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In this interview, we sit down with Gary Langley, better known as The Scruffy Trader, a seasoned professional with years of experience in the world of prop trading. Gary shares his journey of trading as a career, discussing how he balances trading with his day job, and what keeps him grounded in his approach to the markets. Whether you’re just starting or have been trading for a while, Gary’s no-nonsense style offers practical insights that any trader can apply.
Throughout this post, you’ll learn about Gary’s disciplined approach to risk management, how he respects his account size, and his unique methods for scaling into trades. He also shares key tips on maintaining emotional control, setting reasonable targets, and sticking to your strategy even when the market tests your patience. If you’ve ever wondered how to turn trading into a consistent job, this is a must-read for anyone serious about developing a sustainable trading strategy.
The Scruffy Trader Playbook & Strategy: How He Actually Trades
The Key to His Success: Respecting the Account
One of the most important lessons Gary stresses is the importance of respecting your account. Whether you’re trading a small or large account, your mindset should always be the same: treat the money like it’s yours, and be mindful of how much you’re willing to risk.
- Treat every account with respect: If you’re working with a small account, don’t think that small profits don’t matter. A £20 profit on a £1,000 account is a big deal—respect that.
- Risk management is everything: Don’t gamble your way to success. Respect your position size and your stop-loss levels.
- Use risk-adjusted returns: Gary doesn’t chase big wins. Instead, he stays patient and looks for consistent, manageable profits.
- Account size matters: Larger accounts allow for bigger moves, but the principles of risk and respect remain unchanged. Don’t overestimate your position size as your account grows.
Creating a Routine: Consistency Is Key
Gary’s success doesn’t come from flashy trades or gut feelings—it comes from sticking to a routine. Having a set approach helps him stay disciplined and avoid impulsive decisions.
- Set up a daily routine: Start each day with a clear plan. Gary looks at the market’s strongest and weakest assets, focusing on a handful of markets.
- Know when to trade: Avoid trading during certain times of the day. Gary doesn’t trade during the first hour on Mondays or the last hour on Fridays, as these times tend to be more volatile and unpredictable.
- Focus on multi-timeframe analysis: Gary uses a monthly, weekly, and daily timeframe to analyze the market. If all three timeframes align, it’s a green light for him.
- Trade the market that suits your style: Gary sticks to trading the DAX and a few other preferred markets. Find what works for you and repeat the process.
Position Sizing: Scaling Into Trades
When entering trades, Gary doesn’t go all-in. He scales into his positions, which helps him manage risk and increase the chance of a favorable outcome, even when the market moves against him at first.
- Scale into positions: Gary starts with a small portion of his desired position size (e.g., 20%) and adds more as the trade proves itself.
- Plan your entry and stop-loss: Know exactly where you’re entering and where your stop will be before you hit the button.
- Don’t add to losing positions: If a trade moves against you, don’t just add more size to average down. Stick to your risk parameters.
- Use a fixed lot size: Gary’s position size is fixed based on his account size, not based on the trade’s “opportunity” or gut feeling.
Risk Management: Know When to Step Away
Gary’s approach to risk is all about knowing when to pull back and when to stop trading for the day. He sets strict limits to keep himself from overtrading or getting caught up in emotional swings.
- Limit your trades per day: Gary only allows himself to take two trades a day. After that, he’s done for the day, no matter what.
- Use a “one loss” rule: If Gary loses a trade, he calls it a day. He doesn’t try to make up for losses by overtrading or “revenge trading.”
- Set weekly risk limits: Gary sets aside 10% of his account for the week. If he hits that limit early, he stops trading.
- Cut losses quickly: If a trade is going against you, don’t hesitate to cut it off early. Accept the loss and move on.
Emotional Control: Keeping a Level Head
Traders are often told that emotional control is key, but Gary takes it a step further—he actively manages his emotions by setting rules that force him to step away when things get too heated.
- Don’t chase big wins: Trading is a job, not a way to get rich quickly. Gary keeps his expectations grounded and avoids chasing big, risky trades.
- Avoid watching the P&L: Gary turns off the P&L display during trades so that he’s not distracted by the numbers. He focuses solely on his strategy and execution.
- Have mantras to guide you: Gary follows a couple of simple rules, like “score-stop,” where he stops trading after two winning trades, and “one loss and I’m done,” to maintain emotional stability.
- Patience is key: Learn to wait for the right setups, and avoid jumping into trades when you feel the pressure to act.
The Secret to His Strategy: Simplicity
Gary doesn’t rely on complex indicators or technical wizardry. Instead, he keeps things simple with a focus on key levels and structure points that make sense to him.
- Focus on key levels: Gary uses multi-timeframe analysis to identify significant levels on monthly, weekly, and daily charts. These levels become crucial points for his entries and stops.
- Understand market structure: Gary doesn’t just look at the price action—he understands the underlying market structure. If price breaks through key levels, he’s quick to reassess the trade.
- Use common sense: Don’t trade during major news events, like CPI reports, unless you’re certain about the direction. Stay patient and wait for the noise to die down.
- Track your trades: Keep a detailed journal of every trade, including both wins and losses. Use this to identify patterns and refine your strategy.
Respect Your Account: The Foundation of Consistent Trading
Gary Langley, also known as The Scruffy Trader, emphasizes that the cornerstone of his trading strategy is respecting the account size, no matter how big or small. He stresses that many traders overlook this critical aspect, especially when working with smaller accounts. For Gary, every profit, even as small as £20 on a £1,000 account, is meaningful because it aligns with his philosophy that every penny should be treated with care. If you don’t respect your account size, you risk blowing it by taking unnecessary risks or making reckless trades. Treating your account with respect means understanding its limits and setting realistic goals that are grounded in consistent, well-thought-out trades rather than trying to chase the next big win.
Gary’s approach to respecting his account goes beyond just acknowledging its size. He firmly believes that managing risk is a key part of respecting your trading account. By not gambling with your capital and instead focusing on smaller, calculated profits, traders are more likely to see sustainable growth. For him, it’s not about swinging for the fences but taking a steady approach where every win—no matter how small—adds up over time. Whether it’s the first trade of the day or the last, respecting your account size is what keeps the trader grounded and in the game for the long haul.
Scaling Into Trades: How to Manage Risk and Maximize Reward
One of the key strategies that Gary Langley, The Scruffy Trader, uses is scaling into trades, a method that helps him manage risk while maximizing potential rewards. Rather than going all-in with his full position size from the get-go, Gary starts small—often with just 20% of the intended position. This allows him to get into the trade without exposing himself to unnecessary risk if the market moves against him. By scaling in, Gary gives the trade time to prove itself, adding more size gradually as the market shows favorable signs, which significantly reduces the emotional strain and the risk of entering too early.
The advantage of this approach is clear: it offers greater flexibility and more control over the trade’s outcome. If the market moves in Gary’s favor, he can confidently add more size to his position, knowing the risk has been managed effectively. However, if the market doesn’t cooperate, he doesn’t lose as much as he would have with a full-size position. For Gary, scaling into trades isn’t just about protecting his capital; it’s also about improving his overall performance by letting the market confirm his decision before committing fully. This method ensures that, over time, his risk is well-managed and his trades are aligned with his strategy, helping him stay consistent in a volatile environment.
One Loss Rule: Stop Trading Before Emotion Takes Over
Gary Langley, aka The Scruffy Trader, has a simple but powerful rule for managing his trading day: the “One Loss Rule.” This rule dictates that if Gary experiences a loss during the day, he immediately stops trading for the rest of the session. The reasoning behind this is straightforward—trading while emotionally affected by a loss often leads to poor decision-making and revenge trading, which can quickly spiral into more losses. Gary knows that when he’s out of sync with the market or emotionally thrown off, the best course of action is to walk away, reset, and come back the next day with a clear head.
By sticking to the One Loss Rule, Gary prevents himself from breaking his trading plan and falling into the trap of trying to make up for the loss. It’s about having the discipline to recognize when emotions are taking over and cutting the losses before they get worse. This rule helps Gary maintain long-term consistency, avoiding the emotional rollercoaster that often leads to bigger mistakes. It’s a mindset shift that separates the pros from the amateurs—successful traders know when to stop, respect their limits, and protect their capital.
The Power of Routine: How Consistency Drives Long-Term Success
Gary Langley, known as The Scruffy Trader, firmly believes that a consistent routine is the key to long-term success in trading. He treats trading like a job, showing up every day with a clear plan and sticking to it without deviation. His approach is simple: he starts each day by reviewing his preferred markets, looking for strengths and weaknesses, and setting a clear objective. By creating a repeatable process, Gary removes the guesswork and emotional highs and lows that can often cloud judgment. This disciplined approach ensures that every decision he makes is grounded in his strategy, not in reactionary impulses.
Gary’s routine doesn’t just involve technical analysis—it also includes knowing when not to trade. For example, he avoids trading during certain times of the week, such as the first hour on Monday and the last hour on Friday, as he finds these times to be less predictable and more prone to volatility. By sticking to his well-established routine, Gary has been able to consistently find opportunities in the market without getting caught up in the noise. The power of routine lies in its ability to maintain focus and discipline, two traits that have helped Gary stay profitable even in the face of market unpredictability.
Keep It Simple: Focus on Key Levels and Market Structure
Gary Langley, The Scruffy Trader, emphasizes the importance of simplicity in his trading approach. He doesn’t rely on a multitude of complex indicators or technical tools. Instead, Gary focuses on key levels and market structure to guide his trading decisions. By analyzing the market from a high-level perspective, including monthly, weekly, and daily charts, he identifies crucial price points that provide the foundation for his trades. These levels act as his entry and exit points, ensuring that he’s trading with the market’s natural flow rather than trying to predict its movements.
For Gary, the market’s structure is everything. If a key level is broken, he re-evaluates his position. He doesn’t overcomplicate things by looking at every minor price movement; instead, he uses larger timeframes to make better-informed decisions. This straightforward method reduces the noise and allows Gary to focus on what truly matters. By keeping his strategy simple and relying on key levels, Gary ensures that he’s consistently making trades based on solid, actionable information, not on fleeting market signals. This simplicity not only makes his strategy easy to follow but also contributes to the consistency that has made him a successful trader.
Gary Langley, aka The Scruffy Trader, offers a wealth of valuable lessons for traders looking to develop a consistent and disciplined approach to the markets. His strategy revolves around key principles like respecting your account, managing risk through scaling into trades, and sticking to a routine that reduces emotional decision-making. He stresses the importance of treating trading as a job, not a get-rich-quick endeavor, and highlights how maintaining a simple, focused strategy can lead to more reliable and sustainable results.
From his “One Loss Rule” to his emphasis on respecting position sizing, Gary demonstrates that emotional control and strict adherence to rules are crucial in navigating the ups and downs of trading. By using clear, actionable strategies like scaling into positions and focusing on key market levels, he’s been able to minimize risk while maximizing the potential for reward. Gary’s approach serves as a reminder that successful trading is about discipline, routine, and a well-structured plan rather than luck or chasing after big wins. If you apply these principles consistently, you’ll find that over time, success in trading becomes more attainable.
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