Austin Silver - Less is More

For the uninitiated, with over 10 years of market experience, ASFX, and their high-performance trading mentorship program, The Black Shirt Club. With over 10 years of market experience, Austin is one of the most recognisable faces within the retail trading sector. He is likewise known by professional traders for his consistent, low expected value strategies that even the most-novice of traders can execute. Having known Austin from some time via his live streaming service focussed on live trading daily, ASFX TV, and subsequently being a guest on his successful podcast, The Day Trading Show, who better to have as our first trading interview for Peak Performance. During our 30-minute conversation, Austin and I dived into what makes a good prop account trader, the differences in approaches between the various types of trading, the misleading differences between pro traders and entertainers, and finally his top 3 takeaways from fellow traders, Brian Shannon, Scott Riddler and Black Shirt Club member, ‘Mark’.

Key Takeaways from Austin's Trading Philosophy

1. The Secret to Great Trades: Less is More

Austin emphasises that his best trades are marked by patience and restraint. “The better traders I’ve seen are almost make it difficult to get into trades, they are very picky” he explains. The key? Let gains come from quality setups and asymmetry, not oversized risk.

Austin also stresses the importance of self-awareness. Trading isn’t about constant action. ‘I find that my best trades are the ones that I don’t micro-manage. They are generally the ones where I have to get out of the way of the strategy and just let it do its thing’ he notes. Instead, success often comes from calculated decisions and waiting for the right opportunities. Whilst bearing this is mind we touched on the importance of the self-awareness to avoid the conceived notions that come with being a trader. The idea of the day trader taking hundreds of positions with high risk and subsequently profitability leads to failure. “Profitable trading mostly comes from limiting risk and exposure. We’re blessed to be one of the few traders that can actually pull profit out of the markets, Dylan”, Austin comments, noting that many professionals struggle to obtain profits in markets, "... its no wonder why CFD brokers are allowed to exist, banks and liquidity providers are able to make so much money", referencing the 90/90/90 principle.

💡 Takeaway: Focus on quality over quantity, and always keep a clear, grounded mindset. The self-awareness that removes the ‘idea’ of being a trader allows one to limit risk / exposure, which leads to consistent profitability. Extracting profits from markets is a challenge for all, most-professionals are likewise unable to extract profits long term.

💡 Pro Tip: Its important as an intraday trader to create strategies that generate profit from asymmetry and not adding risk - this distinction is not made throughout most retail and even professional circles.

2. Lower RR, Trade Less, and Track Your Data

When Austin first began the ASFX TV product, I prompted the question, “When new guys join The Black Shirt Club, what 3 changes make the largest difference in their trading performance?”. Austin's answer was simple yet profound:

• Lower your risk-to-reward (RR) ratio.

• Trade less frequently.

• Track your data.

These principles are particularly relevant for those working with prop accounts, where the performance metrics of limited drawdown and PnL target-based performance demand a more conservative approach. Austin notes, “Trading is about selecting the game you want to play and optimising for that game. What works for prop account trading does not work for hedge fund trading. When looking at Prop account trading for example, a high win rate is ideal as you don’t have the luxury of taking tons of breakevens before assuming a massive win. You need to do the math on the outcome you’re looking for.” A great example of this can be seen in a excerpt Austin's monthly PnL below.

💡 Takeaway: Find your niche in trading and tailor your approach to suit its specific demands.

💡 Pro Tip: Hedge Fund Traders have the luxury of a salary, meaning that they can afford to sustain breakeven or moderate losing periods without profit for maximised returns. Prop account or retail trading does not afford this luxury for liquidity and psychological reasons. Seek consistency over high returns for prop account / retail trading.

3. Building Consistent Strategies

Austin’s strategies are built for long-term success, focusing on consistency over flashiness. “It’s easy to create winning, low-expected-value strategies,” he says. The challenge lies in sticking to the strategy, especially during tough periods. Many traders fall into the trap of analysing short-term outcomes. Austin’s advice? "Sometimes you just have to sit down and eat your lunch without tinkering. You’ve got to commit to, say, 3 months of just focussing on implementing the strategy and accept what comes with it. You’ve got to put on the risk." We made particular emphasis on the idea that trading strategies are designed to work over the long term, not individual trades. Austin echo’s the words of Mark Douglas, ‘its impossible to know which trades will be successful on a trade-by-trade basis.’.

💡 Takeaway: Trust your process and avoid making impulsive changes based on short-term results. Strategies are created to work over time, not on a trade-by-trade basis.

💡 Pro Tip: Strategy performance will naturally ebb and flow. Strategies, on average, tend to perform up to 30% worse when taken live. During these periods, seek to reduce trading frequency and reduce exposure by 50% or more.

4. Trading vs. Entertainment

I recall Austin preaching to his followers that it is counter-intuitive to trade for profits. The more profits you seek, the less you will have. You have got to let the trades come to you. I found this approach fascinating as its completely different from most other sectors people participate in, in that, generally speaking, what you put in is what you get out. When prompted on his conservative approach, he says “I’ve never been the guy who puts it all on black, you know. I’m a conservative guy, I have a family, I like to barbecue on the weekends” he says humorously. Instead, his focus is on managing risk and optimising for outsized gains during opportune periods. For instance, Austin has observed that 80% of his yearly gains come from just 20% of the months - a pattern he’s working to capitalise on as his primary focus.

💡 Takeaway: Define your identity as a trader. Focus on what aligns with your goals, whether that’s entertaining or managing capital conservatively.

💡 Pro Tip: Strategies tend to win and lose in clusters, particularly with high EV strategies but is also observed with low EV strategies. Once consistency has been reached, it is important to learn the patterns that lead to these clusters of outperformance and lean into them when the market permits.

5. Influential Mentors and Lessons

In closing, Austin has had more exposure than most will see in a lifetime to globally renowned traders. As a final, rapid fire talking point, we discussed what the 3 most impactful and actionable lessons were from 3 separate traders are that he learned:

• Scott Redler: Emphasised routine and simple, repeatable strategies.

• Brian Shannon: Known for the creation of the anchored volume weighed average price, advocated for simplicity—“React, don’t predict. Let price guide you.”

• Mark: Inspired a proactive mindset—“Take calculated risks to move the needle.”

💡 Takeaway: Learn from mentors who embody the qualities and skills you want to develop. Get into a stable routine for trading objectivity and consistency, react as opposed to predict, and put the calculated risk on when its time to move the needle in trading and in life.

Actionable Steps for Traders

• Start Small: If you’re struggling, lower your RR and focus on fewer trades.

• Log Everything: Use a trading journal to track your performance and uncover patterns for when your strategy performance increases.

• Optimize the Game You Play: Not all strategies fit all markets or trading styles - choose and refine yours wisely.

• Stay Conservative: Risk less and let the market come to you. Remember, professional traders often prioritise longevity over flashy gains - profits come from strategy asymmetry, not added risk.

Austin’s philosophy is clear: trading is a marathon, not a sprint. With patience, self-awareness, and data-driven decisions, you can position yourself for lasting success.

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