I have tested many things on the Trading Rush channel over the last 6 years.
This is some of the best testing data on the internet.
However, if you try to watch all the videos, it will take you many hours.
So in this video, I am going to save you time and compress the entire Trading Rush channel and its tested data into around 30 important points so you can learn and get better at trading within just a few minutes.
Number 1. The MACD is the highest win rate indicator when it comes to identifying the end of the pullback in a trend.
You simply have to look for an uptrend and then wait for the MACD lines to go below their zero value.
It looks something like this, and then wait for a crossover in the upward direction.
That is when we take a buy trade and get a high win rate, according to tested data.
Number 2. If the price triggers your stop loss and then goes back in the entry direction without you, try the ATR indicator.
Its value will move up and down based on how much the price is moving.
You simply take that ATR value and add it to your stop loss distance.
Now your stop loss is much further away, where it will not get easily triggered by random market noise.
It will get triggered only if you are really wrong about the entry direction.
Number three, an accurate or consistent win rate does not exist in trading because trading is not a coin toss.
So do not test strategies a million times thinking more trades will give you more accurate win rate data.
If you get a 64% win rate after testing a few hundred or thousand times, then just say the win rate is around 60%, because you will never get an exact 64% win rate in the live market.
The win rate can drop to 50% and even go up to 70%.
It will hover around the 60% mark if you have tested properly.
Number 4. Backtesting or trading with a bot will almost always give you a lower win rate.
Manually filtering the markets and trading with proper reasons will give you a higher win rate, according to data.
Number five. If you struggle to draw support and resistance, maybe try the Heikin-Ashi charts.
They smooth out the price movement nicely, resulting in a clear reversal point where we can draw the support and resistance easily.
Number six. You can see if a price movement was strong or weak by looking at the volume indicator.
If there was an upward move and a big volume spike, then there was strength in that candle.
If the price moves up strongly but the volume does not rise strongly, then it could be a weak move where the price can easily reverse back down.
You can use volume to identify the real good moves and the fake good moves.
If you do the exact opposite of what a popular indicator or strategy says, it will destroy your trading beliefs.
You have to experience this one to really understand it.
Try it sometime on a practice account.
It will open your eyes.
Number 8. Many old strategies that were popular back in the day actually did work well back in the old days.
Most of them do not work well anymore.
Their win rate went down because the markets changed.
Number 9. If the price is in a range and then gives a breakout outside the range, it is a really bad idea to take trades in the breakout direction.
According to tested data, most range breakouts fail and the price moves back.
Number 10. The only breakouts that work are trend breakouts, such as when the price breaks a resistance level in an uptrend.
Number 11. In a trend strategy, very big profit targets give a very low win rate, but they actually make bigger total profits in the long run.
On the other hand, smaller profit targets give a very high win rate, but they make less profit in the long run.
You have to choose whether you want a high win rate or big
Number 12. If you trade Forex, the time of the day matters to your win rate because there are different sessions.
Some Forex sessions give better price movement, resulting in a higher win rate.
13. If you trade stocks, the time of the day still matters to your win rate.
You can get better momentum trading opportunities near the stock market open.
Number 14, Fibonacci levels do not work in trading.
If you see a trading guru take trades using them, run far away and do not look back.
You can even use the Fibonacci indicator to filter out bad trading gurus.
If you see someone use Fibonacci levels, just ask them to show data-backed proof of them working, because tested data says they do not work at all.
Number 15. Someone once emailed me asking why I tested and shared a strategy completely for free that they paid 2000 dollars to learn from a trading guru.
The sad thing is that the strategy they paid a lot of money for was just a simple old moving average crossover strategy.
The moral of the story is that most high-priced trading courses are just things that are already available for free on YouTube.
They are not worth thousands of dollars unless you are getting access to an experienced trader who will guide you directly.
Number 16. Money management in trading is one of the main things that will make you a successful trader.
Unfortunately, every time I have made a good video on this topic, it got fewer views.
On the other hand, high win rate and fast money topics always got more attention.
It shows where most traders’ focus is and why 90% lose money.
Number 17. Most trend strategies I have tested got a profitable win rate.
It shows that most strategies do work.
If you lose money in trading, that is on you for doing something you should not have done.
Number 18. I even tested taking random trades in the trend direction, and it made money.
It showed that the actual trend matters more than what strategy you use in it.
Number 19. If you want to book bigger profits than your loss but do not want a low win rate, setting the profit target 1.5 times bigger than your stop loss distance is the sweet spot.
Number 20. I once tried to create a strategy that would blow up the account fast.
The only main rule was that I could not risk big per trade.
Let’s just say it is impossible to blow up the account fast, even when we take random bad trades, as long as we do not risk big per trade.
Number 21. Taking random trades in a non-trending market will most likely give around a break-even win rate.
In other words, your entry strategy will never blow up your account in most normal scenarios.
Number 22. Adding more indicators to your chart does not increase your win rate according to tested data, it just increases your confusion.
Simple always works better.
Number 23. If you want to grow an account fast, do not risk 1% of the starting account balance on each trade.
Instead, risk 1% of the current account balance on each trade.
This not only increases the profit, but also reduces the probability of blowing up the account.
This compounding method is the best of all.
It was also taught by a famous trader to a group of strangers in the old days.
Those strangers made a lot of profit.
They were called the turtle traders.
Number 24. The best compounding method I just described actually sucks if your win rate is near the break-even point.
It is what it is, according to tested data.
The turtle method only works well when the win rate is good or bad, but not in the middle.
Number 25. I once made a trading bot make money, but I had to filter the bad markets out.
Trading bots on their own do not work that well.
Number 26. If you are a beginner trader, risking 1% of the account per trade, will have a high chance of blowing up the account, because the win rate at the learning stage is not profitable.
That is one of the reasons most traders lose money.
So risking very little while learning, like 0.1% per trade, or just sticking to a small or practice account, is the best move.
I started trading with just a $10 account 10 years ago.
That was one of the main reasons I did not lose a lot of money in the learning
27. If you only take buy trades on the stock market’s higher timeframes, you have a very high probability of becoming a successful trader.
But some might call you an investor with extra steps.
It works, though.
28. According to tested data, the way I draw support and resistance works around 60% of the time.
This is because I only draw the ones clearly visible on multiple timeframes.
Number 29. Since AI is also trained on popular trading knowledge, it is pretty good at identifying patterns on the chart and other things.
It did a pretty good job when I tested it in a video.
However, I would give my hard-earned money to Wall Street bets before giving it to some clanker AI.
Number 30. Market noise or random buy and sell orders on higher time frames, create excellent looking fake price action patterns on the smaller time frames.
Most day traders literally trade random market noise.
This is because it is pretty much impossible to identify and then separate noise on the smaller time frames.
Number 31. Smart money concepts are just old price action concepts with a fancy new name.
They use unnecessarily confusing logic to look special.
Just use the classic price action concepts that many successful traders have been using for decades.
Number 32. Broker and other fees can make a good strategy lose money in the long run.
I have seen day traders make a lot of profit, but then they pay 50% of that in just fees. After government taxes and everything else, you are just broke with extra steps.
Do not trade anything that has high fees.
Number 33. Resistance works on the stock market’s higher timeframes, but the win rate of taking random buy trades is higher than the resistance win rate.
That is because the stock market moves up in the long run.
So drawing resistance on the stock market’s higher timeframes is a really bad idea.
Number 34. Day trading is very hard, and swing trading is only hard.
basically, swing trading has a higher probability of making you a successful trader than day trading, because many things, like high fees, are against you in day trading.
But, on the other hand, day trading gives you live market experience faster which is a good thing to learn faster.
number 35 every trading strategy has an ideal market condition
if you cannot identify the good and the bad market conditions then it is impossible to become a successful trader according to tested data
So focus on identifying the ideal market condition where the win rate automatically goes up.
36. The highest profit I made from trading was because of risking more on higher probability, rare setups.
I was only able to survive in the market for 10 years because I risked very little or did not take trades in bad market conditions.
The skill to identify when to take a trade and risk more, and when to not take a trade and risk little, is one of the most important things you need to learn as a trader. Thanks for watching!