Transcription
What's up guys and welcome to this video. In this video, I will show you a scalping strategy that blows my mind already away. I know in the last video we have already seen such a very lucrative strategy, but this strategy I will show you today is slightly very big explosion. So, in the backtest, I have generated more than nine thousand percent in profit in just four days, which is like unbelievable. So, if you want to know how you can generate these results, keep watching the video and I will show you every single step. And I will say we will start right away with this setup.
So, for the setup, we only need two different indicators. Let's start with the first one. The first indicator we need is the linear regression candles. Important, the candles, not the channel. So, like this one is what we need, and we are going to make some changes to it. So, in the settings, the input, we will put the signals moving from 11 to 7. And then in the style, we will make the line of the plot a little bit thicker so we can see it better. Click on OK and that's it for that one. As you can see now, we have like two candles, they are over each other. So, what we want to do now is to hide the normal bar or the normal chart and that we have only visible the linear regression candles.
The second indicator we want to add is the equity bot alerts, that one from Quant Nomad. So, we are going to add that one. Make also some changes here. We go on inputs and we put the key value to two and the ATR period to 11. Click on OK and that is already the setup. So, this is the chart how it will looks in the end. So, let's take now a closer look to the rules of this trading setup or the strategy.
So, for a long chart or for a long trade, we want to get a Buy Signal obviously. So, for a long trade, the first thing that we need is a Buy Signal. The second thing that we want is that the candle or that the green candle is closing above this line. So, second green candle, not above, you want above the line. So, these are the two conditions that we have to get. So, as you can see here, we get a Buy Signal. The chart is turning around. We get the first green candle, but this isn't closing above the EMA or maybe very, very close above the line, but we take the second one as this one is closing definitely above. So, so here we are going to enter our trade. The stop loss will be at the line and we will we don't have a fixed take profit, but we will leave the trade when we get the first red candle. So, you can see here all candles are closing green, green, green, green, green, and here we have the first candle that is closing red. So, here we will leave our trade and as you can see, we get a risk reward ratio of 4.69. And yeah, this is our long trade.
And for short trades, the signals are pretty much the same, but in the opposite direction. So, for a short trade, first we want to have a sell signal and second, we want the red candle closing below the white line. And here we have also a good example. I know you can't, oh, it's very hard to see sometimes, but the sell signal is hiding just behind the candle. So, this is where you have sometimes to be a little bit uh careful that you don't oversee a signal. And we get the same. So, we get a sell signal. The first, what the sell signal candle is already closing below the line. So, this is where we enter. And as we are very short, or as we are very close now here to the line, we will put our stop loss above the recent swing high. So, right above over here. And then the same rules apply like in the long trade. So, we will leave the short trade when we get the first green candle. So, that will be over here. Uh, yeah. So, and as you guys can see here, we also have a risk reward ratio of 4.5. So, this strategy is very, very powerful, especially when you have long, yeah, long trends in the long or in the short direction without any interruption. So, okay, sometimes it is a little bit disappointing when you like when you get the trend and maybe you get already here, uh, maybe the green candle and then it will continue, continue, continue, continue, and continue even more. So, like it happens here, you could easily make a lot of money. So, but we don't get any more sell signal. So, this is obviously the most disappointing part that you could easily get over the world ratio of 23 at the moment. But this is what it takes and we get away here. We focus covered ratio of 4.5. So, I think we will jump now right away in the backtest. I will do the backtest with a risk of two percent. So, like this example here, I would risk two percent. We forget about ratio of four to four to four point five, I guess we had. So, with this specific trade, it would have made nine percent. That's it. So, I would say if you jump now straight into the backtest and let's go.
So, this is now our result of the backtest. As you can see, we have managed to generate 1000, uh, sorry, 9136 of a win from our 100 trades. From the 100 trades, we had 84 wins and 8 losses and 8 project even trades. And I think that this result is just the best result we have managed so far, and the best result that you can find on any strategy onto YouTube. I mean, imagine in within four days, you will start with 100 and in four days, you will have nine thousand dollars into your trading account. I think that this strategy is just overwhelming. And I think that this is the same that we can see on the numbers because the biggest advantage here is that we can, yeah, that we can keep our bins running because the the highest profit in one trade were 28. I think the 28 were somewhere over here, I guess. And yeah, it is just brilliant to be honest. I mean, I mean, yeah, 18 consecutive wins against one consecutive loss is just overwhelming.
So, guys, I hope you have enjoyed the video. Please give the video a like and write down in the description if you will start now to test this strategy on your own, maybe on your paper trading account, on your real account, whatever you like. And I hope you have enjoyed the video and we will see you soon in the next video. So, see you soon.