The Easiest Day Trading Strategy — Transcript

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1. 0:00This is one of those strategies where
2. 0:01you can do it whether you're a full-time
3. 0:03student, you have a full-time job, or
4. 0:05you full-time have other to do. A
5. 0:07few weeks ago, I made a video about my
6. 0:09top three strategies that I use more
7. 0:12consistently than anything else. I've
8. 0:14already made a video on Fibonacci
9. 0:15retracements, and I've already made the
10. 0:17other video on RSI divergences and what
11. 0:20my secret sauce is. In this video, I'm
12. 0:22going to explain in depth my Tokyo range
13. 0:26breakout strategy because I recognize
14. 0:28this pattern when I'm looking at the
15. 0:30charts and I have the Tokyo range marked
16. 0:33out from top to bottom and side to side.
17. 0:35Now, the reason I made this concept is
18. 0:38because I wanted to show somebody
19. 0:40something that they could do without
20. 0:43spending hours and hours and hours on
21. 0:46the charts every single week. All you
22. 0:48have to do is first identify the range
23. 0:51or have an indicator that identifies the
24. 0:53range for you, hop on the chart once,
25. 0:55set up two positions, and that's it.
26. 0:58It's hands-off, you let it ride. This is
27. 1:00one of those strategies where you can do
28. 1:02it whether you're a full-time student,
29. 1:04you have a full-time job, or you
30. 1:05full-time have other to do. Now,
31. 1:07I'm going to show you how this looks on
32. 1:09EUR/USD over the last 7 days and over
33. 1:12the last 30 days. Then you can decide
34. 1:14for yourself whether this is something
35. 1:15that interests you. So, let's get into
36. 1:18it. Now, because I am lazy as all hell
37. 1:21and I like computers and technology,
38. 1:23instead of drawing a box around every
39. 1:25single Tokyo range and drawing my
40. 1:27position tools and doing hundreds of
41. 1:29back tests, I created an indicator that
42. 1:32just does it for me. Now, it's very
43. 1:33simple. All it does is draw a box around
44. 1:37the Tokyo session. The Tokyo session, a
45. 1:40majority of the planet is asleep.
46. 1:42Therefore, if a majority of the banks,
47. 1:45financial institutions, and hedge funds
48. 1:47are asleep, that means the volume is
49. 1:49going to be lower during that time. At
50. 1:51least far less volume than there is when
51. 1:54London session and New York session are
52. 1:56engaging at the same time. So, because
53. 1:58of the low volume and low volatility, I
54. 2:01like to think of it as more of a
55. 2:02consolidation range, even though price
56. 2:04may not be consolidating. This right
57. 2:06here is the start of the range. This
58. 2:08right here is the end of the range. We
59. 2:10have the price range high and the price
60. 2:12range low. And all I do is wait for a
61. 2:14candle to break out and close above the
62. 2:17range for a long position, or for a
63. 2:19short position, break out and close
64. 2:22below the range. Now, as it stands right
65. 2:24now, just for an example, I have the
66. 2:26stop loss set at 50% of the total range,
67. 2:30meaning that if I measure this whole
68. 2:32range, it is 14 pips, so my stop loss is
69. 2:35going to be 7 pips. And my take profit
70. 2:38is two times my risk, so it's a 1:2 risk
71. 2:41to reward ratio. Now, I have the moving
72. 2:42average filter on here, not because it's
73. 2:45a bias for entry, but just to show you
74. 2:47visually to see where price is trending.
75. 2:50You can see during the Tokyo session it
76. 2:52was consolidating around the moving
77. 2:54average, and then once it broke out and
78. 2:56above, it kept trending up. Now, I'm
79. 2:58going to scroll through all of these
80. 3:00trades, and you can see it does not work
81. 3:02every time, and price does tend to spike
82. 3:05out and reverse down and capture
83. 3:07liquidity from both ranges. These types
84. 3:10of days, I hate trading because all day
85. 3:13you can see what it does. It's just
86. 3:15wishy-washy, back and forth, capturing
87. 3:17liquidity from the high and the low of
88. 3:19the range. And the most frustrating
89. 3:21thing with days like this is that it
90. 3:24looks like aggressive movements, because
91. 3:26this one candle here was probably 15
92. 3:29pips, and it looks like an aggressive
93. 3:32bullish candle, but all it was was just
94. 3:34sweeping liquidity from the top and from
95. 3:37the bottom. But most days, when price is
96. 3:39healthy and there's no absurd stupid
97. 3:41interest rate news, price tends to go
98. 3:44pretty consistently in one direction for
99. 3:46a majority of the day. And this is a
100. 3:48pattern that I recognized. So, whatever
101. 3:50the Tokyo range was, if price breaks out
102. 3:53below it, it usually tends to go in that
103. 3:55direction. And as you can see, I have
104. 3:57all of these trades marked out. It is
105. 3:59not a do-all, be-all indicator. This is
106. 4:02simply a trading strategy and system
107. 4:05that anybody can use. Like I said,
108. 4:07people have lives. They have their own
109. 4:09obligations, and they can't be sitting
110. 4:12on the charts all the time. I now have
111. 4:14another kid on the way, and I need less
112. 4:17time in front of a computer and more
113. 4:19time being with them. And even if I was
114. 4:21a student who had a full-time job, I can
115. 4:24go to the bathroom and set up this trade
116. 4:26in 3 minutes. But you get a nice,
117. 4:28healthy, consistent 1:2 risk-to-reward
118. 4:31ratio, and all it is is one trade a day.
119. 4:34If it doesn't work out, that's fine.
120. 4:37Maximum you lose that day is 1%. You
121. 4:40can't revenge trade your way out of this
122. 4:42because there's no other setups
123. 4:43according to this strategy. And then you
124. 4:45just wait for the next day. Some trades
125. 4:47are going to be bigger, some trades are
126. 4:48going to be smaller, especially
127. 4:49especially if you're using fixed lot
128. 4:51sizes. Because as you can see here, this
129. 4:54entire take profit range was 12 pips,
130. 4:57whereas back here, it was 18. And over
131. 5:00the last 7 days on EUR/USD trading this
132. 5:03once a day, we have a 60% win rate out
133. 5:06of the five trading days of the week,
134. 5:08Monday through Friday. And because it's
135. 5:10a 1:2 risk-to-reward ratio, the profit
136. 5:13factor with 60% winning trades is 3.4.
137. 5:16Now, if we look at the last 30 days, we
138. 5:19have a 63% win rate and a 3.8 profit
139. 5:22factor. So over the last 30 days on
140. 5:25EUR/USD, we had 22 total trades. Of
141. 5:28those trades, 14 were losers and eight
142. 5:31were winners. Now, eight losing trades
143. 5:34is minus 8%, and 14 winning trades is
144. 5:37plus 28%. If you're up 28% and then you
145. 5:40lose 8%, you have net profit on your
146. 5:43account of 20%. Now, don't Don't me
147. 5:45wrong. This is just a spectacular month
148. 5:48of price action for this specific
149. 5:50strategy on this specific pair with this
150. 5:53specific take profit and stop loss. If
151. 5:55we run the chart out to the last 90
152. 5:58days, we have a profit factor of 1.6
153. 6:01and 46% profitable trades. So, less than
154. 6:04half of the trades played out in your
155. 6:05favor. And the reason I'm sharing this
156. 6:07strategy with you is because a lot of
157. 6:09people do not have time to dedicate to
158. 6:12the charts. And this is something that
159. 6:14anybody can do. It requires zero
160. 6:16technical analysis. All you have to do
161. 6:18is know how to draw a box around a
162. 6:20specific time frame and set up your
163. 6:23trades once a day. Once a day, every day
164. 6:26keeps the doctor away. What I'd like you
165. 6:27to do is set up a demo account, see if
166. 6:29you're capable of hopping on the charts
167. 6:31at least once a day, set this trade up,
168. 6:34and see how it plays out. Do a forward
169. 6:36test of 30 days. Consider it a 30-day
170. 6:39challenge. Look back at your results in
171. 6:41a month, and you'll have actual proof
172. 6:44that you can follow the rules for 30
173. 6:45days, so you should have 20 trades
174. 6:48because there's only five trading days
175. 6:49per week, four weeks per month equals
176. 6:5220. If you can do this consistently on a
177. 6:54demo account risking the same risk, 1%
178. 6:57risk, and a 2% take profit on every
179. 7:00trade for a month, it's going to be
180. 7:02fantastic practice for you, and you'll
181. 7:05be able to see that you yourself can
182. 7:07execute these trades consistently, and
183. 7:10maybe if market continues in this
184. 7:12direction, you'll have a decent win rate
185. 7:15and a nice profit factor. And the best
186. 7:17part is I'll also run this experiment
187. 7:19with you. I'll be posting the trade
188. 7:20setup every single day on my Telegram
189. 7:22group starting on Monday. So, you won't
190. 7:24even have to do the analysis. I know
191. 7:26some of you might find this too boring
192. 7:28or not technical enough, but I feel like
193. 7:30a majority of the people need something
194. 7:32simple, not overcomplicated, something
195. 7:34that they can do consistently, that
196. 7:36doesn't cause a lot of stress,
197. 7:37heartache, and agony when it comes to
198. 7:40eight to 12 trades a day, super high
199. 7:43stress, low time frame, which kind of
200. 7:46causes revenge trading. If it's just
201. 7:48once a day, it's like having a morning
202. 7:50cup of coffee. Set it up, walk away, see
203. 7:53what happened the next day. Anyway, I
204. 7:54hope you guys enjoyed this video. I hope
205. 7:56this is something simple enough for you
206. 7:57guys to actually try on your own. Thank
207. 8:00you so much for watching, and we will
208. 8:02see you in the next one.