This Volume Profile Strategy Is Honestly Really Good — Transcript

Full transcript

1. 0:00Swing low to swing high. Pull the volume
2. 0:02profile across it. Find the POC. Now,
3. 0:04watch what price does when it reaches
4. 0:06that level. Taps it perfectly, right?
5. 0:08Swing low to swing high, volume profile,
6. 0:10the POC. Look at how price reacts. And
7. 0:13that's all there is to it. This volume
8. 0:15profile execution model is so simple.
9. 0:17You just need to know your directional
10. 0:19bias. Now, save this video and go test
11. 0:22it for yourself.
12. 0:23>> All right, as simple as that, right? You
13. 0:24got the volume profile from swing low to
14. 0:26swing high. You pull it and trade off
15. 0:30the POC. This is has some value in it, I
16. 0:32will say. I'm not going to say that this
17. 0:35is the ideal strategy to go with, but
18. 0:37let's build it and run some tests and
19. 0:39see what happens. All right, so
20. 0:41utilizing LuxAlgo Quant, we fully built
21. 0:43out this indicator with screenshots and
22. 0:45ideology around how we would actually
23. 0:47have it automatically plot the swing
24. 0:48high and swing low. We needed to
25. 0:50determine when we were in a strong trend
26. 0:51and usually that comes from market
27. 0:53structure. So, what we did was every
28. 0:55time a change character happens, [music]
29. 0:56when there's three break of structures
30. 0:58that occur, then plot the most recent
31. 1:00swing high and swing low when the
32. 1:02[music] opposing change of character
33. 1:04happens. So, you can see here on this
34. 1:06particular strategy, you had a change
35. 1:07character here. And then, when that
36. 1:09occurred after three BOS's, we know that
37. 1:11there's a retrace coming, maybe [music]
38. 1:12back to the value area. We had that
39. 1:14market structure get plotted. And then,
40. 1:16here's that POC. When price comes back
41. 1:18to touch the POC, we said, all right,
42. 1:20plot us a take profit stop loss level
43. 1:23based on an ATR. In this case, it's a
44. 1:242:1 ATR. As you can see here, it
45. 1:26actually tapped that zone and did bounce
46. 1:28off nicely. Now, we also had of a
47. 1:30dashboard that run a backtest. [music]
48. 1:32As you can see here, it had a 57% win
49. 1:34rate with 12 targets hit and nine stops.
50. 1:3712 of them were canceled because when
51. 1:38setting up this to be automatic, we had
52. 1:40to make sure any gaps were accounted
53. 1:42for, so those are where those cancels
54. 1:43come in when price does gap. But,
55. 1:45overall, in the settings, you can
56. 1:47actually adjust the gap [music] filter
57. 1:49if you want it or if you don't want it.
58. 1:51You can also adjust your ATR. I have
59. 1:53this at a 2:1 with a four ATR and a two
60. 1:56stop, so it's a two to one but a wider
61. 1:58ATR. I also have it set up to where you
62. 2:00can trade the value area. So, if you
63. 2:02want to target the value area based on
64. 2:04what direction. Overall though, you can
65. 2:05see even in this period here, we had a
66. 2:07massive retrace, but notice when it
67. 2:09touched that POC, [music]
68. 2:11it actually had a very nice reaction off
69. 2:13it. So, it could really help with
70. 2:15identifying potential strong levels
71. 2:18after [music] you get a significant
72. 2:19trend to actually trade. But overall,
73. 2:21price does like to go back that value
74. 2:23area and tends to have some type of
75. 2:24reaction off the POC. So, this indicator
76. 2:27can be very helpful with identifying
77. 2:29those setups, and then you can adjust
78. 2:30your risk accordingly. If you actually
79. 2:32use this indicator for completely free
80. 2:33here on Quant Charts, if you go to the
81. 2:35indicators tab, go to Lux Algo, and it's
82. 2:37at the top here, structure volume
83. 2:38profile setup. But if you want the link
84. 2:40to it, just comment the word profile and
85. 2:42I'll send it to you.