Hey now. I'm back with another trading system review. In this installment of Trader's Landing,Ii
am going to review this system from The Online Trading Signals channel that boasts an 85%
accuracy on the one-minute chart. How perfect is this strategy? How amazing is this System?
Is what i am about to show you that incredible? Just how brilliant is this approach?
And is mark really going to be a millionaire? I am going to answer all of those questions and
provide you with my five optimization tips to make this trading system even better. And if you want
to see more content like this, just crush that subscribe button better than this lady kicks butt.
I call this system The Gossamer Scalp. And like most trading systems it can be applied to Forex,
crypto, options, stocks, indices, or any instrument that has significant volume
and market participants. This trading strategy uses just one free TradingView
indicator. As always the link and settings to the indicator is listed in the description below.
This system utilizes the Heikin-Ashi RSI Oscillator. Per the creator's settings,
the Open Smoothing will be set to 7 in an attempt to diminish market noise and provide
more valid signals. In addition, I am going to remove the histogram and increase the opacity
of the oversold and overbought section to 25 percent so you can see it more clearly.
This study uses the Heikin-Ashi as a histogram with the RSI laid over similar to how the MACD
appears. The Heikin-Ashi RSI Oscillator will be used to provide triggers and provide trade exits.
Let's go over entry criteria and review some examples. As always system rules and
details are listed in the description below. This chart is Shiba Inu verse the US Dollar
one-minute candles. The rules to enter along on The Gossamer Scalp are, first, the body of
the red Heikin-Ashi candle must close in the oversold zone, which is the green shaded area.
Please note that this is a change from the original system that only requires a touch
of the green shaded area. I changed it to the close of the body to filter out false signals.
Second, the buy is placed when the first green Heikin-Ashi candle closes.
All of that happens on this candle here, that is our trigger candle. The original creator did not
specify a stop-loss so for this test I will be placing the stop below the previous swing low.
And we exit the position when the first red Heikin-Ashi candle closes while touching the RSI
and the trade is in profit. And this setup yields a 2.15 risk to reward ratio.
If you enjoy this content make sure to click that like button.
I have one more long example. First, a red Heikin-Ashi candle closes in the oversold zone.
Next, there is a close of a green Heikin-Ashi candle on the indicator. Both rules converge
on this candle, and it serves as our trigger. The stop is placed below the previous swing
low and the target is dynamic. And this setup closes on the close of a red Heikin-Ashi candle,
while touching the RSI, and the risk to reward winds up being one to two. Now we flip to shorts.
This is what I will test for shorts. First, a green Heikin-Ashi candle closes in the red
overbought zone on the indicator. Next, we are looking for the first red Heikin-Ashi
candle to close. All of that happens on this candle here, that is our trigger candle.
The stop is placed above the previous swing high, and the target is dynamic.
And this position is closed on the first green Heikin-Ashi candle while touching the RSI.
I'm going to show you one more quick short example. A green Heikin-Ashi candle touches
the overbought zone. A red Heikin-Ashi candle closes. This is our trigger candle.
The stop is placed above the previous swing high, and the target is to be determined.
And this trade is closed when the first green Heikin-Ashi candle touches the RSI
for a 1 to 1.6 risk to reward. I'm going to give you some intriguing ideas on how we can make the
system better, along with a trader's landing score. And now it's time to do, what I do.
If you enjoy this content please hit the like button. Remember this is just
100 tests on one instrument. If you are thinking of using this system
please do all the required testing and be sure to let our community know what you discover.
This test was done on Shiba Inu verse the US Dollar one-minute Japanese candlesticks. It
took four days to find the 100 setups. Most wins and losses in a row equal each other at seven.
This system had a winning rate of just over one-third, and a profit factor
of one-half. The total gain on account taking all the setups would have been a negative 32 percent,
which would be made worse by fees. But there are some extremely important lessons we can learn from
this strategy other than that the system does not have anything close to an 85% win rate.
So the equity curve here would be fabulous if we could just reverse it.
But we cannot. Typically I give some perspective on this and here it is...
What score would you give this strategy? Let me know in the comments below. For the first time,
I am going to give a system a Trader's Landing score of zero.
Because if this system is so brilliant, amazing, perfect, and credible,
and turning people into millionaires, they must be taking the other side of each trade.
Remember the enemy of great is good. But in this case the enemy of awful is knowledge.
I have five key lessons you can take away from this dumpster fire.
First, this thing does not catch large moves. Look at this setup, that gets you in here,
but out here. And you miss this entire move up. And the same thing on this short setup. The use
of this indicator to exit on a dynamic basis is even a worse idea than chasing after this kid.
Second, if you are going to use a dynamic take-profit system,
it must provide the appropriate gains. The average risk versus reward for this system
removing all losing trades was an abysmal 0.89.
Instead of using this ridiculous method to get out of the position,
you could use something like the SuperTrend which I featured in this video. Look here where we can
see the exit points using this goofy method, verse exiting on a SuperTrend sell signal.
Third, and this is key for any system. You must know when to deploy your trading strategy and
when not to. That is the difference between bots and a successful trader. Look at these
three losing buy setups during a clear downtrend. Why would anybody take these positions? Generally,
these will be filtered out by a trend filter like the 200 EMA, or some common sense.
Then we come to the part of why is this? Why is the exit when the opposite Heikin-Ashi
colored candle touches the RSI? There were so many setups like this one. When you wait for
the retrace to the RSI it gets you out in a worse position than if you didn't.
Next, I came up with this in literally one minute. Looking at this indicator,
but using the 200 EMA and the 50 EMA, along with the Heikin-Ashi candles for triggers,
you could have a very profitable system. I don't know about an 85%
win rate. But I guarantee it will be more profitable than that brilliant strategy.
Check out this playlist for more profitable systems. And have a great day,
because you deserve it.
you