Transcription
This foolproof trading strategy is the best one to use if you want to become profitable. Why? Because it's simple, systematic, and consistent, giving me days like this, this, and this week after week. And today, I'm going to teach you the full strategy and then do a one-month backtest to prove that it works.
Now, you may be wondering, why do I call this a foolproof strategy? Well, because when a strategy is this simple, there is absolutely no room for error. Now, in the nine years that I have been trading, I have realized that the reason most traders fail is simply because they overcomplicate everything. They add too many indicators, too many rules, and too many what-ifs. And that, my friends, is where mistakes happen. But whenever you strip everything down to just three steps that you repeat every single day, it becomes impossible to mess up. And that is why I call this the foolproof strategy.
And today I'm going to show you all three steps of the strategy. And after that, I'll show you how to avoid the common but fatal mistakes that trip up most traders. Now, the goal of this strategy is rather simple. We want to make consistent profits in less than 90 minutes per day because we want to avoid overtrading and blowing accounts, which almost always happens if you just sit there and trade all day long.
Now, to start this 90 minutes, you're going to get to your desk right at 9:45 a.m. Eastern Standard Time, also known as the New York Time Zone. And before you ask, this works on any market, whether it's futures, stocks, crypto, or forex. First, I'm going to show you the three steps on a picture-perfect example. And then, unlike most YouTube videos, I'm going to show you a messier, choppy example. That way, you can see how this works in real market conditions and go out and trade it on your own. Because as we all know, not every day is picture-perfect, and we need to make sure that we understand how to use the strategy on those days.
Now, let's hop right into step one of the strategy. And this is stupid simple, but if you get this wrong, nothing else will work. So, we're always going to start out on our 15-minute chart. To do this, you're going to go on TradingView, go up here, and select the 15-minute button. And this means that each candle you see represents 15 minutes of trading time. Next, we want to mark the high and the low of this first 15-minute candle. Now, to do this, you can go over here to the left on TradingView. Click this trend line tool, and then we can just go ahead and mark out the high and the low of this first 15-minute candle. And whenever I say the first 15-minute candle, I mean the one that occurs from 9:30 to 9:45. If you look here on TradingView, it will say 9:30 when your mouse is over the correct candle because this is when that candle started. And since it's 15 minutes, it ends at 9:45. And you now have your playing field for the day. It's that simple. But we don't want to trade during this playing field because a lot of times we'll get choppy price action that happens in this area. And choppy price action is what causes you to fail as a trader.
Now, why, you might ask? Well, because this 15 minutes has more volume than any other 15-minute candle of the day. The reason for this is there are the highest amount of buyers positioned at this low, and the highest amount of sellers are positioned at the high. Now, I want you to remember this because this is very important for your understanding of this strategy because as the market moves inside of this range, we know there is still a battle between buyers and sellers. And in order to find high-probability trades, we want to know whether buyers or sellers are clearly in control.
And this brings us to step number two, waiting for our trade confirmation. This step is how we avoid getting caught up in bad trades. For this step, we are going to change to our five-minute chart. And the way that we're going to do this is by going over here on TradingView and selecting the five-minute button. Now, each candle you see represents 5 minutes of trading time. And if you haven't guessed already, we need a break of the high or the low, but we need a very specific pattern to confirm this break. We want to let price play out and wait until one of these levels is broken. As you can see here, we pushed through the low, but this does not confirm our break because wicks or candle closes don't count. So, at this time, our eyes are on the market, but we still don't have an opportunity just yet. And not even here. This is where a lot of you guys will start FOMOing into the market and entering trades too early, which is what keeps most traders unprofitable. But now that you're here learning the strategy in this video, you won't have to worry about that for much longer. So at this point, we are still waiting, and then on the very next candle here, our entry pattern appears.
Now, why here, you might ask? Well, because the rule for this strategy is to wait for a fair value gap through the high or the low. And this is huge for keeping a high win rate and avoiding false breakouts, which you'll see later on in the backtest of this strategy. And if you don't know what a fair value gap is already, it is simply when we have an expansive candle like this that leaves a gap between the candle before its wick and the candle after its wick. This blue shaded zone is our fair value gap. Now, remember what I said earlier about the highest buying volume being at the low. Well, if we are getting this energetic of a move that can create such an expansive candle, this means that buyers are clearly not in control because in the highest volume point of the day, which is between this range, we know that there are the most amount of buyers positioned at least above this low, and if the market is displacing with force through that level, we could be confident that sellers are in control. And this is the step that makes the strategy foolproof. Because even if you're a complete beginner trader, you can mark out the high and the low of this level and wait for this pattern to form. And now you're not just guessing or gambling your money away. You're waiting for the market to tell you that a setup is there in a clear, repeatable pattern.
Now, let's get into the most important step of the strategy, which is executing our trade, placing our stop-loss, and finding our target. But first, I wanted to let you know that I'm hosting a free live class later this month where I'll walk you through this strategy in real time, showing you multiple nitty-gritty, choppy examples live, answering your questions, and making sure that you avoid the common mistakes that traders make with this strategy. So, make sure to click the link in the top of the description to claim your ticket before they're gone because I'm limiting seats. That way, everyone has time to ask questions.
Now, for executing your trade, it's rather simple because we're just going to set a limit order on this fair value gap. And what a limit order does is when the market taps back into this level, it will automatically enter you in the trade. That way, you're ready to ride the move. Now, in order to do this, we are going to go on our left-hand side of the screen over down to this fifth icon. Click the dropdown, and you'll see long and short position. Now, since we broke through the low, we're going to be clicking on short position because if we know that sellers are in control, we want to short, aka sell the market as well. If we had broken the high, you would be entering a long, but we'll get to that later. So, you select this tool and you want to place it right on your fair value gap. And what this shows us is this middle line is where you're going to enter the trade. The top line is where you would exit the trade if you're wrong, also known as your stop-loss. And then this would be your target where you want to take your profits and close the trade.
Now, this is one of the most common mistakes that traders make using this strategy. It's placing their stops in the wrong area. They'll think that they place their stops at this candle, which is the gap in their mind. But remember, the fair value gap is a three-candle pattern because you can't have it without the first or third candle's wicks. So, you place your stop-loss at this candle's high, and that is going to be where we exit the trade and accept that we're wrong and cover our losses in the case that the market goes against us. For our target, we'll go for a fixed 2:1 return. This means that our target is going to be twice the distance from our entry as our stop-loss, netting two times as much profit on a winning trade as we would lose on a losing trade. So on this tool, you'll see right here that we have risk-to-reward ratio as two. You just want to drag your target until you get the two representing that you have a 2:1 risk-to-reward. Now, at this time, you can right-click this tool. Then you're going to select create limit order.
Now, after you've placed your limit and placed your stop-loss and take profit, you just want to sit and wait for the market to come back and tag you in. Now, I understand sometimes when the market starts moving in the direction that you want it to, it can be hard to be patient, but you absolutely must be because if you cannot be patient, then you will not succeed in this business. This strategy is foolproof so long as you let it be. As you see here on this candle, we wicked back up into our limit, which entered us into the trade. On this trade, we have $730 at risk to make $1,455. And at this time, you can sit back and let the market do the heavy lifting for you. You don't have to micromanage your trades or overthink. All you need to do is sit back and let the trade do its job. And as you can see, the market moves pretty aggressively towards our target. This trade took about 15 minutes to play out and netted $1,455 in profit. Not too bad for a 15-minute workday if you ask me.
Now, this example here is pretty simple, but sometimes it gets a little fuzzy, as we all know, and it's not so picture-perfect. So, I wanted to walk you through one of those examples as well. And if you master this part, even in choppy conditions, the strategy is still foolproof because you're following the same three steps. So, as you can see, we've got the first 15-minute candle's high and low marked out. Now, we're going to head to the five-minute chart and look for our trade confirmation.
Now, here is where things get hairy. So, it starts out just like any other trading day. You just mark out your high and your low, and then we start to get a little bit of weird price action. As you can see here, we broke through both the high and the low, but neither of them got a fair value gap. So, is this going to be a bad day to trade? Should we sit out? What should we do? Well, remember all the way back to step one. What did I tell you would happen in between these levels? We're likely to get choppy price action because remember, buyers and sellers are battling to take control for the trading day. And even when you get these wicks or even a candle closure, that does not confirm who is in control. Because as you can see, the market likes to bounce back and forth around until we have broken out of this range with our fair value gap. And once you realize this, it's like you've got the cheat code to trading. As you can see, the market is just pitter-pattering around. It even comes up and has a huge candle through the first candle's high after we've broken through the low. But as you can see, the market still is indecisive, and it just keeps on chopping around. This is the nightmare for a new trader.
Now, how many of you guys have blown accounts on days like this? I want you to comment down below, but also I want you to commit to following this strategy. That way, you can avoid these losses in the future. Because if you can stick to these three steps, not only will you be able to avoid the losing trades on choppy days, you will be able to turn them into your biggest winners, and you'll grow confidence and stay calm knowing that you have a strategy that works. Because if there's one thing that I've learned in the last nine years that I've been trading, it's that as soon as you are anxious and eager to trade, that means that right now isn't the time to trade, but soon it will be. And as you can see right here, we finally form our fair value gap through the first candle's low. But not until we had a little bit of chop. And some days this is just going to happen. That is why we have these clear and repeatable rules to help us avoid those losing trades that occur in between this range when the market is chopping around.
Now, in this trade, you had $812 at risk to make $1,625. And you can see that after all this chop, there was a good opportunity indeed. You just had to stay consistent and follow the steps. And yes, it is that stupid simple. There's a reason I call this the foolproof strategy.
Now, you may be wondering, how could this possibly work being so simple? Well, let's put it to the test and look at the data gathered over historical trading of the strategy. That way, you can see for yourself. Make sure to pause and read this disclaimer in full before we go over the backtest. Over the last month, this strategy found 16 trades almost every trading day because there are only 20 in a month. And 81% of those trades were winners, netting a profit of $15,455. And there you have it. You now have a foolproof strategy that is proven to work.
But chances are you've had these kinds of opportunities before, but you're still not profitable. And I know this because I was in the exact same boat. And it took me years to make this work. This was me in 2021 after 5 years of trading, still blowing my account. And this was because I kept trying to trade complicated strategies. I had information overload, and I just consistently blew my account again and again. And I honestly thought trading would never work for me. And it wasn't until I simplified my process that I was able to find success and finally change my life from trading. And this is why now I mentor traders to help them avoid all the losses and the wasted time that I had to go through.
Now, I want to be clear, this is not just some trading Discord like you see here on social media because those don't really work. Because with true mentorship, you need implementation. Which is why you'll be trading live with your mentor 5 days per week. And every single trade that you take is entered into our trade journaling software and reviewed to make sure that you're doing things correctly. I'll teach you everything I've learned in the last nine years that I've spent trading. And you'll get direct access to me to ask me anything that you need. So confident in this system that if you don't get funded in 12 weeks, I will personally trade with you until you get funded.
Now, due to this being a direct and intensive mentorship, I do not work with everyone. If the link in the description next to the word mentorship still works, then slots are still available. But if not, this enrollment is closed. Now, regardless if we work together or not, I'm rooting for you to win. And I'm going to keep posting content here on YouTube. I'm even doing a completely free live class later on in the month. So, if you're new, subscribe to the channel. Make sure to sign up for the live class and get your ticket. And I'll also leave a playlist on your screen that teaches you everything that you need to win at trading. And I want to be clear that you don't need the mentorship. It's just a fast track to help you avoid the mistakes that kept me unprofitable for so long. Truly, you can do this all on your own if you want to. Just accept that it's going to be a lot harder and will take you a lot longer. But make sure to subscribe to the channel, guys. Thank you for watching, and I'll see you in the next.