My Top Trading Strategy After 8 Years – Achieving Consistent and Profitable Trades
Welcome to Trade Pro: A Comprehensive Guide to Consistent Trading
Trading in the financial markets can be a challenging endeavor, especially for manual traders. After eight years of trading experience, I have discovered a trading strategy that I believe is the best and most consistent way to trade. In this article, I will share with you my insights and provide a comprehensive guide to this trading strategy.
Understanding the Strategy
The key to successful trading is having a clear goal and a well-defined plan. In this strategy, our goal is to enter trades at the tops of pullbacks in a downtrend and buy at the dips and the low of the dip in an uptrend. By following this approach, we can position ourselves for maximum profitability.
Identifying the Trend
To determine the trend direction, we need a reliable indicator. In this strategy, we use the 200-period exponential moving average (EMA). When the price is below the 200 EMA, we look for short pullbacks, and when the price is above the 200 EMA, we look for long opportunities.
Timing the Entry
Entering a trade at the right time is crucial for success. To ensure that we enter at a discount and avoid entering when the price is too extended, we use additional indicators. One such indicator is the 20-period EMA. We wait for the price to pull back to at least the 20 EMA before considering an entry. This ensures that we enter at a discounted price.
Confirmation Indicators
To further confirm our entry, we can use indicators such as the stochastic RSI. We look for instances where the indicator has fully reset into the overbought territory in a downtrend or the oversold territory in an uptrend. Additionally, we can look for hidden divergence, where the price makes a lower high while the indicator makes a higher high.
Multi-Time Frame Approach
To increase the accuracy of our entries, we can use a multi-time frame approach. By dropping down to a lower time frame, such as the four-hour chart, we can look for regular bearish divergence. This occurs when the price makes a higher high, but the RSI makes a lower high. This divergence can help us determine when pullbacks are likely to come to an end.
Take Profit and Stop-Loss Placement
To manage our trades effectively, we need to determine our take profit target and stop-loss placement. As trend-following traders, we expect a full trend continuation move. Therefore, our take profit target should be at least to the low before the pullback began. As for the stop-loss, a risk-to-reward ratio of at least 1:2 is recommended, and it can be placed based on the take profit target.
Frequently Asked Questions
1. Is this strategy suitable for beginners?
Yes, this strategy can be suitable for beginners as it provides clear rules and guidelines to follow. However, it is important to practice and gain experience before trading with real money.
2. Can this strategy be applied to different financial markets?
Yes, this strategy can be applied to various financial markets, including stocks, forex, and cryptocurrencies. The key is to adapt the indicators and time frames to the specific market you are trading.
3. How many trades should I expect to win using this strategy?
While no strategy can guarantee winning trades, this strategy puts the odds in your favor with a good risk-to-reward ratio. Over a series of many trades, you can expect to come out profitable.
4. How do I determine the appropriate time frames for the strategy?
The choice of time frames depends on your trading style and preferences. Experiment with different time frames, such as the two-hour, six-hour, or daily charts, to find the best entry points for your trades.
5. Can I use this strategy with automated trading systems?
Yes, this strategy can be adapted for use with automated trading systems. However, it is important to thoroughly test and optimize the system before deploying it in live trading.
In conclusion, the trend-following pullback strategy outlined in this article provides a comprehensive and consistent approach to trading. By following the rules and guidelines, traders can increase their chances of success and profitability. Remember to practice and adapt the strategy to suit your trading style and preferences. Happy trading!
0:40 What is our trading goal?
0:54 When entering short?
1:05 When entering an uptrend long?
1:15 Goal: entering at the tops of pullbacks in a downtrend & buy at the dips & the low of the dips in an uptrend.
1:33 What the Trend Direction is? 200 EMA
2:31 Entering right: EMA 20 50 plus . . .:
4:20 Stoch RSI, make sure indicator has fully reset
4:58 Hidden Bearish Div Price make a lower High, Stochastic RSI make a Higher High
6:38 Multi TF
6:54 Reg Div
7:09 RSI
7:15 Reg Bearish Div Price make a Higher High, Rsi make a Lower High
9:12 Goal Summary
10:09 TP SL
11:24 Up Trend Example
11:30 Bullish Hidden Div & Bullish Reg Div
Muchas gracias..
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Good info bro, took me 10 years for all this to make sense!
The limits of this strategy is you can’t know when the trend is over
Have you try 20 50 100 because if you wait until pull back from 50 to 200 to me look like tooo far or what ?
Great work. Simple, effective, logical. This system definitely has edge if followed properly.
@Trade Pro Hi really like your style of trading. Also came to the conclusion that trend following is the best way for consistency.
Have seen that you trade on a daily chart. Currently i'm more confortable on lower TFs like 15 min/ 30 min. Do you still recommend 200 EMA for the main signal, i've noticed that market tends to often swing above and below 200 on shorter Tf.
Also, backtestet it on EUR/USD and GBP/USD, i thought those were pairs with good and stable volume, unfortunately still often not sure when pullback is good enough or market dont respect the smaller ones of the EMAs like 20 even though other conditions like stocastics would confirm the setup.
Often market either tends to fake above the EMAs and then pullbacks or it perfectly respects EMAs and retraices at the line and stays below. Do you have a tips how you notice that market might fake above or it ok to take trade at the EMA? Backtestet it in Strategy Tester in MT Playback.
Thx and keep it going 💪
does this work for scalping
You know how to inspire people. Thank you for this motivation🕶
thank you for being so kind and generous with your time and knowledge
So easy until you start trading
Came here from EMA clouds video and honestly this makes so much more sense to me. It's clean, less noisy and simple enough to make a trader more disciplined. Thank you!🙏
Great video! Would love to see all of these rules implemented into a single alert, or even better, a trading bot. Do you have any backtesting results? Subscribed.
Just imagine retiring as a registered nurse,using all your income/salary to pay rent and tax without any good investment or means of extra cash, tending to leave your profession/ job that has been part of you for many years with no good funds. How will you cope
Short and concise video! I notice the time frame was 1h – You did not go over where to place the stop lost in this video though…
thank you the knowledge is very helpful for beginners like me
Very engaging. Tried many trading bot/indicator out there none works out well, can someone recommend any, my finance is draining by the management of wrong people……….??
Multy time frame or only H4
Agreed with you. This is the best way to trade to make more profitable in a long run.
Hi Trade Pro. Many thanks for sharing your knowledge. This video in particular helped me a lot.
I hope your are happy in Thailand (lucky you, I wish I was there, I go over there as much as I can), and keep your channel alive bro, great content.
All the best!
I will forever appreciate this channel, you’ve helped me and my family a lot, your videos, advice and lessons are inspirational helpful to us,
I now earn every week. You’re such a blessing to this generation, we all love you
I came here to learn how to invest after listening to a guy on radio talk about the importance of investing and how he made $960,000 in 4 months from $160k, somehow this video has helped shed light on some things, but I'm still confused, I'm a newbie and I'm open to ideas.
Great video, trading come with a lot of benefits And I have just bought my first house through it. As a beginner I was scared of loosing my savings but I’m glad I took the bold step that is now favoring me.
Sweet mate. Makes very good sense to me. Rock on
Time frame?
thank u so much sir for such a helfull video . i do atleast 100 trade with this system and i hope it is last my strategy
this is soo stupid, soo simple, soo… perfect
I will try it thanks
My only gripe is when in a downtrend and you're Shorting, you're entering your Short Position at a Premium, not at a Discount. Interested in seeing how the Strategy backtests regardless.
When Shorting you are selling a Brokers reserves of an Asset at a "PREMIUM" and then when you exit a Short Position at a lower discounted price you are buying back and replacing those sold assets at a "DISCOUNT" Profiting off of the difference in price minus commissions in the process.
This strategy took me consistently loss to profitability. Because it is trading with the trend
Wow great video
Hey could you make a tutorial like this but for lower timeframes like 1hr and 4h thanks
This is exactly what I have personally come to conclusion after a lot of BS indicators and other trade gurus advice. This is the simplest and the best approach to have higher profits. I want to get in at the right and beginning and then hold till the price crosses back on the support moving average indicator. Add to this loading up on more shares as the trend continues. Great video
This has literally been my method for 3 years now lol with an extra indicator
Do you remember what the average win rate was for this setup, keen to backtest this as well.
Sir, what timeframe have you used for the chart in this video ?
Great video, trading come with a lot of benefits And I have just bought my first house through it. As a beginner I was scared of loosing my savings but I’m glad I took the bold step that is now favoring me.
Yeah, loks good when you have a tranding-perfect market like this one. But see eur/usd or any pair right now! It's all back and fourth. What do you do in those casses? It's so simple to show when you have the market already pass but in real time trading doesn't look so…
Please could you explain why you prefer the stochastic for the higher timeframes and the RSI for the lower ones. Many Thanks.
One small mistake, you were connecting the TOPS in a downtrend to find divergence. You should connect the bottoms during a downtrend and the opposite is true for the uptrend.