Why I’ve Changed My Trading Strategy Over and Over…

Summary

In this video, the trader reflects on their trading journey, discussing both successes and challenges. They share insights on their strategy of scaling positions and managing risk, including a significant $120,000 win. The trader highlights frustrations with a regulated US broker, leading them to switch to an unregulated one for more freedom. They also discuss their plans for the future, including exploring PAM/MAM accounts and trade-copying services. The trader invites viewers to join their Telegram group for live trade analysis and calls, offering a closer look at their trading approach and future prospects.

Takeaways

• 😀 The individual uses a dynamic trade management strategy, adding to winning positions and adjusting stop losses to break even to minimize risk and maximize profits.
• 😀 They faced significant challenges with a regulated broker, such as limited margin and restricted leverage, which hindered their ability to fully capitalize on trading opportunities.
• 😀 The person describes a trade structure based on a 1:1 risk-to-reward ratio, initially, but emphasizes the importance of discretion in managing trades and potentially adding to winning positions.
• 😀 They highlight a major milestone in their trading career, mentioning a $80,000 profit on a single day and $120,000 for the week, which were their best trading results.
• 😀 The strategy allows for dynamic management, meaning positions are adjusted based on price action, with the ability to exit losing trades early or scale up profitable ones.
• 😀 They stress that the worst-case scenario in their trading strategy is losing a fixed amount (e.g., $10,000), but they position trades for high reward potential, sometimes exceeding $30,000-$50,000.
• 😀 They used a regulated broker for a year but found it limiting and unprofitable, leading to the decision to return to using an unregulated broker that allows higher leverage and greater flexibility.
• 😀 The individual emphasizes that having a larger invalidation zone on trades gives them room to manage positions more fluidly and adapt to market conditions without being prematurely stopped out.
• 😀 The person provides transparency about their trades, sharing trade histories and decisions with their followers, and encourages engagement via Telegram for further insights and updates.
• 😀 They mention the use of a trade copier service, Duplicium, as a possible way to overcome restrictions on US residents using certain brokers, exploring new methods to expand trading capabilities.
• 😀 The speaker is optimistic about recovering from previous trading setbacks, having already made $10,000 in the first day of returning to their preferred trading setup, and aims for even higher profits.

Q & A

What is the main challenge the trader faces with their regulated broker?

The main challenge faced by the trader with their regulated broker is the limited margin available, which restricts the trader from entering positions with the desired risk size. This forces the trader to reduce trade sizes and limits potential profits.

How does the trader manage risk when adding to a winning position?

The trader manages risk by moving the stop loss of the first position to break even after adding a new position. This ensures that, in the worst case, they break even on the initial trade, while the new position still has the potential for profit with the same risk structure.

What is the significance of the 1:1 risk-reward ratio in the trader’s strategy?

The 1:1 risk-reward ratio is used as a foundational structure for the trade. Initially, the trader uses this ratio to evaluate trades, ensuring they have a balanced potential for gains versus losses. However, with experience, the trader adapts the strategy by dynamically managing trades for higher profits.

Why is the trader dissatisfied with the regulated broker they used last year?

The trader is dissatisfied because the regulated broker did not provide enough margin flexibility to trade effectively. They were unable to use larger position sizes or enter multiple trades simultaneously, which significantly reduced potential profits and created frustration.

How does the trader adjust their trading approach to account for broker limitations?

To counter the limitations of the broker, the trader reduced the size of their risk per trade, which restricted their ability to make large profits. They also had to skip some trades due to margin issues and couldn’t add to winning positions.

What is the importance of moving the stop loss to break even after adding to a position?

Moving the stop loss to break even after adding to a position is crucial for protecting the trader’s capital. This action ensures that if the market reverses, they don’t incur a loss on the original trade, allowing them to maintain their profit potential while managing risk.

How does the trader handle a losing trade with dynamic management?

In the case of a losing trade, the trader exercises discretion by adjusting their position or exiting early. They aim to minimize losses by reducing risk exposure as the market moves against them, using the stop loss as a safety net rather than holding onto losing positions.

What did the trader achieve in terms of profits during their best trading day and week?

During their best trading day, the trader made $80,000, and for that week, they earned $120,000. This was the most profitable day and week of their trading career, demonstrating the potential rewards of their strategy when broker limitations are not a factor.

Why does the trader emphasize using leverage in trading?

The trader emphasizes using leverage because it magnifies profits, making it easier to achieve significant gains without having to worry about margin limitations. With proper risk management and experience, leverage enhances the trader’s ability to take full advantage of market opportunities.

What steps is the trader taking to ensure they can trade without the limitations of a regulated broker?

The trader is switching back to unregulated brokers, which provide more flexibility in terms of leverage and margin. They are also experimenting with trade copier services like Duplicium and exploring different brokers that offer PAMM or MAM accounts to trade without restrictions.