Trader Dale Volume Profile Review

Name: Trader Dale Advanced Volume Profile Course

Description: A day trading and swing trading strategy based on Forex manipulation by the big banks (Smart Money)

Price range: $297- $497

Address: www.trader-dale.com

1.5
  • Profitability
  • Price
  • Course quality
  • Ease of use

About

Trader Dale is a website from ‘Dale’, a Swiss trader. Dale has an academic degree in Finance, worked for a period at a brokerage firm, but left to focus on trading. In 2017 he started a trading course: the Trader Dale Advanced Volume Profile course. This course teaches a method to track the big banks (Smart Money) in the Forex markets by means of volume profiles.

Pros

  • Very easy to learn and to trade
  • Crystal clear lessons
  • Free live strategy demonstration

 

Cons

  • Not profitable in the test
  • No in-depth lessons about Smart Money
  • Low price/quality ratio

Intraday strategy test results

Trader Dale Test Results

Swing trading test results

The course & why did I buy it

I purchased the course back in 2018, after watching a webinar in which Dale demonstrated the strategy. I liked the simplicity of its execution, so I decided to give it a try for 1 month (membership was still by subscription at that time).

It was immediately clear that the Dale course has a strong connection with the DTFL Bank trading course. DTFL educator Sterling Suhr had recorded Dale’s course videos, and PayPal payments for both courses went to the same company. However, the trading systems they teach are totally different. DTFL is based on ‘stop runs’ whereas the Trader Dale system is based on volume profiles.

The principle behind the Trader Dale trading course is that the Forex market is moved and manipulated by about 10 big banks in the world.

These banks have so much trading capital that they are able to move the price at will, by aggressively buying or selling. This way they push the markets in the direction they want to, triggering stop orders.

According to Trader Dale, basic chart indicators like Stochastics or RSI do not work in Forex, as the banks will simply run over them. 

The only thing that works in Forex trading is to get to know how the banks are trading, and to trade with them in their direction, to make profit with them

Volume profiles

To track the banks Trader Dale uses volume profiles. A volume profile is vertical histogram of volumes being traded per price level over a specified time period.

Volumes profiles are based on the better known Market Profiles, which were invented by J. Peter Steidlmayer in the 1980’s. 

In below example profile, the histogram on the right is a volume profile over the period indicated by the two dashed lines.

If we look at the histogram we can clearly see a volume peak at the price 1.12755 (indicated with the red dotted line). According to Dale, this is a level where a big bank had accumulated orders during the period.

In the chart we can see that the market first moved away, but later returned to that price level (red arrow). When the price touched the level there was a strong bounce upwards again. 

According to Dale, this happened because the bank started to buy again to prevent that its huge positions would come under water. It is these kind of reactions that the Trader Dale strategy tries to catch. 

About the Trader Dale strategies

The course teaches 2 strategies: an intraday strategy and a swing trading strategy. For both it is about placing pending orders at specific price levels. These levels can be selected in advance by means of a volume profile indicator.

For the intraday strategy levels on the M30 timeframe are selected. For the swing trading strategy levels on the D1 chart are used.

The swing trading strategy is a set-and-forget strategy, and it takes a few minutes a day to trade it. The intraday strategy is more time-consuming to trade, but Trader Dale offers a MT4 Expert Advisor to trade it semi-automatically, to save time.

The good and bad of the strategy

The Trader Dale intraday strategy provides a nice amount of setups, about 1-2 setups per day. This is a good amount for beginning traders. Trading is not learned from books, but from practicing. The more setups a trading system provides the more opportunities for practicing there are. 

Another good thing is that the strategy works with pending orders, and not direct orders. This saves a lot of time, as you don’t need to be at the screen that often.

A drawback is that the intraday strategy is very vulnerable to news events. If there is an unexpected news event that spikes the markets (a Donald Trump tweet for instance) then pending orders can get triggered and spiked out in a matter of seconds, resulting in full losers. 

These losers affect the long-term profitability even more because of the negative reward/risk ratio of the trades (less than 1).

The swing trading strategy is less vulnerable for news spikes, but its drawback is the limited amount of trade setups it provides. 

The Trader Dale strategy is still a young strategy (2017) and so it has to proof itself yet in changing market conditions. This is also a drawback.

Where to get a free flexible volume profile indicator

Dale’s course provides a flexible volume profile indicator to its members. But there are free indicators to download on the internet as well.

I can recommend the free VP-Range V6 indicator, which is built for the MT5 platform. 

If you are interested, here is how to get and install it:

  1. Download the VP-Range V6 for MT5.
  2. Unzip the downloaded file.
  3. Open the MT5 terminal.
  4. Go to File/Open Data folder and open it. Next go to MQL5/Indicators folder, and copy/paste the indicator into it.
  5. Close the MT5 terminal (important) and restart it.
  6. Now find the indicator in the list of indicators and attach it to a chart.
  7. Done.

Note that the indicator needs the open, close, high and low prices of minute bars. The extend to how far you can go back to find historic profiles in the chart, depends on the amount of data your broker provides.

MT4 indicator

There is also a MT4 version of this indicator. It is the same indicator from the same developer, but it’s located on the Russian version of the MQL5 site. 

Download the MT4 Flexible VP indicator   

About the strategy’s ease of use

The Trader Dale Volume Profile strategies are very easy to learn and to trade. I did the course back in 2018 for only 1 month, and it was enough to learn the strategy.

Paper trading this strategy goes smoothly in Metatrader, provided that the volume profile indicator is a user-friendly one. Forward testing this strategy in real time goes rather quickly, as the system produces about 2 setups a day on average (intraday strategy), which is quite a lot.

No lessons about Smart Money

It may be important to mention that the course does not teach in-depth lessons about Smart Money and how they operate to manipulate the Forex markets.

Insight in what is actually happening at the trading desk of Goldman Sachs is not only interesting, but it would also help building confidence in this strategy.

For example, if you are looking for answers to below questions, you are at the wrong course:

  • What happens if bank A trades against bank B, one bank wanting to push the price north and the other south?
  • Is it possible that a bank trades against itself as well?
  • Do the traders at the big trade operate individually, or as teams?
  • Do competing banks work together as a ‘conspiracy’?
  • Etc.

Insight in Smart Money is not essential to trade this strategy, but it helps build confidence in the strategy. Confidence affects trading style, which affects profitability.

Since Trader Dale has an academic degree in Finance, it isn’t too difficult for him to write a few lines about Smart Money, and I find that disappointing.

TEST: Is the strategy profitable?

I have tested the intraday and swing trading systems separately, and for both I had reserved 6 months of time. The results are shown in below graph and they can be found on myfxbook.com as well.

Intraday strategy test results

Trader Dale Test Results

Swing trading test results

The results speak for themselves. The intraday strategy blew half my account, and the swing trading strategy ended up break even.

I have traded the system on my demo and on my live account for a period before I did this test. These results weren’t good either, but the test results are much worse. And I cannot give an explanation for it. I have used the news filter and the trend filter and followed the rule set as strictly as possible.

Most losers were the result of sudden spikes in the markets triggered by unexpected economic and political news though.

And then the strategy’s risk reward is going to count. The more negative it becomes the quicker your equity goes down when in a losing streak.

Conclusion

The Trader Dale Volume Profile strategy is very easy to learn and to trade. It is also very easily (paper)tested and forward tested. But both the intraday trading strategy and the swing trading strategy weren’t profitable, and the intraday strategy results show that it can be even dangerous.

It was the worst performing system that I have traded thus far. Luckily it was a subscription course back in 2018, so I didn’t waste more money by paying the full price for it.

If you are interested anyway, below the link:

Visit Trader Dale

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