HOW TO MAKE PROFIT, EVEN IF YOU ARE WRONG... (Advanced Hack For Beginner Or Advanced Traders)
Published: 2019-10-25
Status:
Available
|
Analyzed
Published: 2019-10-25
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
A trading strategy will be presented that aims to prevent premature stop-outs, ensuring trades are only exited when the trader is definitively wrong.
"what I want to show you today and by the end of this video what you're going to know and understand is how to only be stopped out when you are completely wrong"
Pending
The video will introduce a novel method of 'scaling into a trade' designed to increase profits, even if the initial trade idea is incorrect.
"what I'm going to show you in this video is something called scaling into a trade I'm gonna show you how to scale in but not in the way you've heard of before in a different way that's going to allow you to make even more money if you were wrong on an initial trading opportunity"
Pending
The presented trading strategy aims to minimize the risk of losing all capital in a trading account.
"I'm also going to teach you how to minimize your chances of actually losing money losing all of your money on a particular trade or blowing your entire account"
Pending
The trading system employs a top-down approach, using higher timeframes for analysis and lower timeframes for trade execution.
"the system i'ma teach you is determined by higher time frame type of analysis and then going down to lower timeframes for trades"
Pending
A '1 2 3 move' is defined as the primary method for identifying trends, characterized by a high, lower high, low, and lower low.
"the way that I identified trend is a 1 2 3 move I need a close below the previous level and this did close below my line was extremely janky a little bit crooked but let's take a look here we do have a couple of close below right here from this level so what I'm telling you is that this right here is initially what I'm looking for I want at least a one two three move one two three consisting of a high lower high a low and a lower low"
Pending
The bias for a potential reversal is established after a '1 2 3 move'. This reversal bias is invalidated if the market breaks and closes above a specific high.
"what I would do in this specific case and let's go ahead and go through the bias the bias we have considering that the market just did this one two three move that gives me the bias that we're gonna be in a reversal the way I know I'm no longer in a reversal is if we break through these highs if I break above this high right here then I no longer consider this a possible reversal"
Pending
A maximum stop-loss should be placed above a price level that would definitively invalidate the current trading bias.
"what I'm going to do with the maximum stop-loss is make sure that my maximum stop-loss is above a level that makes me wrong"
Pending
A '1 2 3 move' is defined as the primary method for identifying trends, characterized by a high, lower high, low, and lower low.
"the way that I identified trend is a 1 2 3 move I need a close below the previous level and this did close below my line was extremely janky a little bit crooked but let's take a look here we do have a couple of close below right here from this level so what I'm telling you is that this right here is initially what I'm looking for I want at least a one two three move one two three consisting of a high lower high a low and a lower low"
Pending
The maximum stop-loss should be placed above previous highs that would indicate a trend reversal.
"my max stop-loss would be above those hats"
Pending
For expected trend continuation downwards, the maximum target is set at the lowest lows, coinciding with the maximum stop-loss level.
"if I'm expecting trend continuation in this market to head lower then if it's going to head lower what does it have to do it must break through the lowest lows in order to head lower so my maximum target would be right there with my maximum stop-loss where my red line is"
Pending
A specific 'gray box' area will be used for placing multiple trades as part of the 'scaling in' strategy.
"this gray box right here is the area that I have to place trades in now pay attention to this part this is a very important part of this concept in this area is where I'm going to be placing trades you heard that correctly multiple trades this is the part of scaling in that I wanted to teach you"
Pending
The overall maximum stop-loss for a trade setup is 1% of the account value, with the intention of having four entry opportunities within the defined zone.
"my maximum stop-loss is going to be one percent of my total account value so I have a 1% stop-loss in total but I want to have four opportunities to enter in my zone"
Pending
To allow for four entry opportunities within a zone while maintaining a 1% total stop-loss, each individual position risk is set at 0.25% of the account.
"if you want to give yourself four opportunities to open a position in this zone then you have to risk 0.25 percent of your account per position"
Pending
The speaker plans to release a comprehensive trading strategy based on this system, including detailed entry rules and a full trading plan, after further testing.
"I am planning on coming out with a full strategy like this I'm gonna start incorporating this again into my trading plan I do have to do some testing and figure out exactly how I want to enter the market in these areas things like that but that's gonna be coming soon the full trading plan around this type of system"
Pending
The trading strategy can be applied by moving from a daily timeframe to a one-hour chart for execution, and is suitable for scalping and day trading.
"let's go ahead and go down to a smaller time frame let's pick the let's go ahead go to the one-hour chart from a daily to a one-hour would be a good idea you can actually scalp and day trade with this as well"
Pending
Entry signals for scaling into trades can include hammer candles, shooting star candles, double tops, or consecutive red candles, with flexibility in choice.
"we have the market coming up to our area on the one-hour chart and when you ask how do I enter the trade Stephen however you would like you can enter with a hammer candle or in this case a shooting star candle a double top some type of just two in a row red candles however you would like to scale into this position is totally fine"
Pending
If three out of a potential four positions are entered and the trade is stopped out, the total loss would be 0.75% of the account, based on a 1% total risk and 0.25% risk per position.
"we have a total risk of 1% if we get completely stopped out and right now we have three positions so if we get completely stopped out right now we only lose 0.75 percent"
Pending
Employing very small percentage risk per trade is crucial for preventing account blowouts and minimizing the overall risk of losing all capital.
"using this small of a risk and even smaller if that's something you're not comfortable with using a very very small percentage risk of your account will keep you from blowing your account it for the most part minimize your chances of blowing your account"
Pending
A follow-up video on a counter-trend trading strategy, focusing on picking tops and bottoms while scaling into positions, will be produced if there is sufficient audience interest.
"if you would like to see the counter trend version of this strategy where you're picking out tops and bottoms then make sure you leave a comment below and let me know if that's something you would like to see if I get enough comments I 100% will do a video on this same exact style of trading scaling into a position but picking tops and bottoms in a counter trend manner"
Pending
The standard approach for this strategy involves using the daily chart for bias and the 4-hour or 1-hour charts for trade execution.
"I'd normally do it looking at a daily chart for my bias and then doing the actual trading itself on a 4-hour in a one-hour chart"
Pending
The maximum acceptable exposure for a trade is 2%, but the initial risk taken for this specific trade is 0.5% of the total account.
"my maximum exposure into this market is going to be 2% but right now I'm only going to risk a solid 0.5% of my total account"
Pending
Scaling into a trade involves adding new positions as the price moves favorably, potentially improving risk-reward and allowing for stop-loss adjustments on subsequent entries.
"if we had higher as we go higher I will scale in with new positions as we have entry reasons that say tops or whatever in trees and I decide to use I'll scale in with new positions as we head higher this way I have a chance to actually get a better risk reward if we do that higher and if we go lower I can move my stop-loss down as we go lower and open up different positions with a smaller stop-loss which will also add to the risk reward of this trait"
Pending
Through scaling in, it's possible to reach a point where the trade has no risk, by moving stop-losses to breakeven or better.
"I'll also have this stop loss and this stop loss completely gone and have no risk on the trade"
Pending
A double top followed by a '1 2 3 move' (lower low, lower close) is identified as a pattern for expecting a market reversal.
"we have a double top followed by does this look familiar one two and a lower low lower close of that which is my one two three move exactly what we looked for at the beginning of the video"
Pending
The maximum stop-loss is placed above the highs that would indicate a trend reversal, signifying the point at which the initial bias is confirmed wrong.
"my maximum stop-loss and where I think I'm wrong is when the market breaks and closes above these highs if that happens then I'll be expecting this market to actually continue higher so my maximum stop-loss is going to be above those highs"
Pending
Fibonacci retracements are used to define an accumulation zone between the maximum target and the maximum stop-loss, from which initial trades are taken on smaller timeframes.
"what I had if I pull my Fibonacci retracement from my max target up to this area was an area that looks something like this that I can place trades it so if I drop down to a smaller time frame that five-minute chart you'll see that in that area is where I got my initial trade"
Pending
The entry for a trade in the accumulation zone was based on a double top pattern identified on a specific candle.
"we have a push up one top push down push back up double top and that's the entry we ended up getting I think it was this candle right in here somewhere that we ended up getting the entry on"
Pending
The speaker plans to release a comprehensive trading strategy focused on scaling into positions, with a full trading plan to follow soon, after further testing.
"I'm gonna start incorporating this again into my trading plan I do have to do some testing and figure out exactly how I want to enter the market in these areas things like that but that's gonna be coming soon the full trading plan around this type of system"
Pending
A core principle of the speaker's trading approach is to risk a maximum of 1% of the total account value per trade.
"The way that I've been taught and the way that I've been trading and the way that I've been teaching for years is to use a maximum risk of 1% of your total account on any given trade. And I've been teaching that to EAP members."
Pending
To allow for four entry opportunities within a specific trading zone, each individual position should risk 0.25% of the account, totaling 1% if all are entered and stopped out.
"So if you want to give yourself four opportunities to open a position in this zone then you have to risk 0.25 percent of your account per position"
Pending
In a specific trade example, risking 0.75% of the account resulted in a 1.76% profit, demonstrating a successful risk-reward ratio exceeding 2:1.
"we risked zero point seven five percent of our account to make one point seven six percent on our account really really good risk reward in this specific scenario over a two to one"
Pending
The speaker may release a video on a counter-trend scaling strategy if there is sufficient interest from viewers.
"if you would like to see the counter trend version of this strategy where you're picking out tops and bottoms then make sure you leave a comment below and let me know if that's something you would like to see if I get enough comments I 100% will do a video on this same exact style of trading scaling into a position but picking tops and bottoms in a counter trend manner"
Pending
The speaker demonstrates a live Eurodollar trade, intending to show how to scale into the position, and sets a maximum stop-loss and potential target.
"we're gonna jump into this euro dollar position show you a little bit about scaling in here let me go ahead and get my maximum stop-loss there we go where do I think the market can possibly go right there and I'm gonna show you how to scale into a position today"
Pending
The Eurodollar trade discussed previously was a winning trade, reaching its target.
"the market pushed up pushed down and eventually came down far enough to hit our orange line or our targets and if it wouldn't have been filled there it definitely had been filled through here so it was a winning trade"
Pending
The speaker indicates a plan to add to a Eurodollar position if a pullback occurs to the trendline, especially after a new lower low is formed.
"I'm gonna go ahead and place a trade there and add to this position also Now that we have created a new lower low than our previous low right here"
Pending
After a close below a certain level, the stop-loss for the Eurodollar trade will be adjusted to just above the new high, indicating the point at which the downtrend would be invalidated.
"so we got our close below meaning we can actually move our stop loss down now to just above this high right here this is the new high that we are expecting the market not to break if we're going to continue lower"
Pending