I spent the past few days testing this one specific strategy I found. The results, well
they were pretty good. So good, that you would double your account size within 30 days of
trading with this strategy. And to prove that point, I m going to show you the exact indicators
this strategy uses, how to know when to enter a trade, how to know when to exit a trade,
and at the end of the video I ll tell you how this strategy can be improved, and show
you how this strategy performed when tested with 100 different trades. Let s get straight
into it. To first get started we have to hop on TradingView.
If you don t have it already, I ll leave a link in the description.
First you re going to want to go to the indicators tab.
Type in SSL channel . Add this one right here. The second indicator is the Chaikin Money
Flow indicator. Then the third and final indicator is a volatility
oscillator. So now that we have all the indicators added,
let s change the settings a bit. Go to the SSL channel indicator, change both
the periods from 10 to 20. Then I m also going to change the colors to
blue and yellow, so they are easier to see on the chart.
Next go to the settings of the chaikin money flow indicator.
You can keep the inputs at default, just go to the style tab, change it from line, to
area. Then I m also going to change the zero line from a dotted line to a solid line.
Then finally, you can keep the settings for the volatility oscillator at default.
Then just like that, we have optimized are indicator settings for this strategy. Now
let s go in detail on when to actually enter a trade.
But first I want to show you this really cool site I found. It s called TraderEdge. It s
a really cool site if you want to mannualy backtest trading strategies and see the results
instantly. For an example. Let s say we want to start
with $1,000. You can change the increments to dollars or
percents. Then what you would do is go through each and every trade when the indicators give
an entry signal and record if it was a winning trade or a losing trade on the website.
Once you have the amount of trades your happy with. You can check out some really cool statistics
like the PnL, winrate, most consecutive wins, most consecutive losses, and so many other
neat statistics. If you find a good strategy you can even save
it to your strategy library. They are even running a really cool promo
where the first 100 people to signup for a free trial will get a free backtesting plan
and a full course which is recorded at $350 of value.
Plus it s a free 7 day trial, so if you don t like the site you can cancel anytime. If
you re interested, I ll leave a link in the description. Let s get back to the strategy.
So the whole idea behind this strategy is to get us in the best possible price in a
confirmed uptrend, while trying to stay out of trades when the market is consolidating
and moving sideways. So let s go over when to actually enter a
trade. Then after that, I ll tell you how you can possibly improve this strategy.
First you want a bullish cross on our ssl channel. Which means you want the yellow line
crossing above the blue line, like it is here. Next you want the chaikin money flow indicator
to be above the zero line, like this. Then finally you want the volatility oscillator
s white line to be above the upper band. If all of these rules are met, you enter a
trade. Set your stop loss at a recent swing low.
So one of the reasons why this strategy is so profitable is because we let our winners
ride in trending markets. What I mean by this is, we will sell one the
ssl channel gives us a bearish crossover. Meaning the yellow line crosses below the
blue line. So we are not going to have a set take profit.
We are simply going to exit the trade when the market starts losing momentum.
So let s see what happens with this trade. We have entered our trade and have our stop
loss setup. Price goes up for a while and then there is
a bearish cross in the ssl channel right here. So we exit our position.
Let s quickly go over how to do a short trade. Then I ll tell you how this strategy can be
improved so we can raise the winrate just a little bit more.
First you want a bearish cross of the ssl channel. So the blue line crossing above the
yellow line. Next you want the Chaikin Money Flow to be
below the 0 line. Then finally, you want the volatility oscillator
white line to be below the lower band. If all these rules are met, enter a trade.
Set your stop loss at the most recent swing high
Then you are going to exit the trade when the ssl channel makes a bullish cross, so
when the blue line crosses below the yellow line.
We wait, and then a bullish cross occurs, so we exit the trade.
Now let s get into some tips of how we can improve the strategy.
The first tip is to use a 200 exponential moving average.
Now I know everyone doesn t have the paid version of tradingview, so a lot of you can
t have more than 3 indicators. But if you can more than 3, you should definitely add
a 200 ema to this strategy. This will significantly increase the winrate.
Just add it to your chart and you will only take long trades if the price is above the
200 ema, and you will only take short trades when the price is below the 200 ema.
This will help out a lot in descreasing the amount
of false signals. If you would like to completely maximize profits
incorporate support and resistances. So say if you were to enter a trade because you got
all 3 signals, but it was coming up to a key resistance, you might want to sell a little
bit early or sell 50% of your shares, as price is likely to reverse at this point. That s
just one example. You can also use some other key trading factors
to really verify trades, like divergences, volume, or even trend lines.
All of these will greatly increase the chances of a winning trade.
As for the results of this strategy. I back test just the original rules, without the
extra tips to make the strategy better. So these results are just with basic rules.
Out of 100 trades. This strategy profited 279.58%. Having 60 wins and 40 losses, giving
a total winrate of 60%. This strategy also took 2 and half months to enter 100 trades.
Which means, theoretically, you would have doubled you account size within 30 days.
If you would like to see some of the more advanced backtest results like the what it
was tested on, the timeframe, most consecutive wins, most consecutive losses, etc.
I ll leave all the backtest results to this strategy in my Discord. I ll leave a link
in my description. If you do use TradingView, I made a video
of the 10 most epic hidden gems on their website. Some of them helped me tons in saving time
and even increasing my winrate. Go check that out, thanks for watching and I ll see you
guys next time.