My Stupidly Simple A+ Scalping Strategy To Make $100k/Month (100% Rule Based)

Summary

In this video, the speaker reveals a proven, simple strategy to make consistent profits by trading for just 90 minutes a day. The strategy focuses on the first 15-minute candle of the day, using a three-step process: drawing out the high and low, waiting for a breakout on the 5-minute timeframe, and then entering a trade on the 1-minute pullback. The speaker showcases real-world examples of both profitable and losing trades, emphasizing the simplicity and repeatability of the strategy. With a 75% win rate and impressive profit results, this method is accessible for both beginners and experienced traders.

Takeaways

• 😀 The strategy involves a simple three-step process to make consistent profits by trading for only 90 minutes a day.
• 😀 The strategy is called the 'First Candle Strategy,' where you mark out the high and low of the first 15-minute candle of the day.
• 😀 The strategy works across various markets like stocks, options, futures, forex, and crypto, using specific time frames for each.
• 😀 Step 1: Mark out the high and low of the first 15-minute candle between 9:30 a.m. and 9:45 a.m. Eastern time.
• 😀 Step 2: Wait for a breakout on the 5-minute time frame with a candle closure either above or below the 15-minute range.
• 😀 Step 3: Look for the pullback entry on the 1-minute time frame after the breakout to get the lowest-risk entry.
• 😀 The strategy is beginner-friendly as it relies on simple chart patterns and time frames that make it repeatable and easy to follow.
• 😀 The key to the strategy's success is the risk-to-reward ratio, aiming for at least a 2:1 multiple, meaning you risk $100 to make $200 in profit.
• 😀 Real-life trading examples demonstrate the effectiveness of the strategy with both winning and losing trades, showing a realistic approach to trading.
• 😀 In one week of trading, the strategy resulted in a 75% win rate and $2,570 in profit, proving its consistency over multiple days.
• 😀 The strategy avoids trading during low-probability days by helping traders identify when the market is in a consolidation or range-bound state, ensuring higher success rates.

Q & A

What is the main trading strategy discussed in the video?

The main strategy discussed is the 'First Candle Strategy,' which involves marking the high and low of the first 15-minute candle of the day, then using a three-step process to enter trades based on price movements in shorter timeframes.

How long does the trader spend each day implementing this strategy?

The trader spends less than 90 minutes each day implementing this strategy, specifically from 9:30 a.m. to 11:00 a.m. Eastern time.

What are the three key steps to successfully implementing the strategy?

The three steps are: 1) Draw the high and low of the first 15-minute candle, 2) Wait for a breakout in the 5-minute timeframe (either above or below the 15-minute range), and 3) Enter a trade on the 1-minute timeframe when there's a pullback to the previous key level.

What types of financial instruments can this strategy be applied to?

This strategy can be applied to stocks, options, futures, forex, and cryptocurrencies, provided the 9:30 a.m. to 9:45 a.m. Eastern time window is marked for the first 15-minute candle.

Why is it important to wait for a candle closure above or below the 15-minute range in step two?

Waiting for a candle closure ensures that the breakout is valid, as it confirms the dominance of either buyers or sellers, reducing the risk of false breakouts or reversals during the trade.

What is the significance of the 1-minute time frame in the strategy?

The 1-minute timeframe is crucial for identifying the pullback entry after a breakout on the 5-minute chart, providing the lowest risk and highest reward entry point for the trade.

What is the recommended risk-to-reward ratio for trades in this strategy?

The recommended risk-to-reward ratio is at least 1:2, meaning for every $100 of risk, the trader aims to make at least $200 of profit.

How does the trader manage losses during the week?

The trader experiences losses as part of the strategy but maintains transparency by showing the full results, including the 75% win rate and 4.7 profit factor for the week. Losses are part of the process and don't deter the overall strategy.

What happened on days when the market was too choppy or ranged?

On days with range-bound or choppy market conditions, no trades were taken, as the strategy focuses on high-probability setups. The lack of a clear breakout or retest prevented entering trades on those days.

How did the trader's profits accumulate over the course of the week?

Over the course of the week, the trader made $2,570 in profits, averaging about $1,000 per day. The strategy's success was attributed to the repeatable process and high win rate.