn thing. My best person I’ve ever had who I’ve trained up in anything, she was a student of mine straight out of university. She worked for me as my assistant for three years, and now she manages 10 billion at Newton.

I take people on in groups of 25. If you want to download it, it is first-come, first-serve. It is very strictly first-come, first-serve. If you’re too slow, and that often happens, I don’t know when I will do the next one. I am going to double the price next month, that is the plan at the moment. The price is going to double next month, I’m afraid. It’s already doubled earlier this year, and it’s going to double again. Why?

Because the venture capitalist wants us to do that, they’re saying people are making this much money out of it, and you want to get to a billion out of it; you better start doubling the price. For the first 1000 in groups of 25, it’s only 25 today. I take them in a group of 25. If I get more than three emails a day from my students, my secretary doesn’t allow me to take another batch of 25. So today, I’m taking a batch of 25. It’s as simple as that.

The next time I’ll take them? I don’t know. It depends when the first dispatch gets to success levels, and I get less than three emails in a day, and that’s it. It’s as simple as that, first come, first serve. That’s where you go. It’s as simple as that.

You got to I’ll answer your questions in a second. Why are we doing it? We want to make this into a billion-dollar tech company, just like Amazon, created by the hedge fund manager Jeff Bezos. It’s the same principle, and we think there’s a demand for it because there’s a trillion-dollar business out there in the world.

You can get it and start in March, June, or April. There’s no ongoing cost. That’s why we did it because people’s lives are busy, and they’re able to lock in the lower price. You locked in the lower price. It’s as simple as that. I’m going to show you the download page. You go there, and you can see the padlock, so your data is secure. We don’t see any of your data. You get to buy and sell signals; you get currencies, stocks, and commodities.

If you missed the earlier buy signal for Marks, we’ve just got another buy signal on Marks, there it is live on air, and you can see it. That’s the buy signal on Marks. Marks and Sparks, the buy signal is there. It is now 131.90. If you missed this earlier one, maybe an ex-student of mine or apprentice, then you’ve got this signal which has just come in.

The indicator tells you where the stop-loss goes for everything and works it out for you. It tells you the risk you’re taking, tells you what positions are, tells you when to add to your positions, or when to take stop losses. It tells you everything and does all the hard work.

All you got to do is the trade selection. All you’ve got to do is the trade selection. In fact, you’ll be looking over my shoulder on my private instant messenger channel, so that will even make the trade selection. Well, show you which trades we’re looking at as well.

I want to show you some key points; also, we have a fantastic community site for all Pips Predator users. The community site allows you to see what I’m doing and my latest views and ask questions with others and see the questions and answers from other Pips Predator users.

We also have the 12-week course. I want all my apprentices, but only apprentices; please connect with me on LinkedIn. If you don’t know what LinkedIn is, it’s free. Microsoft owns it, and it’s a networking tool. There’s going to be a deal. Well, guess what, guys? You’ve seen what trade we’re doing. Oh my god, there is going to be a deal announcing. Look, guys, you saw it live on air. I’m not going to gamble on a Brexit deal.

Well done, all Pip Predator apprentices. Those of you who have signed up, let me know. I want to make 2021 a brilliant year for people, and certainly my wife for whom I’ve done this webinar.

Register at It might be that there are a lot of people trying to get on. So LinkedIn apprentices, follow me. If you want to get into a career, I will mentor them if your children want to get into a career. I will open doors for them. That is my job. If you’ve got problems with brokers, I will do that. The reason I tell people to join me on LinkedIn for my apprentices is this.

Part of mentoring any group of people, and I co-created the UK chapter of the world’s largest entrepreneur mentoring organization called TiE. I co-founded the UK chapter with Lord Bilimoria, the CBI president, and I did that 20 years ago to learn about mentoring. The important thing about mentoring is it should be the whole of life; it should be every aspect of life. Some people get this, and together they do it with their wives, some do it for their kids, and say learn about finance. Some I don’t know why they do, they don’t want to trade, all they want is my connection and help them with a career.

When you do the 12-week course, you can add to your CV that you’ve done it. You’ll get a certificate from me you can add that you’ve done the training and go on your CV, and I’ll give you a reference. I just got somebody a job at Credit Suisse earlier this year, off the back of that. This is the 12-week course, and you don’t have to do it, and we can have one-to-ones, but some people say, Alpesh, tell me how to get right to this straightaway.

So anyway, you’ve got all these weeks, and it’s yours for life. We wanted to make it a no-brainer. My instant messaging channel is private, I’m afraid, and only for my apprentices. There’s a public telegram channel, and there’s a private one.

The private one gives the trades that we’re looking at over the shoulder as well. And like I said, you’ve got this fantastic, helpful set of resources where I tutor and mentor you and do the videos and show you all of that stuff as well.

One of the things I want to say is people have asked me, “You know when you’re on the air, Alpesh,” somebody once asked me a while back, and they said, “What is it that you’re looking at? You’re giving your forecast, and you’ve been doing it 20 odd years; what is it that you’re doing? What do you look at?”

And I said, “Well, I look at the indicators,” and that’s all I do before I go on air. So when I’m talking about oil with Sally as I was then, it’s literally based on the indicator beforehand.

I don’t have my computer screen in front of me there. But beforehand, I’m on my screen there, and that’s my view. That’s what I do it on. It’s based on what I’ve been doing the broadcasts on CNBC, Bloomberg, and others for 21 years.

You might also become market gurus; that’s not the point of this. You get 24-hour customer support, but even I’ve got a team who can help. There are set-up instructions, but if it takes you more than 10 minutes, we will install it for you as well. It’s a 30-day no-quibble, money-back guarantee.

Let me know in 30 days. Let me see, I’d say about 10% of people give up within the first 30 days, and the rest will be profitable instantly means they’re going to – Do the Marks trade? The Marks and Spencer trade?

Okay, there it is. I don’t know why we’ve got that long signal earlier than we did. I don’t know if somebody has leaked this information. Check out a kitchen appliances showroom in California hosted by company. Anyway, they’re going to do the Marks and Spencer trade, or they’re going to make the sterling trades while they’re going to be profitable from today, aren’t they. There you go, it’s bloody going through the blood roof, isn’t it? Thank you very much, sterling.

Others might have less time, as they’ve not had time, so it’s taken him a bit longer. Who supplies the data comes from whichever broker you’re using, so it’s broker-independent.

The data on prices, so let’s say you wanted to use FXCM or InterTrader or IG index, you can use any broker you wish to. I recommend an FCA-regulated one. Essentially, the data you get, so the sterling price is pretty much the same across all brokers.

Now, some brokers have wider spreads than others. I can advise which ones are bad and good, but I suggest you just open three different brokerage accounts and compare them. It’s as simple as that. You work it out, don’t rely on me.

But let’s say you open an IG, CMC, and an InterTrader account or an ETX account or a Finceo account; it doesn’t matter. You can just compare the spreads when you place trades, one trade on each one, the smallest amount. That’s the first point that its broker independent.

I wanted to make it broker-independent. Why? Because I didn’t want you only being able to trade to one broker. For that reason, I wanted it to be broker-independent. Why? Because foreign exchange price is broker independent. Google’s price is broker independent, Apples’ price is broker independent.

So why should your trading be limited? Don’t trust anybody who’s trying to force you to go with one broker because they’re getting kickbacks. Nor anybody who is charging you a subscription fee for data because data is free.

Do not trust anybody trying to charge you a subscription fee every day, every week, and every month. There will be people out there. Do not trust anybody who’s saying do £2 a month or £3 a month or £4 a month. And you know why? Because they know you’re going to lose your money, and they get a kickback from the broker when you lose it.

They’re making money from getting you to trade a larger size in a smaller time frame. That’s why they’re on subscription, so you are in a rush. The reason they have a subscription and the reason they want you to do £2, £3, or £4 a month is because you lose your money quicker, and so they get their kickback from the broker quicker.

They’re not telling you all of this, but that’s what they’re doing. Don’t trust any of those. That’s why what we said is broker-independent. Choose any broker you want. Start with a demo account. There’s no subscription fee, so you’re not in a rush because we don’t want you to be in a hurry.

We’d rather you got it right, so our interests align with yours. Our interests are aligned with yours, and that is critical to success.

You go to the download the indicator page: or Install it in 10 minutes, or we’ll do it for you. You follow the signals, there’s a manual, and you can look at the manual. There’s the course module, but you don’t have to do the course module. Trade through any broker you’re happy with or one of our recommended ones.

There are more than three recommend ones; we have recommended more now. There’s a mentor site, videos, and webinars, and you don’t have to use our brokers. Somebody recently said to me, and they mentioned a new broker. We looked at it, we said, yeah, it was totally fine. It’s regulated, and we do the checklist to make sure regulated and so on.

I just want to make sure I’ve run through absolutely everything. 30-day money-back, you get to keep the books, even if in 30 days you say it’s not for you, you get to keep the headphones, you get to keep the journal, we give you a nice journal for your trading as well, even if in 30 days you say it’s not for me.

There are some of the other points as well. I want to create not just a group or a community; I want to create a movement. First of all, a movement of people who learn to decide if trading for them and then trade and do it professionally.

So they know what stop losses are, but they don’t want to add to the losses, and they know to add to winners. They know in conjunction with each other how to trade select. Trade selection is essential.

You can’t just say I’m going to pick any trade at any time for me to do magically. That’s why we help you with trade selection. We want the ones with the smoother trends with trade selection; preferably, we’re looking at. You might suddenly wake up one morning and say I want to use it on Ripple, which is a cryptocurrency. We’ll say, well, please let us have a look at it first for you before you just go willy nilly and do that.

For this reason, I decided to take on apprentices, the same reason that guy did, and this one did. I copied what the billionaires do. So yes, it’s lifetime mentoring with me one to one just to reiterate that point. The maths works out very easily.

We have a very simple system where you can book your time with me. You don’t even need to email me. You can just book it with me on my calendar. I’ve got a call actually with someone who wanted a recap because he’d forgotten everything from a couple of years ago, and he wanted to recap, and I’ve got a call with him in 45 minutes, which is fine. Just schedule them, no issues.

Because you know why? The other thing, when you’re making money, guess who the best evangelists are for this company? It’s you guys. You’re going to be the best evangelists. That’s why it’s worth investing that time. I’m only doing it with the first batch because they become through word of mouth – You know what, what’s better than anything? Word of mouth of your customers. Word of mouth of your clients.

My mission is I want more people to trade because I do love it. The books, the testimonies show how much I love it. I want more people; that’s my mission. My vision is I want to float the technology company. We’re going to be one of a kind on the stock market.

Email: daily market, you’ll see the same news I see, so you get a daily newsletter. You get a monthly newsletter, you get updates each day, or to look over my shoulder to see what we’re looking at, mine and my team’s, what we’re looking at.

I’m really excited. Let’s make 2021 brilliant and phenomenal apprentices.

Alpesh Patel OBE

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