I found a trading strategy that profited 130% in just 2 months of trading. It involves using
just 2 indicators, and best of all, both of them are completely free on TradingView. The
strategy is extremely easy to use, works in all markets, and it s insanely profitable.
Make sure you stick around till the end of the video, because Ill be sharing some secrets
to make this strategy even better and I m going to share the backtest results, to show
you how it performed while taking 100 trades. Let s get straight to it.
First things first, you need to get on tradingview. I ll leave a link in the description. Once
your on the chart, type in any security you want to trade with. Like I said earlier, this
strategy works with basically any security, so there really isn t a wrong answer.
For this example, I m going to use doge. Because, why not.
Once you ve selected what you want to trade. Your going to add the first indicator. The
first indicator is the dema, or the double ema.
If you don t know what the dema is, its basically an upgraded version of the exponential moving
average. It was created in 1994 and was made to give faster signals with less lag compared
to a normal ema. So this is a double exponential moving average
(the blue one) and a normal exponential moving average (the red one).
As you can see, the double exponential moving average is a lot lower, and is giving entry
signals a lot faster than the normal ema. Which in return is giving us a lot less lag.
You should also understand though, that less lag is not always a good thing. This Is because
lag can sometimes help filter out noise and give a higher success rate at times.
But I backtested this strategy with both a double exponential moving average and a normal
moving average. And the dema performed better with this specific strategy.
Once you have the double exponential moving average added, we have to change the settings
a bit. Go to the settings of double exponential moving
average, and we want to change the length to 200. Then go to the style tab and we are
going to change it to blue, just so it s a bit easier to see.
The second indicator for this strategy is one that we ve used on this channel before,
and that is the supertrend indicator. To add it, go to the indicators tab, and type
in super trend. Make sure to choose this one right here.
Go to the settings of the super trend indicator, and make sure to change the ATR period to
12 and the ATR multiplier to 3. Now that we have the indicators added and
all the settings are correct. Lets get on with how to use this strategy.
In this example we are trading on DOGE/USD on the 15 minute time frame.
The first rule of the strategy, is that we will only enter a long trade if the price
is above the dema, the blue line. If the price isn t above the blue line, we will not enter
the trade. The 2nd rule we must follow is that, the supertrend
indicator must give a buy signal. Let me show you an example.
So here, the price is above the 200 dema, but the super trend indicator hasn t given
a buy signal yet, so we wait. We then wait and the super trend gives a buy
signal. It is also important to note, that you must wait for the buy signal candle to
close before entering. This candle could give a buy signal, but change before it closes.
Keeping it a sell signal. So make sure you are only entering after the buy signal candle
closes. Once the candle closes, we enter the trade.
You are going to set your stop loss at the buy signal line of the super trend indicator.
So for this example right here. Then the cool thing about this strategy is
that we basically have infinite profit potential. Unlike my other trading strategies, where
you set a 1.5 or 2 profit ratio, we are going to do something different with this strategy.
We are only going to sell once the supertrend indicator becomes a sell signal.
That s one of the reasons why this strategy is so powerful because you are going to have
some trades where there s going to be a 4.2 profit ratio, or even higher.
So going back to the example. We saw that the price was above the 200 dema, and the
supertrend indicator gave a buy signal. We then enter the trade after the candle closed,
and set our stop loss at the buy signal of the supertrend indicator.
We the wait while the price goes up, for a sell signal from the supertrend indicator.
The supertrend indicator then turns red and gives a sell signal.
This is when we exit the trade. And as you can see, we got a profitable trade with a
4.1 profit ratio. Let s do one more example.
We see price just crossed the dema, we wait for a buy signal from the supertrend, we enter,
set our stop loss at the buy signal of the supertrend, then wait for a sell signal. Once
we see one. We exit the trade. Profit. Lets go over an example of a short trade.
After that, I will be sharing some secrets tips for you guys to help make this strategy
even more profitable. Ill also share how this strategy did while making 100 trades.
So for a short trade, you are going to be doing the exact opposite. Make sure the price
is below the 200 dema, wait for a sell signal to occur, once it does, enter the trade, set
the stop loss at the sell signal, then stay in the trade till you see a buy signal. Once
you see one. Exit the trade. Profit. Now, it s time to go over some secret tips
to make this strategy even better. One tip I would recommend, is for a situation like
this. Where the price is below the blue line, but the super trend indicator is giving a
buy signal. What I d recommend doing here, is waiting
for the price to cross the 200 dema, and then entering.
Rather then not going in this trade because the buy signal came before crossing the dema,
we will still enter once the price crosses the dema line.
If you only entered when the price is above the blue line, and then the super trend indicator
gives a buy signal, in that order. you would miss out on a lot of opportunities like this
one. Another tip for using this strategy is maybe
implementing another indicator called the Fibonacci Bollinger Bands.
I didn t end up backtesting the strategy with this indicator, but I did look at a couple
examples and saw you would get potentially more profit if using this indicator with the
strategy. If one you wants to backtest this strategy
with the Fibonnaci bolling bands added, leave in the comments what the results were, if
the strategy was better with, or without them. Because again, I want to make this channel
a community where we all help each other out. But lets get on to how to use the fibonnaci
Bollinger bands with this strategy. So all you have to do is go to the indicators
tab, and type in fbb for fibonnaci bolliner bands.
Then go to the settings of the indicator, and uncheck all the boxes besides the boxes
with the 1 s. Then change the colors to red just so you can see the lines better.
These lines are basically going to be acting as the absolute highs and lows for the price.
So if the price ever touches the red line, we are going to sell immediately, even if
the super trend indicator still has a buy signal.
If the price does ever hit the fibonnaci Bollinger band, it usually reflects off it and goes
the opposite direction. So as you can see in this example. The price
hit our Bollinger band, so we sold here, even though the super trend indicator was still
green. And if we fast forward, we made more money selling here, then if sold when the
super trend indicator told us. The price will rarely high these fibonnaci
Bollinger bands, but if it does. Sell. Like Is said, I didn t backtest this strategy
with the Bollinger bands, but I did check a couple example with it, and it was more
profitable a majority of the time. Next, let s take a look at the back test results
for the original strategy. For this backtest, I traded both doge/usd
and LTC/usd. I did 100 trades. Which took a round 2.5 months. The most wins in a row
I had with this strategy was 8, and the most losses in a row was 3. This stat by itself,
is insanely good for a trading strategy. The total amount of gains from the 100 trades
was 130.14% and the trading strategy had a success rate of 60% with 60 winning trades,
and 40 loosing trades. If you want to learn how to backtest trades
like this and test your own personal strategies, watch this video where I go over how to do
so and backtest your strategies with years of data on tradingview, so you can see just
how profitable your strategies actually are. Thanks for watching and ill see you guys,
next time.