YT YouTube2Text

YouTube2Text → Transcripts → This boring trading strategy made me $526,454

This boring trading strategy made me $526,454 — Transcript

by Tori Trades · 6,822 words · 976 segments · language en · Watch on YouTube

Open in transcriber Summarize with AI Download SRT/VTT

Full transcript

0:00Have you ever sat down with a strategy,
0:01followed it step-by-step, and still
0:03walked away confused not knowing what
0:04you were doing? Or have you watched a
0:06YouTube video promising that you're
0:07going to have a trading strategy that
0:09you can walk away with and you were more
0:10confused afterwards than when you
0:12[music] started? If you've been jumping
0:13from strategy to strategy trying to find
0:15one that resonates with you, one that
0:16makes sense, one that you can
0:17understand, that you can repeat again
0:19and again, you are in the right place.
0:20Now, there is a reason that none of it
0:22has stuck yet. Most strategies out there
0:23are way more complicated than they need
0:25to be. The more complicated that the
0:26strategy is, the harder it is to learn,
0:29the harder it is to actually repeat and
0:30get started, [music] and longer it's
0:32going to take you to actually find
0:33confidence and implement. The strategy
0:34that I'm going to walk you through today
0:36is built on one simple tool, trend
0:38lines. Trend lines are one of the oldest
0:40and most essential tools in technical
0:41analysis, and they are the foundation
0:43that my entire strategy is built on. My
0:45name is Tori Trades and I've been
0:46trading for [music] over a decade now. I
0:48have turned a $5,000 account into over
0:50half a million dollars in trading. I've
0:52been using the same exact system for all
0:5411 years, [music] and I documented the
0:56entire journey, the highs, the lows, the
0:59wins, the losses, and everything in
1:00between. By the end of this video, you
1:02will have a complete step-by-step system
1:04on how to analyze any chart and execute
1:06a trade from start to finish. [music]
1:07You will not leave this YouTube video
1:09more confused than when you came.
1:11Obviously, I'm just really good at what
1:12I do. So, you just stick around, you're
1:14going to learn something. But first, I
1:15want to set the stage. This entire
1:17strategy is based on one simple concept,
1:19[music] trend lines. So, let's start at
1:21the very beginning. What is a trend
1:22line? A trend line is a line that you
1:24draw on your chart that shows the
1:25direction [music] price is moving in.
1:27Fun fact, trend lines have been used by
1:29traders for over a hundred freaking
1:31years. They are one of the original
1:33tools of technical analysis. I'm talking
1:35the literal Stone Age basics of
1:38technical analysis was the trend [music]
1:40line. And this is dating all the way
1:41back to Charles Dow, which I'm not sure
1:44if it sounds a little familiar to you,
1:45the literal guy himself, the Dow Jones
1:48is named after. But this is why I love
1:50trend lines so much. [music] So, it's
1:51not like some new concept that we're
1:53trying to reinvent. This is the literal
1:55foundation [music] of technical
1:56analysis. So, this trend line based
1:58strategy allows us to read the markets
2:00the same way that the best traders way
2:03back in the day have read it for over a
2:04century. [music] And I don't know if
2:05that gives you a peace of mind knowing
2:07that like we're not reinventing the
2:08wheel. We're just utilizing the absolute
2:11foundational [music] essential tool of
2:13trading. So, now that we know what a
2:14trend line is, we know it's the basics,
2:16the essential, the foundation, there are
2:17two types of trend lines. There's an
2:19upward trend line and there's a downward
2:20trend line. The upward trend line is
2:21what we call bullish. It connects
2:22[music] higher lows. It means that price
2:24is pushing up higher. There is a
2:25downward trend line. This is called a
2:27bearish trend line. This connects lower
2:28highs. It means that price is pushing
2:30lower. The platform that we are going to
2:32use to draw these trend lines on is
2:33TradingView. [music]
2:34This is the most widely used platform
2:37for all traders ever. It is free to get
2:39started. It works in your browser and it
2:41gives you everything that you need to
2:42analyze your charts and mark [music]
2:43them up. It's all we need. Now, let's
2:44talk about the tool. TradingView has a
2:46bucket of trend line tools. Out of all
2:48of the trend line tools that TradingView
2:50has to offer, we're going to use the one
2:51called the ray tool. The ray tool gives
2:53us a point A and a point B and then
2:55extends indefinitely in one direction.
2:58The point A is the pivot point. The
3:00point B locks in the degree or the angle
3:02that we're going to draw it at. And then
3:03the [music] line will extend
3:05indefinitely in the other direction to
3:06help us see what price might potentially
3:08do in the future. And just because I'm
3:10kind of artsy-fartsy and I like to color
3:11code things, I like to make my upward
3:13trend lines green and my downward trend
3:14lines red. So, we know what trend lines
3:16are. We know how important they are when
3:18it comes to technical analysis. And now
3:19I'm going to introduce a new concept to
3:21you guys, which is essentially step one,
3:23phase one, part one. This is something
3:26called top-down analysis. So, before we
3:28hop into the charts and draw any lines,
3:30we need to talk about top-down analysis.
3:32Top-down analysis is the process of
3:35analyzing an asset from a higher time
3:37frame working your way down. So, it'll
3:39be a monthly time frame, a weekly time
3:42frame, [music] a daily time frame, a
3:434-hour time frame, a 1-hour time frame,
3:45and then so on and so forth until you
3:47reach the time frame that you decide to
3:48execute your trades on. Now, why do we
3:50use this top-down analysis? Higher time
3:52frames hold more weight than the lower
3:54time frames because they contain more
3:56data, more information. So, they show us
3:58the major trends, the major key levels,
4:00and how price has been moving over time.
4:02The lower time frames show us what's
4:04happening in the moment, right here,
4:05right now. The strategy works so well
4:07because we use both of these time frames
4:08together. [music] The higher time frame
4:10gives us context for the lower time
4:11frames. So, the bigger picture of what
4:13the markets have done in the past and
4:15the shifts that they've made, we combine
4:17that with what the price is doing in the
4:18lower time frames. Now, I've got a few
4:19analogies that help us understand why
4:22higher time frame analysis or top-down
4:24analysis is so important. So, think
4:25about it like this. We're going to start
4:27with the FBI agent analogy, which I know
4:30there's a lot of women out there that
4:32feel like they are FBI agents. [music]
4:33If you know, you know. You investigate,
4:35you will study the past, every clue,
4:37every pattern, every piece of history,
4:40and then you build a case. [music] So,
4:41by the time that something happens that
4:42the FBI agent, you know, the one behind
4:44your computer screen is waiting for you
4:46to do, they've already anticipated a
4:47move that you might make because they've
4:48studied everything you've done in the
4:49past, [music] your patterns. Another
4:51analogy would be a fighter. So, let's
4:53say that you are getting ready to fight
4:55your opponent. Before a match, you need
4:57to watch hours of old footage of your
4:59opponent. Every move that they make,
5:01their weaknesses, their habits. So,
5:03[music] by the time you step into the
5:04ring, you already have an idea of what
5:05your opponent is likely to do cuz you've
5:07already studied their habits, their
5:08moves. Do they usually use their left
5:09hand? Are they left forward? I mean, I
5:11don't really know anything about
5:12fighting, but I'd imagine [music] that's
5:13the things that you would study. How do
5:14they block? But, you're prepared when
5:15you step into the ring because you've
5:16done your research. And yet again, this
5:18is exactly what we're doing with higher
5:20time frames. [music] We are just
5:21gathering the research. We're doing the
5:23research on the instrument to help us
5:25make a more informed [music] decision on
5:26what it's likely to do in the future.
5:28So, that is the whole point of top-down
5:30analysis. This is why it's so important,
5:32and this is why this is step one when it
5:34[music] comes to this entire strategy.
5:35We need to research our instruments. The
5:37higher time frames give us context, the
5:39lower time frames give us our entries,
5:40[music] our trade management, and our
5:41exits. So, now that we understand why
5:43we're going to implement top-down
5:44analysis, let's learn how to do top-down
5:47analysis. [music] So, now it's time to
5:48get into the charts, open the screens,
5:50and draw some lines. Here we go. Now,
5:52the instrument that we are going to
5:54practice or learn our top-down analysis
5:56on is a very popular instrument. One
5:59that everyone has heard of. I figured
6:00the most generic and most broad the
6:02better, so that we can all understand
6:04and relate. We're going to do our
6:05top-down analysis on Bitcoin. We are
6:07looking at Bitcoin on TradingView. Now,
6:09what you see in front of you is a
6:11completely naked chart. There are no
6:13indicators on it. There's no volume.
6:16There's no [music] session lines. This
6:18is purely price action. This is the
6:21movement of Bitcoin. This is all we
6:24need. Now, when we do our top-down
6:25analysis, it's a quite literal term or a
6:28quite literal phrase, we start at the
6:29top and work our way down. So, that
6:31means we're going to start with the
6:32highest time frame. We're going to go to
6:34the monthly time frame on Bitcoin.
6:37This right here is everything Bitcoin
6:39has ever done. This is our full context.
6:41This is us doing our research on Bitcoin
6:43before we get married, before we
6:45actually place a trade. What we're going
6:46to do is utilize our trend lines. And
6:48remember, TradingView has the trend line
6:51toolbox over here. And then the specific
6:53trend line tool that we're going to use
6:55is the ray tool. So, you can go ahead
6:56and star that.
6:57This will keep the tool right here
6:59easily accessible to the left. So, we
7:01are going to start using our trend
7:02lines. But, the top-down analysis is
7:04what gives them structure. It gives the
7:07entire strategy or the entire system
7:09repeatability and a process. A
7:11step-by-step process that you can
7:13implement [music] across any instrument.
7:15So, after today's video, we'll have done
7:17it together with Bitcoin, but you can do
7:18it your own on crude oil, on gold, on
7:21the Nasdaq, on the Dow, on Tesla. You
7:24can do this same top-down analysis on
7:26any instrument, which is the coolest
7:27part. Now, what we're doing with these
7:29trend lines, this top-down analysis, is
7:31taking all of the context of everything
7:33it's ever done, leading all the way up
7:35to real-time price action to help us
7:37with a decision real-time. The price of
7:40Bitcoin right now is at 78,015.
7:42We to do our top-down analysis and draw
7:44our trend lines tracking all the way up
7:46as close to real-time price action as we
7:48can. Now, what does that look like? That
7:50means we're going to identify trends in
7:53every single one of these time frames
7:54leading all the way up to the one-hour
7:56time frame. When we're drawing our very
7:58first ever trend line, we are going to
8:00look for the lowest point we see on the
8:01screen.
8:02Now, there's going to be a few rules and
8:04guidelines that we have to these trend
8:05lines specifically. One rule will be
8:07specific to the very first trend line we
8:09draw. The very first trend line we draw
8:11needs to start with the lowest point we
8:13see on the screen.
8:15This is going to be the first rule for
8:16our very first upward trend line. Just a
8:19preface. We'll have upward trend lines
8:20and downward. Remember, bullish and
8:21bearish trend lines. So, the rule for
8:23drawing our very first upward trend
8:25line, we're looking for the lowest point
8:26we see on the screen. [music] We also
8:28need to have this line angled in some
8:30degree upwards. This cannot be a
8:33horizontal line. So, I'll show you what
8:35would be incorrect and what would be
8:36correct.
8:39This right here, using the actual lowest
8:41points of Bitcoin, this line would be
8:43incorrect. This is a horizontal line.
8:46When drawing our very first upward trend
8:47line, it has to angle upwards. So, we're
8:49going to use the lowest point we see on
8:51the screen while also angling our trend
8:53line upward. Now, what are some other
8:55rules for our trend line? When
8:56continuing to draw trend lines, we're
8:58going to have these set of guidelines to
8:59abide by. One, [music] every trend line
9:01has to connect to one another. Two, we
9:02try to capture as many touch points as
9:04possible. Three, price cannot have
9:06intersected or poked through the trend
9:08line. As long as we follow these three
9:10rules, you'll be able to correctly move
9:11through your top-down analysis. So,
9:13anytime you're unsure, just go back to
9:14those same rules. Make sure, okay, did
9:15my trend line connect to the last one?
9:17Am I trying to capture as many touch
9:18points as possible? And have I made sure
9:20that price hasn't crossed through or
9:22intersected my trend line? So, on our
9:23very first upward trend line, we were
9:25able to capture one, two, three touch
9:27points. Great. We captured as many touch
9:28points as possible. It's angled upward.
9:31Price hasn't poked through or
9:32intersected.
9:33>> [music]
9:34>> Now, when drawing our next trend line, a
9:35good rule of thumb here to figure out or
9:38to remember how to connect each one of
9:40our trendlines is Remember I said we
9:42have these two points here, a point A
9:45and a point B. We've got a pivot point,
9:48which is our initial starting touch
9:50point, and then we've got our point B,
9:51which locks in the angle or the degree
9:53of where we're drawing our trendline.
9:56I like to call this one point A, this
9:57one point B.
9:59When connecting trendlines, the previous
10:01point B will always be the new point A.
10:05So, drawing a new trendline here, we've
10:06got a new point A. It's going to start
10:09at the previous trendline's point B.
10:11Boom.
10:12Now, we're going to follow these same
10:13exact rules that we just
10:15followed in the last trendline. Try to
10:17capture as many touchpoints as possible.
10:20Make sure that the line connects to one
10:21another, and price cannot have poked
10:23through or intersected. Now, I want to
10:25give you an example of what it looks
10:26like to have had price intersect or poke
10:28through, and what's incorrect.
10:30>> [music]
10:30>> If this line was to go up any steeper
10:32like this,
10:33this line would be incorrect. Price has
10:35broken through the trendline already.
10:37So, you want to think of these
10:38trendlines as truly holding the price
10:40up. So, this would be the correct
10:42placement of our next trendline. So,
10:44we're working towards getting as close
10:45to real-time price action as possible.
10:47So, we're going to continue connecting
10:48and drawing these trendlines until we
10:50can get as close to here as we can. So,
10:51that means we have more trendlines to
10:52draw. So, let's keep going. Next
10:54trendline, same rules. Previous point B
10:56is new point A. Capture as many
10:57touchpoints as possible without price
11:00intersecting. Okay? We have followed all
11:02of our guidelines, and we are ready to
11:03draw yet one more upward trendline.
11:06Previous point B, new point A.
11:09And this is as far as we can go for this
11:11one. This is all of the upward
11:13trendlines that we can draw for the
11:14monthly timeframe on Bitcoin. We do need
11:17[music] a downward trendline. So, we
11:19want to track upward and downward
11:21trends, bullish and bearish trends.
11:22There's going to be some instances where
11:24on higher timeframes, there isn't a
11:27downward trendline to draw, but in this
11:28instance, we can here in Bitcoin. So,
11:30we're going to draw our very first
11:31downward trendline. So, remember we had
11:33some rules for our very first upward
11:34trend line. We're going to implement
11:35those same rules, same same but
11:37different, for the downward trend line.
11:38So, for our very first downward trend
11:40line that we're drawing on the monthly
11:41time frame, we're looking for the
11:42highest point that we see on the screen,
11:44and then we just continue to implement
11:45the same exact guidelines or the same
11:46exact rules as before.
11:48Try to capture as many touch points as
11:49possible without having price
11:51intersected or poked through. And I'm
11:53going to change the color of the
11:54downward trend lines just to
11:56differentiate the two. Now, we've got
11:57red downward and green upward. So, this
12:00is all we can do on the monthly time
12:02frame. We've gotten as close to
12:04real-time price action as we can. This
12:05is now our indication that we can
12:07continue this top-down process. So, we
12:09did everything that we need to do in the
12:11monthly. Now, we're going to do the same
12:12exact process in the weekly time frame.
12:14Weekly time [music] frame here. Quick
12:15tip here. So, when we go from the higher
12:17time frames to the lower time frames,
12:18think of it like we are looking at price
12:20with a magnifying glass or under a
12:22stronger and stronger lens. So, that
12:23means we're getting a little bit more
12:25precise and we're seeing more price
12:27action or more movement. So, when we go
12:29from the higher time frames to the lower
12:30time frames, you'll notice that things
12:31are just a little bit off or a little
12:33bit wonky. All we'll do is just simply
12:34make some adjustments to make sure we're
12:36still following those rules. So, price
12:38poked through just a little bit here.
12:39We'll take this line and adjust it.
12:41Price was a little bit off on this line
12:42here. We're going to take the line,
12:44simply adjust it, get it a little bit
12:45more accurate. There we go. And then
12:47same for the downward trend line. It's a
12:48little bit off, so we're just going to
12:49simply adjust it here and adjust this
12:51one here. There we go. So, this is just
12:53a tip to keep in mind when you're going
12:54to the lower time frames. You'll just
12:56need to make some slight adjustments
12:57every time. Okay, now we're in the
12:58weekly time frame. For the weekly time
13:00frame, there are no additional downward
13:01trend lines we can draw. We've gotten as
13:03close to real-time price action as
13:05possible in this time frame. But, there
13:07is some additional upward trend lines
13:08that we can draw to help get us closer.
13:10So, we're going to follow the same
13:11[music] steps, the same guidelines. When
13:14drawing another trend line, make sure it
13:15connects to one another. Previous point
13:17B is new point A. Capture as many touch
13:19points as possible without price
13:20intersecting. Now, I'm going to make
13:22this green again. There we go. And that
13:24is as far as we can go in the weekly
13:25time frame. So, not as many trend lines
13:27that we needed to draw on the weekly and
13:29that'll happen with different
13:30instruments that you do a top-down
13:31analysis on. But, for this one
13:33specifically, not too much we needed to
13:35do on the weekly. So, now it's our
13:36indication, we can continue to move
13:38down. We did monthly, we did weekly, now
13:40let's work our way down to the daily
13:42timeframe. And you'll see some
13:43adjustments need to be made, price poked
13:45through a little bit over here, we just
13:46need to make some adjustments.
13:49There we go.
13:51Adjust this one here, perfect.
13:54And adjust this [music] one
13:56here. Now, we can see a steeper upward
13:58trend line that we can draw. Previous
13:59point B is new point A.
14:01Try to capture as many touch points as
14:03possible without price intersecting.
14:05There are [music] still no additional
14:07downward trend lines we can draw. So,
14:09this is our indication, we can continue
14:11moving down. Now, let's go to the 4-hour
14:12timeframe. 4-hour timeframe, we need to
14:14make some slight adjustments here,
14:16slight adjustment here, and now we can
14:18finally come in with one more steeper
14:20downward trend line.
14:21>> [music]
14:21>> Capture as many touch points as
14:22possible, we're going to make it red,
14:24make sure price hasn't intersected, and
14:25we're going to reach our final
14:27destination. Now, we're going to move
14:28down to our final timeframe here, the
14:301-hour timeframe. So, we're going to
14:32stop in the 1-hour timeframe for this
14:33video's example. It does not mean that
14:35you have to stop at the 1-hour
14:36timeframe. If you decide to trade a
14:38lower timeframe, you'll just continue
14:40these same steps with the same process
14:41working your way down to the lower. For
14:43example, if you trade a 5-minute
14:44timeframe, you will go from the 1-hour
14:46to the 30-minute to the 15 to the 10
14:48then to the five. That's where you'll
14:49stop. But, for today, we're going to
14:51stop at the 1-hour timeframe. Now, we
14:52have made it to the 1-hour timeframe and
14:54there are no additional lines that need
14:56to be drawn. We have completed our very
14:58first top-down analysis.
15:00Congratulations. Okay, now that you know
15:02how to do your top-down analysis, here's
15:04where we are. We have a chart, we have a
15:05bunch of trend lines, some are bullish,
15:07some are bearish, some are going up,
15:08some are going down, some are green,
15:09some are red. So, right now, they're
15:11just lines. It's just showing us what
15:12price has done in the past and [music]
15:14how it's gotten to where it's at now,
15:16how it's gotten to real-time price
15:17action. But, that brings me to my
15:18absolute favorite [music] part of this
15:20entire strategy. We don't ever have to
15:22guess where price is going next. It is
15:24one of the coolest parts and the most
15:26exciting part of the strategy and it
15:28gets me so excited and I don't know if
15:29you've ever heard of girlfriend brain,
15:30but this is like this strategy is
15:33girlfriend brain. We don't have to
15:34figure out what we're going to eat for
15:35dinner tonight, where we're going, what
15:37we want to wear. This is where it all
15:40comes together. The price [music] is the
15:41one in control. The price will tell us
15:43when to get in. The price will tell us
15:44what direction to take and the price
15:45will tell us when to get out. Our entire
15:47job in this whole system in this whole
15:49strategy is to simply follow the price.
15:52That is the strategy. Now, I'm going to
15:54introduce you to two terms that makes
15:56all of this come together, that makes
15:57all of this work. The two terms you need
15:59to know is action line and safety
16:01[music] line. So, let's start with the
16:02action line. The action line is yet
16:04another very literal term. [music] I
16:06love the literal, easy to understand
16:08terms of the strategy. Action line means
16:10it is time to take action, time to place
16:13a trade. This is when we enter a
16:14position. So, here's the logic and this
16:16part is super important. If [music]
16:17price breaks an upward trend line, that
16:19means the uptrend is being violated.
16:21Buyers aren't in control anymore, so we
16:23are taking a short position. We're
16:25betting the price continues down. If
16:27price breaks a downward trend line, that
16:29means that the downtrend is being
16:30violated. [music] Sellers are not in
16:32control anymore, so we take a long
16:34position. We are betting the price
16:35continues up. The line that price broke
16:37is our action line and the direction
16:39that price broke will tell us which
16:41direction to trade. That right there.
16:42Price breaks a line, we take a trade in
16:44the direction [music] of the break. That
16:46is your entry criteria, that is your
16:47foundation. Quick note, there are ways
16:49to get more picky about your There are
16:51things that you can layer on to help you
16:54get pickier about your setups. There's
16:55different playbooks that you can take,
16:56but in today's video we're going to go
16:58over the foundation of the entry model
16:59here. Now, the second term, the [music]
17:01safety line. The safety line is exactly
17:03what it sounds like. It is the line
17:04that's going to keep us safe in our
17:05trade. The safety line will always be
17:07the opposing trend line to the action
17:09[music] line. It is the line moving in
17:10the opposite direction of the action
17:12line. So, if we took a short position
17:13because price broke an upward trend
17:15line, our safety line is the downward
17:16trend line above price. If we took a
17:18long position because price broke a
17:19downward trendline, our safety line is
17:21the upward trendline below price. Now,
17:23here's how it works. As long as price
17:24[music] keeps moving in our direction
17:26and respects the safety line, we stay in
17:28the trade. The safety line is literally
17:30the line just keeping us safe in our
17:31trade. And it's always keeping us in
17:33profit. As soon as price violates the
17:35safety line, we are no longer safe in
17:37our trade, it is time to close our
17:39position. And that is our exit. So, just
17:40like our entry criteria, this is our
17:42exit criteria. We don't have to guess
17:43when to close our trade. Price will tell
17:45us exactly when to do that. Are there
17:46more layers? Yes. There is criteria,
17:48there are things that we can do to help
17:49us get more precise. There are filters
17:51that can help us look for the best
17:52setups, and there are a ton of different
17:54playbooks that you can use with this.
17:55But, the foundation is this. Action line
17:57gets us in, safety line gets [music] us
17:59out. You know when to enter because
18:00price told you, and you know when to
18:02exit because price told you. If I had to
18:03take everything that I have learned in
18:05the past 11 years of trading and boil it
18:07down into three words, it would be that:
18:10follow the price. [music] Now, let's get
18:11into a few advanced tips here. Let's get
18:13into position sizing, stop losses, and
18:15trade management. We now know when to
18:17enter and what direction to take [music]
18:19the trade in. But, that is only half the
18:20trade. The other half is how much to put
18:22into the trade. And this means how many
18:24shares, how many contracts, [music] how
18:25many lots, how big of a position size
18:28are we getting into this trade? And how
18:30much money are you willing to lose if
18:31this trade doesn't work out? That
18:33decision is on you. Unfortunately, there
18:35is some part of the strategy that does
18:37require your own discretion or your own
18:39decision. And that is [music] position
18:40sizing. But, it comes down to two
18:41things: position sizing and stop loss.
18:44Now, what is a stop loss? Stop loss is
18:46also exactly what it sounds like. It is
18:47a tool that stops your loss. Now, you
18:49will set this before you even get into
18:50your trade. So, this is what you decide.
18:52If you get into this position because of
18:53our action line, price moves against me
18:55and violates [music] my safety line, how
18:57much am I willing to lose? The stop loss
18:59closes the trade for you automatically.
19:01It is how you protect yourself from
19:02losing more than you planned. Now,
19:03[music] for us, we know our entry model,
19:05we know our exit model, and we know that
19:06our exit model is the safety line. So,
19:08the stop loss will always go on the
19:10other side of the safety line. So, if
19:11price hits that level, violates the
19:13safety line, that is where a [music]
19:14stop loss will be initiated. And that's
19:16how we know the trade is no longer
19:17working. That's how we know we're no
19:19longer safe in our position, close our
19:20trade. Now, position sizing. What is
19:22position sizing? Position sizing is how
19:24big your trade is. How many shares of a
19:26stock, how many contracts [music] of a
19:28future, how many lots of a forex pair,
19:30how many is the position sizing. Now,
19:32the bigger position sizing, the more
19:33money that you'll make if it moves in
19:35your favor or if the trade works out,
19:36but also the more money that you'll lose
19:38if it doesn't work out. So, how do you
19:40decide how big to go? You base it on how
19:42much you're willing to lose. That is
19:43essentially it. Now, we do have a rule
19:44of thumb for beginners. Never risk more
19:46than 1 to 2% of your capital on a single
19:48trade. Capital just means the amount of
19:50money that you have deposited in your
19:51account, the amount of money that you
19:53have to trade with. So, if you have
19:54$10,000 in your account and you're
19:57willing to [music] risk 1 to 2%, that
19:59means you're willing to lose 100 to $200
20:01per trade. So, that is the most that
20:03you're willing to risk on any [music]
20:04single trade. If you risk too much per
20:06trade, one bad trade could entirely wipe
20:08you out or take a huge hit to your
20:10account. So, [music] when it comes to
20:11trading, we're working with
20:12probabilities, so we want to keep that
20:14range of 1 to 2% so that you could take
20:16like 10 losses in a row,
20:18back-to-back-to-back, [music]
20:18and you still haven't made a huge dent
20:20on your account. And that allows
20:21probabilities to work in our favor.
20:23Small risk per trade [music] keeps you
20:24in the game, and that's why this is a
20:25great rule of thumb for beginners. It
20:27allows the beginners to stay in long
20:29enough to actually see it through. Now,
20:30quick side note before we keep going,
20:31you may be thinking, "I don't have
20:33$10,000 to trade with, so these numbers
20:35aren't even really clicking to me." But
20:36don't worry, that's not an issue. There
20:37is a solution. We'll get into it later
20:39in the video. But just keep that in the
20:40back of your mind, but for now, let's
20:41keep going. Now, here's one last concept
20:43to add to all of this, trailing your
20:45stop. The safety line isn't just where
20:46you place your initial stop loss. As
20:48price moves in your favor and respects
20:50your safety line, your stop will trail
20:52along that safety line. This allows you
20:54to maximize on profits when you're up
20:56instead of allowing price to come all
20:57the way back down to the original stop
20:59loss. So, you move it, it's dynamic. It
21:01moves along with the safety line. This
21:03is called your trailing stop. [music]
21:04Think of it this way, the safety line is
21:06a dynamic concept. Price will continue
21:08to ebb and flow and move along your
21:10safety line. The stop loss we will keep
21:12adjusting. [music]
21:13Your stop loss follows that same line.
21:15So, the longer that the trade is working
21:16out, the more [music] profits that
21:17you'll lock in along the way. Now, this
21:19part is hands-on. You will be manually
21:20moving your stop along the safety line
21:23as price [music] progresses. As price
21:25shifts and moves along with your safety
21:27line, you will take that stop loss and
21:29continue [music] to move it as price
21:30ebbs and flows along your safety line.
21:32So, that is essentially the stop loss
21:34placement [music] and safety line in
21:36one. Your safety line is your trailing
21:38stop. They are one in the same. And for
21:40some traders who have already been doing
21:42this for a while, the acronym SL, safety
21:44[music] line, same as stop loss, SL.
21:47But, it tells you exactly where your
21:48stop should be and how you should trail
21:49them and how you should move them.
21:50Everything is dictated by what price
21:52does. [music] If the price moves along
21:54and respects your safety line, so does
21:56your stop loss. If price moves along
21:58your safety line, [music] you're staying
21:59in your trade. As soon as price
22:01violates, you're closing your trade. All
22:03of our decision-making is done based on
22:04what the price is doing. Follow the
22:06price. Always come back to that phrase.
22:08Here's what every single trade looks
22:09like for us. One, top-down analysis.
22:11Make sure you mark up your charts.
22:13You've done your research on what price
22:14has done overall leading all the way up
22:16to real-time price action. Two, action
22:17line. Wait for price to break your trend
22:19line and then you get into a trade in
22:20the direction of the break. Three,
22:21pre-planned position sizing and stop
22:24loss [music] placement. This is our
22:25initial risk. How much are we willing to
22:26lose if we get into this position?
22:28Remember, 1 to 2% of your capital for
22:30beginners. Four, trail your safety line.
22:32And then five, price tells you when to
22:34exit. [music] as price violates the
22:35safety line, it's time to close the
22:36trade. That is the entire framework,
22:38step by step. And if you want to see the
22:40strategy be implemented on a live
22:41account, I've done plenty of trade
22:43breakdowns where I go over this exact
22:45strategy using my own personal live
22:46account. Click any of the videos over
22:47here. Later in this video, I'm going to
22:49show you exactly how we utilize these
22:50trend lines to place our trades. And I'm
22:52going to show you this process in real
22:54time, step by step, what the market is
22:56doing right now, today. Here's what to
22:58do next. Go on to TradingView and
22:59activate their paper trading account.
23:01You want to enter a number that is
23:03closer to the realistic amount that
23:04you're actually going to be trading
23:05with. This is how you get the reps in
23:07and this is where you start. You can
23:08enter $10,000, you can enter 20, 25, 50,
23:11100k, 200k, whatever you think would be
23:13more realistic to what you'd actually
23:15like to trade with. Paper trading is
23:16using fake money, but you've got real
23:18market conditions and real price action.
23:20So, you follow the same exact rules or
23:22the same exact system that we just went
23:23over. Same setups, same risk, same stop
23:26losses. This is where you're going to
23:27get the reps in, build the consistency,
23:29master the strategy. Once you've done
23:31that, once you have actually proven
23:32consistency to yourself that this
23:34strategy works, that's when you get to
23:36look into something called a prop firm.
23:38Prop firm is short for proprietary
23:39trading firm. This is a company that
23:41will give you access to trading capital.
23:43So, instead of risking your own $10,000,
23:45remember we talked earlier about if you
23:46don't have $10,000 to invest into a
23:48trading account, this is the
23:49alternative. They will give you access
23:51to trading 10,000, 25,000, 50,000, 100
23:54to even $200,000 worth of trading
23:56capital. Here's how it works. You pay a
23:58small fee to take an evaluation. The
24:00evaluation is a test, so come to the
24:01test prepared. They will give you a
24:03simulated account at the size that
24:04you're trying to get funded for, so
24:06you'll take an evaluation for a 10k
24:08account, you'll take an evaluation for a
24:1050k account, or a 100k account. So, you
24:11have to prove that you can trade
24:13profitably and consistently using their
24:15rules. Things like a daily loss limit,
24:17profit targets, etc. If you pass the
24:19evaluation, you get access to the funded
24:21account. Capital from the firm to trade
24:23with. And when you make money on that
24:24account, you and the prop firm split the
24:26profits. Most firms pay out between 70
24:29and 90% of profits to the trader. The
24:31reason that I love prop firms so much is
24:32that it is the lowest barrier to entry
24:34to get into trading. These evaluations
24:36cost anywhere between 50 to $100. So,
24:39think about this. If you want to trade a
24:40$100,000 in a futures account, you've
24:42got to deposit $100,000 in a futures
24:44account. Most people don't have that.
24:45With a prop firm, the only amount of
24:47money that you're risking is the amount
24:49that you paid for the evaluation, which
24:50is usually around $100. And that's it.
24:52Get funded and start trading. It is
24:54hands down the best path forward for
24:56anyone who's serious about trading that
24:58doesn't have that larger amount of
24:59capital to start with. Now, here's my
25:01recommendation, Alpha Futures. Alpha
25:02Futures has a 50K premium account that
25:05costs around $79 for the evaluation.
25:07That gets you access to $50,000 worth of
25:10futures capital. And if you enter code
25:11Tory at the checkout, you'll get a
25:13discount. And if you're not a futures
25:14trader, there's also Alpha Capital, and
25:16you can use code Tory for a discount
25:18there as well. So, if you want to take
25:19the next step, the link will be in the
25:20description below. Now, there's one more
25:22thing. If you have made it this far, it
25:24is the ongoing maintenance of our trend
25:26lines. What does that look like? If you
25:28do your top-down analysis, you wait for
25:30price to cross one of your lines, you
25:31close your screens, maybe a day goes by,
25:33you come back. How do you readjust your
25:35lines? How do you maintain the lines?
25:37So, I want to go over that example
25:38before we finish today's video. How do
25:40you continue to do this again and again
25:41after today? So, your chart is not a
25:43static picture. The price is not going
25:45to just stay where you left it when you
25:46do your top-down analysis. Price will
25:48continue to ebb and flow and move. So,
25:50as price moves through your old trend
25:51lines, you need to update your lines.
25:53You need to update to new touch points,
25:55new highs and new [music] lows. Markets
25:56are always changing directions, always
25:58creating new trends, so your trend lines
25:59need to adapt with them. Now, this is
26:01what you do regularly. This is not on a
26:03weekly basis or a monthly basis.
26:05Adjusting your lines is on a daily
26:06basis. So, you'll sit down, you'll go to
26:08your designated time frame, and see what
26:10lines need to be adjusted. Your daily
26:12routine is what separates you from
26:14traders who guess versus traders who
26:15have an actual system and an actual
26:17process. Now, let me show you what this
26:18looks like on the charts. Now, let's say
26:20that you go back to Bitcoin. You've done
26:23your top-down analysis already, but the
26:25price has since then crossed through. It
26:27has broken through and violated one of
26:29the trend lines. Now, you weren't able
26:31to get into a position when it crossed,
26:33so you need to modify or adjust your
26:35trend lines to prepare for the next
26:37move. This is what the ongoing
26:39maintenance looks like.
26:40If you open up your charts and price has
26:42already crossed through some of your
26:43trend lines, you're going to go back and
26:45abide by those same rules that we went
26:46over. Make sure price is not
26:48intersected. Make sure lines will always
26:50connect to one another, and try to
26:52capture as many touch points as
26:53possible.
26:54So, if I want to adjust this line
26:56>> [music]
26:56>> to the correct area based on what price
26:58has done now,
27:00I will take this point B and move it
27:02here. Now, price has not intersected and
27:04I've still followed all of my rules.
27:06This is what the ongoing maintenance
27:07looks like. Now, once price breaks one
27:09of these two lines, we understand that
27:11we've got an entry, we've got trade
27:12management, and we've got an exit. But,
27:13as you maintain your lines and as you
27:15continue to watch price day after day,
27:17you will need to adjust these lines. And
27:19this is what the ongoing maintenance
27:20looks like. So, now you have a clear
27:22idea of how to get in, how to manage a
27:24trade, how to get out, and what the
27:26ongoing maintenance looks like for trend
27:28lines. How do we adjust them when price
27:29breaks them and we didn't get in on the
27:31opportunity or we didn't get in on the
27:32trade. That's everything. So, there it
27:34is, the complete trend line system. No
27:36indicators, no noise, no confusion, a
27:39very clear step-by-step system and
27:41strategy. You start from the top,
27:43monthly, weekly, [music] daily, 4-hour,
27:441-hour, or continue down to some lower
27:46time frames. You know exactly when to
27:47enter your trades, how to manage your
27:49trades, and when to exit. And you even
27:51know how to maintain your trend lines
27:52after price has already broken through.
27:53So, that is the whole system. It is
27:55simple, it is repeatable, it works on
27:58any market, [music] any instrument, and
28:00any time frame. This is purely a price
28:02action-based trend line system. [music]
28:04Thanks for watching, everybody. Hope
28:05this is helpful.

About this transcript

This page contains the full transcript of This boring trading strategy made me $526,454 by Tori Trades, generated from the public captions YouTube serves with the video. The transcript has 6,822 words across 976 segments, with the original timestamps preserved so you can click any line to jump to that moment in the embedded player.

What you can do with it

Use the transcript to take notes, quote the speaker, build a study guide, generate a summary with ChatGPT or Claude via the YouTube Summary tool, or export it as a timed subtitle file with YouTube to SRT. You can also re-open it in the transcriber to choose a caption track available on the video.

Free YouTube transcript tool

YouTube2Text is a free YouTube transcript generator — no signup, no daily limit. Paste any YouTube link and get the full transcript instantly, with timestamps, click-to-jump, caption language selection, AI prompts for ChatGPT, Claude, and Gemini, and exports to TXT, SRT, VTT, or Markdown.