📈 How to Use VWAP to Trade Prop + DXTrade Updates

Hey Prop Traders, here’s what is buzzing in the prop trading June 18, 2024

🗞️ TODAY’S PROP TRADING INDUSTRY NEWS

1. DXTrade Provides Updates on Tradingview Integration

2. Goat Funded Trader Plans New Type of Challenge

3. Funding Pips Teases Payouts on Demand

4. City Traders Imperium Launches Weekly Show

5. Oanda Prop Trader Offers Currency Strength Tool

✂️ LATEST PROP FIRM DISCOUNT PROMOTIONS

• Axi Select First FREE Funded Trader Program

• APEX Trader Funding Save 71% Off Evals

• Blue Guardian 40% Off Everything

• The5ers 5% Exclusive Discount

• Oanda Prop Trader Exclusive 25% Discount

• MyFundedFutures 20% OFF ALL Evals

• MyFundedFX 10% OFF ALL Plans

📌 PASS THE PROP TRADING TIP

Prop Trading Tip: How to Use VWAP to Trade Prop

VWAP, or Volume Weighted Average Price, is a popular tool that helps traders understand the average price that an instrument has traded throughout the day, based on both price and volume 📈. It creates a reference line that shows whether an instrument is trending up or down. Unlike a simple moving average, VWAP is calculated by taking into account both the price and the volume of trades, making it super useful.

Day traders love using VWAP and here are some of the ways that they use it:

Identifying Trends

Uptrend: If the price is above the VWAP, it indicates an uptrend so traders might look for buying opportunities 📊.

Downtrend: If the price is below the VWAP, it indicates a downtrend so traders might look for selling or shorting opportunities 📉.

Entry and Exit Points

Buying: Traders might buy when price crosses above the VWAP, indicating potential strength 💪.

Selling: Traders might short when price crosses below the VWAP, indicating potential weakness 🛑.

Support and Resistance

Support: VWAP can act as a support level, meaning the price might not fall below it easily 🔄.

Resistance: VWAP can act as a resistance level, meaning the price might not rise above it easily ⛔.

Intraday Strategies

Scalping: Traders might use VWAP to quickly enter and exit trades for small profits 💰.

Reversion to Mean: Traders might expect the stock price to revert to the VWAP after moving significantly away from it 🔄.

There are many ways that VWAP helps day traders make decisions about when to enter or exit trades, identify trends, and evaluate their performance against the market average. It is a versatile tool that provides valuable information for intraday trading strategies.🌟

🔥 TRADING TIPS

⚡ PROP FIRM FEATURE

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🎓 PROP TRADING LINGO

What is News Bracketing?

The news bracketing strategy in prop trading involves placing trades around the time of significant news releases 📊, with the goal of capturing the volatility that often accompanies such events 💥. This strategy typically involves setting up pending orders (both buy and sell) at key levels around the anticipated news release to take advantage of the sharp price movements that can occur 🔄.

How the News Bracketing Strategy Works:

1. Identify Key News Events 🗓️: Traders identify significant news releases that are likely to impact the markets. Common examples include central bank interest rate decisions 📉, employment reports 🧑‍💼, and major economic indicators 📊.

2. Set Up Pending Orders 📋: Traders place pending buy and sell orders at strategic levels around the current market price. These levels are usually just outside the expected range of price movement, based on historical volatility around similar news events 📈.

3. Risk Management ⚖️: Traders define stop-loss and take-profit levels to manage risk and lock in profits 💰. These levels are set based on volatility expectations and the trader's risk tolerance 🚦.

4. Monitor and Adjust 👀: As the news release approaches, traders closely monitor market conditions and may adjust their orders based on any pre-release price movements or new information 📉📈.

Example:

Let’s assume a trader is preparing for the release of the U.S. Non-Farm Payroll (NFP) report 📑, a highly impactful economic indicator.

Current Market Conditions:

• The EUR/USD pair is trading at 1.1000.

• The trader expects significant volatility following the NFP release 🌪️.

Setting Up Pending Orders:

• Place a pending buy order at 1.1050 with a stop-loss at 1.1025 and a take-profit at 1.1100 📈.

• Place a pending sell order at 1.0950 with a stop-loss at 1.0975 and a take-profit at 1.0900 📉.

Pre-Release Adjustments:

• As the release time approaches, the trader monitors any preliminary market moves and adjusts the orders if necessary 🔄.

Post-Release Actions:

• The NFP report is released 📅, and the EUR/USD spikes to 1.1060, triggering the buy order 📈.

• The price continues to rise, hitting the take-profit level at 1.1100 🏁.

• The sell order remains inactive and is canceled after the event 🚫.

The news bracketing strategy can potentially capture significant price moves and profits in a short period 🏦, with defined risk through pre-set stop-loss levels 🚨. However, high volatility can result in slippage, causing orders to be executed at worse prices than expected ⚡. Additionally, if both buy and sell orders are triggered in rapid succession, it can lead to losses on both sides 🔻. This strategy requires careful planning and quick execution to navigate the benefits and mitigate the inherent risks effectively ⚙️. Some prop firms allow this strategy while others ban it due to the heightened risk and potential for significant losses ⚖️. ✅

📈 TRADER PSYCHOLOGY

What do you need to succeed at trading?

A great setup? 💡 

Lightning-fast execution? ⚡

Steely risk management skills? 🛡️

All those nice-sounding ideas are utterly irrelevant to your success.

Why?

Because you will never follow the setup, speed is pretty much the same for everyone with access to a fast internet connection 🌐, and no one has steely risk management skills.

We approach trading education all backward. 🔄

We focus on setups, backtests, leverage, execution, correlation risk, and a million other factors that we think may give us an edge. But there is a key element that we always miss.

The human element. 🧠❤️

If we want to trade the market for fun as well as profit, if we want to engage with the crazy, irrational, fascinating, thrilling, frustrating, infuriating, electrifying mess that is the global financial market, we need to do it on our own terms. 🌍💼

Whaaaaaaat? 🤯

How can you make the market adapt to you? The market adapts to no one!

That’s true. But the key to succeeding in its wild ocean of trades is to find a space where you can thrive under your own rules. 🌊⚓

You need to make the market your own. You will never change. No motivational talks, no browbeating, no self-loathing, or hatred will ever change your trading habits. If you want to have fun in the markets and actually try to make money, you need to stop listening to anyone telling you what to do and discover what it is that you ACTUALLY do. From there, you can start to design an approach that makes emotional sense to YOU. 🎯💡

If you like consistency, then you need to trade with a negative risk-reward ratio and go for very small targets. 🎯📉 If you like hitting big trades, you need to resign yourself to losing small amounts five, six, seven times in a row. 🎯📈

If we want to trade “properly,” we should use robots. 🤖

If we just want to trade, we need to know who we really are and make peace with that. 🧘‍♂️

📋 PROP FIRMS WITH IN HOUSE TECH

1. Axi Select (Axi Group Co. is Global Broker)

2. FTMO (4.8 ❇️ Trustpilot)

3. The5ers (4.8 ❇️ Trustpilot)

4. Funded Trading Plus (4.8 ❇️ Trustpilot)

5. E8 Markets (4.6 ❇️ Trustpilot)

SPONSORED BY AXI SELECT

TRADE PROP WITH REAL FUNDS, LIVE ACCOUNTS

✅ Designed to Help Prop Traders Succeed
✅ First 100% Free Funded Trader Program
✅ No Demo or Virtual Funds. Live Accounts, Real Funds
✅ No Registration or Monthly Fees
✅ Earn Up to 90% of Profits
✅ Trade up to USD $1 Million
✅ You Can Trade the $500 Broker Account Deposit & Withdraw
✅ Unrestrictive Trading Conditions, EAs & News Trading Welcome

 TRADE PROP WITH REAL FUNDS AT AXI SELECT