All right, so let me show you how
to use TradingView paper
trading as a stock market simulator.
Now, first, let's talk about
why you should use a
simulator in general.
So there are two main
reasons for this.
Reason number one is
that you want to test
your trading strategy or
trading idea.
So if you have a trading strategy,
as you know, there's three elements
to it. It is what to trade, right?
What stocks or options.
And then you want to know when to
enter, and you want to know
when to exit.
So these are the three
elements of a trading strategy.
And you see, it doesn't matter what
you're trading, if you're trading
the PowerX Strategy
or if you're trading The Wheel, it
doesn't really matter.
You first want to test it to make
sure that number one, you
understand the rules so that you're
not making any mistakes there
and B, you want to make sure that
the strategy actually
works. But there's a second reason
of why you should trade on a
simulator first.
And this is to gain
confidence.
Because, you see, whenever you have
a new strategy, you might be
wondering, does it work, doesn't it
work, right? And this is when you're
using a simulator and you test your
strategy and you see that it works,
you get more confidence because now
you get some actual numbers.
So you will know your winning
percentage, right?
You will know your average
profit and your average loss.
You will know your drawdown
and other important numbers.
Anyhow, is this making sense thus
far? So let me show you
a free tool that you
can use as a simulator.
So the tool is TradingView.
You're probably familiar with
TradingView. I'm using it a lot.
If you would like to learn more
about TradingView, go to
RockwellTrading.com/TradingView.
We'll post a link in the description
here. So let me show you step
by step how you can
use TradingView as
a simulator.
Step number one, you need
to connect paper trading.
And in order to do this, step number
one, so you go to trading panel
here at the bottom, you see trading
panel. And when you bring
it up, you can choose your broker
and log into your brokerage account.
As you can see, it's usually mainly
forex brokers.
But you see on the very left side,
you see paper trading.
So this is step number one, you want
to connect paper trading.
There you go. So after this step
number two, you want to
reset your account.
And you might be wondering, "Why
should I reset my account?
I haven't done anything yet." Well,
here's why.
Usually you get by default
an account with $100,000
in there. And I mean, that's cute,
right? But maybe not exactly
your trading account size.
So it is very important that
you mirror the paper trading
with your trading account.
So therefore, you click on the
gear icon here and then you see
reset paper trading account.
And when you do this, you can
actually say what is your balance?
So if you are planning to start with
$10,000, put
$10,000 in there.
If you choose to start with an
account of $20,000, do this in
there. If it is $5,000,
put that in there.
So right now I'll put $10,000
in there because it seems that many
traders are starting with a
$10,000 account. So then you
hit reset.
So this way, you see right now you
have an account balance of $10,000
and an equity of $10,000, way
more realistic than $100,000.
But again, every trader is
different. You choose whatever
your account is. So this was step
number two. Step number three,
now you do the following. For
the order you also have to
adjust a few settings and then we
will walk through an actual order
here. But right now, right
mouse click anywhere on
the screen in your charts.
Right mouse click anywhere there and
then you see the fourth item, the
fourth menu item, is trade.
When you click on trade, click on
Create New Order.
When you click on Create New Order,
you have an order ticket appearing
on the right hand side of
your chart here.
You also see a gear icon.
And here is what I personally
use as settings, what I highly
recommend.
Uncheck show order price
in ticks, check show
quantity in US dollar risk,
uncheck show quantity in
percent risk, check show
TP, that's target profit
and stop loss inputs in US
dollar, and uncheck this
one. OK, so this
is the basic settings in
order to use the simulator.
Now let me show you exactly
how to use it in conjunction
with the PowerX Optimizer.
And when you're using the PowerX
Optimizer, as you know, this is the
tool that I personally use.
So for today we had one, two,
three, four, five, six, seven,
seven stocks that came up.
Now, you know my routine, if
you don't know it yet, go to
mytradingroutine.com, this
is where I show you exactly what I
do. But I quickly go through the
list and I'll look for stocks that
have no gaps.
And yes, you can see the first one
AQST has a gap,
so I'm kicking this out, I don't
want to trade this.
CALX, the next one, I want to see
are there any gaps.
There's a gap here, there's a gap
here so not my favorite
going to kick this one out.
FEYE, so
this one here also had a pretty
big gap right here.
So not the biggest fan.
Again, I'm using several criteria
here. My criteria are number one
gappiness, number two trendability,
and number three I want to see a
nice P&L chart
here. I did more videos on this I'll
link to it in the description.
But let's just say that we want to
trade PLUG, right?
I mean, I'm just using it as an
example so that you know
how to do this.
Now, PowerX Optimizer, as
you know, what did we just say?
A trading strategy tells you
what to trade, when to
enter and when to exit.
And this is exactly what PowerX
Optimizer does.
And now I'm showing you how to use
the simulator in conjunction with
PowerX Optimizer.
So on the right hand side, we see
exactly how many stocks we want to
trade, when we want to enter,
and when we want to exit.
So let's go to the TradingView
simulator here.
And the first thing I want to do is
bring up PLUG as a symbol,
because this is what we want to
trade. So as you can see, now
we have to fill in
the quantity and where exactly
we want to buy.
And according to PowerX Optimizer,
we want to buy.
So this is a buy order,
as you can see here buy PLUG.
But we don't want to buy it at the
market we want to buy it
when it goes up to
$18.89. So this is the exact price
that PowerX Optimizer tells us here.
Now, the quantity we talked about
it, 55, super easy.
And then we can also specify
our profit target and
our stop loss.
Now PowerX Optimizer gives you
the values right here.
As you can see, the profit
target is
$26.63. I can show this actually
here on the chart with
PowerX Optimizer so that you see,
OK, somewhere up here is
our profit target and here is
our stop loss.
So anyhow, we are plugging this
in. So we want to have a take
profit and here we are not
using pips, we are using the price
and we are using a price of
$26.63. We can then also specify
a stop loss, and PowerX Optimizer
tells us when to get out of
this position with a loss at
$15.26. Oh wow, look at this.
It's already showing it here.
So as you can see, based on a
$10,000 account, we would risk
$199, almost $200
trying to make $425.
So our risk reward ratio,
as you can see here in PowerX
Optimizer is
1:2.13.
So then all you need to do
is click on buy Nasdaq
after you've entered all this.
And again, this is not being
executed as your broker.
This is a simulator.
So you don't make
and you don't lose any money.
This is for testing your confidence,
gaining confidence, and testing
your trading strategy.
So let's just say buy and
you see order is sent right now.
And this is where you see, oh, right
now, we already got into the
position because the price
moved above
$18.89. So that's great.
As you can see now we have one
position and we have two
more orders in the market.
And here is what our orders
are. Our order is a sell
limit order for our profit
target, and a sell stop
order for our stop loss.
Now you see our position here and we
see our profit and loss appearing
here in real time.
So as you can see, it is super easy
to use this simulator
here in conjunction with PowerX
Optimizer.
So we also see that here you
have a history so that you see what
happened. So here we bought
PLUG 55
shares at
$18.89 status filled.
We will get an account summary.
You see right now we are already up
a $1.65.
Hey, look at this we
are already making money.
There's a trading journal but the
trading journal does not mean that
you can put any information
in there. The trading journal just
means that they are telling you of
what happened, that an order was
activated, it was successfully
placed, it has been executed.
I didn't find this very helpful.
Here you find the account history
where you see, OK, what was
the balance before and after
you entered a trade?
And there's also notifications log
that I didn't find that useful.
Anyhow, it is super easy.
You can now change the orders
that you do have in the market here,
so you can change them to a
different price.
As you can see, there's a little
edit sign right here.
So you see exactly what
you have right now,
what you bought, you have the
working orders, you have the
filled orders here and now, if
you would change any working orders,
for example, if you want to change
your stop loss, you just click on
the edit here and change it to any
value that you want.
By the way, the right way to
move your stop loss is always
closer to your entry price,
never away.
Never, ever give a trade more
room it usually ends in disaster.
But you see super easy you can
modify it here, or you can just
leave it as is and the other
working order we can also modify
if you want to take profits earlier.
Are we already up, are we are making
money, losing money, doesn't really
matter because this here is
the paper trading.
So therefore right now we are making
$1.10.
Yay, that is awesome.
OK, anyhow, so
this is how this trading
simulator works.
So summary very important.
First of all, why do you need a
simulator?
It is just to first test
your trading strategy, did you
understand the rule and does the
trading strategy work, and then
gain confidence so that
you can do it risk free.
How do you do this?
Super easy.
Again, some preparation, three
steps to prepare it.
You connect the paper trading
account, step number one.
Step number two, you reset it
to the account size that
you are planning to trade.
Step number three, you modify
the order settings here.
After this super easy, you just
pick any stock that you want.
So let's just do another example
here. For example, if you wanted
to trade HL,
hecla Mining Company.
Would you like to see another
example? Let me just show you
another example here.
Super easy.
The way how we do it is we
bring up the symbol HL,
we right mouse click on the chart
and when we right mouse click on the
chart we can click on trade,
create new order, and then
we just plug in all the values
from PowerX Optimizer here.
So first of all, we are
trading
526 shares right here.
We want to buy on a
stop order once the price
goes up to $5.58.
Right now we are already trading
above this, so I'm modifying this a
little bit to $5.70
that I can place it because right
now we are trading above the
$5.58 that PowerX Optimizer
suggests. For the take profit, we
are plugging the profit in from
PowerX Optimizer here.
So if this stock goes up to
$7.82, this is when we want to take
profit.
If it goes down to
$5.20, this is when we lose
money. And as you can see here,
we are risking around
$260 trying to make $1,000.
Now for the time in force, I
recommend that you do it for the day
because these are the rules
according to the PowerX strategy.
We just want to make sure that we
have the order in effect for the
day, and that's pretty much
it. After you have done this, you
just click on submit here and
then you see that, let me just
move it over, it has been sent and
now we have five
active orders in the market.
As you know, we already have the two
orders that we had previously for
the profit target and stop loss, and
now we have another buy order
for HL for another stock.
Once this buy order is executed,
then the two inactive
orders for the profit target and
stop loss will be activated.
So as you can see, super easy to
use. The best thing it is free.
I highly recommend that you are
doing this. So let me ask you, what
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