Hey now. I'm going to test this system from the Power of Trading channel that says
it's 100% profitable. And i'm going to show you what 100% profitable means over a series of 200
trades. And all you have to do is just crash that subscribe button. Right now!
This is called the Trend Finder Buy/Sell Signal system, and it uses
three TradingView free indicators. The first indicator is the Qualitative Quantitative
Estimation or QQE Mod. This indicator will provide our signal confirmation for entry.
The second indicator is the SSL Hybrid. This study will provide our signals for entry and
stop loss levels. The final indicator is the standard 200 Exponential Moving Average. This
indicator will determine the overall trend direction. Let's go over some examples.
This chart is Euro versus the US Dollar one-hour candles. The rules to enter along on this system
are: First price must be above the 200 Exponential Moving Average.
Second we are looking for the QQE Mod to show a blue histogram bar.
Third the SSL channel needs to be blue. Fourth the candle must be a solid blue. And finally
we need a blue up arrow on the SSL Hybrid which is our buy signal. All of that happens on this candle
here. That is our trigger candle. So this is a bit odd but Joey in the Power of Trading video says
to place the stop below the entry arrow. Which theoretically can change and thus change our stop.
But whatever works. So our stop is placed below the blue arrow and we are going to target one to
one for half our position. When one to one is hit we move our stop to break even and let the rest
go to target two, which is two to one. And the second half of this one stops out at break-even.
We have one more long example. Price is above the 200 EMA. The QQE Mod is
showing a blue bar on the histogram. The SSL channel is blue. The candle is a solid blue,
and we have a blue arrow signifying a buy signal. This is our trigger candle.
And remember to wait for the candle to close. We place our stop below the blue buy arrow and
target one to one for half our position. When one to one is hit we move our stop to break-even and
target two to one for the remainder. And this one hit two to one. And now we flip the shorts.
This is what i will test for shorts. First price must be below the 200 EMA.
Second the QQE Mod histogram must show a red histogram bar.
Third the SSL channel needs to be red. Fourth the candle must be a solid red color. And
finally we need an SSL Hybrid Sell signal. All of that happens when this candle closes.
This is our trigger. We target one to one for half our position. When one to one is hit we
move our stop to break-even and let the rest ride out to two to one. And this one hits two to one.
I'm going to show you one more quick short example. We have price below the 200 EMA. We
have a red bar on the histogram. We have a red SSL Channel. This candle is a solid red. And
finally we have a red arrow pointing down, which is our sell signal. We open a sell position when
this candle closes, and target one to one for half our position. When one to one is hit we move our
stop to break-even and target two to one for the other half. And finally this one hits two to one.
I actually ran 100 tests on the 30-minute time frame and another 100 on the one-hour
time frame. At the end of this video i will give you a couple of ideas on
how we can make this system better. And now it's time to do what i do.
Please remember this is just 200 tests on one instrument. If you're thinking of using this
system please do all the required testing and be sure to let our community know what you discover.
Now let's review the test data and go over a couple of ideas on how to optimize the system.
The first set of results are on the one-hour time frame. It
took almost 16 months to find the 100 trades. Most wins in a row was five,
most losses in a row was four ,and the winning percentage was 63%. The total gain on account
if you took all the trades risking one percent per trade would have been 30 and a half percent.
The second set of results are for the 30-minute candles. It took seven months
to find the 100 trades. Most wins and losses in a row was five. The winning percentage was 63%,
and the total gain on account was 24%.
If we look at the difference between the time frames you can see the winning percentage is
exactly the same but you would have actually increased your account trading the 30-minute
time frame assuming similar data over a 16-month period. But only additional
testing will tell you for sure. However there is something in the equity curve to consider too.
This is the equity curve for the 30 minute test. You can see most of the gains are on an impulsive
move up on the first 50 or so trades. Then there is a big area of consolidation. Whereas the equity
curve on the one-hour chart is more of a steady climb with only one brief drawdown period. This
is why more testing would be needed to see which is the better time frame to trade on.
I give this system a Trader's Landing score of seven,
because this is a very simple rules-based system to trade. It is great for beginner
traders or people who prefer to trade very clear signals on their chart.
Remember the enemy of great is good. So how do we find the crumbs to make the system
better? What if we remove the SSL Hybrid indicator and replace it with the VuManChu
Swing Free that i tested in this video? We could also use a dynamic take profit method like
i show in that system too. I suspect it would make for a greater gain on account.
Another idea on how to optimize this system would be to use hidden divergence on the QQE Mod
to further filter out signals. Look at this chart
where we have a pullback that is a lower high but we get a higher high
on the histogram. This is followed by a nice trend continuation to the downside.
Check out this playlist for more profitable systems. And have a great day, if you want to.
you