PROOF: This Trading Strategy Can Make You Profitable The 1st Week!

Summary

In this video, the host challenges three random traders to implement a new trading strategy over a week, aiming for no mistakes. The results reveal varying win rates and profitability, with one trader achieving an 80% win rate without errors. The host outlines the strategy, which includes specific EMA criteria, candlestick patterns, and volume conditions. Viewers are then invited to suggest improvements to scale the strategy's profitability, with a live stream prize draw for the best suggestions, sponsored by Blue Guardian and Blackball Markets.

Takeaways

• 😀 The video presents the results of a challenge where three random traders tested a new trading strategy over a week.
• 📈 The strategy taught to the traders resulted in varying degrees of success, with one trader achieving an 80% win rate without mistakes.
• 🤔 The video includes an additional rule not previously mentioned, which involves the use of a 14 EMA in conjunction with a 20 EMA for trade decisions.
• 📊 Bogden was the second most profitable trader, achieving a 3% return with a win rate of 71% including mistakes and 80% excluding them.
• 🏅 Ali was the most profitable, with a 4% return and a win rate of 64% including mistakes, which improved to 78% when mistakes were excluded.
• 🥉 Pasta had the lowest performance, with a 25% win rate including mistakes and 33% excluding them, resulting in a -2% return.
• 📝 The video emphasizes the importance of not making mistakes to improve the win rate and profitability of the trading strategy.
• 📉 The video provides a detailed analysis of each trader's performance, including specific trades and their outcomes.
• 🎯 The strategy involves specific entry and exit criteria, including the use of EMAs, candlestick patterns, ATR, and tick volume.
• 💡 The video challenges viewers to improve the strategy by suggesting ways to increase the risk-reward ratio from 1:1 to higher multiples.
• 🎁 The video offers a prize draw for viewers who comment with their ideas on improving the strategy, with a chance to win a comprehensive package on the strategy.

Q & A

What was the main challenge presented to the three traders in the video?

The main challenge was to take a brand new trading strategy, trade it for a week without making any mistakes, and to see the results of their performance.

How many traders participated in the challenge and what were their names?

Three traders participated in the challenge: Bogden, Pasta, and Ali.

What was the performance of Bogden in terms of win rate and profit?

Bogden had a win rate of 71% with one mistake and an 80% win rate excluding mistakes. He was the second most profitable trader with a 3% return.

How did Pasta perform in the challenge and what was his ranking among the traders?

Pasta traded for only two days, had a win rate of 25% with mistakes and 33% without, and was the least profitable, ranking third.

What was Ali's performance in terms of trades, win rate, and profit?

Ali traded for the full five days, made 11 trades with gold, had a win rate of 64% with mistakes and 78% without, and was the most profitable with a 4% return.

What was the average win rate for the traders when including and excluding mistakes?

The average win rate including mistakes was 59%, and excluding mistakes, it was 72%.

What is the significance of the 14 EMA in the trading strategy presented?

The 14 EMA is an extra rule that wasn't given in the previous video but is essential for identifying short trades when it is in order with the 20 EMA.

How does the stop loss work in the trading strategy and where should it be placed?

The stop loss in the strategy should be placed at the high of the bear engulfing candle or the recent high, with some discretion allowed for the exact placement.

What is the role of the ATR (Average True Range) in the strategy?

The ATR is used to determine the position of the stop loss. The stop loss should be set at a level that is 4 pips above the ATR 5 value to ensure a 1 R (Risk Reward Ratio) trade.

What is the importance of tick volume in the strategy and how does it affect trade decisions?

Tick volume is crucial as it needs to be higher than the prior bar to confirm a valid trade setup, indicating increased market activity and potential for a profitable trade.

What is the challenge presented to the viewers at the end of the video and what is the incentive?

The challenge is for viewers to suggest ways to improve the strategy to achieve a higher risk-reward ratio. The incentive is a live stream prize draw where the winner will receive the whole package of the improved strategy.