Inside the Mind of a Trading Champion: Francesco 's remarkable trading journey
Francesco Gallo, a 25-year-old trader from Italy, shows us that age is just a number in trading, especially after he passed the Futures Standard Challenge, earning a payout of $4,420.11. His interest started early, when he was just a teenager looking at trend lines on a computer. By 2017, he turned that interest into a serious career and founded his own trading company, Model Fee, where he also manages assets. Francesco's journey proves that what really matters in trading is not how old you are, but your dedication, learning, and strategy. His story is straightforward: start early, learn continuously, and don't let age stop you. For any trader out there, Francesco's path from curiosity to professional trading underlines that with hard work and focus, achieving success in the trading world is possible.
Francesco’s Trading Approach
Francesco identifies himself as a day trader, utilising not just one, but two distinct trading strategies to navigate the markets. Initially sticking to a single strategy, Francesco has evolved his approach to incorporate a second technique, significantly boosting his trading satisfaction. His first strategy focuses on maximising gains once a day, creating a solid foundation for his trading activities. Meanwhile, the second strategy is more dynamic, allowing for numerous trades within a day based on market conditions. This flexible approach enables Francesco to adapt to the markets, sometimes extending trades over a few days if the situation calls for it. Through this blend of strategies, Francesco demonstrates the importance of adaptability and continuous strategy refinement in achieving day trading success.
Trading Philosophy: Expectations and Analysis
Francesco's trading methodology is rooted in price action and volumetric analysis, but the cornerstone of his strategy is the concept of expectations. He emphasises that the dynamics of the market, a zero-sum game influenced by participants with varying profit sizes and information, revolve around expectations. This insight guides his approach to identifying potential market movements. Francesco looks for areas where there might be a buildup of trading activity, such as support and resistance zones, which are likely spots for accumulation or significant price movements. By integrating these factors into his trading plan, Francesco maintains a disciplined approach, ensuring he knows what to look for, where, and when before making any trades. This methodical strategy allows him to navigate the complexities of the financial markets effectively.
Adapting Strategies to Market Conditions
Francesco shares that his trading approach is versatile, employing different strategies depending on the market conditions. He has a trend-following strategy that he has primarily used, complementing it with a newer, mixed strategy that incorporates both mean reversal and trend-following elements. This flexibility allows Francesco to adapt to varying market structures and volumes, making his analysis the first step upon opening his charts each day.
He highlights the importance of distinguishing between trending and ranging markets, acknowledging that traders often face confusion when different time frames present contrasting trends. To navigate this complexity, Francesco has developed a zero-discretionary method for his first strategy, enabling him to identify the market bias without guesswork. This method relies on a strict protocol that assesses charts, candles, and volumes to determine whether the market will trend, reverse, or range on any given day. This systematic approach helps mitigate confusion and ensures that his trading decisions are grounded in analysis, especially in response to major news events that can significantly impact market direction.
Tailoring Trades to Market Insights
Francesco's trading approach is tailored to align with market dynamics, leveraging both algorithmic and manual strategies with a primary focus on the NASDAQ. He begins his analysis on a one-hour timeframe to discern market trends, subsequently executing trades on a one-minute timeframe to capitalise on immediate movements. Specialising in futures and CFDs, Francesco's preference for the NASDAQ is driven by a belief in the profound insights gained through dedicated focus on a single asset. This specialisation is further enhanced by the integration of algorithmic systems developed in collaboration with a research team, utilising AI to refine trading strategies.
He relates to the practice of closely monitoring the DAX 40 (German 30), highlighting how familiarity with an asset's movement patterns—its ranges and potential breakout points—can significantly enhance trading strategies. Francesco mentions the use of Bollinger Bands as part of his trading toolkit, a technique that complements his keen observation skills. This approach cultivates an intuitive sense of market direction, a critical advantage that Francesco believes comes from years of dedicated trading.
Tailored Strategies and Precise Indicators
Francesco reveals that he primarily refrains from using a wide array of indicators in his trading strategy, focusing instead on specific levels determined by the time of day. However, he does incorporate the volume profile indicator into his daily trading to analyse market depth and activity. Depending on the situation and strategy, he might also use footprint charts or monitor volume delta to gain insights into market movements. A key tool in his approach is the sessions indicator, which helps him visually identify the Asian trading session on his charts. Francesco values this tool for setting expectations and providing a reference point when he begins trading each day, believing that having a clear focus enhances decision-making and strategy effectiveness. This methodical approach underscores the importance of tailored indicators in supporting a trader's specific strategies and goals.
Strategic Timeframe Analysis: From Hourly Trends to Minute Precision
Francesco dives deep into his strategy, starting with an hourly analysis to determine the day's trading direction—whether to take a long or short position. He then zeroes in on the 15-minute timeframe to identify demand or supply zones, employing a unique method that diverges from the conventional approach of merely observing candlestick patterns. Instead, Francesco focuses on the underlying reasons for market movements, emphasising the importance of understanding the 'why' behind potential reversal zones, rather than relying solely on volume or prevalent trends. This analytical approach extends to considering the time and context in which these zones were formed, such as the opening of the New York or London markets, and what expectations market operators might have had. For Francesco, trading success hinges on this meticulous deduction of market behaviour and the strategic application of insight, rather than following trends without grasping their foundation.
Following a Disciplined Reward-to-Risk Strategy in Trading
Francesco maintains a disciplined approach to trading, targeting a reward-to-risk ratio of at least 1:2, with a preference for 1:3 depending on market conditions. This stringent criterion ensures that he never settles for less than a one-to-two return on any trade, emphasising the importance of having clear, predefined anchor points for exiting trades. When it comes to reversal trades, Francesco applies the same rigorous reward-to-risk ratio, showcasing his consistency across different trade types.
In addressing potential risks, such as encountering significant resistance before achieving a 2:1 reward, Francesco remains committed in his strategy. He argues that if one were to avoid trades due to every perceivable support or resistance, trading opportunities would be severely limited. Instead, he focuses on what has proven effective through rigorous back testing, stress testing, and other evaluative measures to validate his strategy. This process-driven approach allows him to identify and target specific demand or support zones with confidence, without the need to adjust his targets reactively. Francesco's method underscores the importance of a well-tested strategy and the value of consistency and discipline in trading, even in the face of potential market volatility.
Setting Clear Targets: Francesco's Key to Trading Discipline
Francesco emphasises the importance of defining take profit and stop loss levels before entering a trade, highlighting that the first thing he visualises on his charts is his take profit area. He notes that many traders struggle with not setting clear profit targets, which can lead to emotional and undisciplined trading. Reflecting on his own early trading experiences, Francesco recalls the challenges of managing emotions and the tendency towards revenge trading. To overcome these hurdles, he developed a strategy that limits him to a maximum of one trade per day, forcing a disciplined approach and reducing emotional decision-making. This strategy, which has evolved over the years, combines a discretionary element with the precision of an algorithm, demonstrating the blend of intuition and systematisation in his trading practice. Francesco's journey underscores the value of experience, constant learning, and error correction in mastering trading. He encourages new traders to persist through the challenges of learning and adapting to the market, highlighting that success comes from understanding how the market works for the individual trader.
Francesco's Trading Milestones
Francesco shares that throughout his trading career, he has managed to avoid significant losses by adhering strictly to his disciplined trading strategy, which limits him to only one trade per day. This approach has helped him maintain control over his emotions and trading decisions. However, he recalls a particularly memorable moment in 2021 with a prop firm where he achieved a substantial profit of $66,000 in just a month and a half. This victory stands out not just for the impressive profit figure but also for how Francesco handled the success. He allowed himself a single day to celebrate and feel enthusiastic before promptly returning to his disciplined trading mindset. This story highlights the importance of emotional management in trading, showcasing Francesco's ability to enjoy his successes while staying grounded and focused on his long-term trading discipline.
Reflecting on Growth
Francesco shares a reflective insight on his earlier trading days, highlighting a common pitfall many traders encounter: the allure of quick profits promised by others. Initially, Francesco found himself entrusting significant earnings to those who assured rapid financial gains. Over time, however, he recognised that real success in trading doesn't come from shortcuts but through dedication, study, and relentless effort. This journey from seeking instantaneous wealth to understanding the value of patience and hard work marks a significant evolution in his approach to trading. Francesco underscores that achieving professional success in trading is a gradual process, debunking the myth of overnight riches. His experience serves as a valuable lesson to aspiring traders, emphasising the importance of building a solid foundation through education and disciplined practice.
Key Advice from Francesco: Building a Successful Trading Career
When asked for his biggest piece of advice to newcomers, Francesco emphasises the importance of confronting fears and relentlessly pursuing one's dreams with unwavering determination. However, he advises doing so with a critical mindset and openness to learning, highlighting the necessity of adaptability and the willingness to revise one’s strategies when necessary. Francesco stresses the value of finding a genuine mentor who can provide verifiable results and practical guidance, cautioning against the allure of superficial success often portrayed in expensive courses that promise quick riches without substance.
He further encourages personal growth, advising traders to refine their character and approach to life, underscoring the transformative potential of trading when pursued with sincerity and dedication. Francesco's insights not only shed light on the skills and attitudes essential for trading success but also reflect a broader philosophy of persistence, critical thinking, and continuous self-improvement. His story is a testament to the fact that trading is more than just a technical pursuit; it's a journey of personal and professional development, offering lessons that extend far beyond the trading floor.
Final Reflections: The Impact of Francesco Gallo's Trading Approach
Francesco’s narrative is not just about trading success; it’s a testament to ambition, discipline, and the quest for knowledge. His evolution from a curious teenager to a professional trader embodies a key lesson: success transcends age, hinging instead on dedication, strategic acumen, and personal growth.
Francesco's achievements illuminate the path for traders at all levels, showcasing that the essence of trading success lies in understanding market nuances, maintaining discipline, and persisting in personal and professional development. His journey and methodologies offer profound insights, highlighting that mastery in trading comes from a blend of analytical skills, adaptability, and a steadfast commitment to one’s goals.
As we reflect on Francesco’s story, let it inspire us to embrace the challenges of trading with unwavering dedication and to pursue our ambitions with integrity. His experience underlines the value of continuous learning and strategic foresight in navigating the financial markets, reminding us that achieving trading excellence is within reach, provided we persist in refining our strategies and mindset.