Introduction of Mr. Normandeau & the M2 Trading Methodology

My name is Francois Normandeau. I am 46 years old, and I have been trading for over 15 years. I was employed as a daytrader for a firm in Montreal, Canada, & my main market was S&P500. For the last 5 years, I now trade Brent Crude Oil and West Texas Intermediate (WTI), as well as a few other markets, such as T-Bonds and other commodities. My style of trading is very technical. I use indicators, with very specific settings, and either this gives me the signal for a trade or not. I don’t like to guess… Yes, of course, sometimes the markets turn around or hesitate, etc. No system is perfect, but the way I trade is a reflection of who I am and I like it like that. Trading is the most difficult thing I have ever done in my life. It is also the profession which has really made it necessary for me to develop discipline and self-control, as well as relentless commitment and endless patience. Before trading, I was a real estate investor for many years, in Canada and elsewhere. I have lived and worked in China, Mexico, Hungary and Monaco. I now reside in Spain for part of the year, between Barcelona and Valencia. The report featured on the main page of www.spain-daytrading.com is a summary only. A Complete Daily report is available. 10-12 pages per market, produced daily. Available in English, French, Italian, Spanish, Catalan, Dutch, German or Russian. The Complete Daily Report, for each market, includes Timely Market Alerts (TMA) sent to the subscriber instantly upon having a new trading signal (4 per week, minimum). The Monthly Subscription fee for 4 weeks of the Daily Market Report, in Complete format, as well as Timely Market Alerts (TMA Service) is 150 USD or 150 EUR, per market. If the service is taken for 12 months, the cost is 1500 USD or 1500 EUR, per market.

Here is an example of the type of analysis I perform each day, many times per day.

Every time that price breaks out of a Bollinger Band Channel (as seen here where each black arrow is seen on the chart), that is very significant. It tells me that price has broken out of a range or broken out of a period of consolidation. The first Indicator (under the price window) is MACD, with a green area (a buy zone) and a red area (a sell zone). If the MACD line enters either zone, I take that into consideration. Here, in this example, I have placed a green vertical line when MACD crosses into the buy zone and a red vertical line when MACD crosses into the sell zone. The next indicator is ADX. ADX is useful to see, graphically speaking, the strength of the buying pressure and the strength of the selling pressure. In this example, the ADX line representing the selling pressure has risen to a level greatly above any previous level attained by the buying pressure. In other words, there was a small rise in the market in order to prepare a down move later on. I will then focus my trade on any selling opportunities. The next indicator under ADX is Standard Deviation. This tells me if price is going further away from recent average values (then there is a move away from previous price levels) or if price is returning to its mean (this means that the move is now over). In essence, Standard Deviation can be used to time entry and exit. You would not enter a trade as Standard Deviation is going down in value, because price has ceased its run up or down, away from previous price levels. I have placed black vertical lines on Standard Deviation where the Standard Deviation Indicator is rising in value, therefore, it is the start of a move. And I have placed blue vertical lines on the Standard Deviation Indicator when each move is over. The last two indicators at the bottom are telling me if the market is either in a buy zone or a sell zone. Whenever I see the two bottom indicator lines ABOVE the green lines, this is a signal that we are in a buy market. If I see both indicator lines UNDER the red lines, this tells me that we are in a sell market. I then combine all the info from each indicator, as well as the time of day (to know if we are in a period of high volume or low volume) and depending on the overall picture, I either have a buy trade or a sell trade. Here are charts with each area in focus.

1. MACD

2. ADX

3. Standard Deviation

4. And 5. Last 2 Indicators

This concludes the summary of my trading methodology. Thank you, Francois Normandeau