Transcription
This is the Nik 225, and in today's video, I'm going to show you how you can make literally free money on this wonderful Japanese index. So, let's get to it.
Hi, my name is Thomas, also known as the Mr. Breakouts. I'm a breakout trading specialist and an internationally recognized trading author. I've traveled the world trading breakout strategies, and on this channel, I will teach you my own way of finding the right trading opportunities and making real money with breakout trading.
Hello. Hello breakout trading masters, breakout trading specialists, fans of breakout trading. In this video, I'm going to talk about the NEG 22 225, which, in my opinion, is an absolutely fantastic market to make money on in a pretty easy way. Now, everybody talks about Ein NASDAQ, EIN S&P. So, these markets are very popular, but not many people talk about the NIK 225, and that's a very, very good thing because it means it's not so scattered and overpopulated with algorithms or other trading techniques and traders overall, and the edges there are much cleaner, which is something I'm going to show you today.
So, let me just show you. E-mini nickel is actually, or sorry, this is not E-mini, this is a proper Nikay futures contract. The nickel futures contract, coded in US dollars, is traded on the CME group exchange. Okay. So, you need to go to cmegroup.com and you find all the information about the nickel futures. But overall, Nikay Futures, it's an index tracking 225 top stocks in Japan, and it's tradable through all the major good brokers like Interactive Brokers, Trade Station, and other brokers. So, it's traded as a futures contract directly in the US. That's why it's very accessible, and that's why a lot of traders should have, with good brokers and platforms, should have access to it. Okay.
Now, what's really important, and let me explain. So, what's really important about this index is that, as I said, it's not too scattered with too many algorithms overall. The chart is cleaner. So, it's a there's less of a noise, and it's easier to develop strategies, breakout trading strategies on this index, and it's very easy to add to a portfolio, and I highly recommend having a look at this index.
So, let's now track a little bit about the index itself. So, the index itself, let's have a look. Let's start here. So, overall, if we have a look on a percent day chart, we can see that on average, we have about, let's say, 0.15% per day change. That's not bad, but mostly on the upside. So, it's a very long-biased index, like S&P or NASDAQ. It's very long-biased. So, developing long strategies should not be difficult at all. But most importantly, if we have a look at the volatility chart, we can see that this year, we have an increase in the volatility. We're very close to higher levels of volatility, which is good. That means we have momentum. We have trendiness, and we can actually make money on this index, and that's what we, that's what we want. Okay. So, overall, the data are pretty good when it comes to trendiness.
Now, what really, really is a good thing? Have a look at this chart. So, this is quarterly trend analysis, and what we can see is that the vast majority of quarters are positive. Again, just by itself, this market already has a very, very strong upward bias with a lot of positive quarters. So, trading this index, either day trading or swing trading on the long side, that alone means already a built-in or pre-built-in edge because we have a lot of strong bias on the upside. So, so far, so good. That alone, like this overall analysis, tells us, hey, this index is worth checking out. This index is worth adding to your portfolio. There's movement, volatility, trend bias, trendiness. So, overall, so far, so good.
Now, the question is, how do we trade it? And of course, like with anything, there are a lot of different ways how to trade it. Of course, one of the day is the Mr. Breakouts model, the Mr. Breakouts formula. So, you can develop easily breakout strategies on this index, and I already did develop quite a few of them. Now, again, if you do not know how to develop breakout strategies, you can use the link below with free material, and if you are willing to invest a few bucks, then I definitely recommend this book where you will find a lot of details and nitty-gritty about this powerful formula where you can develop strategies on any market in the world, including the Nikkei.
But what I'm going to show today is something a little bit different. I'm going to show you one particular bias, and this bias can be a really, really super strong foundation for any trading approach. And the bias is so strong that I literally call it free money. Free money in the Nikay 225. So, let's get to it again.
And now we will go to the market mapper, and I'll show you in the market mapper what everything this is about. So, market mapper is basically where we can map specific time blocks and see how the market, if we connect time blocks day by day, how these time blocks behave. Now, I think one more, one important thing, sorry, that is a wrong table. So, one important thing which we also need to see before we start, that we should have a look at this volume mapping, and in the volume mapping, we can see that overall, the volatility starts about 8 or 9:00 p.m. The volume, sorry, the volume. So, the market trades sometimes 8 or 9:00 p.m. till 3 p.m. Okay. So, 9:00 p.m. to 3 p.m. or 8:00 p.m. to 3 p.m. That's where we have the most volume. That's where we can anticipate probably most of the potential. And by the way, the pre-market is pretty liquid as well. Well, liquid, I mean, there's quite an activity, but definitely 9 to 3 does the main session, and that information alone, we already can use here in the market mapper. Okay.
So, we know that 9, okay, let's see, 9 to 3:00 p.m. We already have a pretty good kind of an edge by itself, right? Like these blocks trading the main session day by day, and maybe even starting 8 or 9. Well, 9 is a little bit better. So, you can see if we connect every day from 9:00 a.m. to 3:00 p.m. Chicago time, we see there is already by itself a built-in bias. I mean, like guys, this is super, this is super exciting. You basically only, if you only trade long with some good point of initiation, and again, if you don't know what is the point of initiation, everything is explained in the Mr. Breakouts formula or in some good filters, you already have a built-in foundation, very strong foundation. That's super, super exciting. So, we already know that it's super, just the main hours, 9 to 3 p.m. That alone already gives us kind of an edge. Not many markets do have it. Nikkei does have it.
Now, the question is, how do we narrow this down to a really, really powerful trading session where we can literally print free money? Now, I'm going to show you. Before that, don't forget to subscribe because I'm bringing more analysis, tips, and strategies like this every single Wednesday. So, please subscribe right now so you do not miss the next episode next Wednesday. This will make your trading better. This will make you extra money. I promise.
And now, let's get back to the analysis. So, we already see that there is a very strong foundation. And if we focus on the last three years, we did have some times when it went sideways, but overall, still very strong foundation. Now, what is the secret? How do we make this better? Well, there are very, there are a wide variety of things to do. Of course, we can deploy some filter. Okay. And by the way, I forgot to mention, this is 60-minute timeframe. Okay. I'm doing the whole entire entire analysis on 60 minutes timeframe, and I'm pre-recording this video. So, the data are until the end of September 2025.
Now, what is important, we can use some filters and really have a super strong base. But what we can also do is the day of the week. Okay? And I want to show you, this is incredible. So, if we, this is what if we trade all the all the weeks of the day, all the days of the week. So, you see Friday, probably we would avoid it. Thursday, no, all over the place, we would avoid it. Wednesday, no, no, no, no, all over the place, avoid it. Tuesday, last three years going down. We don't want to trade something like this which is not performing well the last three years, right? Do we?
But now, have a look, guys. Monday. Wow. So, you can see for a long time, many years, Monday went sideways, but for some reason, last five, six years, Monday on the long side during the regular trading hours is trading like crazy. And have a look, last three years, it's a clean equity curve. And even, even if we start a little bit earlier, like 8:00 a.m. or 9, 9 a.m. or 10 a.m., we can play with this a little bit. Even start a little bit earlier and then just simply exit 3 p.m. That alone is already giving us pretty good edge. Okay. Have a look. The last year is just, we're not preoccupied by specific amount of how many, how much money, blah, blah, blah. We're just creating the foundation for a possible edge. But last three years, this is crazy, guys. Such a cleanness without any additional filter, without the implementation of the full formula. You see it very, very rarely.
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This really is quite unique. This is like a clean canvas. If you haven't seen much about the canvasing technique, just go back on this YouTube channel. I published quite a few videos about canvasing already. But the point is, if you take the NASDAQ Monday 8 or 9, and better 8 a.m. to 3 p.m., and then add some really simple but meaningful filters, and that's up to you to figure out already. Or if you use the Mr. Breakout formula, create some simple point of initiation and space, you might not even need a filter. Then you can very quickly and easily create quite a robust strategy, a good one, which already has a super strong foundation built in the Monday 8 to 3 p.m. bias. So, super, super potent, super, super powerful.
Again, don't forget to download the ebook, the free material below, how to deploy the Mr. Breakouts model, or if you can afford to pay seven bucks, which you should pay, go to this page and just download the ebook with all the nitty-gritty. But the point is, this image, this, let me go back to it. This is the very essentials of almost free money in the Nikkei market. Okay.
So, that's what I wanted to share with you today in this video. If you like analysis and opportunities, this is a great opportunity, and believe me, I already do have a strategy for it. So, if you like opportunities like this, give me a thumb up. Maybe I will go later to this example in a few weeks again, and I will add some filters as well. So, don't forget to subscribe if you want to see continuation or if you do not want to miss other episodes. And meanwhile, happy breakout trading and see you in the next one. Bye-bye.
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