Our Story

Note: We’re big on transparency. We want you to know who we are, where we came from, and how we arrived where we are today.  We also want you to acquire a sense of what our Forex* trading journey can mean to your trading journey.  We think you’ll appreciate the following snapshot of our history, which could make the difference for your future.

ProAct Traders™ started in 2004, when a group of like-minded traders came together in a trading room every day to improve their trading skills. We were a diverse group of traders, all with very different backgrounds: an accountant, an international business consultant, a software engineer, a software technical consultant, several entrepreneurs, and an insurance executive. Gone were the glory days when you got up every morning, bought the GBP$ and the EUR$ and sold them several hours later, almost always with a profit. In those days, we thought we were invincible. As the market shifted gears into new, more unpredictable movements, our methodology began to unravel. Like most traders, we had been taught to trade moving average crossovers to grab small pips a few times per session. (Pushing that button gave such a rush!) Our indicator “strategies” gave us confidence when to get in and when to exit. So simple.  So fun.  Such a feeling of invincibility, but it was short-lived.  

During the early phase, we were not aware that a fundamental change was seeping into the market.  We would be late realizing it, since we would still have enough good days (when markets would trend) to keep our old methodology in play. But soon, our margin accounts were dropping, and our confidence plummeted along with them. 

Most traders retreat and go into isolation at this point, but we dug in.  We migrated to rented office space in a historic building on Poker Alley Street, which was the location on the old Chisolm Trail where the cowboys would take a break from driving cattle to Kansas City and play poker. But that was a hundred years ago, and we weren't interested in gambling, we were interested in trading! (Ironically, we gave poker-based names to some of the better-known trade set ups we developed on Poker Alley Street.)

 

What did we do?  It’s more like what didn’t we do! We joined every forum; we bought every book; we tried every combination and permutation of indicators to find “the key”; and perhaps like you, we took course after course from very reputable people in the industry. What we found was that everyone had some good pieces of information, but no one had the whole puzzle.  If anyone did, they certainly weren’t sharing it in the public domain. We pushed on, experimenting with hedging, straddling, robots, EA’s and all of the tricks touted to bring incredible rewards. In the end, we lost our shirts.

We learned the hard way that different market profiles require different strategies and trade set ups.  At a minimum, one had to be prepared to deal with 70% of time the market was ranging vs. the 30% of time the market would trend.  Furthermore, how could we discern market reversals; how could we identify and navigate flat markets?  

A minor breakthrough occurred when one trader in our group developed a method that would consistently yield 8-12 pips. The downside was that when it did not work it would devour a huge number of wins. Why? The method required our stops to be fairly large. In other words, our risk was greater than the rewards. We were breaking every margin management rule in the book. That's how we learned that you could statistically have a high percentage of wins and still make very little money. That minor breakthrough had led us to another major breakdown.  (Today that doesn’t happen; we’re happy to spare you that pain.) 

It also proved to us what most websites will not tell you: that trading for a paltry 5-8 pips (which is the average winning trade for a retail trader) means that you must be 90% correct for the rest of your life to be successful.

There had to be a better way.  We knew that large banks and financial institutions have hundreds of currency traders. They harvested huge numbers of pips daily. What did these Big Boys know and do that we didn’t?  We set out on a quest for knowledge.  It was arduous and expensive.  

Ultimately, we concluded that we had to rewire our thinking, adopt a strategy called target trading, and hold on to achieve the same targets the Big Boys we aiming to hit.  But how do you find them?  We bit the bullet and paid some big bucks to "get inside the BIG BOYS’ heads". We had figured out some pretty cool stuff on our own but armed with this new knowledge, we set about to visually see what the " Big Boys" are really doing and recreate that in our charts. 

Contrary to popular belief, the market is not random, it absolutely is being manipulated by the Big Boys.  And in the charts, they leave clues. They have a sort of sign language in the charts which is continually communicating their movements.  Professional traders learn to decode this language and trade the Big Boys intention.

In time we developed a combination of methodology and chart-based momentum sensors. The settings were our own  proprietary algorithms.  These enabled those with smaller margins to actually see when the market movement was most likely to occur. When our templates were applied with established technical analysis, we could now avoid trades that would move against us and increase our pip capture on trades that moved in our favor. It was a eureka moment as our margin accounts began to recover steadily. 

 

As one success led to another, we formulated other setups which produced statistically higher success rates. Internally, these became known as Wild Cards, 6 Aces and the Royal Flush, in honor of our historical cowboy poker setting. These trade setups yielded impressive pip captures in Trending, Ranging and Reversing markets and most importantly, they gave us the glasses to see what setup to use. 

We were finally target trading in harmony with the Big Boys! This milestone brought us, with the support of accurate technical analysis, the wisdom to know when not to take a trade. We overcame the emotional, impulsive, right-brain generated bad habits which lead 90% of retail traders into a loop of endless losses. We discovered that a trade setup and an executable trade are not the same thing.
 
We abandoned standard indicators as a methodology but kept the proprietary Harmony and Momentum indicators which are built into our charts.  Once we understood what the Big Boys were saying in the language of the charts, our next task was to properly calculate risk to reward.  We programmed very accurate tools to identify realistic targets. This was invaluable since we could now see the "Big Boys" targets and stay in for them. These tools are known to our trading community as T30's, the HSI Tool and the PAT Projector. They are indispensable in breaking the #1 habit new traders have - "Cutting their winners short and letting their losers run. 

"We were no longer "indicator junkies",  we were FOREX Target Traders!  Now we were able to use Price Action vs. Indicator trading.  

We didn’t create these charts for the retail trader.  After all we’d endured, they were the product of our losses, our investigations, our calculations, and our equity investments.  We thought to simply “go ghost”.  But we care about people. Our evolution led us into opening a Forex Trading Club, which eventually brought in traders all over the world. Traders paid club dues monthly to access the charts. As the word got out, we hit a hard decision point: End the club or establish a full-fledged business. The cost to create the charts had been significant and the new traders needed a lot of coaching.  It was too costly to work for free, so ProAct Traders was born.

Fast Forward: Scott ended up being a training consultant with FXDD (the 2nd largest retail broker in the world). He paired up with Greg Michalowski, who’d been a bank trader from the UK for 12 years. For three years, Greg and Scott did workshops for FXDD. It was during this time he that learned lots of ins and outs on how bank traders actually trade. This was information that retail traders simply never learn due to their non-affiliation with a bank trading floor. You will see that knowledge is applied every day in our live rooms. You’ll have the opportunity to transfer that knowledge to yourself through our in-depth, one-year Fast Track program. Scott hosts our Mon-Thur morning New York session live room.  Andrew Haney, who runs our London Live room, is a graduated Fast Tracker and winner of the Forex Roll contest. This is a contest of 2,000 professional traders trading against each other. Andrew took the #1 spot.

 

Our Forex Trading Software shows harmony and momentum. When these two phenomena appear in the market, higher probability movements tend to form. Our Forex Trading Software is designed to show you when this higher probability environment exists. Our methodology is "trading almost naked". We identify the wide open spaces where the targets exist; we wait for our software to alert when momentum from the Big Boys presence appears; we preset our entry orders; we wait for the confirmation of direction as the Big Boys make their moves.  (Notice I said “wait” twice. That’s the first set up every trader must master – the wait trade.)

Our secret is that there’s no secret.  We use proven technical analysis approaches. Yes – we have proprietary tools, but those only refine our analysis.  Retail traders relying on standard indicators do not move the market.  They do inject over $400 billion per day* of liquidity into the market, which the Big Boys are happy to absorb 90% of. 

The Big Boys make the candles.  They are the ten or so Tier One bankers, followed by 1000+ banks, hedge funds, sovereign funds, and large money houses.  The Big Boys are technical traders. Doesn’t it make sense to learn all you can about how these real market makers move the market, and then catch the wave generated by their momentum?

In brief, here are the questions they have taught us to ask daily:

  1. What are the Big Boys doing today and why?                STRUCTURE
  2. What opportunities are most likely, not just possible?     PROBABILITY
  3. What is my risk?                                                                   MARGIN MANAGEMENT

Our Forex Trading Software does not tell you when to trade. That you must interpret for yourself based on technical analysis, the "Big Boys" agenda, the harmony of our momentum indicators in the market and the distance to the targets. We do, however, make every effort to teach you to learn how to trade using tried and true technical analysis to understand the why of the market. We do this live in the London and NY session every day for demo traders, Live room subscribers and Fast Trackers as well as our chart subscribers who have opted in for this service.

You can have a no-cost ten-day pass to experience our live rooms, work with our unique charts, observe our Fast Trackers pulling down hundreds (yes, hundreds) of pips weekly, and study through our entry-level videos.  What’s here you won’t see elsewhere. If you’ve had enough of fluff, come see if we have the real stuff.  To request your 10-day free charting software demo with free Membership access to the live London and NY sessions, just click here.

 

 

*Aite Group LLC reports this and the volume is an estimated $400 billion a day for retail traders

"Trading Forex involves substantial risk, is not for every trader and only risk capital should be used."