3 Insanely Simple & Profitable Pullback Trading Strategies For Beginners (and Pros)

In 2021, the shallow pullback trading strategy on USD/JPY achieved an 18-win, 11-loss record, resulting in a 62% win rate and a 28.4% ROI (excluding spreads and commissions) with a 1.41 reward-to-risk ratio.

A bearish shallow pullback trade on USD/JPY in 2021 resulted in a loss, highlighting that not all trades will be winners.

The medium pullback strategy offers three entry types: aggressive (color change candle), semi-conservative (candlestick patterns like the 38.2 or close above candle), and most conservative (price action patterns on smaller timeframes).

The entry and stop-loss methods for the deep pullback strategy are identical to those used for the medium pullback strategy.

Achieving profitable trading requires mastering three core components: a profitable, rules-based strategy; a solid risk management plan to prevent account blowouts and emotional trading during drawdowns; and the discipline to consistently adhere to both the strategy and risk management plan.