Background
Jarratt Davis is a forex trader ranked #2 globally by BarclayHedge for risk-adjusted returns. He's one of very few retail-originated forex traders with independently verified performance. His approach combines fundamental analysis with institutional sentiment data, eschewing the indicator-heavy approaches common in retail forex education.
Core Methodology
Davis's methodology centres on understanding central bank policy trajectories and their impact on currency pairs. He combines fundamental macro analysis with the Commitment of Traders (COT) report to gauge institutional positioning. His edge: identifying when retail sentiment is extreme and positioning with the institutional flow.
Key Trading Rules
- Analyse central bank policy trajectories — which banks are hawkish, which dovish, which pivoting?
- Monitor COT reports weekly: extreme positioning by commercials or non-commercials signals potential reversals
- Use retail sentiment indicators as contrarian signals — when 80%+ of retail is long, consider shorting
- Trade with the trend on the daily/weekly timeframe — fundamentals drive long-term currency trends
- Position sizing based on average true range — risk 1% per trade scaled to each pair's volatility
- Review and adjust macro outlook monthly — currencies are macro instruments, not scalping tools
Key Concepts
Books & Resources
BarclayHedge verified performance record. Jarratt Davis educational content. Various forex conference presentations.