What is Flow-Based Thinking and Trading?

In Flow-Based Trading (FBT) developed by Sidney Worth, we learn to re-train ourselves to create an ideal mental state to effortlessly "monitor" (observe without bias) the buy/sell energy in the market in multiple timeframes. The Flow-Based trader begins to recognize bargain opportunities at energy flow edges instead of trying to force, arbitrary rules or philosophies onto the market.

Flow-Based Trading (FBT) is more like dancing than engineering. The dancer responds appropriately in-the-moment to their partner's movements while the engineer suffers from "analysis paralysis" to predict or avoid some outcome. Responding based on probability has been shown to be more profitable than attempting to predict events that have not yet happened.

"Here is the fatal prediction quandary, "things happen in the future which have never before happened", just how can that be predicted from past data?"

Only by learning to make high quality market observations (monitoring) in a "care free" state-of-mind, using flow-based tools, and re-training the mind to recover from the horribly damaging long-term dulling effects of fear-based / rule-based methods can we begin to re-connect with deeper intelligence (deep perception) and create the conditions necessary for consistent trading.

Most all traders fail to comprehend that when we monitor the market without also skillfully monitoring ourselves we lose perspective and fail to perceive depth and detail. A trader with a fixed single point-of-view always has distorted and twisted perceptions.

What is required for mastery is that we learn how to monitor ourselves at the same time we monitor the market. By learning how to hold two points-of-view simultaneously, i.e. the market and ourselves, a new world begins to emerge which we call intuition (deep perception). Thus a master of any subject matter always holds more than one viewpoint and becomes unified with the game being played. A master perceives more than a linear thinker can see. Mastery is your birthright and Sidney's coaching style leads you to re-claiming it for yourself.

What gap does Flow-Based Trading Fill?

"Rule-Based approaches are in fact Fear-Based because the trader's fundamental internal computation in following rules is he/she fears they cannot be trusted and that "rules", "automation", or "philosophies" will save the day. But, as the street knows, "scared money always loses"

Flow-Based Trading (FBT) applies only to discretionary trading. FBT is a low-stress, tendency/probability based approach and is vastly different from traditional Rule-Based, Predictive, or Automated Systems, or Philosophies.

The ClearEdge™ FBT Indicators amplify the traders' perceptions and ignites the creativity of the trader to see "bargains" graphically, in real-time. The trader can visually interpret, the "tendency" of multiple higher timeframes on the same chart. With practice the trader develops a sense of the currents moving in the market. Trading becomes fun again.

What is so Bad About Rule-Based Trading?

With Rule-Based approaches the trader is, at some level, always in a state of "fear" or hyper-vigilance in executing or not executing the rules properly. The rule-based trader's attention is always "hooked" on avoiding mistakes and is engaged in a never ending inner "right" or "wrong" survival dialog. Or worse, he/she is "at the effect of" some kind of inner punishment for previously violating the "rules".

"Rules" know nothing about a trader's strengths or weaknesses, nor do "rules" know anything about constantly changing markets. So, exactly how is it "rules" or "automation" will save the day? Trading is not the same kind of step-wise process as baking a cake"

In a very real sense, rather than a Savior the "rules" or "automation" actually becomes a tormentor such that innocently (without intention), the trader's perception becomes ever more twisted, distorted, and blinded. In the worst case, should a rule-based entry/exit be missed the Rule-Based trader's inner dialogue becomes critical, anxious, and self defeating leading to further blindness...its a kind of trader's death spiral.

Over time, the fear-based trader sustains mental damage and is highly prone to losing the ability to observe and learn from his/her experience. Typical symptoms of fear-based learning is moodiness, restlessness, cold streaks, performance plateaus, compulsiveness, and costly continual searching for "better rules", or "better indicators" which is nothing more of the same... wanting to be "more right" or "less wrong"... thus the downward spiral deepens.

Why are Flow-Based Traders More Consistent?

The ClearEdge™ FBT environment offers more opportunities to enter/exit a trade and creates a sense of "creative play" which opens up the learning potential of the trader to absorb more of their "screen time" while finding profitable opportunities.

ClearEdge™ FBT environment provides a unique set of truly coordinated multiple timeframe tools which puts the trader in the position to get better entries/exits than with the antiquated Fibonacci lines, flawed predictions or projections, or sloppy lagging MVA (moving average) based indicators.

The low-stress feature of Flow-Based Trading opens the perception and seeks to have the trader enter/exit trades by observing the "tendencies" and "qualities" of multiple coordinated timeframes.