Name: Day Trading Forex Live (DTFL)
Description: Day trading strategy based on manipulation of the Forex markets by the big banks
Price range: $499
Ease of use
Day Trading Forex Live (DTFL) is an American online Forex trading platform founded in 2010 by Sterling Suhr, who has been trading Forex since 2004. The DTFL strategy is to track the big banks (Smart Money) in order to trade in the same direction as them.
- Strategy is consistently profitable
- On-site chatbox is an active one
- Live strategy demonstration
- The course is disorganized
- No written course material
- Optional MT4 EA is pricey
Trading with Smart Money: about liquidity and stop runs
The DTFL Bank Trading strategy is based on stop runs executed by big banks and money institutions. What are stop runs? To explain we first need to know what ‘liquidity’ is.
If a small trader wants to buy dollars for euros then it is immediately arranged. But if a big bank wants to buy millions or billions of dollars, then the bank won’t get that money immediately.
That amount of money is simply not there at that moment, as there are not enough sellers willing to sell to the bank. (For every buyer there needs to be a seller, otherwise there is no transaction). Or expressed in other words: there is not enough liquidity.
The banks need liquidity and so they will hunt for that liquidity. And where are they going to find it? Of course at the places where masses of traders have their stops placed. This is because a stop order is an obligation to sell (or buy back in case of a short position), whether these traders want it or not (and they don’t want it).
When an amount of stop loss orders get triggered the price often spikes. Taking out this liquidity on purpose is called a stop run. Other names for stop runs are:
- price rejections
- fat finger tails
- fake outs
- swing failure points
- liquidity spikes
- stop hunt patterns
The course portal / course contents
The Day Trading Forex Live course is a video-only course. There are no written course manuals, and everything is explained in video format. Once weekly there is a Live Trading Room, a webinar of about 1- 2 hours in length during which the strategy is demonstrated in a live setting.
There is a member forum on the portal and members are free to start their own personal trading blog on it. And there is a chatbox, called ‘shoutbox’, if you want to communicate directly with like-minded traders that are trading the same strategy.
The good and bad about the course and strategy
Day Trading Forex Live offers a Live Trading Room and daily videos with strategy demonstration on live charts.
The strategy’s ruleset is very mechanical, so with little room for own discretion. This is good because trading such a strategy makes trading a lot easier. No doubts, no difficult decisions, just follow the rules.
A drawback of the course is its disorganized structure, and the fact that there are no written documents with the strategy’s rule set on the site. This all does not help getting this rather complex strategy right quickly.
Second, what I missed in the course were some in-depth lessons about the backgrounds of ‘Smart Money’ and how they operate in the Forex market. Insight in Forex Manipulation is not only just interesting, but it will also help build faith/confidence in the strategy. The course only teaches the strategy.
A minus also is that the educator does not keep a track record showing his own performance. So there is no way to compare your own results with those of the professional trader.
The amount of track records provided by other DTFL members is also very limited, so it is unclear how others perform with this strategy.
Learning the DTFL strategy
The first thing the DTFL strategy does is to scan the charts to identify places with liquidity. When a stop run happens at such a place the next thing DTFL does is to try to catch the moves that follow the runs.
Below chart shows an example of a stop run followed by a strong price move.
Day Trading Forex Live’s ruleset is quite complex, but once understood it is simple to execute. It all starts with a set of pre-selected price levels. These levels are published on the DTFL site on a daily basis, but you will learn to select levels yourself as well.
Characteristic of this strategy is that it is very much based on doing math/ calculations. Whether it is for selecting levels or for calculating entry points and stop loss position, it’s all about working with percentage amounts of pip distances.
In this video a typical DTFL trade setup is demonstrated. After the stop run, we wait for a confirmation pattern, and next the entry is taken. The price level was published on the course portal. It’s a high speed video of about 1 minute in length covering 6 hours of real time.
About the strategy’s ‘ease of learning’
Due to the complexity of it’s ruleset (trading windows, news events etc) the strategy is not easily paper tested in Metatrader. And forward testing doesn’t go fast either, as the strategy does not provide many setups.
Also, the course is not very organized and there are no written documents with the ruleset clear. Beginners may get lost by this.
For these reasons the learning curve can be rather steep in the beginning.
DTFL and a fulltime job
The DTFL Bank Trading strategy is a day trading strategy. Although you don’t need to stare at the screen permanently for hours, the strategy can be time consuming at times. When a setup is close to happening you will have to check the chart each 15 minutes, otherwise you run the risk of missing a trade.
The DTFL strategy is only traded during the first hours of the European session and the first hours of the American session. Outside these hours the system is not traded. So if you work during these hours, then the strategy may be not for you.
DTFL does offer a MT4 Expert Advisor to trade the system (semi-)automatically. I haven’t used that EA so I could not include that in the review. But it is pricey.
TEST: Is Day Trading Forex Live profitable?
I had reserved 7 months to test it, and I have traded it on 9 currency pairs. The results are shown in below chart, and on myfxbook.com.
I consider a strategy consistently profitable if it meets the following 2 criteria:
- Returns of at least +2% monthly.
- Drawdown below 15%.
The test results gave a profit of 3-4% monthly and a drawdown of less than 6%. For me this strategy is consistently profitable.
I have been trading the Day Trading Forex Live strategy for almost 2 years now. It is not a holy grail strategy, but it works. I get a win rate of a little over 40 percent. Due to the positive reward/risk, it is enough to make the strategy work.
The course is unstructured, and the strategy is not well explained. This may break up beginners in the beginning. But the good thing is that DTFL gives lifetime access to the live trading rooms and live strategy videos, so there is plenty of time to learn the strategy.
The (basic) course price is not the lowest (about $500), but big discounts are given frequently. At a discount of 40% I think this course is a bargain.