the three ema strategy isn't really the best trading system for beginners this is a video
from the secret mindset and i'm gonna test this theory out one thousand times to see if it rings
true thank you for bosstrader for suggesting this video and just a disclaimer i am not a financial
advisor and take everything that you see and made in this video as entertainment and of course
all the indicators that you see in this video work on all time frames that work on all markets
they then repaint data on withdrawal and they're a hundred percent for free
go to your indicators tab and just type in three ema and it will be the three ema from victor grego
and the default settings are 50 100 and 200 i'm just gonna change the 200 to 150
just like secret mindset had it so how this works is if the price goes below that 200 ema and the
150 ema and the 50 ema crosses as well to the downside we are in for a cell and the same vice
versa when going for a long position the price has to go above the three emas and the 50 and 100 dma
also has to cross over the 150 as you can see with a circle is pointing that is the exact moment when
the conditions are met now with the secret mindset video he said the price has to cross below that
50 ma and touch the 100 ema and then cross over to the 50ma again for a long position to happen
now i'm not going to do it exactly that way as you wouldn't get a lot of trades and what i'm
going to do is as you can see with the circulars are pointing if it does touch the 50 ema or just
crosses over and come back up again i will take a position and this is the only way how i'm gonna
meet that 1000 trade quota in a decent amount of time at least and as we can see over these trades
over here the price has crossed below with those two emas and you can see we don't take a trade
when the price and the two emails cross over but we wait for that pullback action to happen
first and as you can see with all the circles pointing all six these trades are valid and i will
take them remember this is a pullback strategy so we're only gonna take pullback trades and
then let me just show you how i'm gonna place my stop-loss i'm not gonna place it at 150 ema
or the 100dma i'm gonna place it at the last high or low and then risking one to 1.5 with spread
let me show you just what not to do if the price goes over the 100 dma or the 150ma and it comes
back down that trade will not be valid it is only when you cross over to 50ma and possibly touch the
100dma and come back up that is only it when it will be valid so as you can see all the trades
that you see here on the screen is not valid as you can see over here this is a circumstance
where the trade will be valid we crossed over the 200 year mater price and the moving averages
did and then the price came down below that 50 ma touched the 100 ema and then came back up and as
soon as price closes above that 50 ma again that is when i will take the trade on the next candle
so this is a very selective and specific kind of setup but nonetheless it can be done so let us
get into the buy setups as you can see with the trade over here all the conditions are made the
emas did cross over that 150 and the price as well so the first pullback that happened we are gonna
place our trade on the next candle and then we're gonna place our stop loss at the previous low
and as you can see kind of a problem that is gonna happen quite a bit in this test is that the small
stop loss can be stopped up pretty easily by just a little price fluctuation and then just looking
at another setup over here you can actually see three trades on the screen all the conditions are
met and three pullbacks did occur and as you can see if you're looking at the stop loss and the
position that i'm gonna take these are gonna be very small positions at most of the time because
we are on the one minute chart but not all the position will be that small as you can see
with this trade over here so let us get into the cell setups the exact same thing just vice versa
the price has moved below that 150 ema and the two other ema's also moved below it as you can see two
pullbacks that happen over here i'm gonna place my position and that's how it's gonna look like and
i just wanna give a special thank you to my team getting these results will be damn near impossible
and with that said getting those results is really hard work so if you want to help me out
just comment down below traders q and that's it and the results are in everything that you see on
the screen is from the 1 to 1.5 r and r we are on the one minute time frame 1000 trades were taken
200 trades on each of these pairs risking only one to two percent leverage was one to one hundred
spread was three the date started at twenty twenty the rest of reward was one to one point five the
wins in a row were six and the losses in a row were nine the average win rate for the euro usd
was thirty three percent four euro jab it was 37 for gold 31 for nasdaq 37 and on bitcoin
34. so the average win rate in total 401 to 1.5 was 34 percent the win rate on a 1 to 1.2 was
39 and the win rate for one to one was 46. and as always nothing against the secret mindset but in
my opinion this is not a really good setup for a beginner and as we can see on the scoreboard
the three ema crossover pullback strategy by the secret mindset came only one percent lower
than the default super trend and at the same level as thyron indicator also on default and
then going over into the information center let's go over the pros and the first pro and probably
the only pro that i could really get out of the system is at least it does combine price action
with indicators and creates a hybrid system i'll give it some points for that the cons however is
it has a really good idea behind it but a really poor execution here that kind of ties in with the
first pro i think it's a great idea mixing your indicators with your price action trading and
kind of using the indicators just to supplement your trades but in this circumstance it just did a
very poor job of it number two it was below break even and then number three the trades that you
got were way too far and wide and the rules were way too strict as you can see we were on the one
minute chart and getting those trades started at the date of 2020 and this is why i mentioned in
the beginning of the video that i kind of modified my pullback system on how i'm going to take the
trades it is for this reason so i can actually get that quota that i needed within a reasonable
amount of time so let us go over into improvements and the thing is that i want to mention i'm going
to show you in just a minute but it is good it is a really good idea to filter out bad trades
but in this circumstance we lost out and so many good trades that we just couldn't participate
in because the rules were just too strict and the indicators didn't combine really well and then the
second thing is maybe mix the moving averages the types of moving averages a bit to get a slightly
better edge the problem is you're running three emas how it calculates the price action is the
same and maybe just diversifying it a little bit with let's say with the weighted moving average
and the smooth moving average you might get a better result and if you're gonna use this system
it comes up with number three mix that scalping with the intraday you will get so much more profit
out of this type of system so the potential is kind of there you just have to work your way
around it so let us hop into the chart and let me give you a few pointers as you can see what
i mentioned with the number three improvement is exactly this this whole downtrend you didn't
participate in because your rules were just too strict and also because you were scalping with
the 121.5 r you wouldn't even gotten this full trend now this isn't a perfect example
of where you lose out on a lot of profit and to be honest you want to build your system
so you can maximize as much of this profit as you can and then another perfect example over here you
can see this whole downtrend and you only might have participated in one or two of these trades
you