What if I told you there was way to implement a step by step strategy that will instantly
increasing the chance of your entries being more profitable.
That would be pretty cool right?
Well that s exactly what Im about to show you.
How to redefine your entries so one, they have a higher chance of being profitable,
and 2, this step by step strategy will also increase the risk to reward ratio on ALL of
your trades.
And the best part, it can applied instantly.
Lets get straight to it.
Now I think its very important to say right from the get go.
Entries are not everything when it comes to trading.
There are a lot of other factors that make a successful trader, successful.
Risk management, knowing when to trim positions, reading chart momentum, analysis, and knowing
how to keep your cool.
What this step by step guide will do is help you redefine your entries, resulting in MASSIVELY
increasing the risk to reward you are taking, creating tighter stop losses, larger profit
targets, resulting in massive risk to rewards.
Meaning you re making wayyy more on the trades you win, then you lose on the trades that
didn t go in your favor.
Giving you a lot of leeway for losing streaks and any bad times your having in the market.
(insert meme) Alright, so there are two types of entries
for this strategy.
There is the regular ol Risk entry then there is the Confirmation Entry . (angel sounds)
So first is the regular ol risk entry.
The risk entry is the slightly risker entry.
Hence the name.
These entries use buy or sell limits within supply and demand zones.
These supply and demand zones are usually on higher timeframes like the 1 hour or daily.
Or can even be supply and demand zones within imbalances.
The key point is Just really high interest areas.
A risk entry is either going to trigger and move straight into profit or trigger and get
stopped out straight away.
One of the reasons this entry is called a risk entry is because they hold a lot more
risk than if you were to wait for a confirmation entry.
But there are some pros that come with that.
One of the pro s about the risk entry is that its going to provide a great risk to reward
setup and you are going to have a very tight stop loss.
On the other hand, the con of that is they are much more likely to be stopped out compared
to confirmation entries.
But with these types of trades you have to think in the mindset of the bigger picture.
(insert meme) If your trades have a 1:5 risk to reward ratio,
that means 1 win will allow you to have 5 losses.
So yeah, you may be getting stopped out more often, but all you really need is one good
trade.
So you have to have a little more patience with risk entries, and you have to be willing
to encounter some losses and understand that the overall long term plan is what s going
to bring you the success.
The next entry is the confirmation entryyyyy.
These are SAFER entries that require you to look on a lower timeframe and find breaks
of structure before we enter.
So where as when you re looking for a risk entry, you re just on a higher timeframe and
entering when it hits that entry zone.
With a confirmation entry, you are doing the same thing, but once it hits that zone, you
zoom in on a lower time frame, and get confirmation before entering.
(zoom in meme) Here is the basic structure of a confirmation
entry.
You are going to have lower lows that come into that support zone.
What we are looking for after that, is a break of structure, like this.
Creating a new higher high.
Which is a bullish break of structure.
Confirming we are starting to move upwards.
Then we are looking to buy at the pull back.
So, right here.
Confirmation trades are much safer than risk entries, but one of the downsides of the confirmation
entry is sometimes we are going to miss out on the trade.
Because sometimes they will not come all the way back down to our buy zone, making us miss
out on the trade.
Whereas if you used the risk entry, you would have gotten in.
There are even sometimes where we wont have a pullback at all, since there is so much
buying power in that buy zone, sometimes the price will just spike up straight from here,
not giving us an opportunity at all.
So that s the downside.
They are much safer than risk entries, and you will lose a lot less.
BUT Your also going to miss out on more trades.
The one other downside of the confirmation entry is you are going to have a slightly
lower risk to reward.
Since you buying at the ultimate low with the risk entry, whereas with the confirmation
entry you are buy slightly higher because you have to wait for the break of structure
confirmation.
So those are the pros and cons of the risk and confirmation entry.
Now lets go over two live examples of each entry and show you guys two personal trades
that I took in live markets with each type.
But first let me show you this really cool paid indicator I found.
So normally when you would want to backtest strategies to know how good they are, you
would need to know how to code those strategies.
It can be a very timely process, and super annoying.
Well I found this paid indicator that has a bunch of popular indicators already precoded
so you can backtest different indicator combinations without knowing how to code.
Which is pretty awesome So I decided to test it out with some random
strategy I put together.
I set the strategy condition to trend smoothing moving average.
And set the second condition to momentum divergence.
I went to the divergence settings . Send the divergence type to macd.
Had it take profit from pivot and made the stop loss offset 0.7. and set the multiplier
to 1.6 The I went to the moving average settings
and set length to 790 and set it to a DEMA moving average.
The finally I went to the macd settings and changed the slow length to 35.
As you can see it will tell you where you entered and exited all your trades and you
can also open the strategy tester and see how your strategy performed.
Which this one did pretty decent.
So if you want to check it out and test a bunch of different indicator combinations.
Ill leave a link in the description.
Back to the video
So here is a live risk entry that I took the other day on GBPUSD.
If you are looking for a broker for forex, check out HankoTrade.
They have extremely low fees and are truly one of the best out there.
Ill put a link in the description.
Since this is a risk entry, we will be looking at a higher timeframe to make sure we are
dealing with strong supply and demand zones.
In this specific trade, I was looking at the 1 hour timeframe.
Also, by the way, this Is a short trade we are looking at.
For some reason on my last video a lot of people were confused on how I was making money
when the chart was moving downwards.
Its called shorting, if you don t know what it is, ummm do a google search.
But yeah, this is a short trade.
So a very key thing to look at is how the chart is moving.
As you can here, its make many lower lows, but on top of that, it did a bearish break
of structure.
So once I saw all of this downward momentum, I decide to take a deeper look and start looking
for a potential short trade.
So the first thing I did was try to find a very key resistance zone.
Here, you can see that price resisted here and here, then also hesitated a lot right
here.
So, I made sure to mark this area.
After that, we see what price does this.
It came all the way back up to our zone.
Now how I personally like playing these types of plays is I like to wait for price to go
to half way mark of the zone before entering.
So right around here.
This will make your risk to reward a lot better.
So that halfway mark is right here.
As you can see price did not reach this point, so we didn t enter.
We end up waiting some more and price comes back up to the half way mark of our zone.
This is where we enter our short.
I set my stop loss right above the zone, and set my take profit at the next major support,
which was right here.
As you can see, we have nearly a 15 risk to reward ratio, which is absolutely insane.
Meaning if all your trades look like this, you can have up to 15 losses for every win.
Lets see how the trade plays out.
It worked just as we planned, and we made an absolute killing off this trade.
Now keep in mind risk entries will work on all timeframes, hell you can even do them
on the 1 minute if you really wanted to.
Just know the higher the timeframe you use risk entries on, the more accurate they will
be.
So that s the risk entry, but what I told you we can add some confirmation to this to
make even more accurate.
Introducing the confirmation entry.
Here we are looking at gbpjpy.
This is going to be another short trade.
Right now we are on the 15 minute time frame.
So as you can see price made this massive low and started consolidating.
What we want to see from here, is a break of structure moving downwards.
Which is exactly what we get right here.
So far so good.
Now for the confirmation entry, you are going to do the exact same thing you did with the
regular risk entry to begin with.
So after we see a break of structure we find a key level where price hesitated or resisted.
Which would be right in this level.
But instead of just entering right when price reaches this level, we are going to wait for
confirmation that its going to head downwards.
So lets see what price does.
It comes up to the middle of the level.
Now instead of enter right away, we are going to zoom in on a lower time frame and get confirmation.
So considering this chart setup was made on the 15 minute, we are going to look at the
1 minute.
So as you can see we have a 1 minute uptrend.
Forming higher high and higher lows.
Then once we hit this level here we make one more higher low, but then a lower high, then
a lower low.
So at this point, we had a break of structure from an uptrend to a downtrend.
Once we see this, we can start to look for an area to short.
What I like to do is enter at a fair value gap.
As you can see there is one right here.
If you don t know what a fair value gap is, I talked about it in my last video, you can
check that out after this.
So this is our entry point for the short.
Price hits.
So we set our stop loss above the recent high, and set our take profit all the way down here
at the low.
Even though we are enter later compared to just doing a regular risk entry.
Doing this confirmation will greatly increase the chances of success.
If you wanted to confirm the trade EVEN MORE you would wait for a secondary breakdown.
Now I actually love to do this as it really confirms the trade.
So you are waiting for a second break of struct, like it does here, then you would enter at
this fair value gap here.
Yes, you are enter even later than you were before, but like I said, this really confirms
the trade.
As its showing us the trend has really shifted.
If you do the 2nd confirmation tactic, Id recommend moving your stoploss to this recent
swing high.
If you wanted to be really safe you can keep it at the original high, but I personally
move it.
In the end its up to you.
The benefit we have of trading with the confirmation entry is now we have the higher timeframe
and lower time frame trading in agreement, rather than just one.
Which really confirms the entry and will increase the winrate by a lot.
And as you can see we end up getting another winning trade making another absolute killing.
Hopefully that clears up the two different entry styles.
Like I said, both of them have their pros and cons but in the end, its up to you decide
which you like better.
If you haven t seen this video yet, I would deeply suggest you watch it as its one of
the best trading strategies Ive found yet and it has massively changed my trading game.
Thanks for watching and ill see you guys next time.
Bye.