can you share a simple trading strategy for my 100
account i would like to avoid sideways market and enjoy riding those strong uptrends
hello and welcome back to trading strategy testing there is always a need to learn more about the
best stocks forex and commodity trading strategies which is the purpose of this channel we enjoy
trading we just wanna teach it with live market actions one of our subscribers asked us to share
a simple strategy for small accounts she wants a strategy to help her avoid sideways markets
to entirely focus on profitable strong trends but before that if this is your first time here
consider subscribing to the channel and give this video a thumbs up to help the channel grow and
encourage us to make more content in future let's get started here is the summary of our video today
we will start by introducing the trading strategy and share some examples from the chart we will
begin back testing it afterwards while answering an interesting question from the youtube comments
section later on we will highlight the results and some impressive findings that all of us should see
hakenashi is a type of trading chart that originated in japan and it's similar to
candlestick charts as the color of the candlestick denotes the direction the price is moving
even though the candlestick and hakanashi charts look similar but the hakanashi
highlights the average price moves creating a smoother appearance it could also be used
to identify a trend and reduce the noise especially if used on high time frames
the first indicator we will be using today is the 200 exponential moving average we have used this
one on different videos in the past the 200 ema acts as a strong support and resistance
it usually identifies whether we are on an uptrend when the price is above it
or a downtrend when the stock or a currency pair is trading below the line for more information
you can check out the video we have made in the past where we traded this indicator 100 times
the second indicator we will use today is the parabolic sar you should be familiar with this
indicator if you have watched the previous video where we tested it together with the moving
average crossover the parabolic sar is a technical indicator used to determine the price direction of
an asset as well as draw attention when the price direction is changing the parabolic sar points
could help us identify the direction of the trend and set the stop-loss level the rules are simple
when the parabolic sar points cross above the 200 ema we will wait for three consecutive bullish
candles then we go long from the top of the third one the stop loss is few ticks or one pip below
the parabolic sar points and the take profit will be one to 1.2 the risk involved on the other hand
the short set up is exactly the opposite we will wait for three consecutive bearish candles after
the parabolic sar crosses below the 200 ema we will go long at the bottom of the third candle
the stop loss is few ticks above the parabolic sar and we will aim for a one to one point two
risk to reward ratio you can look at these two examples hand-picked from the chart
we will be testing this strategy in the forex market technically speaking this strategy could be
applicable to stock indices or any other financial market we strongly recommend you to back test this
strategy in the market you are interested in to make sure that your money is properly invested
if you have any questions about the strategy feel free to leave it in the comment section
before we start back testing let's prepare the templates used to record the trades and calculate
the win rate of the strategy we will invest a 100 initial balance with a 2 micro lot fixed
trading volume you can download your free copy from the link available in the video description
we always advise our students to record their trades to be able
to review the losing ones afterwards in order to improve their trading strategy
let's look at some examples from the chart we will try to locate instances where the parabolic sar
crosses the 200 ema count three candles afterwards then enter the market if the price maintains the
same momentum and direction a certain level of discretionary trading is required here
for instance if there is a major news release it's better to stay away from the market or use one of
the forex trading strategies we have previously explained on this channel and traded in live
market conditions we will be trading the euro usd 4x pair today using a 15-minute time frame
let us know in the comments section if you wish us to trade other financial instruments
such as gold stock or indices we always welcome your suggestions in the comment section
as it is our main source to decide the next trading strategy or topic to cover
let's start back testing the strategy we are not using the replay mode this time as this feature is
not supported on trading view while trading the hakanashi chart you can reduce the speed of the
video to view the different trade setups we will also put a vertical mark at certain locations if
we encounter interesting setups worth our further attention we will discuss those after releasing
the results we received an interesting question from super and bander who wants to know when we
are making a live trading video for the alligator and adx forex trading strategy that we have shared
recently on this channel we noticed a massive engagement from our subscribers when we shared it
so we will make a live market video trading this strategy soon in the second part of the video he
has asked us whether we are using exactly the same strategy or add more elements and factors
to increase the profitability well we usually use other supporting factors such as the support and
resistance low and high demand zones plus a bit of a fundamental and market sentiment analysis to
make sure that the entry is solid enough to hit our take profit level trading systems in forex
stock or indices is quite profitable especially if the system has been back tested enough and
shows a positive edge on the other hand there are some small factors that we can consider such
as the major news release opening and closure of a particular market and psychological price
levels to make sure that we are getting the best out of our trades never trade a system blindly
always try to look at the big picture this is the main purpose why we like to make live market
trading videos it's an opportunity to share with you those elements a system might neglect
let's know in the comments section if you enjoy this kind of content and subscribe to the channel
if this is your first time here so you won't miss any of these tutorials in future
we have just finished back testing the strategy it took us two hours to complete the process
and used a second currency pair to make sure that we have enough entries
feel free to give this video a thumbs up to encourage us to make more videos in future it
would only take two seconds of your time but it means the world to us after 100 trades we
have managed to make a profit of 66.62 and turned our 100 initial investment to 166.62
we recorded a win rate of 51 which is pretty good in my opinion while backtesting the strategy the
highest number of consecutive losing trades we recorded was three which makes the strategy
safe for trades with higher risk such as two to three percent of our total account
before we end this video i would like to highlight this interesting trade which we encountered while
back testing this strategy you can notice that we have missed writing a strong uptrend
the reason is the fact that we were implementing a firm stop loss if we used a trailing stop loss
instead we could have made an interesting profit we will make a live market trading
video using this strategy soon we will leverage a trailing stop loss to see how much profit we
could make if we come across any strong trend we would definitely endorse this strategy but it's
recommended to add more supporting factors to the setup to avoid the false signals and increase our
chances of making more profit well if we used a trailing stop loss here we could have made more
than 150 pips from one single trade impressive wait we have got a little surprise for you guys
as per your request we are going to start a new youtube series where we grow a small forex
account together i am not sure of the balance you want me to start with so i created a poll
on our facebook group to get your opinion if you are not in the group yet feel free to join us by
clicking on the link available in the description section thank you for watching and happy trading
you