1. My History With VSA

Stumbled Upon VSA

I found out about VSA a few years back. I was using the Elliot Wave Analysis then, or maybe even before that. I was looking at it just like any other buy-sell system. I looked into videos by Tom Williams and read his books to learn as much as I can about this "system".

Tom's Analysis Got Me Hooked

What fascinated me the most was the way Tom analysed the markets. Little did I realise that Tom was trading for decades and small statements from him had much deeper meaning than I could make of. I kept using it on and off, never really with any success.

As I continued an on again off again relationship with VSA I realised this could be a potential game-changer for me. I was not aware of Wyckoff and his work at the time. So I was oblivious to the real potential of this method.

The way I approached VSA early on is really funny, but it also has a great insight for any new trader approaching this topic. Let's go back to that time and find out...

2. Early Struggles With VSA

Buy-Sell Systems

It was the time when buy-sell systems were the flavour for me. I was looking at programming my logic and then enjoying the profits for the rest of my life. I was not aware of SM then. I was just blindly following my every hunch and was trying to "justify" it with some crude back-testing and data mining.

VSA was a Buy-Sell System for me...

When I first saw the VSA videos, I was hooked on to the signals that appeared on the bars. Very often right before the trend changed. I thought only if I could get my hands on those signals I was set to be a successful trader. I did get my hands on them.

I found an AFL which plotted the VSA signals but made the same mistake of treating them as simple buy-sell signals. This cost me very dearly. Not in terms of money, that is the cost of doing business, but by me losing interest in it.

I did not return to VSA for a long time, not until I came to know about Wyckoff. But before I could really grasp what VSA was all about, I did one more stupid thing. But during that stage of my development as a trader, that is only natural...

3. Tweaking VSA Signals

Problems and Parameters

As I was into buy-sell systems then, I thought the problem with VSA not working was with the parameters that went into the signals. I thought if only I could find the correct set of parameters and values for these signals I could make it.

Little did I realise that it was not the parameters, but the conditions that took precedence. Tom was not looking at the signals, but he programmed the signals to represent certain conditions of volume, spread and close, that were met on that particular bar.

(Trying to) Back-test my way out of the Problems...

But I was so engrossed in my own world, that I just kept testing different parameters and back-testing my results. I started looking at what was the probability of success for a particular signal. 

I went the statistical route, which many believe to be the correct path to deal with the markets. But even then I could not make much progress.

Realising my mistake...

Until one day it dawned on me that I was looking at VSA all wrong. That it was not about the signals but certain conditions that provided the real insight.

Once I realised that I changed my approach and went back into studying what VSA was all about. Luckily this time I realised that it was all based on Wyckoff principles. Then began my journey into Wyckoff's world and everything changed since.

I made a discovery that even the conditions are not enough to give you the complete picture, there was something else that was even more important. When I finally stumbled upon it, my view of markets and trading changed forever...

4. Logic Is The Answer

Trading Logic - A Strange Animal

This was the time when I was trading for a few years now. And surprisingly I never asked why the markets were doing what they were doing. Even when I asked the question, I did not really listen.

Trading often attracts headstrong personalities. To accept that you are wrong and learn something new, does not come easily to such people.

So when I came across trading logic, it suddenly struck me what I have been missing for so long in my trading. And this time the excitement was not of testing the new thing out in the markets. This time questions were completely different. This time I was more curious than anxious about the future.

Slowly but surely I realised that something fundamental has changed within me, deep within me.

Stress Reduced

As I started incorporating this new found wisdom in my trading a strange thing happened. I became gradually more relaxed and calm during my trading. The anxiety slowly wore off. 

I was not worried about my position working out anymore, but every time I thought of putting on a trade, I found myself looking at potential risks. Something had changed and I was enjoying the change.

Finally started to get a grip on my trading. Finally, I started to enjoy my trading...

Now, I want you to do the same. And I am going to share with you whatever I have learnt about VSA in my trading career. Everything I know that can change your trading forever, I will share with you. so let's begin...