TOP 5 Trading Strategies that WORK with PROOF - Forex Day Trading

Summary

In this video, the top 5 trading strategies that actually work in 2021 are revealed, based on extensive testing of over 100 strategies. The strategies are rated using the TR Score, which evaluates factors like win rate, ease of use, reliability, consistency, and trade quality. Highlights include the Ichimoku Cloud, Schaff Trend Cycle, MACD combined with Stochastic, Know Sure Thing, and Donchian Channels. The highest-rated strategy, MACD, stands out with over a 60% win rate and excellent performance when combined with long-term trend direction. Watch the full video to explore these proven strategies!

Takeaways

• 😀 Trading strategies can vary in performance, with some giving high win rates while others result in losses, requiring testing and evaluation over time.
• 😀 The TR Score system evaluates trading strategies based on multiple factors, including win rate, ease of use, reliability, consistency, and quality of trades.
• 😀 The Ichimoku Cloud strategy provides a 53% win rate, which is profitable, but its complexity makes it harder for beginners, scoring low on ease of use.
• 😀 The Schaff Trend Cycle has a 50% win rate and is beginner-friendly, but it scores lower in reliability and profit consistency compared to other strategies.
• 😀 The MACD combined with Stochastic strategy showed a high win rate, but the MACD is primarily responsible for the performance, making it less effective when used alone.
• 😀 The Know Sure Thing strategy offers a win rate similar to Ichimoku Cloud and is easy to use, but it can give entry signals at the end of price moves, affecting reliability.
• 😀 Donchian Channels provide a relatively high win rate of 58%, but the strategy can be tricky for beginners due to its higher high and lower low rules.
• 😀 The MACD strategy, with a win rate over 60%, performs well with its zero line and 200 moving average rules that filter out false signals, making it a top choice.
• 😀 A good trading strategy needs to balance high win rates with easy usability, consistency, and good trade quality to be successful in the long term.
• 😀 Always verify trading strategies through backtesting and real-world testing to ensure their reliability and effectiveness in various market conditions.

Q & A

What is the purpose of the Trading Rush Channel?

The Trading Rush Channel tests different trading strategies 100 times to determine their effectiveness, and shares the results to help traders identify strategies that work reliably in the market.

How does the TR Score help evaluate trading strategies?

The TR Score evaluates trading strategies based on multiple factors such as Win Rate, Ease of Use, Reliability, Consistent Profits, and Trade Quality, offering a more comprehensive view than just the win rate.

Why is the win rate not always the most important factor in evaluating a strategy?

While a high win rate is desirable, a strategy with a low win rate can still be profitable if it has a good reward-to-risk ratio. The TR Score factors in other elements like consistency and ease of use to give a more rounded evaluation.

What makes the Ichimoku Cloud Trading Strategy difficult for beginners?

The Ichimoku Cloud provides a lot of information, which can be overwhelming for beginners. It also requires understanding complex market trends and placing stop losses correctly, which can be challenging for new traders.

What is the primary advantage of the Schaff Trend Cycle?

The Schaff Trend Cycle is easy to use and is suitable for beginner traders. It functions similarly to the RSI indicator but offers more accurate signals, making it a user-friendly tool for trend-following strategies.

How does the Know Sure Thing strategy compare to the Ichimoku Cloud in terms of win rate?

The Know Sure Thing strategy has a similar win rate to the Ichimoku Cloud, but it is simpler to use, giving it an edge in the 'Ease of Use' category. However, its reliability and profit consistency are slightly lower than Ichimoku.

Why is the Donchian Channel Trading Strategy considered effective?

The Donchian Channel has a high win rate and provides a simple, effective method for identifying trends. By using the strategy in the direction of the long-term trend, it offers consistent profits and minimal false signals.

What is the main challenge when using the Donchian Channel Trading Strategy?

The main challenge with the Donchian Channel strategy is its complexity for beginners, particularly in applying the higher high and lower low rules. Additionally, the strategy sometimes involves larger stop losses, which can be difficult to manage.

What is the advantage of the MACD strategy, and why is it highly rated?

The MACD strategy has the highest win rate on the Trading Rush Channel, and its effectiveness lies in its ability to show momentum and identify pullbacks in a trend. It’s easy to use and filters out false signals, making it a reliable and profitable tool.

Why is the MACD strategy considered one of the best trading strategies?

The MACD strategy excels due to its high win rate, consistent profits, and quality trades. It identifies pullbacks in a trend and allows traders to make profitable moves, earning it a high TR score in multiple categories.