The Simple Trading Strategy Revealed by a Millionaire Trader

Introduction: Discover a Proven Trading Strategy to Make Millions

Have you ever wished you could find a trading strategy that has already been proven to work and has made millions of dollars for someone else? Well, what if I told you that there is a millionaire trader who has revealed his exact trading strategy that grew his account from $9,100 to $82 million in just eight years? Instead of relying on random strategies found on the internet, why not learn and use a strategy that has already been proven to be successful by someone else? In this article, we will explore the trading strategy of Christian Colomagi, a millionaire trader, and how you can implement it to potentially achieve profitable results.

Who is Christian Colomagi and What is His Strategy?

Christian Colomagi is a successful trader whose trading account grew from $9,100 in 2013 to $82 million in 2021. However, his journey to success was not without its challenges. Like many traders, Christian blew his trading account four times during the first two years of his career. But he didn’t give up. He discovered a breakout strategy and a risk management system that allowed him to make tens of millions of dollars in the following years.

Christian’s risk management system is simple yet effective. He never holds more than 30% of a position overnight, and all positions should fall between 10% to 25% of the account size. The risk per position should be between 0.25% to 1%, although it may vary depending on the size of the trading account.

The breakout strategy that Christian uses is a swing trading strategy that works well on the daily timeframe. The basic idea is that stocks tend to move in stair steps. They make a 20% to 50% move in one direction, then pull back and go sideways before making another move. Christian typically looks for moves of 30% to 100% that last between one and three months.

Implementing Christian’s Strategy

To implement Christian’s strategy, you can use technical indicators such as moving averages to validate consolidations in the market. For example, you can add three exponential moving averages (EMAs) to your charts: a 10-day EMA, a 20-day EMA, and a 50-day EMA. When the price is bouncing up and down between the EMAs, it indicates that the market is consolidating or moving sideways.

The conditions for entering trades with this strategy are as follows:

1. Look for a big bullish move of 30% to 100% that ideally lasts between one and three months.
2. The price should pull back into consolidation or a sideways movement, which can last between two weeks and two months.
3. During the consolidation phase, the price should find support at one of the three moving averages.
4. Wait for the price to start breaking out of the consolidation phase and enter a long trade immediately.

Set your stop loss at the low of the day when entering a trade. Christian also considers the range of price movements to ensure a sensible risk-to-reward ratio. The stop loss should never be greater than the average true range of the stock price.

Christian usually sells a third or half of his positions three to five days after entering the trade. He then moves the stop loss to break even and trails it according to the 10 or 20-day moving average, depending on price volatility.

Examples of Trades Using Christian’s Strategy

Let’s take a look at a couple of examples to illustrate how Christian’s strategy works. We’ll use the daily charts of Microsoft (MSFT) and Axon Enterprise (AXON) as examples.

In the case of Microsoft, the price made a big bullish move and then pulled back into consolidation, finding support at the 20-day moving average. When the price started breaking out of the consolidation phase, that would have been the entry point for a long trade. The stop loss would be set at the low of the day. After five days, half of the positions would be sold, and the stop loss would be trailed according to the 20-day moving average. If the price closed below the 20-day EMA, the rest of the positions would be sold.

The same principles apply to the example of Axon Enterprise. The price made a big bullish move, pulled back into consolidation, and found support at the 20-day moving average. When the price broke out of the consolidation phase, that would have been the entry point for a long trade. After five days, half of the positions would be sold, and the stop loss would be trailed according to the 20-day moving average. If the price closed below the 20-day EMA, the rest of the positions would be sold.

The Philosophy of Low Risk vs. High Reward

The key to Christian’s success with this strategy lies in the philosophy of low risk versus high reward. The goal is to make 5 to 20+ times your initial risk, which allows for profitability even with a win rate as low as 25% to 30%. By focusing on small losses and big winners, you can achieve overall profitability.

While there is some subjectivity involved in non-indicator based strategies like this one, with practice and experience, you can improve your skills and become more proficient in executing the strategy.

Conclusion

Christian Colomagi’s trading strategy has proven to be highly successful, growing his trading account from $9,100 to $82 million in just eight years. By implementing his breakout strategy and following his risk management system, you can potentially achieve profitable results in your own trading endeavors. Remember to always practice proper risk management and continuously refine your skills to improve your trading performance.

Frequently Asked Questions

1. Who is Christian Colomagi?

Christian Colomagi is a millionaire trader who grew his trading account from $9,100 to $82 million in just eight years. He is known for his breakout strategy and risk management system.

2. What is Christian Colomagi’s trading strategy?

Christian Colomagi’s trading strategy is a swing trading strategy that works well on the daily timeframe. It involves looking for big bullish moves, pullbacks into consolidation, and entering trades when the price breaks out of the consolidation phase.

3. What is the risk management system used by Christian Colomagi?

Christian Colomagi’s risk management system involves never holding more than 30% of a position overnight and ensuring that all positions fall between 10% to 25% of the account size. The risk per position should be between 0.25% to 1%.

4. How can I implement Christian Colomagi’s strategy?

To implement Christian Colomagi’s strategy, you can use technical indicators such as moving averages to validate consolidations in the market. Look for big bullish moves, pullbacks into consolidation, and enter trades when the price breaks out of the consolidation phase. Set your stop loss at the low of the day and consider the range of price movements for a sensible risk-to-reward ratio.

5. What is the philosophy behind Christian Colomagi’s strategy?

The philosophy behind Christian Colomagi’s strategy is low risk versus high reward. The goal is to make 5 to 20+ times your initial risk, focusing on small losses and big winners. This allows for profitability even with a win rate as low as 25% to 30%.