TOP 4 Trading Strategies to Make $500/Day For Beginners

Summary

This video introduces four back-tested trading strategies to generate $500 daily profits. It covers techniques like stop hunting, Fibonacci retracement, CCI divergence, and range trading, providing specific instructions for implementation and emphasizing the importance of a reliable broker for executing trades.

Takeaways

• 📈 The video introduces four trading strategies designed to generate $500 per day in profits, all of which have been back-tested for high win rates.
• 🎯 The first strategy involves using 'stop hunts' to find trade opportunities, where the price is expected to reverse from a support level but instead hits a stop loss, often manipulated by institutions.
• 🔍 To implement the first strategy, traders should identify obvious key levels (support or resistance) and watch for price action at these levels, zooming in to lower time frames for better analysis.
• 💰 For the first strategy, placing a limit sell order below a key level can capitalize on a stop hunt, with an additional limit buy order above the breakout to cover both potential directions.
• 📊 The second strategy utilizes the Fibonacci retracement tool, focusing on the 0.618 and 1.618 levels to identify potential pullback ends and set profit targets.
• 📈 In the second strategy, multi-time frame analysis is crucial, using indicators like MACD for trend confirmation at lower time frames.
• ⏱️ The third strategy is a scalping approach using the 1-minute time frame and the CCI indicator to spot divergences, which can signal potential buy or sell opportunities.
• 📉 The fourth strategy focuses on trading range markets, identifying support and resistance levels and using a 'midline' to determine entry and exit points within the range.
• 🔄 The fourth strategy emphasizes the importance of price action analysis around the midline, looking for decisive breaks or rejections to confirm trades.
• 🤝 The video recommends using a reliable broker like Simple FX for executing trades, highlighting its ease of use, low fees, and the availability of a $40 deposit bonus for new users.

Q & A

What are the four trading strategies discussed in the video?

The video discusses four trading strategies: 1) Stop Hunt Strategy, 2) Fibonacci Retracement Strategy, 3) CCI Divergence Strategy, and 4) Range Market Strategy.

What is a stop hunt and how can it be used to find trade opportunities?

A stop hunt is a tactic used by institutions to trigger stop losses of retail traders by causing the price to briefly move against the expected direction before reversing. Traders can use this to their advantage by placing a limit sell order below a key level after a breakout, hoping to catch a reversal if the breakout is a stop hunt.

How does the Fibonacci Retracement Strategy work?

This strategy involves using the Fibonacci tool to identify potential end points of a pullback or retracement. Traders focus on the 0.618 and 1.618 levels, applying the tool to a trend with a slight retracement and looking for rejection at these levels to enter trades.

What is the CCI Divergence Strategy and how is it used in trading?

The CCI Divergence Strategy involves using the Commodity Channel Index (CCI) indicator to spot divergences between the price movement and the indicator. A bullish hidden divergence, where the price forms lower lows but the CCI displays higher lows, presents a good opportunity to take a buy position.

What is the Range Market Strategy and how does it differ from other strategies?

The Range Market Strategy is used when the market moves sideways, identifying both support and resistance levels. Unlike other strategies, it also takes advantage of price action in the middle area, using a midline to determine whether the price will likely move towards the bottom level or retest the resistance level.

How can traders determine if a breakout is a stop hunt or an actual breakout?

Traders can determine this by placing a limit sell order below a key level after a breakout. If the breakout is a stop hunt, the sell order will be triggered as the price reverses. If it's a real breakout, the sell order won't be triggered, and no money is lost.

What is the role of the MACD indicator in the Fibonacci Retracement Strategy?

The MACD indicator is used for trend confirmation in the Fibonacci Retracement Strategy. It helps traders determine if the price is likely to bounce upwards from the 0.618 Fibonacci level by observing if the MACD crosses over upwards.

How can traders manage risk in the CCI Divergence Strategy?

Risk management in the CCI Divergence Strategy involves setting a take-profit target at a minor resistance level and a stop loss slightly below the support area. This helps limit potential losses while allowing for profit when the price hits the target.

What is the significance of the midline in the Range Market Strategy?

The midline in the Range Market Strategy divides the range into two zones: the upper zone and the bottom zone. It helps traders determine the likely direction of the price movement within the range by observing how the price reacts to the midline.

Why is it important to have a good broker when implementing these trading strategies?

A good broker is crucial for executing trades efficiently. They should offer a user-friendly platform, a wide range of trading instruments, low fees, and additional benefits like deposit bonuses, which can enhance the trading experience and profitability.

Outlines

00:00

📈 Leveraging Stop Hunts for High Win Rate Trades

This paragraph introduces a trading strategy that utilizes stop hunts to identify high win rate trade opportunities. The strategy involves identifying key support or resistance levels that are obvious to many retail traders, making them susceptible to stop hunts by institutions. Traders are advised to wait for the price to approach these levels again and then zoom in to a lower time frame to analyze the price action. If a breakout occurs, a limit sell order is placed below the key level to capitalize on a potential stop hunt. Additionally, a limit buy order is placed above the breakout to cover both scenarios. The importance of setting stop-loss and profit targets is emphasized to manage risk.

05:01

📊 Using Fibonacci Retracement for Trend Trading

The second strategy focuses on using the Fibonacci retracement tool, specifically the 0.618 and 1.618 levels, to identify potential pullback or retracement ends. Traders are instructed to look for a price action with a trend and a slight retracement, apply the Fibonacci tool, and wait for the price to pull back towards the 0.618 level. A multi-time frame analysis is suggested, using the MACD indicator on a lower time frame for trend confirmation. Once confirmed, a buy position is entered, and the 1.618 level is used to set a target profit. The strategy aims to capitalize on the retracement ending at these specific Fibonacci levels.

10:02

💱 Scalping with CCI Indicator and Divergence

This paragraph outlines a scalping strategy using the CCI indicator on a 1-minute time frame. The strategy involves identifying divergences, where the indicator displays opposite signals to the price movement. A bullish hidden divergence is highlighted as a good opportunity to take a buy position. The speaker demonstrates a live trading session, applying the CCI indicator, identifying a divergence on the Bitcoin USD chart, and entering a buy position with a take-profit target and a stop loss. The strategy is shown to be effective in generating quick profits, and the speaker recommends a broker for executing such trades.

🔄 Trading Range Markets with Midline Strategy

The final strategy discussed is for trading range markets, where prices move sideways most of the time. Traders are advised to identify a range market and find both support and resistance levels. A midline is drawn in the middle of these levels, dividing the range into upper and lower zones. The strategy involves identifying the current price position in the range and waiting for the price to approach the midline. If the price breaks the midline decisively, it's likely to move towards the bottom level. However, if there's rejection at the midline, the price may retest the resistance level. A buy position is entered in the latter scenario, with a profit target set at the resistance level and a stop loss slightly below the entry. The speaker also promotes a broker partnership for executing trades and offers a deposit bonus for new users.

Keywords

💡Trading Strategies

Trading strategies refer to specific methods or plans traders use to make decisions in the financial markets. In the video, the presenter discusses four strategies that are designed to generate profits with a high win percentage. These strategies are back-tested, meaning they have been analyzed using historical data to verify their effectiveness. The video aims to provide viewers with actionable steps to implement these strategies in their own trading.

💡Stop Hunt

A stop hunt is a trading tactic used by institutional traders to trigger stop-loss orders placed by retail traders. It involves pushing the price of an asset down to a level where many stop-loss orders are placed, causing them to be triggered and the price to reverse. In the video, the presenter explains how traders can use this phenomenon to their advantage by placing limit sell orders below key support levels, potentially profiting from the price reversal.

💡Support Level

A support level in trading is a price at which an asset's price tends to find a floor and is likely to experience an increase in demand, with the price having difficulty falling below this level. The video uses the example of a support level where the price has historically reversed, and traders might anticipate a similar reversal in the future, making it a key level to watch for potential trades.

💡Limit Order

A limit order is an order placed with a broker to buy or sell a security at a specific price or better. In the video, the presenter uses limit orders strategically by placing them below key levels to potentially capture profits if a stop hunt occurs. This allows traders to open a position only when the price reaches their specified level, ensuring they enter trades at favorable prices.

💡Fibonacci Retracement

The Fibonacci retracement tool is used by traders to predict potential support and resistance levels where a price may reverse. It is based on the Fibonacci sequence and is commonly used to identify the end of a retracement. In the video, the presenter focuses on the 0.618 and 1.618 levels, using them to identify entry points for trades and setting profit targets.

💡Divergence

Divergence in trading refers to a situation where the price of an asset and an indicator show opposite trends. For example, if the price forms higher lows while an indicator shows lower lows, this is a bullish divergence and might signal a potential buy opportunity. The video discusses using the CCI indicator to identify divergences, particularly in a scalping strategy on the 1-minute time frame.

💡CCI Indicator

The Commodity Channel Index (CCI) is a technical indicator used to detect divergences between an asset's price and an average of its price over a certain period. In the video, the presenter demonstrates how to use the CCI indicator to identify bullish divergences, which can be used to enter buy positions in a scalping strategy.

💡Range Market

A range market, also known as a sideways or consolidation market, is characterized by an asset's price moving within a specific range, showing little overall trend. The video explains how to identify and trade in range markets by using support and resistance levels, as well as a midline, to determine potential entry and exit points for trades.

💡Midline

In the context of the video, the midline is a line drawn at the exact middle of the support and resistance levels in a range market. This line helps traders to divide the range into two zones and determine the likelihood of the price moving towards the bottom level or remaining in the upper zone. The midline is used as a tool to analyze price action and make trading decisions.

💡Stop Loss

A stop loss is an order placed with a broker to sell a security when it reaches a certain price. It is designed to limit an investor's loss on a security position. In the video, the presenter emphasizes the importance of placing a stop loss after a trade is initiated to protect against potential losses if the market moves against the trader's position.

💡Profit Target

A profit target is a predetermined price at which a trader plans to sell a security to lock in profits. In the video, the presenter sets profit targets for trades using tools like the Fibonacci retracement and the 1.618 level, providing a clear exit strategy for maximizing profits when the price reaches the desired level.

Highlights

Introduction of four simple-to-learn trading strategies that can generate $500 per day in profits.

All strategies are back-tested with a high win percentage.

Specific instructions provided for easy implementation after watching the video.

First strategy involves using a stop hunt to find trade opportunities.

Explanation of what a stop hunt is and how it is used by institutions to trigger stop losses of retail traders.

Technique to use stop hunts to gain high win rate trade opportunities.

Finding an obvious key level, either support or resistance, that is susceptible to a stop hunt.

Waiting for the price to approach the key level again and break out to identify potential stop hunts.

Using limit sell orders below key levels to capitalize on stop hunts.

Placing limit buy orders above breakouts to play both directions in the market.

Second strategy utilizes the Fibonacci retracement tool differently by focusing on the 0.618 and 1.618 levels.

Quick explanation of how the Fibonacci tool works and its use in identifying retracement ends.

Applying the Fibonacci retracement tool to identify potential retracement ends and setting profit targets.

Third strategy is a scalping strategy using the 1-minute time frame and the CCI indicator.

Explanation of divergences and how they can be used to identify trading opportunities.

Live trading session demonstrating the use of CCI for identifying bullish hidden divergences.

Fourth strategy focuses on trading range markets, which occur about 70% of the time.

Identifying support and resistance levels within a range market and using a midline for additional trading signals.

Analyzing price action as it approaches the midline to determine whether to enter a buy or sell position.

Recommendation of a broker, SimpleFX, for executing trades and a $40 deposit bonus offer.

Transcripts

hey traders in this video I'll be

showing you four simple tolearn trading

strategies that's able to generate $500

per day in profits and of course these

strategies are all back tested to have a

high win percentage so you can trust

that they work and the best part is that

I've laid out Specific Instructions that

you can easily follow so after watching

this video you can Implement these steps

and start trading immediately so without

further Ado let's move on with the first

strategy for this strategy we're taking

advantage of what's called a stop hunt

in order to find trade opportunities now

for those of you who don't know what a

stop Hunt is here's an example so let's

say you look at a chart and you see the

price rejecting an area multiple times

so you draw a support level next as it

approaches that level again you think to

yourself hm the price did reverse from

this support level in the past so maybe

it could reverse from it once again

hoping for a reversal you enter a buy

position now being the dis Trader that

you are you didn't forget your stop loss

so you place it slightly below that

support level however instead of

reversing from that level price instead

went down hitting your stop- loss first

before reversing back up this is called

a stop hunt and it is purposely done by

institutions to hunt the stop losses of

retail Traders Now using the right

Technique we can actually use these stop

hunts to our advantage to get high win

rate trade opportunities and this is how

so the first step is you want to to find

an obvious key level this could either

be a support or a resistance level but

remember the key word here is obvious

because you want to find a level where

many retail Traders are also paying

attention which is usually more

susceptible to a stop hunt here we can

see that the price went up to this level

and reversed from it making it an

obvious resistance level the next step

is to wait for the price to approach

that level again and break out of

it once this happens you take a closer

look at the price action that's

happening at that area so you zoom in

two time frames below for example

currently we're on the 4-Hour chart so

let's zoom in into the 2hour chart now

in the 2-hour chart we can actually see

a large green candle breaking that

resistance area now a question Rises how

do we know if this will be a stop hunt

or an actual breakout and price did

continue upwards so the good thing about

this strategy is we could still make

profits regardless of what's going to

happen so what I do instead as soon as

the price breaks this resistance area I

immediately place a limit sell order

below this key level now for those of

you who don't know what a limit order is

it's simply just an order to open a

position at a specific price so only if

price touches my limit order a sell

position would open if it doesn't then

no position would open by doing this if

this breakout happens to be a stop hunt

then our sell order will be triggered

and we would make money as the price

reverses back down however if this

happens to be a real breakout and price

did continue upwards our sell order

would not be triggered and we won't lose

any money now to add another layer to

the strategy we can also place a limit

by order above the breakout and the idea

behind this is we're playing both

directions if this was a breakout then

our limit buy order would get triggered

and we would make a profit as price

continues to go up however if this was a

stop hunt then our limit sell order will

be the one that gets triggered and we

would make profit as price R versus back

down now of course there's still the

risk that price moves in the opposite

direction after whenever limit order is

triggered that's why it's important to

place a stop-loss and profit Target

after one of them is triggered now let's

see which limit order would get

triggered as you can see price move

downwards and triggers our salate order

which opens a sell position after the

sell position is opened you place a stop

loss in the middle of the breakout

candle and take profit at four time stop

loss and as you can see see price

continued downwards and hits her take

profit let's move on to the second

strategy so for this next strategy we're

utilizing the Fibonacci retracement tool

but we'll be using it slightly different

from what is usually taught now for

those of you who don't know how the

Fibonacci tool Works here's a quick

explanation so it is simply a tool that

is used to identify where a pullback or

a retracement might end for example if

price move upwards and forms a slight

retracement we can apply the Fibonacci

retracement tool to know where this

retracement might end to do this you

drag the tool from the swing low to the

swing high once applied Traders can

observe these levels as they often act

as possible levels where the retracement

may

end so for this specific strategy we're

only using the 0.618 and the 1.618

Fibonacci level to do that you go to the

settings of the Fibonacci tool and

disable all the other levels except the

0.618 and the

1.618 once you've done that your

Fibonacci tool should look like this now

here's how you trade the strategy the

first step is to look for a price action

where there's a trend and a slight

retracement like in this

example next you apply the Fibonacci

retracement tool on that price action

from here we wait for the price to pull

back towards the 0.618

level and try to see if the price shows

some type of rejection towards it to do

that we do a multi-time frame analysis

by looking at lower time frames to

analyze the price action further so

we're on the 4-Hour time frame let's

zoom in into the 1H hour time frame now

in the 1hour time frame we can apply the

macd indicator for Trend

confirmation as you can see the macd

indicator crossed over upwards after

price hits the 0.618 level which further

confirms that the price will likely

bounce upwards from that level and so we

go back to the 4-Hour time frame and

enter a buy position the next step is we

use the tool once again take the last

highs of the retracement and drag it

towards the lows of the retracement and

this is where the 1.618 level comes into

play we use it to set our Target profit

once you've done that you can let the

trade

run and as you can see price exactly

hits our profit Target now let's move on

to the third

strategy so unlike the other strategies

on this list this one is a scalping

strategy and we'll trade it on the 1

minute time frame using an indicator

called the CCI and So based on back

testing results the CCI is particularly

effective for identifying divergences

but for those of you who don't know how

to spot divergences here's a quick

example so usually an indicator will

display the same signal as the price

movement if the price forms higher highs

the indicator will also display higher

highs however there are setups where

it's the opposite for example price

forms higher lows but the indicator

displays lower lows instead and this is

called a Divergence specifically this is

a bullish hidden Divergence presenting a

good opportunity to take a buy position

there are multiple types of divergences

and you can use this graphic as a guide

to identify them now I'm going to prove

that this strategy works by doing a live

trading session so first you want to

apply the CCI indicator onto your charts

and if you're using the simple FX

platform like I am you can go to the

indicator section and select

CCI after that go to the one minute

chart and find a setup where the price

forms a Divergence you can use the

search menu here to find different

charts whether it be crypto Forex stocks

or others so after some searching I came

across this setup on the Bitcoin USD 1

minute chart price formed lower lows but

the CCI displays higher lows and based

on the guide this is a bullish

Divergence so you enter a buy position

to do that click the buy button here and

set your position size for this trade

next for a take- profit Target we can

set it at this minor resistance level at

64379 so you insert

that now for a stop loss we can set it

at slightly below the support area at

6429 and insert that as

well here you can see how much you'd

make if price hits her profit Target and

how much we' lose if the price hits our

stop loss next click submit to open the

trade and let the trade

run and as you can see price hits our

takeprofit and we made $90 profit in a

couple of minutes from this one setup

you can keep repeating this strategy

over and over again as long as you spot

a Divergence and by the way if you're

looking for a broker to win more trades

I highly recommend clicking the link in

the description for simple effects

they're very simple to use have all the

tools you need to make an analysis and

you can trade multiple assets on one

platform and if you use the link in my

description you'll get a $40 deposit

bonus if you deposit at least $100 into

your account now let's move on to the

fourth strategy

so this one is one of my most profitable

strategy that has allowed me to scale my

trading account considerably and this is

how so we know that markets are only

trending about 30% of the time while

remains within a range about 70% of the

time this means that prices aren't

always moving towards a certain Trend

most of the time they move overall

sideways while deviate between certain

levels because of this if you know a

strategy to trade range markets you'll

be able to generate more profitable

signals and and here's how the strategy

works the first step is to identify a

range Market which is simply a market

that moves overall sideways now during a

range Market you should be able to

identify both support and resistance

level within that range for example if

price rejects an upper level multiple

times that's your resistance and if it

rejects a lower level that's your

support now here's how a trade range

markets differently for most Traders

instead of only trading at these major

key levels I also take advantage of the

price action that happening in this

middle area and to do that I draw

another line in the exact middle of

these major key levels this is what I

call the midline so using the midline

that we drew we can now see that the

range is divided between two zones the

upper Zone and the bottom zone so we

know that as long as price stays within

this range only two things could happen

either it stays on this upper zone or

switch to this bottom Zone and it will

keep doing this until eventually price

breaks out of the range but for this

strategy we only trade if the price

Still Remains within this range so

here's how it works the first step is to

identify where the current price is

positioned in this example it is

currently in the upper Zone after it

rejected this resistance level next you

wait for the price to approach the

middle line now remember what I said

earlier as long as the price is still

inside this range it's either going to

stay on this upper Zone and bounce

upwards from this middle line or switch

to this bottom Zone and breaks this

Middle Line downwards in order to know

that we need to analyze the price action

as it approaches this middle line so a

rule of thumb to remember is that price

will likely move towards the bottom

level if it manages to break the middle

line decisively for example if there's

one giant momentum candle Crossing down

or if there are multiple red candles

however if we manage to see some type of

rejection in this middle line there's a

high chance that the price will likely

remain above the middle line and retest

the resistance level so let's see what

happens to the price next

as you can see it briefly broke through

the middle line but managed to bounce

back up indicating that there's a slight

rejection in this middle area however

because this is only a slight rejection

we still need more confirmation so let's

not rush to take a position and observe

what happens

next here we can see that the price

briefly moved downwards all the way here

but buyers pushed it back up before the

candle manages to close which forms this

long Wick below this candle so now after

multiple attemps of breaking below the

middle line price failed to do so

meaning there's a chance that the price

will actually remain above the upper

level and retest this resistance level

so this is a good opportunity to enter a

buy position as for your profit Target

set it at the resistance level and stop

loss at slightly below your

entry and as you can see price went

upwards towards the resistance level and

hits our take profit so guys for

profitable strategies like this you

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big thanks to simple effects for helping

me make this video possible that's all

for today thank you so much for watching

and I'll see you in the next video