Is This Market Structure Fibonacci Strategy Actually Good? — Transcript

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1. 0:00Oh my god, bro. easy. Liquidity
2. 0:02sweep, market structure shift,
3. 0:04displacement, entry on the fib.
4. 0:06Liquidity sweep, market structure shift,
5. 0:08displacement, entry on the fib. Oh my
6. 0:10god, bro. Is this easy?
7. 0:12>> Okay, so it's that easy. Um he's got a
8. 0:16high break into an immediate market
9. 0:18structure shift and then a 50%
10. 0:20retracement on both of these. It's just
11. 0:23a new low or a new high into an
12. 0:25immediate reversion and then a retrace
13. 0:27into 50%. It's really just a simple
14. 0:29market structure shift, but let's test
15. 0:31it. So, I took his concept, brought it
16. 0:32over to LuxAlgo Quant, explained it
17. 0:34exactly, and you can see here we have
18. 0:36the setup automatically plotted for us
19. 0:38now built by LuxAlgo Quant. You get the
20. 0:41sweep into a market structure shift.
21. 0:43actually had a nice trade once it took
22. 0:44out that high. It hit take profit for a
23. 0:46nice reversal. What I did to make it a
24. 0:48little bit better is add a trend filter.
25. 0:50As you can see here, we actually had two
26. 0:52more back-to-back wins, and you can see
27. 0:54it only triggers when it's below or
28. 0:55above the 200 EMA, which is a simple
29. 0:57condition but can help a lot when it
30. 0:58comes to you filtering out those trades.
31. 1:00Now, the only way we can truly see if
32. 1:02this works is if we backtest it. LuxAlgo
33. 1:04Quant now has a backtesting feature. All
34. 1:06I have to do is click this button,
35. 1:07backtest, and it's going to immediately
36. 1:09go and backtest this strategy. Okay, so
37. 1:12now we have the backtest. As you can see
38. 1:13on ES, the 5-minute chart, it hasn't
39. 1:15been doing that great. Just recently it
40. 1:17had a little bit of a run back as we saw
41. 1:19in the trades, but we can now test other
42. 1:22timeframes as well, like 15-minute,
43. 1:24which wasn't any better. What we can
44. 1:26actually do next is minimize this
45. 1:28screen, go up to the settings and mess
46. 1:30with the stop loss and take profit
47. 1:32levels. Let's do a 1.5 and a 3. As you
48. 1:35can see, the take profit and stop loss
49. 1:36do get adjusted. We [music] can see here
50. 1:39it's still underperforming. If I were to
51. 1:41adjust that again, let's do to a 2 and a
52. 1:431.5. We're starting to show a little bit
53. 1:46better progress on the risk-to-reward.
54. 1:48The last thing I would want to test is
55. 1:49it on the NQ. And the NQ 30-minute was
56. 1:52actually quite promising. Let me adjust
57. 1:55the take profit is
58. 1:56And after tweaking the stop loss and
59. 1:58take profit a little bit with a negative
60. 1:59R, we're finally getting a decent curve.
61. 2:01Now, I'm not a huge fan of negative risk
62. 2:03to reward, but in this case, it's
63. 2:05showing to be quite profitable. Now,
64. 2:07this particular strategy isn't something
65. 2:09I would get your hopes up about, but
66. 2:10being able to backtest actually gives
67. 2:12you an insight to what might work and
68. 2:14how to adjust the strategy to make it
69. 2:16work the best way. But, I'm happy to
70. 2:18give you this indicator for completely
71. 2:19free, so you can backtest it or use it
72. 2:21on your TradingView chart. So, comment
73. 2:23MSS and I'll send you the link.