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Last email I told you I’d show you how to build trading system rules for decreasing volatility melt ups.

The Counter Punch Method

To recap, it is a known property of markets that in decreasing volatility trends counter trend setups have a negative edge.

The easy way to build entry setups for this market type is like this

1) Wait for a counter trend setup (don’t take it)

2) Take the next long setup (from the Price Action Masterclass, or whatever setups you use now)

Like this



See how it works?

Step 1) Dodge the punch (don’t take the counter trend setup)

Step 2) Counter punch (take the with trend setup)

What this does is very interesting. Have you ever been trapped in a trade? Sucks, amirite?

We are waiting until we are certain there are salty, crying traders trapped the wrong way. And we profit off their tears.

There is one key point though. Your entry setups ought to trigger on actual strength.

What I mean is that you should wait for the market to confirm your setup by showing some actual strength before entering. There are a few ways to do this but my method is to wait until price breaks the previous bar high.

In this way we make our setups have a dramatically higher probability of success.


In the most recent rally this method painted 5 consecutive winning trades.

In fact I developed and automated a system based on this ruleset that I’ll be sharing in a webinar in the next few weeks.

Enjoy your day



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Scott Phillips

A professional futures trader, Scott makes his living from the currency and futures markets as a systematic trader. Living in Brisbane, Queensland, Australia, Scott provides coaching services through his website -

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