The Only Reversal Trading Strategy You Will Ever Need... (95% of traders do not know this)
Published: 2021-02-17
Status:
Available
|
Analyzed
Published: 2021-02-17
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Potential long entry for USD/JPY was identified in the zone between 104.056 and 104.26, anticipating a double bottom.
"between 104 0.56 and 104.26 i'll be looking there for possible double bottoms to push this market higher"
Pending
A USD/JPY trade was taken with an entry at 104.63, a small stop-loss, and a 3.2:1 reward to risk ratio (140 pips).
"telling them exactly where i was going to get in as you can see on the screenshot i told them i had an entry at 104.63 which was right out of our zone and as i was saying my stop-loss was relatively small compared to the big gain i ended up getting out of this trade at about a 3.2 or 140 pips 3.2 reward to risk ratio"
Pending
For AUD/USD, a long entry was anticipated if a pullback touched a support zone and was followed by a green candle, with the condition that the candle body did not close below the previous low's wick.
"if i get a pullback that hits my termination zone let me go ahead and explain exactly what i look for with double bottoms this would be my terminations on what i need to see is a candle whose wick or witch's wick whatever i'm looking for a candle wig that touches this area but i cannot see it close below it with a candle as long as i get that and also a candle can close inside of the zone that's fine too a wig can go past it that's totally fine the only thing i don't want to see is a candle closed down here but if i get the touch of this zone followed by a green candle i'll be going long here on the aussie dollar based on that"
Pending
A valid double bottom entry was confirmed on AUD/USD, leading to a significant upward price movement.
"we get a little push down another oh big green candle did that qualify as a double bottom yes it did it touched the bodies of my previous bottom and it did not close below the wick of my previous bottom therefore this is a valid double bottom entry for me so entering right there as i said i was going to last week's video after that you can see the market just explode to the upside"
Pending
USD/CHF was expected to form double bottoms and move higher if it pulled back to a specific area.
"if we end up pulling back to this area looking for those double bottoms to push the market higher"
Pending
A USD/CHF trade achieved a 2.26:1 reward to risk ratio.
"ended up getting about a 2.26 reward to risk out of this trade"
Pending
The speaker claims a 50-60% win rate and over a 2:1 reward to risk ratio on their reversal trades.
"I win my reversal trades about 50 to 60 percent of the time and I win with an average of over a two to one reward to risk ratio"
Pending
The speaker previously lost 80% of their reversal trades when trying to catch the absolute bottom.
"when i first started trying to trade reversals i would try to catch the very bottom of a market in hopes that i could capture the biggest move possible to the upside just to watch that market continue lower hit my stop loss and then turn around and go exactly where i thought it would go in the first place back then i was losing like 80 of my reversal trades"
Pending
In the past, the speaker's winning reversal trades had a poor reward to risk ratio.
"and when i did win i was winning with a very bad reward to risk ratio"
Pending
The trading strategy has a win rate between 50% and 60%, meaning 40-50% of trades are expected to be losses.
"this is something that wins between 50 and 60 accurate let's go on the low side of that that means if it's winning 50 of the time you're going to be losing 50 of your trade so every 5 out of 10 are going to be losses do not forget that"
Pending
Educators on YouTube tend to showcase winning trades more often than losing trades, even though losses are an inherent part of any strategy.
"every strategy you see here on youtube it's just easier for us as educators most of the good ones at least will tell you there's losses but it's easier for us as educators to show you winning trades than it is to show you losing trades"
Pending
The speaker advises against trading the discussed strategy with real money immediately.
"do not take this and trade it with real money right now"
Pending
The speaker expresses a wish that the strategy could guarantee immediate success for new traders, acknowledging that it wasn't their experience either.
"look i wish that i could tell you you could go out here start trading this strategy and you would be a successful forex trader trust me i wish that was the case when i started as well"
Pending
It took the speaker about a year to realize that becoming a consistently profitable forex trader involves more than just having a strategy shown online.
"i spent about a year doing this before i realized the real answer to becoming a forex trader was not just by having a strategy that somebody on youtube shows you it's not just by having a strategy there's a lot of other things that go into becoming a consistently profitable and professional trader"
Pending
Before trading with real money, traders should backtest or demo trade the strategy with a large sample size and journal all trades.
"right now instead of going out trading this with live money what i would love for you to do is to take it and either back test it or demo trade it until you have a very large sample size and journal every one of those trades"
Pending
Failing to backtest/demo trade and journal trades will lead to failure as a trader.
"if you don't complete those two steps not even joking there's no need in you continuing trying to trade at all you will fail as a trader if you do not either back test or demo trade and journal it"
Pending
A rules-based trading plan that demonstrates profitability over time is necessary.
"you need a rules-based trading plan at first that makes money over time"
Pending
A large sample size of at least 100 trades is required, either through backtesting or demo trading, to evaluate a strategy.
"you can write these rules down put them beside your desk and test the last 100 times this happened on a certain currency pair in a certain time frame or you can demo trade it for those 100 trades you just need a large sample size"
Pending
A large sample size is crucial for analyzing maximum losing streaks and drawdowns of a trading strategy.
"the reason we need that large sample size is so we can study that data and see what the maximum losses in a row were for this particular strategy and see what the max drawdown is"
Pending
All trading strategies experience drawdowns, and being unprepared for them can lead to account blowouts or traders giving up.
"every trading strategy will have a drawdown you don't want to be surprised by it because that's when traders either blow accounts because they're risking too much money or give up all together"
Pending
Traders must demo trade for at least two months to confirm they can execute the strategy effectively amidst their real-life obligations and achieve similar results to backtesting.
"then you must demo trade to see if you can perform this strategy you know by your desk with all your other obligations if you have kids to watch during the day if you have other obligations like a job if you sleep then you need to be sure and i'm sure you do at some point you need to be sure that you can be in front of your computer enough to actually create the same results you're getting in your back testing and demo trading"
Pending
It is essential to gather data on a trading strategy through backtesting or demo trading.
"and that's the reason you must take this and gain some data on it by either back testing or demo trading"
Pending
A risk management plan, informed by collected data, is necessary for safety and mental well-being in trading.
"then we apply a risk management plan based on that data to keep us safe and sane"
Pending
Becoming a consistently profitable trader requires significant work and time, not just quick gains from signals.
"becoming a consistently profitable trader is not going to happen in a week and you're not going to make a thousand percent a month on nothing more than their signals it takes you putting in the necessary work of all of what i just mentioned"
Pending
Becoming a consistently profitable forex trader involves more than just having a strategy; other factors are also critical.
"the real answer to becoming a forex trader was not just by having a strategy that somebody on youtube shows you it's not just by having a strategy there's a lot of other things that go into becoming a consistently profitable and professional trader"
Pending
Consistent profitability in trading requires dedicated effort beyond just learning a strategy.
"you have to put in the necessary work and the necessary work consists of a few of the other things"
Pending
Live trading should only commence after completing all the necessary preparatory work.
"only when you've completed all that work remember what i said earlier do not trade this with live money"
Pending
Trading with real money before completing all the required preparatory work is equivalent to wasting money.
"but until that day that you have completed every bit of that work you are doing nothing and i mean nothing but wasting money by trying to trade"
Pending
The speaker uses a bearish reversal strategy by identifying a downtrend on the higher timeframe, looking for upside pullbacks on lower timeframes to areas of resistance, and seeking selling pressure.
"a bearish version would be the complete opposite and i do use this for bearish reversals as well in that case i would just be waiting for the market on my higher time frame to be in a downtrend and i would be looking to capture those pullbacks to the upside on lower time frames as that reversal and with that reversal i'd be looking for areas of value that would become resistance and i'd be looking on lower time frames for possible selling pressure"
Pending
The described trading strategy is applicable across Forex, stocks, and cryptocurrency markets.
"i use this for forex i use this for stocks i use this for crypto and for me it works for all of them"
Pending
For day trading timeframes (5 or 15 minute), the higher timeframe to analyze would be the 4-hour chart instead of the daily chart.
"you can use it if you're trading like a day trading time frame let's say the 5 minute or 15 minute 15 minute or 15 minute then all you would need to do is just instead of looking at the daily chart for your higher time frame look at the four hour chart for that higher time frame"
Pending