My OVERNIGHT Trading Strategy (make PROFITS while you sleep)
Published: 2019-06-20
Status:
Available
|
Analyzed
Published: 2019-06-20
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The speaker achieved 100 pips profit overnight using a specific trading strategy and will explain it in the video.
"if you want to hear the process that I used in order to be up 100 pips in this morning after placing the trade last night then stay through this entire video"
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A trend continuation strategy will be explained for making profits while sleeping.
"the pounce with the first part of our process is to make sure the pound Swiss is in trend and what this is going to be is a trend continuation process for you to make money while you sleep"
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Breaking a minor low does not confirm a downtrend; a downtrend is confirmed only by breaking the absolute lowest low.
"we would need that low to be broken and something that's important that I get often is it what if we have a situation like this and then we break that low does that mean we're ensuring continuation no if we break this little load that does not mean we're ensuring eduation we're looking for the lowest low to be broken"
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An uptrend continuation is confirmed when the market breaks and closes above the highest resistance level.
"and we're not back in an uptrend or and shrink attenuation just because we break this little level of resistance we need to see the market break and close above this highest level of resistance in order to give us a trend continuation outlook"
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The first step in an overnight trading strategy is to identify a trending market based on defined rules.
"and that's how we're avoiding the noise in the market of these little pull backs up and down so that's gonna be trend that's gonna be the first step of the process of trading overnight and making money by the morning is to look for a trending market with those defined rules"
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A confirmed downtrend in GBP/CHF occurs after breaking a low and failing to break the subsequent high, followed by a break and close below that low.
"once we've broken that low okay once we've broken that low we cannot see the market break above this high and we want to see a breaking close below this low for us to be ensuring continuation and that's exactly what happens right here we break below that low perfect now we know we're in a downtrend"
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For overnight profits in a downtrend, traders should look for pullbacks to the previous level of structure support.
"now since we're still in this downtrend what we normally want to see and this is what we're gonna be looking for at night before we go to bed if we want to make money overnight if we want to try to make these profits happen overnight we're gonna be looking for a very powerful level in the market which is always in trending markets the previous level of structure support if we're in a downtrend"
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The speaker will explain the exact entry, stop, and target placement for overnight trades, which involve looking for significant candlestick or price action patterns upon pullback into a key zone.
"so we're looking at this and our exact time is good I'm gonna explain the exact entry reason the stop and target placement I'm gonna explain everything in this video so you have all these tools in your arsenal to be able to place trades and make pips overnight as well and right here in this specific case we pull up into this area and once we do let me zoom in here once we get into this area what I do personally is I either look for a very significant candlestick pattern or I look for a price action pattern on lower timeframe"
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In the specific scenario discussed, a one-hour double top pattern served as the entry signal on the GBP/CHF chart.
"so what I'm looking for is either a price action pattern or a lower time frame or a candlestick pattern on a higher time frame now in this specific scenario what we ended up getting is a one-hour double top in this area so let's go down to the one-hour chart"
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Developing a trading system and plan is crucial for success, more so than just learning strategies.
"because this video is not only about strategies I want to give you practical steps to building a trading system and creating a trading plan on your own because without that no matter how many strategies you learn you will not be successful at trading"
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The goal is to create a trading system that allows trades to be placed after work and profit (or loss) overnight.
"because of the fact that we're trying to create a system that you can look at from the time let's say you get off work until the time you go to sleep you can place your trade and let the profits roll in overnight or the losses because of course every trading system has losses"
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The trade on GBP/CHF was entered after observing a double top pattern within the identified zone.
"and in this zone we get a one top double top right here because we have that double top we went ahead and entered the trade after that double top"
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It is essential to pre-determine stop-loss levels and target prices for every trade to avoid financial trouble.
"if you're someone who's trading without knowing exactly where you're gonna get out of the market then you're doing something wrong like if you don't know that you're gonna get out for a loss at a certain level and know exactly how much that loss is going to cost you and you don't know where you're gonna get out exactly for targets at least for first targets then you are just looking for trouble"
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Risk management, including pre-defined stop-losses, is non-negotiable, acknowledging that all traders make mistakes.
"that is something you absolutely have to have is risk management risk management is a stop loss place as in where am I going to get out of this market if I'm wrong because you will be wrong no matter what everyone is I'm wrong too"
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Traders must know the exact amount risked per trade, such as 1% of their account balance.
"and a place where you know you're gonna get out of the market if you're right along with that you need to know exactly what you're risking every single time let's say you have a thousand dollar account and you want to risk 1% of that account you need to make sure that you're only risking 10 dollars every single time that you place this type of trait"
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The stop loss for the GBP/CHF trade was placed 180 pips above the double top's highest point, at 1.2603.
"for my stop loss placement I did a very simple stop loss of 180 our above the highest point of the double top which put me right here at one point to 603"
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A trade is only valid if there is no significant structure support level to the left that would prevent achieving a 2:1 risk-reward ratio.
"I want to make sure that looking left there is not a level of structure support that gets in my way until I can have a two to one risk reward on the trade"
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The first target for this type of trade is set at a 2:1 risk-reward ratio.
"my first targets my first targets are a two-to-one risk reward on this type of trait"
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The GBP/CHF trade hit its first target (2:1 risk-reward) overnight, resulting in a 94 pip profit.
"and in doing so I ended up hitting my first target before I even woke up earlier this morning at a two-to-one risk reward for a positive 94 pips on this pound Swiss trait"
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The speaker will discuss strategy validation and prompts viewers to comment on their biggest trading discipline challenges.
"the preparation before the process is going to be intense before we get into that I want to share this with you as well I just posted a post on Instagram a short video clip about drawdowns and what I want you to do is head over there and leave a comment under that post with the biggest thing you're suffering from when it comes to discipline"
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Common discipline issues include moving stop-losses, risking too much per trade, or not following the trading strategy.
"some examples of this would be maybe you move your stop-loss way too much and it causes your losses to be bigger than they should be maybe you risk a little bit too much of your account for every single trade or maybe you do something else along the lines of discipline like not following your strategy or system that you really need help with"
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The most common discipline issue mentioned by viewers will be addressed in a future video, focusing on the psychological aspect of trading.
"and the most popular one is one that I'm going to do a video on next week to help you guys with that side of your trading a little more than the technical side help you on the psychological side of trading"
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It's important to validate trading strategies using historical data and identify the currency pairs where they perform best.
"and now we're gonna talk about how you can validate this system and historical data because that's the next step what you want to do is make sure that you have this but you have this strategy only on the pairs that it works best on"
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Backtesting should involve at least 100 examples of objective trading rules, such as higher time frame trend, pullback to structure, lower time frame entry signal, and stop/target placement with a 2:1 risk-reward.
"you want to test at least a hundred examples of exactly what your rules are going to be like we just did if your rules are trade a higher time frame like the for our pulling back up to that level double top on a lower time frame set your stop and target check for that two-to-one risk reward all of that all of those rules are objective meaning that you can validate them you can take them and test them through historical data"
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Testing a strategy over 100 scenarios helps estimate potential drawdowns and inform the risk management plan.
"once you do that test them over a hundred scenarios that that specific case has happened and once you do that you will have an idea of a risk management plan you can use the way you do that is you have an idea of the actual drawdown that you're likely to have while trading this specific strategy"
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For overnight trading, the strategy should be applicable during the hours between when a trader gets home and when they go to sleep.
"because the way we're doing this we're trying to find strategies where you can make money overnight right you can place the trade before going to sleep wake up be in profit in order to do that what you'll do is on your higher time frame you want to make sure that it's between the hours of you being home and going to sleep"
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When backtesting an overnight strategy, focus only on instances that occur during the available trading window (after work, before sleep).
"if something comes after that you're asleep and you can't trade it if something comes before it you're at work there's no way to trade it so that's another little thing you'll have to throw in when it comes to testing and validating the strategy try a hundred instances where all of this lines up"
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Thorough preparation, like that of an NFL player, is essential and more challenging than the execution of the trading process itself.
"remember the preparation is key but the preparation is key and everything in life do you think a football player in the NFL was capable of creating that kind of talent without any preparation and if he's in the game and takes the football for a 100-yard kickoff return did he do that with no preparation of course not just like anything in life the preparation is going to be much harder than the act of actually the process itself"
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Emphasizing preparation, the Abraham Lincoln quote illustrates that time spent on backtesting and creating a trading plan is crucial for success.
"Abraham Lincoln is famous for a quote he said and that quote was if a man asked me to chop down a tree in four hours I would spend the first three hours sharpening the blade of the axe so in that in that same sense you need to spend your first three hours sharpening your blade as in doing that preparation the back testing and all of the risk management plan creating the full trading plan that's what's really necessary"
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The Pro Trader Report identified a potential long opportunity in GBP/USD between 1.2540 and 1.2455 based on daily chart analysis.
"first off let's head over to the pound dollar this is the first one I want to look at and in the pro trader report that I will put to the left-hand side of your screen we pointed out an area we drop this back to the daily chart on the daily chart we pointed out an area between 1.25 to 4 which you can see on the picture now and one point two four five five"
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GBP/USD has risen over 212 pips since the Pro Trader Report identified the long opportunity.
"and as you can see since then the pound dollar has risen more than a hundred two hundred and twelve pips from that area so an amazing gain there out of the pound dollar"
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An alert was sent for GBP/JPY, and the market rose over 180 pips from the identified Optimal Trading Zone (OTC zone).
"we also sent out an alert on the pound new zealand and on the pound yen and actually it was on the pound yen excuse me and here on the pound you can see the market came down into our pro trader report zone it's called a OTC zone optimal trading zone is what it's short for and from this zone we had a nice rise of over a hundred and eighty pips from this zone as well"
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Pro Trader Reports are issued weekly, highlighting key structure levels and including a training course on identifying them.
"so here we have the pound dollar and also the pound yen where we pointed out those zones and if you're interested in getting these pro trader reports every single Monday to help with your own trading your own mass of structure levels along with a full training course that explains in more detail how we point out these very accurate levels of structure then feel free to check out the pro trader report in the description below"
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