My Top 3 Trading Strategies — Transcript

Full transcript

1. 0:00In this video, I'm going to show you my
2. 0:01top three trading strategies that I use
3. 0:04very consistently, but not one over the
4. 0:07other. It's kind of a mix of all of
5. 0:09them. So, when people ask me how I
6. 0:12actually trade, if it's one specific
7. 0:14strategy, no. It's a cluster of all the
8. 0:16things that make the most sense to me
9. 0:18and that are the easiest to spot
10. 0:21visually from years of looking at the
11. 0:23charts. So, let's get into number one.
12. 0:25All of these examples are going to be
13. 0:26shown on EUR/USD because it is the most
14. 0:29commonly traded major Forex pair. But,
15. 0:32this setup can be used on anything,
16. 0:34whether it's gold, German 40, the
17. 0:37Nasdaq, any stocks, whatever. The price
18. 0:41action is always the same. Okay, the
19. 0:43first one I'm going to show you is a
20. 0:44Fibonacci retracement. In this example,
21. 0:47I'm going to show you a bullish trend
22. 0:49up. Afterwards, I'm going to show you
23. 0:51what a bearish trend looks like. So,
24. 0:53basically, what you want to do is see
25. 0:56some type of upward movement.
26. 0:58Previously, we had bearish structure,
27. 1:01and then the momentum started to die
28. 1:02off, and we started getting bullish
29. 1:04structure. When bullish structure breaks
30. 1:07previous bearish structure, the trend is
31. 1:10changing. So, you look at the previous
32. 1:13high, and when that previous high is
33. 1:15broken, the downtrend is broken. So,
34. 1:17we're now looking for bullish movement.
35. 1:19What I do then is measure the bottom to
36. 1:22the top of the move that broke the
37. 1:24structure that nullified the previous
38. 1:27bearish structure. Take my Fibonacci
39. 1:29tool and measure it from bottom to top.
40. 1:33Now, let's say you can't see any of this
41. 1:35price movement. You just see the low and
42. 1:38the high. Once price starts retracing
43. 1:41down lower than the 33% level or even
44. 1:44the 50% level, that's when you're going
45. 1:47to draw your Fibonacci retracement tool
46. 1:50from literally all of the swing, the
47. 1:52wick included, from bottom to top. And
48. 1:55when it gets to the 0.618,
49. 1:58that's where I want you to place your
50. 1:59limit orders. You place a limit order at
51. 2:02the 0.618 level. Your stop loss is the
52. 2:06bottom of the impulse move that broke
53. 2:09the structure, and your target is the
54. 2:12top of the impulse move that broke the
55. 2:14structure. This is going to get you,
56. 2:16depending on where your trade entry is,
57. 2:19from a 1.5
58. 2:21to 1.6 risk to reward ratio. I do it at
59. 2:25this target specifically because if the
60. 2:28structure makes a double top, we still
61. 2:30hit our take profit. And when price is
62. 2:33trending, you can do this multiple times
63. 2:35within a trend. So, looking at the next
64. 2:38high point, once price broke that, then
65. 2:41you start measuring, and you wait for
66. 2:43price to retrace. Draw it from the
67. 2:45bottom of the move to the top of the
68. 2:47move, and you keep pending orders.
69. 2:50Pending orders are safe because if it
70. 2:51doesn't retrace deep enough, it won't
71. 2:54execute the trade. Because if you
72. 2:55execute it up here, your risk to reward
73. 2:58would be skewed. And you just keep
74. 3:00drawing a horizontal line across the
75. 3:02tops of the structure of the bullish
76. 3:04trend. Take your Fibonacci tool, draw it
77. 3:07from top to bottom, and place a pending
78. 3:10order at the Fibonacci level. Stop loss
79. 3:13here, take profit here, and you keep
80. 3:15doing this in the trend. You do the same
81. 3:17thing in bearish momentum. We had a low
82. 3:20here, and then price dipped below it.
83. 3:22So, price is now trending downwards. You
84. 3:25take your Fibonacci retracement tool,
85. 3:27and you draw it from the top to the
86. 3:29bottom of the move that broke the
87. 3:31previous structure. Take your short
88. 3:33position, enter a pending order, and
89. 3:35like I said, it's going to give you a 1
90. 3:37to 1.6 risk to reward ratio. It's not
91. 3:39going to tag you into every trade, but
92. 3:41this is the most safe way to do this.
93. 3:45You will miss some entries, you will
94. 3:46regret it, but it's more consistent and
95. 3:49safe over time. My number two strategy
96. 3:51is RSI divergences and I use this
97. 3:54primarily while I'm swing trading very
98. 3:58large positions in Bitcoin or Ethereum.
99. 4:01The RSI is a momentum indicator and
100. 4:04don't let anybody tell you otherwise.
101. 4:06When it has a lot of bullish momentum or
102. 4:08whether it has a lot of bearish
103. 4:09momentum, the RSI will depict that and
104. 4:12it will also depict loss of momentum of
105. 4:16the buying or the selling. Now, if you
106. 4:18just type in relative strength index
107. 4:20TradingView gives you a standard one in
108. 4:22their technicals. Now, what I want you
109. 4:24to do when looking for a bearish
110. 4:26divergence, meaning that the divergence
111. 4:28signifies a future bearish move, you are
112. 4:31looking at the swing highs in bullish
113. 4:34price action. This example right here.
114. 4:36Again, this is a higher time frame.
115. 4:38You're looking at monster swing trades
116. 4:40here. Multiple days, weeks, months, and
117. 4:42even up to a year. We have our high
118. 4:44point here and our high point here. This
119. 4:46is seen as bullish momentum, bullish
120. 4:49structure, price is going up and should
121. 4:51continue to go up. But if you look at
122. 4:53the RSI, you will see a high point here,
123. 4:56meaning the momentum is very bullish.
124. 4:59And then once it makes another higher
125. 5:01high in the price movement, but the RSI
126. 5:04is lower than the previous high, that
127. 5:06means a loss of momentum. People are not
128. 5:09as interested in buying anymore. And
129. 5:12when people are not as interested in
130. 5:13buying anymore, they tend to not keep
131. 5:16the price pushing up. Why would the
132. 5:18price keep going up if buyers are no
133. 5:21longer interested in it? So, you see
134. 5:22something like this where the first RSI
135. 5:25peak of that movement is above the 70
136. 5:28range on the top end and the second peak
137. 5:32is within the 70-30 range, that's your
138. 5:35entry. You would have anticipated the
139. 5:37top of the market had you done this on
140. 5:39Bitcoin. And it's not just a fluke. We
141. 5:42have that here. Bullish structure, RSI
142. 5:44is above the 70-30 range, and the RSI on
143. 5:48this one is lower than the previous one,
144. 5:50which means a loss of momentum. But, you
145. 5:52have to remember my secret sauce. The
146. 5:54divergence that is your entry
147. 5:56must be within the 70-30 range. So, as
148. 5:59price continues up making another higher
149. 6:02high, you can finally see that the RSI
150. 6:05went within the 70-30 range. Loss of
151. 6:08momentum, loss of interested buyers. You
152. 6:12would have again anticipated the top of
153. 6:14the market in that cycle. I've made
154. 6:15videos on this, when I bought, when I
155. 6:17sold on this YouTube channel. I've
156. 6:19posted it on my Telegram group. You guys
157. 6:21all saw my receipts from taking these
158. 6:23monstrous trades. I made approximately
159. 6:26$350,000
160. 6:28buying Bitcoin at the bottom and selling
161. 6:30it at the top. And if you're also
162. 6:31wondering if it works for guessing the
163. 6:33bottom of the market, it does. We have
164. 6:35this low right here, followed by the
165. 6:37lower low. You draw your tool on here to
166. 6:40signify that it is bearish price
167. 6:43structure, and then you look at the RSI,
168. 6:45and you can see price made a low in the
169. 6:48RSI outside of the 70-30 range, and then
170. 6:51within the 70-30 range.
171. 6:53You would have again anticipated the
172. 6:54bottom of the market. Fun fact, we're
173. 6:56seeing it again right here, and price
174. 6:58has been jumping up. I don't trust this
175. 7:00move because I think the economy's going
176. 7:01to collapse soon. That's just my tinfoil
177. 7:03hat conspiracy theory though. Now, the
178. 7:05number three type of trading setup,
179. 7:07which I love and I live-streamed for
180. 7:09months, day after day after day.
181. 7:12All you have to do, this is like the
182. 7:14most basic
183. 7:16mindless, you don't really need uh high
184. 7:20knowledge capacity or skill to do this
185. 7:22one. This one's going to be taking the
186. 7:25trade after a breakout of the overnight
187. 7:28range. The Tokyo session has low volume
188. 7:32because a majority of the planet is
189. 7:33asleep, so there's less trading activity
190. 7:36in the market, and it creates a type of
191. 7:38range where price is basically
192. 7:40consolidating. Now, what I like to do is
193. 7:42draw boxes around that range, and that
194. 7:45is my high and low. What I like to do
195. 7:48then, after I've defined the high and
196. 7:50the low, is place a pending sell order
197. 7:54with my stop loss halfway between the
198. 7:57range that was developed over Tokyo with
199. 8:00a 1:2 risk to reward ratio. I do two
200. 8:03positions at the same time. I make a
201. 8:06long at the top of the range, again stop
202. 8:09loss halfway between the range with a
203. 8:121:2 risk to reward ratio. That way,
204. 8:16I'm on autopilot. I let price predicate
205. 8:19whether one of the other trades is
206. 8:21executed. So, the momentum goes and it
207. 8:25executes one of the trades, and I have a
208. 8:271:2 risk to reward ratio. So, that if
209. 8:31this one breaks out, enters, then hits
210. 8:34my stop loss, and I lose 1% on it, and
211. 8:38the next one executes up, it will hit
212. 8:41take profit, and then I will be up 1%
213. 8:44for the day. So, the
214. 8:46winning trade makes up for the losing
215. 8:48trade, and I just do this every day.
216. 8:52When Tokyo session range is small, you
217. 8:56cannot do this when there is a high
218. 8:58amount of volatility and price movement
219. 9:00during the Tokyo session. That means a
220. 9:03major news event came out during Tokyo.
221. 9:05The range is too large, which will then
222. 9:08increase your position size and give you
223. 9:11a risk to reward ratio because if
224. 9:14price moves, let's say 100 pips over
225. 9:17Tokyo session, you're not going to be
226. 9:19expecting a 100 pip movement during
227. 9:21London session. That is illogical. We're
228. 9:24looking for ranges of 20 to 30 pips over
229. 9:27Tokyo, and I like it because it's
230. 9:29consistent and it's easy. But, one thing
231. 9:33I like to do if the trade hasn't closed
232. 9:36by the time New York session's been open
233. 9:38for an hour, I close all positions
234. 9:41because then we get days like this where
235. 9:42it's just consolidating. You don't want
236. 9:44to be trapped in this chop. And just as
237. 9:46a bonus, I'm going to give you one more,
238. 9:48and this is something that you can trade
239. 9:51without having to analyze the charts by
240. 9:52yourself. You get a buy or sell signal.
241. 9:55Okay, if you guys have seen my older
242. 9:57videos, you know I like to trade when my
243. 10:00moving averages line up cuz I know that
244. 10:02they're starting to be a new trend and a
245. 10:04lot of momentum. This indicator right
246. 10:06here is called Stair Master, and it'll
247. 10:08actually give you a setup or a buy or
248. 10:11sell signal once price has broken
249. 10:13through this stylized moving average.
250. 10:16Once you get the signal, you enter a
251. 10:17trade and put your stop loss for a sell
252. 10:20above the previous candle's high, and
253. 10:22you're targeting a 1:1.5 risk to reward.
254. 10:25Again, the moving average color must be
255. 10:27bearish in order for a bearish position,
256. 10:30and the moving average must be bullish
257. 10:32colored blue for a bullish position. And
258. 10:34for a long position, stop loss below the
259. 10:36previous candle's low with a 1:1.5 risk
260. 10:39to reward ratio. This is not a perfect
261. 10:41indicator, and you will not get a 99%
262. 10:44win rate, but you will be consistent,
263. 10:47and you won't have to worry about or
264. 10:49stress about should you enter this
265. 10:51trade. It's see the signal, enter the
266. 10:54trade within high volatility time
267. 10:57periods like the London session or the
268. 11:00New York session. This will get chopped
269. 11:02to bits over the Tokyo session because
270. 11:04like I said previously, that is a static
271. 11:07range where there is low volatility and
272. 11:10low volume. Now, this indicator you can
273. 11:12purchase at trdfloor.com.
274. 11:15They have a whole basket of like seven
275. 11:17different indicators that you get with
276. 11:18it. This was just this one as an
277. 11:20example. They also teach you how to
278. 11:21trade price action, market structure,
279. 11:23smart money concepts, all of it.
280. 11:25Definitely go check it out. Anyway, if
281. 11:26you guys enjoyed this video or one of
282. 11:28these strategies stuck out more than the
283. 11:30other one to you, and you want to hear
284. 11:32more about it and get it more in-depth
285. 11:34backtested version like a 30-minute
286. 11:37video, let me know in the comments
287. 11:39section. Share this video with your
288. 11:40friends. Thank you so much for watching
289. 11:42and I will see you in the next one.