Many five minute signal bars are random, much more so at lower timeframes. Years of experience and higher-time-frame context is necessary to determine what is random and what isn't, Brooks' teachings do not offer any reliable way to discern between the random and non-random, but he does make glib suggestions, such as that institutions watch for the close of 5 minute bars to enter trades. That sounds good and sells, but it isn't true and is dangerous to spread that misinformation. Brooks fails to educate traders how to understand context and how to reduce the probability of misinterpreting the frequent randomness of lower-time-frame setups as being non-random.
Al Brooks - Al Crooks, Charlatan
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Many five minute signal bars are random, much more so at lower timeframes. Years of experience and higher-time-frame context is necessary to determine what is random and what isn't, Brooks' teachings do not offer any reliable way to discern between the random and non-random, but he does make glib suggestions, such as that institutions watch for the close of 5 minute bars to enter trades. That sounds good and sells, but it isn't true and is dangerous to spread that misinformation. Brooks fails to educate traders how to understand context and how to reduce the probability of misinterpreting the frequent randomness of lower-time-frame setups as being non-random.
Have you read all his Futures mag articles, all three of his books, and watched his most recent video series? He charges less for his entire education than just a few of Pristine's videos, not to mention their extremely expensive classes, online or otherwise (as do many others). He repeatedly states that patterns haven't changed since trading began, so how can you claim he said they are his ideas? I must have missed that when I've been reading all his material in the mags and his books and his slide series (I've read all 3 books {much better written than the original}, and purchased his slide series as a supplemental). He has indicated that he believes certain things are obvious because of HFT trading, which I agree with.
I'm currently beginning to simplify my trading based on his material. I did a few of the competitors programs several years back, and they were more expensive on order of magnitude, and only showed the very best of the best setups, which almost never occur. He shows all setups, failed and successful, and explains them in excruciating detail. Did you really get into the books? It took me 6 months to go through them, and as I did, I reviewed my own charts on the EURUSD, and sure enough, many of the setups pan out in a similar way (though I use the 15 and 60 minute charts more than the 5). He makes no promises, he makes no guarantees, and in fact, states most traders will not succeed. That's pretty damn honest if you ask me. Did you actually get into his discussions regarding probability? Risk vs Reward? All that said, I will admit that I've not done his room, and I don't read his daily analysis, though I do my own, and I only trade FX.
I'm not sure why you're pissed at him. Go pay for Pristine or some of the other courses. Go join their trade rooms. You think Brooks is ripping you off?
He is pretty damn generous compared to the others, and in my opinion, I don't think he's trying to pull a fast one off on anybody. And lastly, If I needed trades called for me to take them, I wouldn't trade (not making the accusation regarding you, but have seen that stated about Brooks in other threads).
Because I estimate based on the books, webinars, trading expos and courses that Brooks makes over $30,000 per year as a vendor. Make up your own figure that makes that miniscule, most would probably say it should be over 20x that, $600,000+. P&L figures like that are unheard of for discretionary 5-minute candlestick traders in these new HFT-dominated markets. No one knows the average 5-minute bar PA trader's yearly profit total, but it's much lower than Brooks would have you believe.
Tell all the hard-working fast-food workers in California your definition of "peanuts".
Tell all the hard-working fast-food workers in California your definition of "peanuts".
Or he made millions as a MD, or he inherited $$, or his wife is an heiress, or..........
Probability and risk vs reward have been altered by the HFT-revolution at the 5 and less minute timeframe. Brooks tells you to put your stop under the breakout 5-minute candlestick bar, when you think a new swing high has formed, for example, though his charts are all in retrospect...I can understand why he doesn't trade like that. That's terrible advice.
My point: I think you're being too harsh on him. He's not a crook. Just compare him to the others.I wonder if you're trying to superimpose a style of trading over a different perspective than your original intent, something he also discusses. I like much of his advice, but disagree regarding using multiple time frames. EG: If I have 3 pushes down on the 60 with a shrinking stair, I won't short the best looking setup you could offer on the 5 or 15, except possibly with a very tight stop...and in fact may even begin a fade scale in depending on the time of day.
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