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Five Steps to Consistent Trading with VSA Lite

Posted by Tradeguider Team on Monday, May 29, 2023
Tradeguider Team

How do you get consistent results when trading volatile markets every day? Given that the large majority of trader lose money to the markets, getting a consistently good result is by no means the norm. One trade who makes consistent profits – over 10% each month, is Dr Aram Kiani, who hosts the Trade to Win Live Trading Room.

We talked to Aram to get an overview of the key steps to being a consistent trader with VSA Lite, the software at the center of the Trade to Win package. 


1 – Look at the trend

VSA Lite is for in-trend trading which means one of the first things Aram is doing is checking the direction of trading. ‘If the trend is going down I usually look for short setups, if going up I’ll be looking for long trades’, says Aram.

2 – Get to know your indicators

This software has 6 key indicators that are based around 6 key VSA principles: Potential Professional Buying (PB), Shakeout (SO), TEST (TE), Potential Professional Selling (PS), Upthrust (UT) and No Demand (ND).

As with all Tradeguider software indicators and signals, they help you determine what the smart money is doing so you can  follow in the footsteps of the professional money rather than be outwitted by it.

A normal setup for Aram might be looking for a Potential Professional Selling (PPS) signal, then a change of behaviour and then a No Demand signal appearing below the Trigger Line: this is a time to enter a short trade.

The chart below gives an example of this kind of setup with a short trade that Aram took in May in the pound futures contract on a daily chart.

To enlarge the image, right-click it to open it in a new tab

On June 1st a Potential Professional Selling indicator appeared signaling a change in direction. 16 bars later a No Demand confirmation signal appeared. Aram was  below the lower orange Trigger Line and once the Short-Term Trend indicator dots had turned red on at least 2 bars he could then enter the trade which he did on the next bar.

Meanwhile for long positions, Aram explains: ‘if you get a Potential Professional Buying, Shakeout and the Test, it’s then gone above the Trigger Line, you see a change of behaviour (predictable because of the Shakeout And Test) and then you see the volume increasing that tells you that the market is definitely going to up and you enter in a long trade.’

For a  long trade,  go to above the Trigger Line, make sure you have trend alignment to the upside and the Tests and Potential Professional Buying indicators have both appeared and are confirmed.

This chart shows the setup for a long trade Aram took, also in May, on Microsoft stock on an hourly chart.


To enlarge the image, right-click it to open it in a new tab

The trade setup began with a Potential Buying indicator which signals a future change in direction. 10 bars later a Test confirmation indicator appeared. Aram waited until the bar moved above the upper Trigger Line and the Short-Term Trend indicator dots had turned green for at least 2 bars. He then entered the trade.

3 – Look at multiple timeframes

Whatever setup you use you need to plan and be patient and be sure to look at a range of timeframes. It works but on higher timeframes there should be a lot of patience involved. ‘And if you’re using the 15-minute chart,’ says Aram, ‘ make sure the majority of your timeframes up to the 15-minute chart are all in trend alignment with it.

4 – Practice a lot

And whether you’re taking long trade or short trades you need to practice a lot, Aram reminds us.

‘I know that on the 15-minute chart you can’t practice a lot as it takes more time so practice in the lower timeframes.’

Aram advises that you practice these principles as many times as possible, and practice implementing them for long  and short trades. The volumes are different, the charts are different but you’re applying the same rules.

‘The 1-minute chart gives you more opportunity to take more trades and practice more so you can become good at all timeframes,’ he says.

5 – Always check the relative volume information

This information, presented in the histogram at the bottom of the chart, is a key way to follow what the smart money are doing. For example, if the relative volume increases on down bars it means the smart money is active and there’s potential for a short trade; when the relative volume decreases on up bars you have a long trade setup.

But...Don`t forget

These steps are always underpinned by a solid mindset. While these trade setups and trading in general with the VSA Lite software are laid out in easy-to-follow steps, there’s one thing that Aram does for himself which is make sure his mindset is on point. He reminds people to be patient and believe in themselves; this has been key to his success. But it’s not an innate quality – it’s something everyone can learn.

You are at the home of Wyckoff VSA. The Trade to Win package offers a very simplified trading approach. If you want more information about the package click here. The Live Trading Room shows you how to use that trading approach by trading live in the markets.  A week’s trial costs $10. 

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