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Trading Insights and Future Plans

Aug 23, 2025

Summary

  • This meeting featured an in-depth interview with Fabio Valentini, a top-ranked futures scalper and multiple podium finisher in the Robins World Cup Trading Championship.
  • Fabio discussed his trading philosophy, risk management strategies, execution models, psychology of trading, and his evolution from pure scalping to incorporating swing and options trading.
  • The discussion covered detailed statistical and technical approaches to intraday futures trading, performance benchmarks, adaptability, and long-term career plans.
  • Both host and guest compared trading methods, psychology, and addressed challenges of the industry, providing actionable insights for professional traders.

Action Items

  • No specific dated action items were stated in the transcript as this was an interview podcast rather than a business or project meeting.

Trading Philosophy & Approach

  • Fabio prioritizes trading with the direction of market pressure, avoiding high-risk “falling knife” reversals unless statistical conditions and profit for the day allow.
  • Focuses on intraday futures scalping, mainly on NASDAQ, using hundreds of trades per quarter to build a robust statistical edge and keep drawdown low.
  • Gains are primarily achieved by compounding profits from smaller, high-frequency trades, not from rare large wins.
  • Limits daily trades to a maximum of three stop losses to avoid trading in unfavorable conditions.

Risk Management & Performance

  • Starts risk at 0.25% per trade and only increases risk or scales positions when in profit, to avoid eroding capital during losing streaks.
  • Drawdown is kept below 20% while targeting triple-digit quarterly returns in competition.
  • Increases risk cautiously if not on track for podium results in competition environments.
  • Most performance comes during strong market trends; avoids trading during consolidation.

Execution Model & Technical Analysis

  • Uses a combination of volume analysis, order flow, price action, and market structure to determine trade entry and exit.
  • Does not trade initial market reactions; waits for confirmation of volume and momentum before entering.
  • Employs tools such as VWAP and standard deviations to identify high-probability reversal and profit zones, only taking reversal trades after securing profit.
  • Trades one asset at a time and avoids simultaneous positions to maintain tight risk controls and focus.
  • Analyzes using 15-minute and 1-minute timeframes; executes on 15-second or range bars for precision.

Statistical Edge & Adaptability

  • An extensive database of trades is used to statistically validate models before any strategy changes.
  • Frequent backtesting is conducted; changes are only implemented after robust historical validation.
  • Finds that win-rate across different trade models (A, B, C) is similar (around 50-62%), implying that higher execution frequency (rather than bet size) drives returns.

Psychology and Stress Management

  • Main source of trading stress comes from floating profits and decision points, rather than losses.
  • Scalping is recognized as high-stress and time-intensive; swing and options trading are being explored for better work-life balance.
  • Emotional discipline is highlighted—sticking to the trading model is crucial, and anxiety does not disappear with experience but becomes easier to manage.
  • External pressure from public competitions is used as a tool for mental resilience and setting an example for students.

Industry Observations & Future Goals

  • Emphasizes the need for greater transparency and professionalism in the trading education industry, separating marketing from real trading performance.
  • Goals include founding a hedge fund, mentoring young talent, cleaning up industry standards, and focusing on personal health and broader life balance.

Decisions

  • Fabio will continue evolving his trading models only after rigorous statistical backtesting — ensures adaptability to changing markets without sacrificing edge.
  • Fabio will diversify into swing and options trading to address time and stress constraints — rationale is to protect health and achieve long-term sustainability.

Open Questions / Follow-Ups

  • Will Fabio’s future focus on building a hedge fund shift his involvement in public competitions or trading education?
  • How will ongoing developments in options strategies impact his current trading routines and overall performance metrics?
  • What specific processes or standards does Fabio envision to improve transparency in the trading education industry?