What is the PFP System?
Do You Want Trading Stats Like These?
How would it feel to know you’re going to win ~66% of your trades? What about generating an average profit of +52% per trade? And most importantly, what would it do for your trading to know where the large institutions are parked (and how they’re trading)?
In 2024, we officially launched our PFP system and have generated the above performance over the year. The best thing about this is, you can learn the PFP system.
How Did You Build the PFP System?
I have been trading for 24 years, starting out as a retail trader, getting a job on Wall Street trading for an FX Brokerage (FXCM), trading for a hedge fund (JNF) and trading privately since 2007. My experience on the buy and sell side of the institutional market has taught me how important it is to follow the largest players in the market.
After spending over 60,000 hours behind the charts, making over 10,000 trades, observing over 10,000,000,000 candles (yes, billions of candles), I’ve built a massive database in my brain. It is this wiring of circuits, a massive amount of neural real estate that allows me to see how unique structures of order flow and price action repeat themselves (over and over again).
It has answered the question of “why” do technical support and resistance levels often fail? Why were these levels so inconsistent? Why did the classical price action or candlestick patterns fail to generate consistent profitable trades over time.
After synthesizing tens of thousands of hours studying stock, forex and options trading, I’ve built a trading system which helps me find where the institutions are parked, what they are targeting (bullish or bearish), and who is dominating the order flow.
What is the PFP System?
The PFP system is an acronym which stands for Positioning, Flows and Price Action. To make any trade, on any time frame on any underlying, I need to know the following:
- The Positioning
- The Flows
- The Price Action
To elucidate further, the positioning refers to the institutional (and retail) positioning for the underlying instrument. We can detect this (and several derivative data points) by looking at the OI (open interest).
The flows represent the order flow of the session, which in the stock market includes shares (buying/selling of shares) along with options (buying/selling of calls/puts). By looking at these and other key input variables, we can determine whether stocks or options are driving the price, who’s in control and who is not, thus finding a high probability direction and turning point on the day.
The price action is merely a ‘channel’ to visualize changes over time in the positioning and flows. By finding high probability order flow patterns which produce repeatable price action structures and context, we can determine when flows are ‘transitioning’, in a high/low momentum state, and when likely turning points are occurring.
Simply put, the PFP system is a specific set of decision criteria for every trade. If we’re thinking about going bullish, bearish or neutral on a ticker, we examine it with the PFP system every time. If the system is bullish, bearish or neutral, we trade that. We simply follow the same process every time.
Can You Learn the PFP System?
Yes, you can learn the PFP system, and we have several ways for you to learn the PFP system. It is important to note there is no single course where you can learn the entire system. It takes too many skills, lessons, modules and practices to learn it all in one course. Trying to learn the PFP system in one course would be like trying to get a Bachelor of Science in Neuroscience via one course. It doesn’t exist.
But you can learn the key components of the PFP system via the options below:
- The Price Action component of the PFP system can be learned via our TTM course here
- The Positioning component of the PFP system can be learned via our P&P masterclass
- Currently, there are no courses to learn the Flows component of the PFP system, but we are working on building the apps/tools to offer this information, and thus a course on how to read/trade the order flow in the markets
What If I’m New or Still Learning Options?
Whether you want to be a stock or options trader, you have to learn about the options market – period. Option flows are often the most dominant flows in the market, so if you don’t understand how options are driving the market, you won’t understand the how/why stocks are moving.
We currently have the following course options (no pun intended) to learn about the options market:
- Download our FREE Intro to Options Trading PDF here
- The Options Bootcamp which gives the 101, 201 and parts of the 301 for learning about the options market
- The Benzinga Options School which is like getting your degree in the options market. I do live sessions every Mon/Weds/Fri in the BOS and share many of my live trades here
You can also find several free articles explaining how the options market works and why you want to trade options below:
- What Is Options Trading?
- Our Free Intro To Options Trading Course
- Calls & Puts: The Most Basic Options
In Closing
I want you to think about what it would be like to win 66% of your next 100 trades. I’d also like you to think about what it would be like to have a consistent process you go through on every single trade. That this process helps you find high probability trades and avoid bad/losing trades 2/3 of the time. Now think about what it would be like to pull back the curtain on where the big players are parked, what they are targeting, and how to trade with them.
That is what you’d learn via our PFP system.
I look forward to seeing you become a member soon and trading with you.
Kind Regards,
Chris Capre
CEO/Head Trader – 2ndSkiesTrading