1 Minute Fibonacci Scalping Strategy Backtested 100 TIMES — Transcript

Full transcript

1. 0:00Fib retracements work so often, and I'm
2. 0:02going to show you exactly why. I'm also
3. 0:04going to show you how to mark them up
4. 0:06properly, when they don't work, and why.
5. 0:09And I'll even show you 100 back tested
6. 0:12trades from London session all the way
7. 0:14through to New York session. No fluff,
8. 0:17just straight up data, the entire
9. 0:19strategy with step-by-step instructions.
10. 0:21It's the way trading education should
11. 0:23be. Fibonacci levels aren't magic.
12. 0:26They're just math. But they work because
13. 0:28millions of traders watch them. The 0.5
14. 0:30and the 618 levels show up again and
15. 0:34again because they're areas of natural
16. 0:37human behavior. Hesitation, pullback,
17. 0:41and re-entry. When price impulsively
18. 0:43moves in one direction, it rarely goes
19. 0:46straight up or down. It pulls back. And
20. 0:49those pullbacks often land inside of
21. 0:52this golden pocket. That's where
22. 0:54liquidity builds. That's where big
23. 0:57traders enter and that's where we
24. 1:00strike. Now, let me walk you through
25. 1:02exactly how I draw Fibonacci
26. 1:04retracements step by step. Here is your
27. 1:07checklist. Please make a screenshot of
28. 1:10this. Identify the impulse move. Swing
29. 1:13low to swing high in an uptrend or swing
30. 1:17high to swing low in a downtrend.
31. 1:21Confirm the break of structure. Draw the
32. 1:24fib tool from the start of the move to
33. 1:26the end of the move. Wait for price to
34. 1:28pull back into the 0.5 to 618 zone. Look
35. 1:33for entry triggers, candle patterns,
36. 1:36continuation wicks, engulfing setups, or
37. 1:40set a limit order at that 618 level.
38. 1:43However, here is the golden rule. Never
39. 1:46draw fib setups in a choppy range. You
40. 1:50need a clear impulse, a structure break,
41. 1:53and an obvious trend. If you don't see
42. 1:55it, skip the trade. This is exactly when
43. 1:59fibs fail. Just like every tool,
44. 2:02Fibonacci fails sometimes, usually in
45. 2:05these three scenarios. Scenario one, no
46. 2:08clear trend. If price is sideways,
47. 2:11you're drawing fib levels on noise.
48. 2:14Scenario number two is going to be news
49. 2:17events. Major spikes can ignore all
50. 2:20levels. You'll see this occasionally
51. 2:22with a 100 pip candle. And scenario
52. 2:25three, low volume times. Outside of
53. 2:29London or New York session, price is
54. 2:32pretty sluggish and fake outs are very
55. 2:34common. So here's the rule. Only trade
56. 2:37Fibonacci during the high volume
57. 2:40sessions, London open to New York close.
58. 2:43Anything outside of that, you're
59. 2:46gambling, not trading. Here is the exact
60. 2:48setup that you're looking for and
61. 2:50exactly how to set up a Fibonacci
62. 2:52retracement tool. First of all, you are
63. 2:54looking for a trending market. You want
64. 2:56price to be going in either direction
65. 2:58and not flat. On the left hand side, you
66. 3:00will see a toolbar. The third icon down
67. 3:03is your fib tools. The first option is
68. 3:06going to be fib retracement. Put a star
69. 3:08next to it so that it shows up in your
70. 3:10favorites toolbar. Now the things that
71. 3:12you want to focus on is the market
72. 3:14structure, the high points and the low
73. 3:16points and you want to include the wicks
74. 3:19in these low points because that is
75. 3:21going to be your market structure. So as
76. 3:24you can see this right here did not
77. 3:27break the previous structure. There was
78. 3:28no candle closure below it. You have to
79. 3:30wait for an impulse move that breaks
80. 3:33structure and you have to watch this
81. 3:35move play out until the price starts
82. 3:39retracing heavily. You want a heavy
83. 3:41retracement and you want to take your
84. 3:43Fibonacci retracement tool from the top
85. 3:46of that move to the bottom of that move
86. 3:50in a downtrend. These are my settings
87. 3:52for the Fibonacci retracement tool. I
88. 3:54have six levels marked out. The 0ero,
89. 3:57the 0.5,
90. 3:59the 1, the 0.618,
91. 4:03the negative 0.5, and the -1. Everything
92. 4:07else is turned off. No trend line, no
93. 4:11extend lines left. I've also removed the
94. 4:14background just to make it very clean.
95. 4:17As far as the levels and the text, I
96. 4:19have them set as values and to the
97. 4:21right. That way, the levels show up
98. 4:23right here on the right hand side of my
99. 4:25fib tool. And the only area that I'm
100. 4:27focusing on, I've changed the color to
101. 4:29orange so that I can clearly see it. The
102. 4:33best way to do this is to set limit
103. 4:35orders. You set a limit order at the 618
104. 4:38with a stop-loss just above the one and
105. 4:40a takerit at the previous structure.
106. 4:43That will give you a 1:1.6
107. 4:46risk-to-reward ratio. And keep in mind
108. 4:48the time this is literally at the start
109. 4:52of the mixed session for New York in
110. 4:55between London and New York session.
111. 4:57High volume, high volatility will give
112. 5:00you good momentum swings. And to
113. 5:03understand why you should avoid news
114. 5:05events, it's because there is no clear
115. 5:08structure when you see a monstrous
116. 5:10candle like this. So if you're trading
117. 5:13casually in the markets and the price is
118. 5:15just moving down slowly and then you see
119. 5:17one of these, you know that it was a
120. 5:18news event. Now let's do the same
121. 5:20example in an uptrend. We had previous
122. 5:23structure here and we had an impulse
123. 5:26move that broke the previous structure.
124. 5:28Again, just take your Fibonacci tool and
125. 5:30draw it from the bottom of the impulse
126. 5:32move up to the top of the impulse move.
127. 5:35As you're waiting for price to retrace,
128. 5:38you look for the Fibonacci gold zone
129. 5:39pocket. If you had a long position set
130. 5:42up from the 618 with a takerit at the
131. 5:45previous high and a stop loss below the
132. 5:47one level, you would have missed your
133. 5:49entry here. But that's okay. The best
134. 5:51trades are going to be at the 0 618
135. 5:53because if you set it at the 0.5, you
136. 5:55will get a worse risk-to-reward closer
137. 5:58to a one to one. The setup is very, very
138. 6:00simple. In an uptrend, it's very simple.
139. 6:02Price is making higher highs and higher
140. 6:06lows. You wait for an impulse move to
141. 6:09break the previous structure. You mark
142. 6:11up your Fibonacci tool from the higher
143. 6:13low to the higher high. You wait for it
144. 6:15to get into the gold zone to create a
145. 6:17new higher low. And the safest trade is
146. 6:19always going to be targeting the
147. 6:21previous high. Yes, the price goes up
148. 6:23sometimes, but if you want to be safe
149. 6:25and consistent, this is the one you
150. 6:26should be targeting. Over the past week,
151. 6:28I back tested this strategy on EuroUSD
152. 6:33100 times from the London open through
153. 6:36to the New York close. Let's jump onto
154. 6:38the charts and I'm going to show you
155. 6:40every single one of these. So, as you
156. 6:42can see, every single one of these
157. 6:44trades was during the London session to
158. 6:47New York session. The reason this is so
159. 6:49important is because there is high
160. 6:53volume during these sessions. When
161. 6:55Europe is awake, they're trading the
162. 6:57London session. Banks, financial
163. 7:00institutions, hedge funds, and traders
164. 7:02are all causing volume and volatility in
165. 7:06the markets causing these market
166. 7:08structure moves where we see swings up
167. 7:11and swings down while still holding the
168. 7:14market structure. Higher highs and
169. 7:17higher lows in an uptrend and lower
170. 7:19highs and lower lows in a downtrend.
171. 7:22These trends follow trend lines
172. 7:25religiously. Occasionally there are
173. 7:27wicks up and down above and below
174. 7:31trapping liquidity, trapping traders,
175. 7:34but overall you will see a consistent
176. 7:37trend a majority of the time. And using
177. 7:40this knowledge, using this market
178. 7:43structure, using these Fibonacci setups
179. 7:46and this Fibonacci gold zone for a
180. 7:49majority of your trades is going to give
181. 7:51you the edge that you need in order to
182. 7:54be a good trader. Because the only way
183. 7:56to make money in the markets is to do
184. 7:59something consistently over time. Having
185. 8:02a good risk-to-reward ratio, having a
186. 8:04good win rate will get you to be
187. 8:07profitable. It's plain and simple, but
188. 8:10as you can see, most of these trades
189. 8:13retrace to the 0.5 or 618. And if you
190. 8:16keep your stop loss and your takerit
191. 8:19within that range where you're getting a
192. 8:211 to 1.5 or a 1 to 1.6 risk-to-reward
193. 8:25ratio, you're having substantially more
194. 8:27wins than you are losses, causing your
195. 8:30account to be profitable over time. As
196. 8:33you can see, on some of these days,
197. 8:34we've had multiple trade entries. Some
198. 8:37of them were losers and some of them
199. 8:38were winners. But overall, we tend to
200. 8:41end the day profitably. If not the day,
201. 8:44then overall the week profitably. These
202. 8:46100 back tested trades are simply
203. 8:49looking at market structure, trend
204. 8:51lines, breaks of structure with
205. 8:53Fibonacci retracements back into the
206. 8:55gold zone. If you want to test it
207. 8:56yourself, then I highly recommend you do
208. 8:58that on the thing that you're trading.
209. 9:00Whether you're trading gold, whether
210. 9:02you're trading indices, whether you're
211. 9:03trading a forex pair or a commodity like
212. 9:06oil, there are specific things that I
213. 9:08want you to look for. And I want you to
214. 9:09take a screenshot of this checklist
215. 9:11right here. You only want to trade clear
216. 9:15trends. The impulse moves that break the
217. 9:17structure are going to be your friend.
218. 9:19Wait for the retracement and use the 0.5
219. 9:22to 618 retracement areas. Avoid choppy
220. 9:25ranges. Also, avoid high impact news and
221. 9:28avoid areas of low volume. An easy rule
222. 9:30of thumb is to just stick to the New
223. 9:32York session or the London session. And
224. 9:34if you're still struggling getting into
225. 9:36a trade because you keep secondguessing
226. 9:38yourself, go check out our new earn as
227. 9:40you learn program where we provide you
228. 9:43the trade setups so that you can see
229. 9:46what good trades look like and feel like
230. 9:49to make those profits. And while you're
231. 9:51executing those trades, you can learn
232. 9:53about day trading. So now you don't have
233. 9:55to wait 6 months until you can start
234. 9:57trading. You can do it from day one as
235. 9:59you're learning. Check out the earn as
236. 10:01you learn program at trdf flooror.com. I
237. 10:04hope this video helped you guys out and
238. 10:05if you have questions that you want
239. 10:06answered in a video response, put them
240. 10:09in the comment section down below.
241. 10:10Thanks so much for watching and we'll
242. 10:11see you in the next one.