Brief Summary
This interview with Philando, a price action crypto trader, reveals his trading strategy, risk management techniques, and mindset. He discusses his approach to analysing charts, identifying key levels, and managing emotions during drawdowns. Philando also shares his insights on balancing trading with life and maintaining motivation.
- Philando uses a top-down approach, analysing higher time frames to identify trends and key levels before refining entries on lower time frames.
- He incorporates Fibonacci levels and volume analysis to fine-tune entries and identify potential take-profit targets.
- Philando emphasises the importance of managing emotions and maintaining a positive mindset during drawdowns by revisiting successful trades and focusing on future opportunities.
Introduction
Philando, a price action crypto trader based in Jamaica, has been trading for 10 months and has generated over $35,000 in profits. While trading is common in Jamaica, crypto trading is less so, with most traders focusing on synthetic assets. Philando actively shares his trading setups online and is known as Phil Great in a Discord community.
Trading Strategy: Time Frames and Market Structure
Philando uses multiple time frames, starting with weekly charts to identify the overall trend. He looks for space between resistance levels to determine potential profit targets. He uses monthly time frame to identify key support levels. On the daily timeframe, he identifies daily highs and lows to understand the market structure, looking for breaks above resistance and increased volume. He then moves to the 4-hour timeframe to confirm bullish signals and resistance breakouts. Finally, he uses the 1-hour timeframe to fine-tune entries, using Fibonacci levels and volume analysis.
Trade Setups and Fibonacci Levels
Philando uses Fibonacci retracement levels on the 1-hour timeframe to identify entry points, particularly the 38.2% level when there's significant volume. He targets the nearest resistance level on the daily timeframe for taking 50% profit, with potential for further profit-taking at the next 4-hour resistance level if the market breaks out. He aims to target the next higher high point, taking full profit if there is no major resistance. He uses setups for both short and long trades, filtering from daily or weekly timeframes.
Strategy Development and Trading Frequency
Philando developed his price action strategy by studying top traders and identifying commonalities in their approaches. He focuses on structure and space to identify trades. He typically takes two to five trades at a time, splitting the risk between them. He trades every day, finding weekend trading better due to less news and uncertainty, making it more stable for price action trading.
Balancing Trading and Life
Currently, trading is Philando's primary focus, which he believes helps him be more profitable. He aims for two wins in the morning and then takes a break. To manage emotional drawdowns, he revisits his trading plan and successful trades, focusing on future opportunities to reduce the impact of previous losses. He committed from the start that he wouldn't give up.
