I have not backtested this strategy and to use the "REPLAY" button would costs me some money so you can say, it is biased since the candles were already formed ahead.
Strategy -
Time frame - 1H
Risk/Reward - Keep to 1:2 strictly
Example : Trade Setup 1
11 Apr 25 candles closed above 10 Apr 25 - LONG
SL at closing of 10 Apr
Profit target - 1 : 2
You can see that you are stopped out AFTER you set up Trade set up 2 (21 Apr red candle), ie 10 days later , you are in a LOSS position.
Trade setup 2 -
Long on 17 Apr
got stopped out on 21 Apr when it gapped down. See the power of having a SL else your losses will magnified overnight!!!!
So in this chart, there were 5 trades, 3 in profits and 2 in losses. Overall, you gained because your rewards are 2x so in this case you won 3 multiply by 2x = 6x but your losses are 1x or 3 multiply by 1x= 3x so nett off you gained 3x
I would avoid using leverage to trade and keep to the strict rules of 1- 2 trades per week and strictly 1:2 risk/reward ratio. Of course , if you manually watch the chart live (meaning you need to stay awake to glue on the computer)
you might gained more than 1:2 risk/reward but that is not the essence of this strategy.
Keeping the frequency low tame your emotions (greed) of increasing your position size and risk/reward. What you want is CONSISTENCY not huge spike up and down. Don't think you can make 5x in a day and go on holidays for the next few days. You gotta put in the work (sufficient charting skills allow you to be more nimble and confident but not to inflate your ego by excessive trading).
I suggest paper trade for a good 1-2 months and see the results yourself BEFORE you say it work or doesn't. Paper trade is good especially for beginners but once you surpassed this stage, I think using your own money to trade is the real game. Staring at 10% loss is very real and some can take it well while others can't handle it and will manually adjust the SL or PT to modify the strategy. Keep it simple until you gained consistent profits.
As usual, please DYODD
Strategy -
Time frame - 1H
Risk/Reward - Keep to 1:2 strictly
Example : Trade Setup 1
11 Apr 25 candles closed above 10 Apr 25 - LONG
SL at closing of 10 Apr
Profit target - 1 : 2
You can see that you are stopped out AFTER you set up Trade set up 2 (21 Apr red candle), ie 10 days later , you are in a LOSS position.
Trade setup 2 -
Long on 17 Apr
got stopped out on 21 Apr when it gapped down. See the power of having a SL else your losses will magnified overnight!!!!
So in this chart, there were 5 trades, 3 in profits and 2 in losses. Overall, you gained because your rewards are 2x so in this case you won 3 multiply by 2x = 6x but your losses are 1x or 3 multiply by 1x= 3x so nett off you gained 3x
I would avoid using leverage to trade and keep to the strict rules of 1- 2 trades per week and strictly 1:2 risk/reward ratio. Of course , if you manually watch the chart live (meaning you need to stay awake to glue on the computer)
you might gained more than 1:2 risk/reward but that is not the essence of this strategy.
Keeping the frequency low tame your emotions (greed) of increasing your position size and risk/reward. What you want is CONSISTENCY not huge spike up and down. Don't think you can make 5x in a day and go on holidays for the next few days. You gotta put in the work (sufficient charting skills allow you to be more nimble and confident but not to inflate your ego by excessive trading).
I suggest paper trade for a good 1-2 months and see the results yourself BEFORE you say it work or doesn't. Paper trade is good especially for beginners but once you surpassed this stage, I think using your own money to trade is the real game. Staring at 10% loss is very real and some can take it well while others can't handle it and will manually adjust the SL or PT to modify the strategy. Keep it simple until you gained consistent profits.
As usual, please DYODD
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.