Mastering Fundamental Bias: The Game-Changing Trading Strategy with Bernd Skorupinski

Introduction

This tutorial will guide you through the Mastering Fundamental Bias trading strategy introduced by Bernd Skorupinski. With over 12 years of trading experience, Skorupinski emphasizes the importance of understanding market sentiment through the Commitment of Traders (COT) report combined with technical analysis for effective trading. This two-step approach can help traders refine their strategies and improve their market timing.

Step 1: Identify Fundamental Bias

• Understand Market Sentiment

  • Use the Commitment of Traders (COT) report to gauge market sentiment.
  • Focus on identifying the positions of commercial traders (smart money) and retail traders.

• Analyze Trader Behavior

  • Recognize that retail traders often follow trends and can be prone to emotional trading.
  • Observe how retail positions can influence market movements and create opportunities for contrarian trading.

• Develop Your Fundamental Bias

  • Determine whether you are bullish or bearish on a particular asset based on your analysis.
  • Consider macroeconomic factors, news events, and overall market conditions that could affect price movements.

Step 2: Employ Technical Analysis for Entry Timing

• Set Mechanical and Objective Rules

  • Develop a clear set of criteria for entering trades based on technical indicators and price action.
  • Utilize tools such as moving averages, support and resistance levels, and trend lines to guide your decisions.

• Establish Entry, Stop Loss, and Target Levels

  • When you identify a potential entry point, set your stop loss to manage risk effectively.
  • Define your target based on risk-reward ratios that fit your trading style (e.g., 1:2 or 1:3).

• Monitor Price Behavior

  • Analyze how the price behaves in relation to previous trends and market structure.
  • Look for confirmation signals, such as breakouts or reversals, before executing trades.

Step 3: Execute and Manage Your Trades

• Follow Your Trading Plan

  • Stick to your established rules and avoid making impulsive decisions based on emotions.
  • Keep a trading journal to document your trades and reflect on your performance.

• Adjust for Market Conditions

  • Stay alert to changing market conditions that may require you to adjust your bias or strategy.
  • Be prepared to exit trades early if market dynamics shift against your expectations.

Conclusion

Mastering Fundamental Bias involves a disciplined approach that combines understanding market sentiment with technical analysis. By following the steps outlined in this tutorial, you can develop a more structured trading strategy that minimizes emotional decisions and enhances your market entry timing. As you practice and refine your skills, consider using demo accounts to test your strategies in real market conditions before committing to live trading. Happy trading!