This Unlikely Trading Strategy Beat My 2 Favorite Methods...

Summary

In this trading-focused video, the host shares his journey of testing different trading approaches over 9 years, including intuitive trading, intraday strategies, and algorithmic trading. He discusses the results of running three $100 live accounts on BlackB, each with a distinct trading style. Despite initial skepticism, the intuitive trading method surprisingly outperformed, showcasing an 86% win rate. The host emphasizes the importance of market knowledge and the freedom to make decisions based on high-probability trades. He concludes by encouraging viewers to consider an intuitive approach to trading, especially for those new or struggling, and offers a simple strategy from his private mentor for further exploration.

Takeaways

• 🔍 The video discusses a personal trading experiment involving three different trading approaches: intuitive, intraday, and algorithmic.
• 📈 The intuitive trading approach, which combines market knowledge with personal experience, surprisingly performed the best among the tested methods.
• 🤖 The algorithmic trading approach had technical issues, such as being on the wrong price chart, which affected its performance.
• 📉 The strategy-based trading had a disappointing performance, with the account experiencing significant drawdowns and only a few successful trades.
• 👤 The speaker attributes the success of the intuitive approach to the freedom it provides to make trading decisions based on a deep understanding of market behavior.
• 🎯 The importance of identifying trends and understanding market pullbacks is highlighted as a key component of successful trading.
• 📝 The speaker emphasizes the value of having a diverse set of strategies to enter and exit trades, which can be applied intuitively based on market conditions.
• 👍 High win rates were achieved in the intuitive trading account, with an overall win rate of 86%.
• 💡 The video suggests that even experienced traders can benefit from revisiting and applying the knowledge gained from mentors and past experiences.
• 🔗 A shout out to Nick Shaw is given for his influence on the speaker's approach to intuitive trading and his transparent trading style.
• 📌 The video concludes with a call to action for viewers to consider an intuitive trading approach and offers additional resources for those interested in learning more.

Q & A

What is the main topic of the video script?

The main topic of the video script is the speaker's exploration of different trading approaches, including intuitive trading, intraday trading, and algorithmic trading, and the results of a test he conducted to evaluate these methods.

How long ago did the speaker's trading journey begin?

The speaker's trading journey began 9 years ago.

Who is Raymond Bersett mentioned in the script?

Raymond Bersett is a person who was a Futures Trader back then and had a lot of experience in the trading space. He is mentioned as someone who had given the speaker an answer to trading issues early on.

What are the three types of trading accounts the speaker discusses in the video?

The three types of trading accounts discussed are: one using a strategy with strict rules, one for intraday trading, and one for an algorithmic trading approach.

What was the initial expectation for the strategy account?

The initial expectation for the strategy account was that it would be the winner outright because the speaker liked the strategy and believed it could give high returns with easy implementation.

What issues did the speaker encounter with the algorithmic trading approach?

The speaker encountered issues with the algorithmic trading approach such as the algorithm being on the wrong price chart and not taking as many trades as expected, which resulted in significant drawdowns.

What was the surprising outcome of the intuitive trading account?

The surprising outcome of the intuitive trading account was that it performed very well, despite the speaker's initial skepticism, with a high win rate and significant account growth.

What is the 'trading mentor's best tool ever' mentioned in the script?

The 'trading mentor's best tool ever' is humorously referred to as Adobe Photoshop, indicating that it's a joke and not an actual trading tool.

What is the speaker's recommendation for new or struggling traders?

The speaker recommends that new or struggling traders should consider taking an intuitive approach to trading, using their accumulated knowledge and experience to make trading decisions.

What is the importance of identifying trends in trading according to the script?

Identifying trends is important in trading as it provides a directional bias that can increase the probability of successful trades. The speaker suggests that traders should look for trends and trade with them to improve their chances of winning trades.

How does the speaker suggest determining when a trend might be over?

The speaker suggests using market experience to determine when a trend might be over. This could involve recognizing patterns or signals that indicate a potential trend reversal.

What is the speaker's final recommendation for traders looking to improve their trading?

The speaker's final recommendation is for traders to increase their market knowledge and understanding of price movements, and to consider using the intuitive trading approach as a potential way to improve their trading.

Outlines

00:00

😲 Discovering the Solution to Trading Struggles

The speaker introduces a personal journey to find a solution to longstanding trading issues. They recount a test conducted using three $100 live trading accounts on BlackB, each with a different trading approach: intuitive, intraday, and algorithmic. The test was not without its challenges, including operational mistakes and issues with trade execution. Despite these setbacks, the accounts still reflected the effectiveness of each trading method, with the intuitive approach surprisingly outperforming the others.

05:00

📊 Analyzing Different Trading Approaches and Results

The speaker delves into the outcomes of the trading test, highlighting the performance of each account. The strategy-based account faced difficulties, with trades not going as planned. The algorithmic approach had technical issues, resulting in a significant drawdown. However, the intuitive trading method, which the speaker initially doubted, performed exceptionally well, offering a sense of freedom and high win rates. The speaker integrates this intuitive approach into their swing trading strategy, experiencing minimal losses and significant gains.

10:02

📈 Embracing Intuition in Trading and Market Knowledge

The speaker discusses the importance of market knowledge and intuition in trading. They share insights on identifying trends and making trading decisions based on market pullbacks. The speaker emphasizes the value of experience and learning from mentors, which has contributed to their ability to discern profitable trades. They also mention Nick Shaw, a trader who has successfully used intuition in trading. The speaker encourages viewers to consider an intuitive approach to trading, especially if they have struggled with traditional methods, and offers a link to a simple strategy taught by their private mentor.

Keywords

💡Trading Issues

Trading issues refer to the challenges or problems that traders face in the financial markets. In the video, the speaker mentions 'trading issues' as a recurring theme in their trading journey, which they are trying to address through a test they conducted. The issues could range from finding a consistent trading strategy to managing emotions and risks.

💡Intuitive Trading

Intuitive trading is a method where a trader makes decisions based on their instinct, experience, and understanding of the market, rather than relying solely on mechanical or algorithmic systems. The video discusses the speaker's experiment with intuitive trading, which involved using their accumulated knowledge and gut feelings to make trading decisions, and how it compared to other methods.

💡Algorithmic Trading

Algorithmic trading, or algo trading, is a method where trades are executed automatically using pre-programmed instructions based on mathematical models. In the script, the speaker mentions an 'algo' account, which is a live trading account that uses a mechanical trading system to execute trades without human intervention, and discusses the performance of this system.

💡Trading Strategy

A trading strategy is a plan or method that traders use to make decisions in the market. It often includes specific rules for entry and exit points, position sizing, and risk management. The video script mentions a 'strategy' account, which follows a set of strict rules for trading, and the speaker evaluates its performance against other approaches.

💡Intraday Trading

Intraday trading is a type of trading where positions are opened and closed within the same trading day. It is a short-term trading style that aims to capitalize on small price movements throughout the day. The script refers to an 'intraday' account, which is one of the trading styles tested by the speaker.

💡Trading Account

A trading account is an account with a brokerage that allows individuals to trade financial instruments such as stocks, futures, or currencies. The video script discusses three $100 trading accounts used for testing different trading approaches, highlighting the performance and issues encountered with each.

💡Profit Factor

Profit factor is a performance metric used in trading to measure the overall profitability of a trading strategy. It is calculated by dividing the total gross profit of trades by the total gross loss. In the script, the speaker mentions the profit factor of the algo trading approach, indicating its break-even status.

💡Win Rate

Win rate in trading refers to the percentage of trades that result in a profit. It is an important metric for evaluating the success of a trading strategy. The video discusses the win rates of different trading approaches, with the intuitive trading showing a high win rate, which was a surprising outcome for the speaker.

💡Risk Management

Risk management in trading involves the process of identifying, analyzing, and accepting or mitigating the risks associated with investments. The script mentions risk management in the context of the algo trading approach, where the speaker discusses the risks of larger losses compared to wins.

💡Trend Trading

Trend trading is a strategy where traders follow the direction of the market trend, which is the general direction in which prices are moving. The video script includes a discussion on identifying trends and trading with them, emphasizing the importance of understanding market direction for successful trading.

💡Swing Trading

Swing trading is a type of trading where positions are held for several days to several weeks, aiming to capture gains from short-term price swings in the market. The speaker mentions incorporating intuitive trading into their swing trading approach, indicating a shift in their trading style.

Highlights

The video discusses a personal trading test to find a solution to long-standing trading issues.

The test involved three $100 live trading accounts on BlackB, each with a different trading approach.

The first account used a strict strategy, the second was an intraday approach, and the third was an algorithmic gold algo.

Despite setup mistakes and issues, the accounts reflected the effectiveness of each trading approach.

The strategy account experienced significant drawdowns and was not as successful as hoped.

The algo approach had technical issues but showed potential with a 75% win rate.

The intuitive trading account, initially doubted, performed surprisingly well with a high win rate.

The speaker shares a personal anecdote about learning from a mentor named Raymond Bersett.

The importance of market knowledge and experience in intuitive trading is emphasized.

A simple method for identifying trends and potential entry points in trading is presented.

The video provides a strategy for determining when a trend might be over and how to react.

The role of market experience in recognizing when a trade is likely to be successful or not is discussed.

The speaker's journey from skepticism to embracing intuitive trading as a new trading approach.

The video introduces a tool for swing trading and shares daily updates in a Telegram group.

A shout-out to Nick Shah for his influence on the speaker's understanding of intuitive trading.

The video concludes with an offer to learn a simple strategy from the speaker's private mentor.

An invitation for viewers to join a live Telegram group and VIP access for further trading insights.

Transcripts

folks could this be the answer to my

trading issues all the problems I've had

over the years with trading trying to

find something that works and could it

be your answer too so you're going to

find out in this video a test that I ran

to help me discover this also we'll talk

about how you can potentially implement

it yourself so stay tuned folks we've

got this coming up and the funny thing

was it all started 9 years ago and

somebody gave me the answer we're going

to dive in and have a look at who that

is first before we jump into the test

results and show you what I'm talking

about so this was the episode here on

trading nut so it's guy called Raymond

bersett he was a Futures Trader back

then and had a lot of experience in the

trading space I had no idea what he was

talking about and I'm going to revert

back to this after doing these test

results and showing you the test results

that I took and you're going to really

get a good feel as to why I was probably

so confused back then and how this is

managed to help me going forward now so

let's dive in and have a look at the

test I ran for myself and what actually

transpired my trading Hut live telegram

group you're going to see here three

$100 accounts so these are fresh well

not they weren't fresh accounts but they

were $100 each on blackb they're all

Live accounts as well and you can see

here I've the noted down what kind of

trading I was doing on each of those so

the $799 was intuitive 258 was intraday

and the 474 was an algo was an gold algo

so difference between intuitive and

intraday and uh sorry intuitive and

strategy was very much that the rules

were pretty strict for the strategy and

the algo is obviously very mechanical

rules are completely mechanical and

intuitive was like stuff that I know

that I've been taught by my private

mentor and knowledge that I've picked up

across all the years of trading build

bringing that to the markets to work out

whether or not I get in and out of a

trade as simple as that so we're going

to go through what the results of this

test was and it wasn't straightforward

there were mistakes along the way not

necessarily trading mistakes but just

issues that I had to come with trade

copers with trades being placed on the

wrong account because of the way I was

set things up mistakes putting the EA on

there's pretty much everything I could

that could go wrong did go wrong but we

still managed to get some accounts that

do reflect what each of these approaches

resting so let's dive in have a look at

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let's get back on with the show all

right so in front of you you can see the

first account so I'll go into details to

which ones they are so this was the

first account this was the second

account and this was the third account

now none of them are as they appear so

let's talk about them so the first

account was the strategy account so this

was the one I was hoping would be the

winner outright because I like the

strategy I knew it could give High R and

it was kind of easy to implement when

the setup came I'd be able to you know

get my orders in place and get out of

the trade in an automated fashion so I

can I built an EA that actually gets me

out automatically at the different

levels that I wanted to get out at now

the issue with this is it goes through

periods where it doesn't work very well

and this I think was one of those

periods and you could see here we

basically didn't win any trades apart

from this massive win here which

actually isn't a win this was just a

deposit and I had to re add a bit more

cash to the account because it had drawn

it down so much that I couldn't take

partials on that account added it and

then I started losing money again and

even here I did actually exit some of

the trades prematurely because I was

exiting on the intuitive approach and I

knew that the move was over already and

it wasn't going to reach its Target so I

was kind of like well I don't want to

lose any more money I'll just close this

I I'll move my stop to break even on

these so that was a strategy approach

really disappointed basically Drew down

two accounts not great so the next one

which one was this one this was the algo

approach we had some issues with this as

well in fact it's only really traded

probably just over a week the first week

I was wondering why it wasn't taking

that many trades it took a trade at the

start won it and then it didn't take

many more trades after that the problem

was which I discovered was it was on the

wrong price chart so it was on an hourly

chart instead of a five minute changed

that and all of a sudden bang I think

with the first trade was a win we grew

the account by 50% and then promptly

drew it back down to below the starting

level and we're now back over I think

like 10 bucks in profit it is risking

10% on the account as well so when you

do start losing you know the losses are

going to be much bigger than the wins

especially when you start getting some

growth so I'm going to let that run and

see how that progresses the win rate was

pretty good 75% 59% for shorts profit

Factor 1.08 okay all right you know just

it's above break even so this was the

intuitive account and essentially what I

didn't think would work very well it's

interesting that you know I didn't think

it would work very well I kind of went a

bit gangho at the start and I was just

like well it's probably going to fail

anyway next thing I'm at like 50% of the

account balance going what the hell this

thing's working really well all these

trades that I wanted to take in the past

but never took them for whatever reason

they didn't match my rules they did they

had one thing wrong there was so many

reasons I wouldn't take these trades and

in this account I felt like I've got

freedom to take the trade I feel it's

right I know kind of what's going to

happen I feel like I know what's going

to happen or it's high probability trade

I'm just going to take the trade so it

gave me a whole lot of freedom that I

hadn't had before

now yeah we had a couple of hiccups here

and then this loss here was actually

part of the strategy account and I'd

made a change to my trade manager robot

that I run on the price chart and it's a

long story I'm not going to get into it

here but long story short this account

this trade belongs to the strategy

account so I use the trading mentors

best tool ever right this is the trading

mentors best tool ever I'm going to show

you guys what that is right now it

is Adobe Photoshop so that's a joke so

uh right so I've got rid of that trade

I've moved the price chat up just to

show you what it kind of really would

have looked like had that trade not been

in the account unfortunately I've

promptly lost a tra full trade just

after doing this and i' I pretty much

broke even on two more so let's just

call it one full loss and it looks like

it's going to get stopped out and so

we'll be probably one full loss on the

day which was going to take me down to

probably down here somewhere but overall

it's been doing really well and I think

I've kind of been a little bit hesitant

here because the losses are much bigger

and I sort of was freaked out that this

has gone so well I've kind of need to

just reset myself again to to start

trading this normally and think I'm not

just doing this as part of a challenge

this is probably going to be my new way

of trading going forward it's not just

ended there so let's have a look there

was the win rate is really high okay so

I'm getting out early on a lot of Trades

but I just don't want to you know I'm

trying to keep the profits that I've got

and I want the account to grow I'm not

going to you know just sacrifice

something if price or a trade doesn't

look like it's going to work out I'm

going to get out of that so the win rate

is over 85 five well 88% here for Longs

and 83% for shorts overall that's 86%

win rate and it's 65 trades but I

believe the way that metat Trader does

it is you know if you take a partial or

call out a trade which is not really a

trade but it's yeah I'm trading a lot

kind of taking maybe two or three maybe

in four trades a day

at the start I think I was taking a lot

of Trades so it depends on the day and

if the Market's looking like it's you

know going to be flexible I'm just look

at that trades just hit break even so

I've also added this into my swing

trading approach so this is what I've

been doing with in the telegram channel

that I've just shown you here so every

day I'm putting these swing trades up

now I've was using a strategy and it was

primarily a strategy with a little bit

of an intuitive approach chucked in

there on Au only now I'm actually moving

more to everything is intuitive yeah the

strategy Creeps in there now and again

because to be intuitive you kind of need

to use different tools to get in and out

of a trade and that's what I use and

let's call them strategies but you can

see here I mean I've only lost one trade

in the the whole time of doing doing it

none of these trades have actually gone

over one hour so that's one of the sort

of secrets to not losing that many

trades and even the loss it's only a

small loss is .13 not even 1 R so total

uh for this is 3.01 I believe this is

over the course of maybe a month maybe a

little bit longer but you can see of

that 3.1 if we just add these up here

and see the total in the corner for the

intuitive ones it's actually taken out

quite a good given the fact there's not

that many of them it's

1.67 five six 1.67 so it's more than

half of the return that has been

generated through the insura of approach

and a lot of that has only been the last

week so that's 1. 24 in the last week so

I don't know if this is going to carry

on working here on the swing trading but

I'm feeling more confident about it

going forward and I want to give you

guys something to walk away with on this

video so if you are new to trading brand

new to trading or even if you've been

struggling for a while and you think I'm

going to give this intuitive stuff just

to go and just test it out see if what I

already know through all the mentoring

and whatever you've been taught on the

years or your journey to date could be

something that you can get to work if

you take an intuitive approach to it now

let's just jump into a random price

chart here and what I'm going to do is

give you a simple way to look at price

now this was actually touched on with my

last video that went up this week with

Richard nassa so go back and check that

out if you haven't seen it already

because he goes into a lot of detail

around this but in the general rule of

thumb is we're looking to get in with a

trend trade right so we want to go with

the trend the trend is like an indicator

in itself if you've got a trend price is

likely to you know keep pushing in that

direction so if you uh can find a trend

that's probably the first thing you need

to do and now what is a trend of what

price going in One Direction right it's

quite kind of simple now you can make

that complex or as complex as you want

but that's the general rule of the thumb

so most people can see something going

up something going down that's all we're

looking for right so the other thing

with Trends right is they usually pull

back because they don't go up and down

in a linear fashion and to get one

looking exactly like this is highly

unlikely so what we're going to do is

marry this up against this so if we just

have a look at high and low points here

and marry these points up what we're

going to find is that we kind of have

identified our Trend here and you should

be able to just go okay well if I can

sort of marry these points up I haven't

changed them all at all and identify

that Trend then I know that it's going

to pull back at some point and then push

pull back push so if I can

work out when is it going to pull back

and then just get in at one of those

pullbacks then that's possibly going to

give me a good chance to win a trade now

if I do that enough I'm going to win

more trades and obviously grow an

account so what we might do is just have

a look at what if this goes wrong now

let's imagine that this goes wrong right

so we've got our Trend here we push back

up

here and we go okay here we go we're

turning around we've got a be candle

here here this is this is where we're

going to get in oh no it goes up here we

lose that trade okay so that's going to

happen now and again and maybe you go

okay well let's just ignore that and try

and get in here we're going to go short

again okay at what point do you decide

that this thing over so you got to come

up with some strategies to work out that

this trend this downtrend has now

finished how are you going to do that

it's going to come with market

experience so a Trader that helped me

with this understand this was Nick sha

so if you want to check out his he does

intuitive trading really transparent

Trader he's been on the show a few times

and he's discovered that being intuitive

is probably the best way to trade it was

part of the reason I actually thought

maybe I'll give this a go because it's

something I've always wanted to do big

shout out to Nick for for sharing that

idea with me and I know a lot of other

Traders as well so one that's one thing

right is getting your market knowledge

up getting an understanding of how price

moves the next thing um that really

helps me is the fact that my mentors

giving me so many strategies to get in

and out of Trades that and I just never

get a chance to use them all but I do

remember them all when I see the chart

and when I look at Price candles I can

pretty much work out when it's going to

move or when it's going to change

direction what trade should I avoid

taking when's a trade running out of

steam when should I move my stop to

break even all that stuff now am I

perfect data every time no not by any

means but have I got a good feel for

when a trade is the right one to get in

on yes I do have I got a good feel for

when Traders the wrong one to get in yes

I do there's like so many things I know

that I can bring into this trading now

I'm not going to be able to teach you

all of those here but if you do want to

learn a simple strategy that my private

Mentor did teach me then check out the

link at the end of this video to go and

find that video we've got a bunch of

stuff going on over there with this cool

little strategy which has helped a lot

of Traders get profitable out of the

gates hey folks one of you behind me I'm

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get on still trading intuitively swing

trading day trading and with the alos as

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there on trading that and in the links

in the description folks as I mentioned

here's that video with a little strategy

from my private mentor and we'll see you

in the next video